Don't give MNCs a bad name, says Shell chairman

Ahmedabad, May 15 (UNI) Corporate responsibility is about engaging and involving oneself with beneficiaries on a sutained bais and not simply writing a cheque for a charity and MNCs should not be given a bad name, said Shell Group of Companies (India) Chairman Vikram Singh Mehta today.

He was speaking at the first annual J B Shah Memorial lecture at the Ahmedabad Management Association (AMA) here on 'Human Face of Multinationa Corporations'.

He said unlike MNCs of yore, today MNCs do have a human face. ''I want to correct the wrong perception about the MNCs,'' he said.

''Those MNCs who do not have values and principles - Enron for example - would not survive for long,'' he said.

Shell has codified 13 principles like not appointing child labour and giving special emphasis on environmental aspects.

''Profits are important as without profits you cannot have such principles. But without principles you do not deserve those profits,'' Mr Mehta said.

Citing an example of a organic cotton-growing Kutch farmer, he said Shell had supported him by providing him with access to mainstream markets for his organic cotton. The farmer is now selling directly to Marks&Spencer, 10,000 miles away. Shell has acted as an intermediary and it did not simply hand over money to these farmers, he said.

Shell was instrumental in persuading farmers in Kutch to switch over to organic farming. Farmers were offered seeds, organic fertilisers, technical support, training and a guaranteed buy option.

Shell is a USD 350 bn company and the management is in the hands of the local people (of Indian origin). Human face derives from the fundamental reality, he said.

''Profit alone does not drive society. Framework of values does,'' Mr Mehta emphasised.

''My view is that MNCs are good capitalists. They are people like you and me who run these MNCs. 'Principled business is the key for profitable business,'' he added.

UNI