“Repeat’R” - An approach to responsible growth

At the start of this week, I had the opportunity to speak with a group of very enthusiastic and entrepreneurial young minds - these interactions are always more of a learning experience for me personally - just addressing their questions often helps me introspect and gain a much better perspective. Interestingly, one of the students asked me a seemingly simple question, “What major difference do you see in how organisations push for growth today as compared to when you began your career?”.? And this made me stop and think. I began my career in 1991, a revolutionary time for India as we began to see a different trajectory with economic reforms, privatisation, foreign capital flowing in, global trade opening up, and this was an important chapter in India’s transformation story. And as we became a force to be reckoned with, the unsaid rule for most professionals and businesses that were part of that generation and even the ones before was to leverage the pressure and flourish - to fight the odds and push forward. And this was not limited to India, but a global phenomenon - growth at any cost.?

And despite efforts to the contrary, the phenomenon in part still lives on. Several organisations across the world have been prioritising outcomes, at times without much consideration for the implications of their actions and the choices they make. Amidst the pressure to perform, a distinctive divide has become evident, some flourish, while many fold - and as I see it, the defining differentiator is the ability to grow responsibly. Today, considering the competitiveness and uncertainty around us, there is a need to surge ahead with vigour. But rapid growth comes with an urgent ask, to balance profit and purpose - to weigh the numbers and simultaneously prioritise the sustainability and responsibility of every action. We are operating in an increasingly interconnected world, where our actions not only affect us but the larger ecosystem as well - we are only as strong as our weakest link.?

The way I see it, the path to responsible growth includes a focus on certain areas which leaders need to look out for repeatedly, it is not a one-time activity but a continuous process- what I like to call the “Repeat’R” approach.?

Regulate: A fundamental aspect of responsible growth is compliance with laws and regulations - be it local or global. The complexities of the regulatory environment can be overwhelming for businesses, however it is important to ensure that operations adhere to professional standards and legal requirements, and to maintain high ethical standards in everything they do.?

Reevaluate: Examining financial statements and evaluating internal controls are a must to identify and correct any potential irregularities. Robust internal controls are essential to ensure the smooth functioning of any business - and these need to continuously be assessed and strengthened. Putting in place certain guidelines and performance metrics is important, but developing an accountability framework around those is crucial.

Report: Responsibility and reporting go hand in hand- and I believe there are two parts to it

• It is incumbent upon leaders to constantly examine board structures and disclosure practices, to also scrutinise financial reports for accuracy, completeness and compliance. Developing a strong governance model and encouraging transparency are essential aspects.?

• Similarly, building a strong reporting culture internally is a huge factor in driving performance. Aside from organisational performance, assessing personal performance is also needed. Most of us steer away from tough conversations during good times, and similarly exaggerate problem areas during challenging times - it is important to have a structured feedback mechanism in place.?

Risk assessment and management: Uncertainty is paradoxically expected and disruptions are always around the corner - which brings with it evolving risks. With innovation and digital advancements, businesses are dealing with a plethora of potential hindrances including cyber risks, data breaches, and misinformation. Leaders need to conduct regular and comprehensive risk assessments to develop mitigation strategies and ensure they are well equipped to navigate emerging circumstances.?

Respond: Environmental, social, and governance (ESG) factors continue to gain prominence, calling for leaders to prioritise conscious action and accurately report their ESG performance - and reporting mandates will drive accountability and consistency on this front. An organisation that responds to the needs of the entire ecosystem and considers the various aspects of ESG is more likely to build investor confidence, establish a competitive advantage and build a long-term sustainable business.?

And finally, Repeat. Working towards responsible growth is a continuous process and entails repeating each of the “Rs” above - it is not a one-time exercise. Regulations, expectations from stakeholders and even societies evolve with time, and the repeat becomes one of the most crucial aspects. Every time we repeat, we should encompass learnings from the process and the latest changes stakeholders need and expect. This means balancing stakeholders’ needs and expectations with financial goals - to aspire for long-term sustainable outcomes rooted in trust. ‘Responsible’, as the word suggests, is a duty and a commitment to resolutely do and keep doing the right thing every single day.