New Delhi, Sept. 28: Deputy Prime Minster Lal Krishna Advani today said the Indian corporate sector should concentrate more on business activities instead of being involved in influencing the political decision-making process.
He also said corporate scandals not only slows down the nation’s economic growth but also pulls down investor confidence. “Corporate scandals have punctured the technology-driven economic boom,” Advani said while speaking at an Assocham seminar on good governance.
Corporate wrongdoing weakens common people’s support for economic reforms. It makes them think that “the reforms are only for the rich to get richer,” Advani said.
He also said it was all right for business associations to represent the case of business to the government, just as it is okay for trade unions to represent the case of labour.
“This is legitimate democratic activity but certainly not alright for business houses to use their financial clout to meddle in government policies and decisions and to influence political processes,” Advani said.
Putting the importance of the regulatory authorities in perspective, department of company affairs (DCA) secretary Vinod Dhall said here today that a strong state should be reflected in the way its regulators function.
“People should be afraid of DCA in matters of the company affairs, the Securities and Exchange Board of India (Sebi) in matters of market regulation and the Reserve Bank of India (RBI) in matters pertaining to banking.,” he said.