‘Vulgar wealth display insults the poor’

The time has come for the better-off sections of our society to understand the need to make our growth process more inclusive; to eschew conspicuous consumption; to save more and waste less; to care for those who are less privileged and less well-off; to be role models of probity, moderation and charity.

I invite corporate India to be a partner in making ours a more humane and just society. We need a new Partnership for Inclusive Growth based on, as I would describe it, a Ten-Point Social Charter.

• First, have a healthy respect for your workers and invest in their welfare. Unless workers feel they are cared for at work, we can never evolve a national consensus in favour of the much needed more flexible labour laws aimed at ensuring that our firms remain globally competitive

• Two, corporate social responsibility must not be defined by tax planning strategies alone. Rather, it should be defined within the framework of a corporate philosophy, which factors the needs of the community and the regions in which a corporate entity functions. The wealthy have an obligation to society. I am aware that some of our companies are doing creditable work. I compliment them. But we need more such inspiring examples

• Three, the industry must be proactive in offering employment to the less privileged at all levels of the job ladder. The representation companies give to Scheduled Castes, Scheduled Tribes, other Backward Classes, minorities and women in their workforce and staff must increase

• Four, resist excessive remuneration to promoters and senior executives and discourage conspicuous consumption. In a country with extreme poverty, industry needs to be moderate in the emolument levels it adopts. Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest. The electronic media carries the lifestyles of the rich and famous into every village and slum. Media often highlights the vulgar display of their wealth. An area of great concern is the level of ostentatious expenditure on weddings and other family events. Such vulgarity insults the poverty of the less privileged, it is socially wasteful and it plants seeds of resentment in the minds of the have-nots

• Five, invest in people and their skills. Offer scholarships to promising young people. High rates of growth mean nothing for those who are unable to find employment. We must invest in skill-building and education to make our youth employable

• Six, desist from non-competitive behaviour. The operation of cartels by groups of companies to keep prices high must end. It is unacceptable to obstruct the forces of competition from having freer play. Cartels are a crime and go against the grain of an open economy. Even profit maximisation should be within the bounds of decency and greed. If a liberalised economy has to succeed, we must give full play to competitive forces and the private sector should show some self-restraint in this regard

• Seven, invest in environment-friendly technologies. India’s growth must be enhanced and, yet, our environment and ecology must be protected and safeguarded for our future generations

• Eight, promote enterprise and innovation within your firms and outside. The success story of the last two decades has been the emergence of a large number of first-generation enterprise. Industry must try to maintain its competitive edge by investing in R&D and innovation and promotion of enterprise. While government can do its bit, the larger burden is on industry

n Nine, fight corruption at all levels. The cancer of corruption is eating into the vitals of our body politic. Businessmen who enter politics should erect a Chinese wall between their political activities and their businesses

• Ten, promote socially responsible media and finance socially responsible advertising. Through your advertisement budgets and your investments in media you can encourage socially responsible media to grow and flourish. You can promote socially relevant messages and causes

We must end forever the debate whether our country’s march of progress has benefited India and not Bharat. India is Bharat. These are good times for Indian enterprise. Your energy and enterprise are making its mark globally. But never forget that we are what we are because of what our motherland has given us. The time has come for us to ask ourselves what can we give her back. India has made us. We must make Bharat.

This is an edited extract from the prime minister’s speech titled “Inclusive Growth: Challenges for Corporate India”