Who is more Influential - NGOs or Industry Associations?
Who is more Influential in shaping Public Opinion?
NGOs or Industry Associations
During school I read one proverb, "one rotten apple spoils the whole basket".
In recent times there were many headlines in newspapers in which business houses were involved for many wrong reasons.
Some of them are:
- Coal mines allocation
- 2G allocation
- Defence contracts
- Midday meal contracts
- Civil contracts
- Liquor Contracts
- Fund or loans diversion by large corporates
- Stock market manipulation
- Black Money
- Tax violations
- Pollution of water bodies by industries
- Land grabbing
- Illegal Mining
- Spurious and sub-standard products
- many more...
Sometimes I wonder why none of these issues were ever highlighted or discussed by industry chambers. Why always NGOs came in front to expose these issues? What is wrong with Industry Chambers? Why one rotten apple was allowed to spoils the whole basket?
It is quite a disturbing trend, because today in public opinion and in political circles, industry is loosing its respect. This is a serious point of discussion why industry Chambers are loosing influence with new government.
Let us reflect on this issue and reality behind it...
I have not come across any industry chamber who has disqualified any member because of unethical trade practices or for committing crime against the nation and even after convicted by the courts.
Industry Chambers do so many seminars every day around the country, but I have not come across any seminar where these issues were discussed or it was discussed how to stop these unethical or unfair trade practices or activities by some industry members, even in close door.
There is no code of conduct or undertaking for industry members before making them members or accepting sponsorships from them, if violated will lead to cancellation of membership from Chamber.
If I am wrong, please correct me and if you can send me the recommendations of these seminars and actions taken by Industry Chambers where Industry member was told to follow good practices and if found deviating from good practices, memberships should be cancelled. I will be happy to improve my understanding.
What can be the reasons behind it?
There can be following reasons:
- Industry chambers don't understand how business manipulation happens. It means they don't understand business practices in operations.
- They are not interested because this is not in their interest or in the interest of their members.
- They are only interested in activities which are only sponsored and attracts funding to chambers just like any event managers or in local Delhi language tent-walas.
or
- They are only interested in their chambers' growth not in national development.
- There is understanding between them and NGOs, who will raise which issue.
- Any other point which you may suggest.
Is it necessary for industry Chambers to always make pleasing statements in favour of government when they evidence to prove that proposed policy will hurt industrial productivity or national interest?
Are Chambers in Pleasing Business?
I am concerned because I am part of many such associations and when I ask this question why we can't take decision against such companies the answer which I get from Chamber officials are "we are not enforcement agencies, we are not police, we don't run courts, we have to play neutral role. Our job is to protect interest of our members, this is our mandate." At many levels the message is good relation with government is important to get VIPs for events and Sponsorships.
I am not in a position to accept this statement on face value.
I am not in a position to accept this statement on face value.
When NGOs are able to work with more influence by becoming critical of government policies and action, why Chambers can't be proactive in reforming the economic policies in national interest.
What is your opinion on this?
What is your opinion on this?
Why NGOs are able to expose such offenses and why it was never done by Industry Chambers?
One thing I am fully convinced that everyone in Industry knows who is doing what, who is the black sheep. Competitors keep track of each other with eagle eyes. After all some of the best and the most brilliant people are part of the industry.
When NSEL crisis happened, it was very much part of discussion in many industry informal gatherings. Similarly, when Kingfisher was going down the drain, industry was fully aware,
When NSEL crisis happened, it was very much part of discussion in many industry informal gatherings. Similarly, when Kingfisher was going down the drain, industry was fully aware,
If for some reason Industry Chambers leadership says that they are not aware about any such illegal practices, then it is serious matter because if NGOs can prove there point in courts against industry members why Chambers were unable to even detect it before hand. Something is wrong somewhere. This is not inspiring any confidence to public and public opinion.
What about interest of consumers, what about national interest?
Please let me know how many chambers have suspended the membership of companies those were involved in offenses like adulteration of food, spurious or sub-standard medicines, tax evasion, wrong billings to consumers, under and over-invoicing to manipulate tax returns, fake documentation for subsides and export incentives, wilful defaulters of bank loans, take capitation fee for admission in professional colleges against the law, SEBI Act, medical negligence, piracy, working against the ethics of medical profession, involved in bribe to government officials and political leaders and offenses under various laws and punished by courts in India.
Which institute takes how much capitation fee for admission is public knowledge, why Chambers have not raised this issue in their education committee and with authorities?
Are they not interested in cleaning the system in the country. Is this the duty of NGOs and Courts?
Please guide me what should be the role of Industry Chambers in 21st century and what will be the role in coming decade?
Please let me know how many chambers have suspended the membership of companies those were involved in offenses like adulteration of food, spurious or sub-standard medicines, tax evasion, wrong billings to consumers, under and over-invoicing to manipulate tax returns, fake documentation for subsides and export incentives, wilful defaulters of bank loans, take capitation fee for admission in professional colleges against the law, SEBI Act, medical negligence, piracy, working against the ethics of medical profession, involved in bribe to government officials and political leaders and offenses under various laws and punished by courts in India.
