Corporates must help sustain global economy

by Elmo Leonard

A corporate is now being likened to a citizen. Every citizen has the responsibility of caring for his or her family, the community and contributing during his and her lifetime towards the national economy. In turn, every corporate, has the responsibility of looking after its employees, the people of the country, the environment, and contributing towards the growth of the economy.

With conglomerates growing larger, such responsibility extends, more, into the global perspective. While, the whole world is linked into a global economy, every corporate, big and small must help sustain the global economy. Such sentiments were expressed, during the third annual 'Best Corporate Citizen' awards, conducted last week, by The Ceylon Chamber of Commerce (CCC).

In contrast, Prof. Gunapala Nanayakkara, of the Post Graduate Institute of Management, cited a theory of 100 years ago, when industrialists thought that their responsibility was to make money. In the process, if dirt was left on the road, it was the business of government to clean it up, for the industrialist paid taxes. Today, such a theory would be diabolic for the economy and horrendous for the environment.

CCC chairman, Mahen Dayananda said that the corporate responsibility of every firm should be stated in its annual report. Every one in CCC was committed to improving corporate responsibility, he said.

The keynote speaker on the occasion, Mohamed Rafiq, who is the World Conservation Union (IUCNs) head of the business bio-diversity program, called Sri Lanka his second home, being charmed by its natural beauty. But, he posed the question, whether the country as a whole has benefited from nature. In the broader sense, extending outward, in South East Asia - too many forest fires occurred, often, originating from the wrong practice of cutting down a branch and trying to conceal it with fire.

With such fires, the quality of air in many countries in the region, get affected, for long periods. The world must care about the environment, for if not, society will suffer, and business cannot succeed in a society which fails, Rafiq said.

Rafiq, cited examples of corporate responsibility around the world, including Nestle, in South Africa, making use of the water left over from a powder milk plant, in a dry locality. Rafiq called the Kandalama Hotel, Sigiriya, a business icon in the jungle, so well blended with the environment, that it cannot be noticed, until close by. But, all that was being done by responsible corporates around the world was just a drop in the ocean compared to the abuse the environment receives.

No one thought that harsh climatic changes would come so soon, and at the pace of change, before long there will be local laws and global laws on preserving the environment. Rafiq warned mankind, `we live in a borrowed world; we live in debt with nature.'

World Bank country director for Sri Lanka, Ms Naoko Ishii, said that Sri Lanka's economic growth of 5 percent during the past five years was good with 8 percent during the current year, in spite of conflict, was excellent; more taxes were collected this year. But, poverty had not declined; 1991 - 26 percent and 2002 - 23 percent.

Most growth had taken place in the western province and the lack of growth in rural Sri Lanka was alarming. The private sector, the engine of growth, had a role to play in rural advancement, through private, public partnership, she said.

Ishii, said that Sri Lanka was abundantly endowed, being in the middle of the Indian Ocean and mid-way between East and West; along trade routes; natural beauty and rich culture; plenty of wild life; bio diversity, but fell far short of using such resources.

CCC CEO, Prema Cooray said that in the next `best corporate citizen events' to come, the scope of the small and medium sectors would be widened.

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