United Progressive Alliance chairperson and Congress president Sonia Gandhi on Wednesday said that social investments must be integrated into the mainstream of corporate strategy as business does not function in a social vacuum.
"Social development is itself good business," Sonia Gandhi said in New Delhi during her address at the UN Foundation attended by former CNN Chief Ted Turner and Infosys leader Narayana Murthy among a host members of UN Foundation.
But corporates should not look at social investments as a mere dole or as an add-on that need to be done to earn public plaudits, she added.
"The interests of shareholders are paramount but good corporate governance, if it has to have a meaning, must embrace a larger societal agenda as well," Gandhi said.
Indian business must have a role to play in helping young men and women break free from centuries of oppression and discrimination.
Long-term partnerships between governments with both civil society and the corporate sector are essential.
It must not be forgotten that the basic responsibility for delivering on social basics is that of the state.
"You can supplement the role of public agencies, not supplant it. That is why improving the efficiency of public service and delivery systems is so very crucial, especially for the less privileged sections of society," she said.
What is required is a coordinated thrust which will enable the government, civil society and the corporate sector to work together in a synergy.
The corporate sector's role is much more than just providing financial resources. It is a vehicle for mobilising new technology and management and for providing attractive opportunities to young professional's eager to innovate and bring their skills to the social sector.
On Public sector, she said that it is a subject of considerable criticism and there is a need to improve its working.
But much of the social obligations undertaken by the public sector is quite impressive, Gandhi said. She said that Narayana Murthy himself will readily acknowledge that the foundations of Bangalore's success in the 1990s and thereafter have been laid largely by public sector investments over the years in different fields, in that city.
"Other locations in the country too, have developed with all civic facilities through the public sector."
On health front she said India's level of public expenditure in health is barely two per cent of the GDP, while the level of spending on health is about two and a half times of that. "This imbalance is unacceptable and we have set out to rectify it," Gandhi said.
Turner, along with the members of the UN Foundation are here on a four day tour of India. On Tuesday evening, Murthy was inducted into the UN Foundation Board.
Turner, who heads the UN Foundation Board of Directors aims to promote public-private partnerships besides meeting a host of business and political leaders.
Turner who was instrumental in beaming round-the-clock news on TV and more particularly real time war coverage from the battle zones to the bedrooms will host several public forums during his tour.
"We recognise how important India and the region are to a peaceful and prosperous future," said Ted Turner, Founder and Chairman of the UN Foundation.
Since 1998, the UN Foundation has invested nearly 30 million dollars and developed public-private partnerships to support UN projects in India, addressing issues including eradicating polio, protecting Indian women and girls from HIV/AIDS, conserving India's natural resources and wildlife, and developing renewable energy for the country.
These efforts are carried out in close cooperation with the Indian government, UN agencies, and leading Indian business and non-governmental organisations.
