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Private sector told to emulate major PSUs in social initiatives

PUDUCHERRY: As the role of government was slowly becoming that of a facilitator, private enterprises will have a greater social responsibility, Minister for Industries and Power V. Vaithilingam said on Saturday.

Inaugurating a two-day seminar on “Business Ethics, Corporate Governance and Social Responsibility” at the Pondicherry University on Saturday, he said there was no other way for the governments than depending on private capital for infrastructure developments. The private companies should ensure that they parted with a percentage of their profit for social initiatives.

Vice-Chancellor of Pondicherry University J.A.K Tareen appealed to the private sector to emulate major public sector undertakings in their social initiatives.

“Some may argue that the PSUs have failed to make profit. But none would have a different opinion about the social initiatives they have undertaken in their locality,” he said.

Like what the PSUs had done, the corporate firms could also develop townships, hospitals, educational institutions and community halls for the benefit of people living in the adjacent areas, Mr. Tareen said.

Expressing displeasure over the prevailing economic scenario in the country, he said that though the corporate heads had been talking about social responsibility nothing concrete had taken shape.

Even if the private sector majors decided to construct hospitals and educational institutions in all the backward districts, their spending would be only 5 per cent of their profit, he said.

Chairperson of the Institute of Company Secretaries of India, Puducherry chapter, A.V. Syamala said that if the corporate world took up socially relevant schemes, they would generate goodwill among the public.

The seminar was organised by the Department of Management Studies, Pondicherry University, in collaboration with the Institute of Company Secretaries of India.

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