Business and Society - Pre Liberalization to post Liberalization

It has been a bit over 20 years since India has liberalized itself and seen its benefits. If we look at the era before the liberalization, we had the government dominated industrial sector driving the economy. We had companies like the BHELs, BEMLs, ITIs, and HMTs etc which ruled the roost and provided a lifetime employment to the generation there.

A typical look at this era and we realize that these organizations had a typical set up; dispersed across the states, there were small colonies around these government companies. In addition there were employees who would travel by the transport that was provided by these organization, work and return in the evening. There were school very close to these colonies were most of the kids of the employees were trained and educated.

When I look back at these, I feel the concept with these government companies could be much better related to the social impact that accompanies the business of these companies. However with liberalization we find most of these government companies shutting down their premises and the businesses run by private people growing in numbers and success stories too.

But there seems to be one drawback with these private institutions when I compare them with the public sector companies. I find that the social aspect of business seems to have fallen away. The return on investment seem to be the major focus areas - pretty right with the capitalistic nature of the businesses today; but it is important to have the social impact is creates.

Realizing the real impact that corporate can do to society and being more proactive in these aspects, without limiting it their CSR activities; would be a key ingredient if private companies of today. Never isolate business from society - there is no business without a society flourishing around it.

Discussions of this nature are important part of the economic world and we would deal with on the discussion forum too - do let us know your opinion on these issues.

Kannada: http://somanagement.blogspot.com/2011/03/blog-post_21.html