Sustainability Seals Success

Mr. Saurav Mohata, Mr. Vishal Golchha

Abstract


After 20 years of liberalisation, the time has come to assess the performance of Indian economy in terms of equality. Almost every individual and agency concerned, including the multilateral institutions now emphasised the importance of an inclusive growth because an inclusive nature in Indian growth story will only enable the good economic performance to be stable and sustainable.

Sustainability is the term used to identify various strategies that make it possible to utilize available resources to best advantage. It is to establish local economies that are economically viable, environmentally sound and socially responsible. Achieving this goal requires participation from all sectors of the community, both to determine community needs and to identify and implement innovative and appropriate solutions. Economic sustainability calls for using resources so that the business continues to function over a number of years, while consistently returning a profit. Integration of social, environmental and economic responsibility results to key building blocks to help countries achieve development

Overall inflationary situation in the country makes living difficult for common people, and the poor performance in human development indicators also points to the fact that economic benefit arising outof good growth failed to benefit all sections of the society.

This is detrimental and unsustainable in the long run for the country and the government has to spend more and plan prudently to bridge the gap between the rich and the poor to sustain the good economic performance in the long run.

The introduction of the Voluntary Guidelines on Corporate Governance in December 2009 was the first sign of things to come in terms of making the independent director*s task more demanding.

Within the draft proposed Companies Bill, a number of requirements relating to independent directors and their functioning have been proposed that includes:

•Segregation of the CEO and Board Chair roles

•Certificate of independence

•Requirements relating to the nominations and remuneration committees

•Limits on the tenure and number of directorships

• Performance evaluation of board of directors, committees and individual directors

• Specific responsibilities for the Audit Committee with respect to related party transactions and appointment of auditors (internal and external)


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