Wipro Chairman Azim Premji.
Credit: DH file photo
New Delhi: Businesses must ensure they conduct themselves ethically and fairly with the philosophy reflecting in all their relations and transactions, Founder-Chairman of Wipro and noted philanthropist Azim Premji said on Friday as he exhorted companies to contribute positively towards the environment and society.
Speaking at FICCI Annual Convention, Premji asserted that unless businesses act decisively, they will not be able to deal with environmental crisis.
Given their strong influence and role, it is important for the society that businesses have purpose beyond profit, the former Wipro chairman and czar of the Indian IT industry emphasised.
"Businesses should ensure they conduct themselves ethically and fairly and this matter of ethics and fairness should reflect in all relations and transactions with clients, employees, vendors, and others which is the foundation, because if business is not conducted ethically, no purpose is material," said Premji who joined the proceedings virtually.
Businesses, he said, must recognise that their actions have significant effects on the world and society, beyond direct stakeholders. "The effects range from environment to local communities. They must do no harm and must contribute something positively," Premji said.
Business entities yield significant influence and power, he said, noting it is therefore important for society that they have purpose beyond merely making profit.
The tech magnate said further added, "We can't insist that every business should have purpose like this but from societal perspective, it is important." Terming climate change as the biggest crisis facing environment, Premji drew attention to the issue of environmental degradation.
"Unless businesses act decisively they will not be able to deal with these environmental crisis," he pointed.
Social issues are far complex than business issues, and success in business does not, in any way, prepare companies to deal with the complexities of the social sector. He highlighted the need for organizations and people to work in co-ordination on issues.
On skilling, Premji urged the industry to take into account actual conceptual understanding, deep knowledge and genuine capabilities like critical thinking, not merely focus on marks or exams "which can be cracked by coaching".
"Also focusing not-for-profit investment in higher education is important, because the higher education costs are high and most students can't afford such costs," Premji pointed out.
Widening capacity in higher education system is important to expand the overall talent pool of the country.
He also advised the industry to reach out to vast regions of the country where economic development is "highly inadequate and poverty is prevalent".