Global Compact Network
India and Accenture publish India CEO study on sustainability
NEW
DELHI, India; Feb. 14, 2014 – Two thirds of CEOs of
Indian companies say that sustainability is very important to the future success
of their business, but less than half (44 percent) think business is making
sufficient efforts to address global sustainability challenges, according to a
new report published today by Global Compact Network India (GCNI) and Accenture
(NYSE: ACN).
The report, “UN Global Compact – Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India”, was launched by Mr. Veerappa Moily, Minister of Petroleum and Natural Gas, Government of India, at Global Compact Network India's 9th National Convention at ITC Maurya. The National Convention is the largest gathering of CEOs, country managing directors and senior officials from public and private sector and civil society organizations to discuss issues of sustainability and corporate social responsibility in India.
The report, “UN Global Compact – Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India”, was launched by Mr. Veerappa Moily, Minister of Petroleum and Natural Gas, Government of India, at Global Compact Network India's 9th National Convention at ITC Maurya. The National Convention is the largest gathering of CEOs, country managing directors and senior officials from public and private sector and civil society organizations to discuss issues of sustainability and corporate social responsibility in India.
The report is based on
interviews and inputs from a range of
CEOs of leading
Indian corporations across
sectors and draws comparison with the global CEO study on
sustainabilityconducted by the UNGC and
Accenture in 2013, the largest ever
conducted with more than global 1,000 CEOs. For the India report, the Accenture
and UN team gathered the views of 32 high profile Indian CEOs and Global Compact
members across sectors.
Among the most significant
differences between Indian CEOs and their counterparts elsewhere is the
importance of communities in driving business responses on sustainability,
according to the report. Sixty three percent of the respondents to the India
survey believe that in the next few years communities will have the greatest
impact on the way businesses will manage societal expectations, versus 28
percent of CEOs globally and just 7 percent in China. The report also reveals
that only 16 percent of the CEO sample in India say consumer demand is
motivating them to take action on sustainability, versus the global average of
47 percent.
Mr Sudhir Vasudeva,
President, GCNI said, “This is the first time that we have managed to replicate
the UNGC Accenture Global Study in India. It is interesting to see how on some
levels the thoughts on Indian CEOs completely resonate with the global outlook,
whereas there are also stark contrasts on some issues. Indian companies realize
that it may not be possible to climb-up the sustainability curve by aping
practices adopted by developed nations, due to the unique circumstances and
challenges that we face. Therefore, they are exploring various options and
tailoring global best practices to fit Indian contexts to find their own unique
path toward achieving inclusive growth through the sustainability
agenda”
The report reveals that, in response to the challenges businesses are facing in addressing sustainability issues, 97 percent of the Indian CEO sample say that an increase in efforts by governments and policymakers to provide an enabling environment for the private sector will be integral to advancing sustainability.
The report reveals that, in response to the challenges businesses are facing in addressing sustainability issues, 97 percent of the Indian CEO sample say that an increase in efforts by governments and policymakers to provide an enabling environment for the private sector will be integral to advancing sustainability.
The “Indian CEOs are
dealing with a different situation from the their global counterparts on
sustainability issues,” said Peter Lacy, Managing Director,
Accenture Sustainability and Business
Strategy Services, Asia Pacific,
who led the global and India studies. “They need to balance rapid growth with
sustainable development within the political and cultural complexities of the
world’s largest democracy. According to the report, communities and governments
are viewed as the most important stakeholders in influencing the behavior of
businesses in sustainability as opposed to consumers. That will require
businesses and policy makers to more effectively engage with citizens to design
the most appropriate approaches to sustainability.”
The CEO Study highlights the ability of ‘Transformational Leaders’ in sustainability to combine market-leading financial performance with sustainability leadership. It reveals approaches to sustainability by Transformational Leaders. For instance, they regard environmental and sustainable issues as important to the success of their business and reject traditional perceptions of sustainability as philanthropy; they engage effectively with investors and NGOs; and they measure and reward employee performance in sustainability.
The CEO Study highlights the ability of ‘Transformational Leaders’ in sustainability to combine market-leading financial performance with sustainability leadership. It reveals approaches to sustainability by Transformational Leaders. For instance, they regard environmental and sustainable issues as important to the success of their business and reject traditional perceptions of sustainability as philanthropy; they engage effectively with investors and NGOs; and they measure and reward employee performance in sustainability.
The report is in line with
the larger agenda of the National Convention on “Transformational Leadership:
Ways to Sustainability and Success”. Some of the eminent speakers and guests
present for the event include Dr. S.P.S Bakshi, Chairman & MD of Engineering
Projects India Ltd. (EPIL), Dr. Arup Roy Choudhary, Chairman & MD of NTPC
Limited, Dr. Rana Kapoor, MD and CEO of Yes Bank, Mr. Lalit Gupta, MD and CEO of
Essar Oil Limited, Mr. R.N. Nayak, Chairman and MD of Power Grid Corporation of
India Limited and Mr. Richard Saldanha, Executive Director of
Blackstone.
About Global Compact
Network India
Global Compact Network
India (GCNI) was formed in November 2003 and was registered as a non-profit
society to function as the Indian local network of the UN Global Compact
programme. It is the first local network in the world to be established with
full legal recognition. GCNI is a country level platform for businesses, civil
society organizations, public sector and aids in aligning stakeholders’
practices towards the Ten Universally Accepted Principles of UNGC in the areas
of Human Rights, Labour, Environment and Anti–corruption. At present, the India
network ranks among the top 3, out of the 101 local networks in the world, and
has emerged as the largest corporate citizenship and social responsibility
organization in the country with a pan India membership of 165 organizations,
who have strengthened their commitment to the UN’s Global Compact Principles by
becoming proud signatories of the local network, GCNI.