Monday, September 18, 2017

Air India: ready for self-regulation?

As AI goes private, it will have to address ethics and corporate governance matters itself, unlike in a PSU.
With the privatisation of Air India, no doubt the government will get rid of its baggage and perhaps, in a few years, Air India might even start making profits, but what about larger issues of ethics and corporate governance in Air India and other public and private sector enterprises today? What about the values that every government must champion?

A private sector enterprise transcends these obligations by self-regulation. We have seen how the Infosys imbroglio panned out, with founder N R Narayana Murthy’s frequent utterances on transparency and corporate governance. In fact, stakeholders in most companies are now raising ethical concerns themselves to rapidly and radically reshape the environment in which these companies operate.

Reputation has become a precious asset, which not only dictates the economic success of a company but its very survival. It is not at all like the advice Britain’s Prince Harry got from his mother, the late Diana: “One of her mottos to me was: ‘you can be as naughty as you want, just don’t get caught’.”
18/09/17 Priyan R Naik/Deccan Herald