Which institute takes how much capitation fee for admission is public knowledge, why Chambers have not raised this issue in their education committee and with authorities?
Are they not interested in cleaning the system in the country. Is this the duty of NGOs and Courts?
Please guide me what should be the role of Industry Chambers in 21st century and what will be the role in coming decade?
Why NGOs are able to convince courts whereas Industries associations are unable to convince courts and policy makers on issues related to public interest?
On many issues like junk foods, mid-day meal programs, pollution, corruption, issues related to corruption and favouritism, medical negligence, generic drugs, etc., NGOs were able to convince the courts and were able to get decisions in favor of their arguments. It is good that courts have taken decisions in public interest but why Industries Associations were on wrong foot and not able to defend the action of their members.
Why there were not able to understand what is good for public and good for country is good for industrial development and convince their members to re-look at their business policies and practices.
Why there were not able to understand what is good for public and good for country is good for industrial development and convince their members to re-look at their business policies and practices.
I have seen many reports where NGOs and Industry Chambers were arguing their points in various forums for policy reforms. Let me tell you that home work done by NGOs were far better then done by representatives leading Industry Chambers based in Delhi on the subject under consideration. Sometimes it appears that NGOs are able to develop documents far better than documents prepared by experts and managers of MNCs and leading industry chambers.
Should be conclude that NGOs have better knowledge base than industries? If not, why Industry representations are one-sided in approach, they never take balanced view what is wrong with product or technology. Unfortunately, in the world of interest this approach will not work, in fact will create doubt in the minds of stakeholders about our intention and motive of industry associations.
Internet is proving powerful evidences to NGOs
Should be conclude that NGOs have better knowledge base than industries? If not, why Industry representations are one-sided in approach, they never take balanced view what is wrong with product or technology. Unfortunately, in the world of interest this approach will not work, in fact will create doubt in the minds of stakeholders about our intention and motive of industry associations.
Internet is proving powerful evidences to NGOs
Some of the recent cases in which NGO were able to keep public opinion with them are issues related to Generic drugs, Junk foods in school, GM foods, Pollution, pesticide residues and antibiotic use in food systems, etc. The sources of information was Internet. Even media and policy makers are not able to ignore their voice outright.
Why NGOs are able to make impact more than Industry Association?
It is true that public considers NGOs are able to make the impact because they are viewed as working for social cause where as industry is working for their profit.
Internet is equally accessible to NGOs and Industry association. NGOs do good research on the subject under considerations where as Industry Chambers lacks this.
In majority of cases, NGOs are able to set the agenda for discussion where as Industry is left to defend their acts or acts of their members. Chamber employees and representatives due to lack of their experience of working in industry, which they are representing very often not able to convey the facts with force of evidence.
I am not saying NGOs are doing for a great cause, their motive and approach can be questioned. many NGOs are also part of shadow boxing with various interest groups. After all they also need funds to run their show, so they will be doing what their masters will say. That is why it becomes more important for Industry Chambers to fill the gap of credibility which is now occupied by NGOs. They have to move ahead from just doing events and seminar to facilitate execution and documentation.
As part of industry, I feel it high time we all should sit back and think about how to improve the function of Chambers in coming days so that Indian Industry can become the world leader in Quality and the least cost producers. We can do it. Even Prime Minister o India said in his speech that "Make in India and sell any where" should be our approach.
Can Industry Chambers accept this challenge to meet the national aspiration?
What is the way out to protect goodwill of industry and Industry Chambers?
Membership of any Industry Chamber is not mandatory. Chambers can choose members for enrolment. Strict criteria will make Chambers more credible and their membership will become prestigious for Industries.
If Chambers are not aware about the action of many such companies or organisations in India, they may ask fellow industry members to give undertaking as recommendations for membership when renewing their membership in exceptional cases Chambers should get police verification of their members that there is case against them under laws like Prevention of Corruption Act, various tax laws, exchange listing laws, or they are not booked under offense by Courts.When Political leaders have to give such undertaking about pending cases, Corporates and NGOs should also give such undertaking.
I know many
industry friends will say, Indian industry creates job, create economic
activity, spend money in education, health care, research and many other
good things. But this good work is nullified by some bad apples.
Please understand and appreciate you can say what all you want, but fact is public opinion, court orders and changing legal provisions to nail down the industries violating laws are indicating that credibility of industry and Chambers where these organisations are members as a whole is going down. We are always branded as profit seeks with short term objectives.
Can we have Code of Conduct for members on the website and also list of members suspended from membership on the website of the Chambers. If not, what is the motive or objectives of hiding the facts from people of the country and shareholders. Let the courts and authorities do their job, let Chambers also show some leadership to clean the system from unethical trade practices.
"One rotten apple spoils the whole basket" - Can respected Industry Leaders take these rotten apples out from the Industry Chambers to inspire confidence in the society, that Industry Associations are in better position than NGOs, when it comes serving to the public interest.
Any thoughts, please do share...
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