New Delhi [India], February 10 (ANI/SRV): The Economics and Business Policy Area of FORE School of Management organised a lecture on Corporate Governance for the Social and Ecological Transition as a part of their Global Leadership Lecture Series.
The lecture was delivered by Prof. Antoine Reberioux, Professor of Economics at the University of Paris, France.
The world economy today is facing several challenges which calls for an immediate need to transition towards a sustainable economy. This transition can be brought about through corporate governance and continued efforts by companies.
Prof. Antoine Reberioux discussed various parameters such as environmental challenges, inequalities and its consequences, social responsibilities of companies, the importance of codetermination and increased need for gender diversity in leadership, which are required to achieve the transition.
This was the first lecture under the Global Leadership Lecture Series initiative by FORE School of Management, aimed at the all-round development of the management students.
The discussion started by addressing the ecological/environmental challenges and how global transition can be brought about by increasing carbon prices, so as to favour investment in renewable energies and by encouraging prospective public investments in newer technologies such as, carbon capture and storage.
He emphasized on the importance of maintaining a viable and diverse ecosystem and sustainable climate. The Paris Agreement of 2016, limits global warming to 1.5 degrees. India is the third biggest emitter of greenhouse gases with no declared deadline for carbon neutrality but has shown strong commitment to cut the emissions intensity through GDP by 1/3rd by 2030, as compared to levels in 2005.
Highlighting the tremendous disparity in the world’s social structure, Prof. Reberioux pointed out that over the last 3 decades the total income of only the top decile has shot up. The inequalities from 20 years ago are not the concern; the prize for lack of a sustainable economy is being paid for the nature of progress.
These inequalities are not just technology driven but are also related to labour laws, tax systems etc. which can prove dangerous for social cohesion and democracies and lead to rising populism. It is a country’s responsibility to construct a more progressive tax structure, improve labour laws, discourage firms from making short term profit in case of public policy failure because it leads to maximum negative externalities and ensure firms internalise negative externalities.
The seminar also explored firm responsibilities and how the structure of a firm’s functioning is a major determining factor for achieving a sustainable economy. Formulating effective guidelines such as, whose interest the board of directors and executive officers serve, is imperative. Firms can also consider long-term investments to address environmental challenges, reduce carbon footprint and provide decent, high-quality jobs by investing in human resource management practices.
Another aspect of the discussion was codetermination, which includes employee representatives at the board level. This arrangement ensures worker involvement in strategic decision-making and direct worker empowerment in corporate governance.
“There is a crucial need to understand why there is a lack of gender diversity in boardrooms and how representation of women can help in corporate governance. It will also help in understanding if women have a particular style of management and if they are more sensitive to negative externalities”, concluded Prof. Antoine.
This highly rewarding lecture was followed by a healthy interaction between Prof. Antoine and the students of the Institute. The faculty members of the Economics and Business Policy Area of the FORE School Management, Prof.Basant Potnuru, Prof. Roopesh Kaushik & Prof. Shalini Tanjea, and Dean (Academics) Prof.Sanghamitra Buddhapriya, were also a part of the panel.
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