India’s enterprise ecosystem needs a deeper ethical foundation and a more inclusive business structure to ensure balanced and responsible economic growth.

Need for Ethical and Society-Oriented Businesses

• Problem of Concentrated Value: India has 65 million enterprises, but only 5,000 are listed, with the top 250 firms holding two-thirds of market value, reflecting a K-shaped recovery where large firms surge while smaller enterprises lag.
• National Goal for Balanced Growth: India needs 10,000 actively traded listed companies and one lakh globally competitive SMEs to ensure broad-based economic development.
• Income Inequality: Income inequality is widening significantly between the rich and the poor.
• Social Inequality: Discrimination on the basis of caste, religion, and race continues to persist in society.
• Communication Inequality: Polarisation is increasing, and people are becoming less willing to engage in dialogue or listen to opposing viewpoints.
• Institutional Inequality: Key institutions such as the Election Commission and UPSC are perceived as weakening, creating mistrust.
• Decline in Public Morality: Public morality is eroding as many political leaders with criminal backgrounds fail to set positive societal examples.

Proposed Indian Enterprise Charter

• Purpose of the Charter: The proposed Indian Enterprise Charter is envisaged as a living document that outlines core values and philosophy rather than rigid rules.
• Defining Enterprise Morality: The Charter would define the enterprise’s moral foundation based on India’s cultural ethos and guide companies on their broader strategic role beyond profit-making.
• Role in Nation-Building: The Charter should clarify how companies are expected to contribute to nation-building and how the government can function as an enabling partner.

Seven Virtues of an Ideal Indian Company

• Obedience to Law: An ideal company must strictly follow the law in all its operations.
• Maintaining a Clean Track Record: A responsible company should avoid controversies to uphold credibility and public trust.
• Long-Term Vision: A company should focus on a 30-year vision rather than short-term quarterly profits.
• Commitment to R&D and Capital Formation: A company must prioritise investment in R&D and capital assets rather than relying on political influence for contracts.
• Societal Value in Profit-Making: Profits should emerge from activities that create societal welfare and must never harm society.
• High Governance Standards: A company must adhere to transparent and ethical governance practices to avoid scandals and maintain integrity.
• Promotion of Social Good: A company should actively support social good by providing employment, promoting skill development, and ensuring employee welfare.

Role of Government in Strengthening Enterprise

• Need for a New Reform Wave: India requires reforms on the scale of the 1991 liberalisation because Ease of Doing Business remains weak due to red tape and corruption.
• Challenges in Legal Processes: Legal disputes take years to resolve, and the government is a party to over half of all business litigations, creating additional burdens on small firms.
• Nature of Indian Leadership: Indian leadership is primarily politician- or journalist-driven, unlike China’s technocrat-led or America’s lawyer-dominated systems. This structure necessitates greater technocratic input in governance.

Way Forward

• Philosophical Foundation: Indian enterprises need a mindset that draws its foundational values from Indian philosophical thought such as the Upanishads and Vivekananda.
• Western Management as Tools: Western management frameworks should serve as the operational tools for improving efficiency, marketing, and organizational management.
• Jamshedji Tata as the Model: Jamshedji Tata blended enterprise and social service by founding TISCO, Taj Hotels, IISc, and developing Jamshedpur’s schools, hospitals, and infrastructure, demonstrating that business success can drive societal progress.

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Conclusion

A values-driven business ecosystem rooted in Indian ethos and supported by systemic reforms is essential for creating enterprises that are both globally competitive and socially responsible.

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