Azim Premji on Businesses' Social & Environmental Responsibility

New Delhi, Dec 8 (PTI) Businesses must ensure they conduct themselves ethically and fairly with the philosophy reflecting in all their relations and transactions, Founder-Chairman of Wipro and noted philanthropist Azim Premji said on Friday as he exhorted companies to contribute positively towards the environment and society.

Speaking at FICCI Annual Convention, Premji asserted that unless businesses act decisively, they will not be able to deal with environmental crisis.

Given their strong influence and role, it is important for the society that businesses have purpose beyond profit, the former Wipro chairman and czar of the Indian IT industry emphasised.

"Businesses should ensure they conduct themselves ethically and fairly and this matter of ethics and fairness should reflect in all relations and transactions with clients, employees, vendors, and others which is the foundation... because if business is not conducted ethically, no purpose is material," said Premji who joined the proceedings virtually.

Businesses, he said, must recognise that their actions have significant effects on the world and society, beyond direct stakeholders.

"The effects range from environment to local communities. They must do no harm and must contribute something positively," Premji said.

Business entities yield significant influence and power, he said, noting it is therefore important for society that they have purpose beyond merely making profit.

"... we can't insist that every business should have purpose like this but from societal perspective, it is important," the tech magnate said. Terming climate change as the biggest crisis facing environment, Premji drew attention to the issue of enviromental degradation.

"Unless businesses act decisively they will not be able to deal with these environmental crisis," he said.

Social issues are far complex than business issues, and success in business does not, in any way, prepare companies to deal with the complexities of the social sector.

He highlighted the need for organisations and people to work in co-ordination on issues.

On skilling, Premji urged the industry to take into account actual conceptual understanding, deep knowledge and genuine capabilities like critical thinking, not merely focus on marks or exams "which can be cracked by coaching".

"Also focusing not-for-profit investment in higher education is important, because the higher education costs are high and most students can't afford such costs," Premji pointed out.

Widening capacity in higher education system is important to expand the overall talent pool of the country.

He also advised the industry to reach out to vast regions of the country where economic development is "highly inadequate and poverty is prevalent".

Premji said he had, during the course of his journey in Wipro, learnt the importance of hardwork, simplicity and integrity and added that the three values are even more relevant in the social sector.

Integrity, which is not only about abiding by law but also meeting commitments, is the foundation for "everything".

"It is about saying what you do, and doing what you say. These three values are equally, in fact, far more important in social sector because the challenges in helping improve society are deeper and far more complex," he said.

Premji said that while Wipro has its own significant CSR initiative, since the foundation owns about 66 per cent of Wipro, out of every one rupee profit that Wipro makes 66 paisa goes towards improvement of lives for most vulnarable sections of the society.

According to the website of Azim Premji Foundation, the vision is to contribute towards a more just, equitable, humane and sustainable society. Azim Premji set up the Foundation in 2001.

"Over the past years, he has irrevocably donated most of his wealth for philanthropic purposes and created a philanthropic endowment valued (as of Jan 2023) at about USD 29 billion (Rs 2,40,000 crore) to fund the work of the Foundation. As part of this endowment, along with other assets, 66 per cent of the economic ownership of Wipro Ltd is with the Foundation," says the website.

"So Wipro is fully in service of larger social purpose and it is certainly being shaped by my personal life," Premji said, adding the IT services company owes its success to the society.