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    Independent directors must be pro-active to ensure cos function in socially responsible manner: CAG

    Synopsis

    "In the current times, it may be worthwhile that the independent directors should be more pro-active and guide the companies on path which is profitable, socially responsible and environmentally sustainable," CAG Girish Chandra Murmu said.

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    In the long term, this will enhance the goodwill of the companies, CAG Murmu said
    New Delhi: Comptroller & Auditor General of India (CAG) Girish Chandra Murmu on Tuesday said independent directors of the companies should be more pro-active in guiding companies in profitable, socially responsible and environmentally sustainable manner. Speaking at the Golden Peacock Awards in a virtual ceremony, Murmu said as an auditing body for government finances, CAG has developed standards and guidelines for environment audit, research accounting among others, and has carried out audit on case to case basis.

    "We have looked at time to time at the corporate social responsibility (CSR) of the central public sector undertakings and came up with various observations and recommendations for improvement in such activities.

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    "In the current times, it may be worthwhile that the independent directors should be more pro-active and guide the companies on path which is profitable, socially responsible and environmentally sustainable," Murmu said.

    In the long term, this will enhance the goodwill of the companies, he said, adding that the companies with good corporate governance are much likely to withstand shock in adversities as is the case in the current pandemic situation.

    Speaking about the role of the CAG, he said, "We as CAG are also watchdog of government finances and we not only look at audits but also compliance and performance."

    "We go beyond the balance sheet and look comprehensively at efficiency, economy and effectiveness of that activity (for which the audit happens) of an organisation," he said.

    The ceremony was also graced by Arjun Ram Meghwal, the Union Minister of State for Parliamentary Affairs and Heavy Industries & Public Enterprises.

    Meghwal said 21st century belongs to India.

    He said technology and knowledge are the main elements that will help India in becoming a self-sustained country, adding that 'Industry 4.0' is also something that is being talked about across the globe and India has to become its part sooner or later.

    This year's Golden Peacock Awards is themed on 'Eco-Innovation, Occupational Health & Safety, Environment Management and Energy Efficiency for the year 2020'.

    Meghwal said India aspires to reduce its carbon footprint for a sustainable development.

    "We will have to taken suo motu action for an effective environment management. Innovation in reducing carbon emission will be an integral part of eco-innovation," he added.


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