In the halls of the House of Lords, where important decisions are made and policies are debated, the idea of Environmental, Social, and Governance (ESG) got a different kind of spotlight. This time, it wasn’t discussed as a rule or regulation. It was shared as a personal belief — by someone who has lived it.
Mr. Jagjiv Kumar Arora, one of India’s respected entrepreneurs — known for his contributions to the steel industry and global agricultural trade — stood up and spoke with honesty. His message was simple: ethics should come from within, not be forced by rules.
He explained that ESG is no longer something extra — it is now how the world checks if a business is doing the right thing. But beyond the terms and reports, ESG is really about doing what’s right — for people, the planet, and with integrity. In today’s fast-moving world, he asked: What is the real cost of growth? Who is affected? What are we leaving behind?
From Risk to Responsibility: What Building a Business Really Means
Mr. Arora began by saying, “Truth needs support.”
He spoke from his own experience — building a business from the ground up, taking risks, investing personal money, and facing challenges.
He reminded the audience that every business has a story. A dream. A family’s hope. And ESG, when done right, should reflect those values — not just a task for approval, but a real promise to do better for society and the environment.
Different Businesses, Different Realities
He made a key point: ESG can’t be one-size-fits-all.
Every industry has its own challenges. A new tech startup and a 100-year-old factory cannot be judged by the same standard.
“You cannot evaluate a bootstrapped startup and a century-old industrial house using the same template,” he said.
The goal, he explained, should be to make ESG honest and practical — not rigid and unfair.
Indian Family Businesses: Values Before Rules
Mr. Arora shared a cultural insight — many Indian family businesses have always cared about community and values, even before ESG rules were created.
More than 60% of listed companies in India are family-owned, and many support society through charitable work.
But he also said that intentions must lead to real action. Boards of directors must not just look good on paper, but act with responsibility and purpose.
“A board should be like a council of ministers — doing the work, and staying true to the company’s values,” he said.
Growth vs. Sustainability: A Hard Question
He gave a strong example from today’s world: delivery bikes rushing around to bring ₹50 snacks.
While these jobs help the economy, they also add to traffic, air pollution, and carbon emissions.
“Is this kind of convenience really worth the damage?” he asked.
He called on companies to think beyond profits, explore green delivery models, and lead the change themselves — not wait for new laws.
Governance Should Be Real, Not Just a Title
Mr. Arora talked about what real governance looks like.
It’s not just about having a structure or big names on the board. It’s about clear reporting, open communication, and fast response when issues come up.
He questioned why employees can’t report concerns directly, or why many companies wait until a problem becomes big.
“Governance is not a badge of status. It’s a practice of responsibility,” he said.
ESG Should Guide, Not Burden
He closed with a powerful reminder that most small businesses are still growing and learning. For them, ESG should not feel like a heavy rule.
Instead, it should be something that guides them, inspires them, and helps them grow in the right way.
He called for better awareness and education, so even the smallest business can see how ESG is not just smart — it’s the right way to do business.
A Simple but Strong Message for the Future
In a room full of global leaders and decision-makers, Mr. Arora’s message stood out.
He said clearly: real ethics cannot be created by rules alone. They must be built from belief, supported by values, and proven by action.
He ended with a thoughtful message:
“Let us not regulate our way to ethics. Let us live our way to it.”