RCB presented the Ramkrishna Bajaj Award for Good Governance to Nadir Godrej, MD, Godrej Industries
By Nadir Godrej According to Steven Pinker And supported by many a thinker, The world’s becoming a better place
Though at a slow but steady pace. And yet there are problems for sure And climate change is at the fore. Inequality is also dire And maybe getting so much higher. If progress on all these is slow The consequences are grave, we know.
Their abilities and constraints are such That governments can’t do much. NGOs have few means but ability And businesses have means but don’t see These issues as part of their core. For profit is how they would score. But businesses slowly realise That profit is a short term prize. After all what do businesses gain If they die out and don’t sustain? But how much can they afford to spend To ensure their existence doesn’t end? That answer’s not easy to find But a thought still comes to my mind. If the efforts of all are combined The synergies that we can find Reduces costs and raises gain And obviates inevitable pain. There’s a capitalistic strain That enthrones shareholder gain. And Milton Friedman could see That this simplistic philosophy Could lead to great efficiency But wherever there’s externality, This capitalism red in tooth and claw Can prove to be a dismal flaw. Correction can come from regulation Or even from self-remediation
And Adam Smith himself foresaw That business could address this flaw. It should be clearly understood One can do well by doing good. Doing it smartly we do better So why not be the trend setter! In capitalism’s early days we see
Social responsibility in some degree. To dissipate the urban gloom Both Cadbury, Lord Leverhulme Then pioneered the company town. Some observers would surely frown At their extremely paternal attitude But many might view it with gratitude. We should remember in that age It compensated their lowly wage. It’s time to get the Tata group Now very much into the loop. Because it seemed morally right The Tata group then set its sight At such a very lofty height,
For what Trade Unions had to fight In Europe for several years Was gifted by these worthy seers, From the goodness of their heart. Undoubtedly this played a part In honing their great reputation And then contributing to the nation.
And doing good is very sound What goes around does come around. Doing good isn’t just a cost The gain outweighs all that’s lost. My grandfather probably saw These examples and found no flaw. He bought faraway marshy land. His critics just couldn’t understand. They concluded he had gone quite mad But today we are glad, not sad. A township then slowly arose And this is where our business grows. We provided every needed tool Housing, hospital and school.
My uncle known as Sohrabji Way back could clearly see The environment was under stress Neglect he knew would be a mess. Our creek side land was reserved The mangroves there well preserved. And from my office I gaze out there, A Mumbai view that’s very rare With greenery all the way Until you sight New Bombay. And now and then, with friends I float On a gently moving boat, With pink Flamingos in full flight, To my mind a splendid sight. In saving tigers he played a role. The environment was a major goal. He played a role in all we do As members of this club well knew.
He’s not here to cheer loud But I’m sure he would be proud. The Tata Trusts as we all know Get a very constant flow
Of dividends from shares they own. It may not be quite as well known Our trusts also have a share The proportion’s smaller but it’s there. And here I think that we all ought to Pay careful heed to Michael Porter. With Shared Value there’s no cost For doing good as nothing’s lost. All it takes is a thinking brain To remove a societal pain And combine it with a business gain To create a sustainable chain Of endless mutual benefit. This concept is a tremendous hit. We thought that we should also try And see if we could apply This philosophy to our group Our employees also joined the loop. In the year 2010 Studies were commissioned and then With the help of Dasra and FSG Our new program, one could see. We aptly named it Good and Green And what a journey it has been! And how do we define our role What could be a proper goal? Now the UN has a lengthy list, So in recounting, some would be missed! So I will focus on just three That I think would be the key For all the others to fall in place And enable us to win the race. Good health through perfect sanitation, Environment and education. All of these can be seen In our program Good and Green.
It is no longer Climate Change Within a tolerable range. A crisis is what it’s about With fires, floods as well as drought. Every week a constant blast Far worse than seen in the past. If we must, we will adapt Prevention though would be more apt. There is a cost to adaptation, It’s rising fast in every nation As well as for the world at large. This will be a heavy charge. In fact, we should all conclude Prevention would be far more shrewd. It actually would cost much less And avoid a lot of stress. All industry should play a role In the carbon neutral goal. GHG emissions should be reduced More green energy should be produced. And so without partiality Our goal for all’s neutrality. Whether water, carbon or solid waste And very soon we will make haste To make our net emissions zero. Will that make the group a hero?
