Rx wants to become a global corporate citizen

The Adani controversy will serve as a marker of India Inc’s global aspirations, which may be at odds with imperfectly agreed upon rules and differences in law enforcement. Businesses operating within acceptable levels of tolerance in individual jurisdictions will have to develop corporate governance standards that exceed the highest available threshold. Global presence involves best-in-class innovation, entrepreneurship and management to access markets and capital. The margin of error on all three items decreases with the diversity of values ​​to which a corporate entity is exposed. And the scope for regulation by regulators decreases as scale increases. It’s not just about being a good corporate citizen at home. Companies must learn to better comply with any laws they encounter.

This can be challenging for businesses that have grown up in an environment that does not share the sensitivities of the new market. For example, the multiple perspectives on sustainability are a minefield for corporate lawyers. But governance is a less contentious area and gives way to easier harmony. However, developing a common set of rules linking a company to the environment is a slow process. Countries make laws through a complex interaction of political and economic factors. Businesses cannot keep up with these deadlines. They need to stay ahead in the game of catch-up regulation. Companies that are culturally open to new values ​​are more resilient in an international environment. They also help to synchronize regulation between countries.

The process of globalization, which allows companies to expand beyond local markets, is enhanced by information sharing, which raises the bar for corporate disclosure. Corporate citizenship is achieved not only by doing the right thing, but also by effectively communicating it to stakeholders. Indian companies that strive to be globally minded must work on their message to both consumers and investors. This is the key to gaining the trust that foreign companies need in any market.