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Chandran Nair

Founder of Asia's leading independent think tank, Consultant, Author, Entrepreneur, Sports coach

Chandran Nair is a prominent figure in the field of sustainability and environmental management, known for his roles as the Founder & CEO at Global Institute For Tomorrow (GIFT) and as the Former Chairman, Asia Pacific at ERM: Environmental Resources Management.

With a strong background in leading organizations focused on sustainability and corporate social responsibility, Chandran Nair has been a driving force in advocating for more sustainable business practices and policies.

Through his leadership at GIFT, he has spearheaded initiatives aimed at promoting sustainable development and ethical leadership across various sectors.

Highlights

Mar 29 · linkedin

Businesses and investors are not entitled to a profit, nor do they set the bar for what is a fair return - unless they capture regulators.   This is the theme of recent discussions I have held at Cambridge University, WEF’s One Earth Summit, and major oil and gas companies.   Many in these audiences – even seasoned sustainability thinkers within business and professionals – appeared aghast at this idea. But it is not a radical notion. On paper, this is how our economies are supposed to function.   Companies are rewarded for the goods and services they provide to society that governments and civil societies cannot or do not. This means profits are commensurate with what societies – and critically, their governments – can tolerate and thus allow.   In other words, companies do not set the bar for what is a fair return – the social contract does.

The social contract varies from country to country and depends on the nature of the value to society of particular goods and services. All economic activities have impacts, but if profits or returns are maximised via activities that impose a significant expense on society or the environment, the social contract will respond by having the license to operate include conditions to protect public and common goods. These conditions then curb the extent of profits generated, because the regulations will raise the cost of doing business - higher emission or discharge standards - or shifting consumer demand.   We intuitively understand this – “Yes, smoking has caused a public health crisis, no cigarettes should not be sold to children, yes cigarette companies should be heavily taxed” – yet it has become a quasi-religious expectation amongst most economic actors to believe that continually generating more profits is an imperative so that shareholders and managerial classes can reap disproportionate rewards. This is often in total disregard of the externalities of their business models in a world confronted with deepening existential threats.   One needn’t work in a cigarette company for this to apply. Whether in food production, clothes, digital products or even airplanes as we have seen with Boeing, it is the global norm: offshore production; underpay staff; disregard environmental impacts; deplete resources; continually overleverage; exploit tax loopholes; pay massive bonuses and dividends.   Truly enlightened businesses and investors must understand they are not entitled to a profit, and nor do they set the bar for what is a fair return simply because they run a business or have invested in one. But most believe and act like they do.

This has in part resulted in state capture and governments also abdicating their responsibilities and failing to guide private capital to serve public good. Yet this must be the role of capital in a world challenged by existential threats.   At some prompting, I have briefly captured these ideas in the following video.

Chandran Nair
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Location

Hong Kong SAR