The corporate sector can pro-actively contribute to reducing poverty, but it must win the hearts and minds of the poor through initiatives that establish 'moral and ethical legitimacy,' Nandan M Nilekani, Chief Executive and Managing Director of Infosys Technologies, said on Wednesday.
"Traditionally, the poor do not trust corporations," Nilekani said at the 'Global conference on scaling up poverty reduction' organised by the World Bank and the Chinese government in Shanghai, China's gleaming commercial hub.
Speaking on the 'Role of the corporate private sector in scaling up poverty reduction,' he emphasised that "without the foundation of trust, it is unlikely that efforts of the corporation in reducing poverty would gain acceptance in the society."
Sharing his experience as an entrepreneur, Nilekani said that if a corporation is committed to economic development, it must establish its credibility with its partners -- citizens, public sector, government and NGOs.
Quoting a study, he said it has been established that when it comes to environment, human rights and health, the poor trust the private sector the least.
Thus, Nilekani said, corporate bodies must try and restore trust through initiatives that establish 'moral and ethical legitimacy.'
Visible actions to benchmark corporate governance, foster transparency and demonstrate innovative and self-regulating behaviour must feature high on corporate agenda, he said.
© 2025