the principal for how those resources are used and the return on investment. 27. all of you must be following the latest news. it is full of stories of corporate “ disaccountability ” ( if i may coin a new word ). so much so that judicial activism has taken on a new meaning in our country. in this environment some sterling corporates have set new benchmarks of corporate accountability. while the act of withdrawing cars from the market after discovering manufacturing defects by large corporates is laudable, such an act by a cash strapped organisation with a diverse and very poor and illiterate membership, like that of sewa, with far lesser staying power, shows tremendous commitment towards accountability to stakeholders. 28. companies enter into contracts ( both explicit and implicit ) with various stakeholder groups as a matter of everyday business and these contractual arrangements can serve as the basis for accountability relationships. for example, companies that receive environmental permits and approvals from regulators to operate facilities are often held accountable by the regulators for whether the terms of the approval are being met. proponents of social contract theory suggest that corporations are given a “ license to operate ” by society in exchange for good behaviour, ( read judicious utilisation of resources ) and as such the corporations should be accountable to society for their performance. 29. the contribution of corporate accountability theory to corporate sustainability is that it helps define the nature of the relationship between corporate managers and the rest of society. it also sets out the arguments as to why companies should report on their environmental, social, and economic performance, not just financial performance. in 1997, john elkington of the uk consultancy, sustain ability, called this type of accounting on environmental, social, and economic performance as “ triple bottom line ” reporting. 30. an example of this kind of “ triple bottom line ” reporting would be infosys which voluntarily made all disclosures in the public domain leading to greater corporate accountability after the satyam scam. 31. let me talk about my own organisation for a while. while there is no prescription by any authority as regards balance sheet disclosures by the reserve bank of india, as a commitment towards transparency and building trust, our annual report ( 2013 – 14 ) has an entire chapter on the central bank ’ s vision for the coming year. 32. the rbi is one of the few central banks across the globe which has taken upon itself the mandate for developmental banking - be it financial inclusion, training of bankers to render better customer service

issues are a good example of this blurred line. natural resources are now recognised to be finite and under stress. what was once unthinkable is becoming reality : water and even air now come with price tags. companies that collaborate with scientists, civil society and public regulators and show early on that they “ really care ” and will thus stand out ahead of others. • accessing new markets responsibly 15. with concepts like the blue ocean strategy gaining ground and mere competition becoming out - moded businesses are moving from being “ resource takers ” to “ market builders ”. with economic growth going global, foreign direct investment is becoming more about building and gaining access to new markets and less about simply exploiting low - cost inputs. overcoming barriers to growth, such as civil violence, uneducated workforce and unsustainable sources of energy, water, minerals and soil is now an imperative in a manner that was never so before. • initiatives to engage companies 16. initiatives, standards and consultancies for engaging in corporate sustainability are booming at national and global levels. the un global compact, a strategic policy initiative for businesses by the united nations, is engaging “ with over 12, 000 companies in more than 145 countries on human rights, labour standards, environment and anti - corruption. in india too there is a growing awareness of the overarching responsibility of business which goes beyond mere profitability. 17. corporations around the world are increasingly recognizing that sustained growth of their organisation requires cooperation of all stakeholders, which requires adherence to the best corporate governance practices. in this regard, the management needs to act as trustees and prevent asymmetry of benefits between various sections of stakeholders. the four pillars of corporate sustainability 18. sustainable development – sustainable development is a broad, concept that balances the need for economic growth with environmental protection and social equity. it should not be left to government regulators and policy makers alone. while corporations have always been the engines for economic development, they need to be more proactive in balancing this drive with social equity and environmental protection, partly because they have been the cause of some of the unsustainable conditions, but also because they have access to the resources necessary to address the problems. 19. corporate social responsibility ( csr ) – csr deals with the role of business in society. its basic premise is that corporate managers have an ethical obligation to consider bis central bankers ’ speeches and address the needs of society, not just to act solely in the interests of the