In 2010 the goal looked tall But we took a reasoned call Technology would save the day. So far it has turned out that way. To achieve these goals we will strive To do it all by 2025. As technology takes a leap Green energy gets very cheap. Keen observers quickly saw That Solar also tracks Moore’s law. Whether groundnut shell or bagasse Our India’s full of biomass. And bamboo now is on the way. A major role it can play. At first we thought we’d have to spend But that’s not true, for in the end, The more we thought and the more we slaved We did invest but we also saved. And solar is still getting cheaper And as we start digging deeper In India it will hit the goal Of being cheaper than even coal In just a handful of years. Already we and our peers Are sourcing solar electricity At lower rates than from the utility. For quite some time we’ve been extorted As their finances aren’t still sorted. A silver lining can be seen, Since it incentivises green. Offsets help elimination And rural electrification With distributed solar power Is now the need of the hour. Our cost of water is not so high But yet we do attempt to try To reduce our water consumption But all the same it’s a safe assumption Our water use won’t disappear And so to be neutral I fear We will have to mitigate. Though fortunately I can state
That developing a watershed Doesn’t cost much and instead Our agribusiness can benefit. The government will do its bit But where it fails we’ll fill the breach And hopefully we will reach Many farmers on the cheap But the benefits that we reap Will compensate for the cost And once again nothing’s lost. There are many paths that we can see For achieving Carbon neutrality. But the cheapest way is certainly Through energy efficiency. Real interest rates are rather low And high returns quickly flow From any energy saving device. For business this is very nice. Not only are returns quite brisk, There’s also very little risk. In India mandated CSR Can help us go very far. Multiple benefits is what one sees With water projects or growing trees. Good livelihoods are created Our carbon emissions are abated. Trees planted at a river’s source Maintain the flow throughout its course. So many benefits we can see: The preservation of biodiversity, Different species can be tried. Useful products can be supplied Like biomass or edible fruits And yet the trunk and the roots Can sequester carbon, clean the air, A win-win that is very fair. So while we decarbonise Why not also monetise. So never fall for either or. Our hearts and minds demand much more. Neutrality can come with ease. Some may think that I’m a tease.
Some companies are not yet sold. For some it’s tough, or so I’m told. Energy intensive firms would say It’s tougher then for them to play. If you can turn all waste to gold And if you can be very bold With inventing technology Any industry can see Eventual neutrality. And there is so much more to gain If it’s across our entire chain. The case of course is very clear And yet we are nowhere near Any kind of firm solution To end Greenhouse Gas pollution. Around the world we would find So many leaders that are blind. Or perhaps not so benighted But conveniently shortsighted. Why undergo any pain If by the time you get the gain You will no longer be around. To politicos this may seem sound.
Prevention is much better than cure! So learn it now or then endure The endless pain and aggravation Of the heavy cost of adaptation! If you neutralise at a cost. Competitively much is lost. A uniform carbon tax Would protect all our backs. But bear in mind it’s not a cost. For the economy nothing’s lost. A UBI could be instated, Some other tax could be rebated. And if this is indeed just so. Each economy would still grow. Now with the right advocacy Someday soon we could see An enabling global policy That would encourage us to be Quite Carbon neutral with no pain.
The world can only stand to gain. We can be fair to every nation, Avoid the cost of adaptation! But if we don’t collaborate We can’t escape this sorry state! Now Covid opened up our eyes Let’s hope that we’ve become quite wise!
We saw the benefits of green. But something else was also seen. The different outcomes we could see Because of inequality. Can Covid then act as a spur. Now couldn’t it help to stir Our hearts and minds to newer heights With ESG now in our sights? The vision that we should now share Is a brave new world both green and fair. The environment isn’t all. On society let’s take a call. Throughout the chain let’s keep in sight Every person’s human right. It’s business as usual not bravery To end child labour and slavery. And in all businesses we should see The broadest reach of diversity. Not only is it fair and right. It would give us the best insight. Since life is full of many hard knocks We need to think out of the box. Diversity’s the perfect aid When we are required to wade Through troubled waters or quagmires Unusual thought is what inspires! Lack of health and education Leads to the perpetuation Of inequality through generations In almost all of our nations. Without good health you never learn If you don’t learn you cannot earn. For health as well as climate change It certainly isn’t strange That prevention’s better than a cure.
On public health we should spend. It is much cheaper in the end. With little cost and greatest ease We could reduce lifestyle disease! At any rate I am quite sure We would spend less than for a cure. In order to achieve this goal
Businesses could play a role. Through business models and CSR Together we can go quite far. And similarly through education We can serve ourselves and the nation. We often think that charity Can address disparity. But tackling health and education Are better means for alleviation. Through action and advocacy We can help all humanity To create a world that’s just and fair And everyone is free to share Nature’s bounty and be fulfilled And then I’m sure we’d all be thrilled. Our people also volunteer, Together all of us can steer A world in which there’s harmony Between business and society A mutual reinforcing loop Benefiting every group. And once again our CSR Can serve to take us very far. The projects that are the biggest hits Provide us all with benefits. Ingeniously we can plan it Serve profit, people and planet! Sustainability is not a pain. For after all it is a gain. It helps us all to survive, Last long as well as to thrive. It’s a license to operate. The ecosystem finds it’s great. Society, Governments, Banks Cooperate, convey their thanks.
Together with both heart and brain Sustainably let’s sustain! With ESG spends nothing’s lost As benefits outweigh the cost! And Governance also pays. It’s an effort in the early days But over time you are rewarded Implicit trust is awarded. The values for which you stand Help to enhance your brand. You must persist and never balk Consistently walk the talk. If your Governance is strong The payback won’t be very long. Always keep these facts in sight Don’t hesitate to do what’s right. This strategy is tried and tested In the long haul it can’t be bested. Now ESG will take you far. Don’t just be a shooting star Rising high before you fall Instead take the enduring call. All of us can forge ahead If we only learn to shed The barriers that can divide. And if cooperation’s tried, With the help of business, I foresee A helpful, thriving society. I am honoured and I am awed To receive the Bajaj award. Now business responsibility’s a major goal And Mahatma Gandhi played a role. Not only did he end the British Raj He inspired both Godrej and Bajaj. It’s time for business to realise Good governance is very wise. As trustees we should be aware. Our actions should be right and fair!
