“I admire companies that give back to communities. It is imperative that organizations monitor, mitigate and improve their impact on the environment, people, communities, their health and overall well-being. This is a necessary condition, not a sufficient condition” — Shiv Nadar
At a time when Environmental, Social, and Governance (ESG) metrics increasingly dictate market confidence and investor confidence, it has become imperative for business leaders to look beyond net profit.
True corporate success requires companies to actively monitor, mitigate and reverse their environmental and societal harm. However, refunds are only a baseline – the bare minimum needed to survive in today’s world.
To survive and thrive, modern businesses must integrate social good directly into their core operations. Notably, both consumers and talent are actively abandoning brands that fail to demonstrate authentic community stewardship.
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Why corporate governance is the new baseline
The topic of corporate social responsibility has never been more intensely explored than it is in today’s highly transparent global economy. Shiv Nadar, the visionary founder of HCL Technologies and one of India’s leading philanthropists, perfectly captures this evolving dynamic.
Today, as conscious consumers, institutional investors, and strict regulators demand better environmental and social management, Nadar’s insight serves as an essential compass for modern organizations.
His insight directs us to a profound reality: mitigating environmental impact and uplifting communities is not a voluntary charitable endeavor reserved for the profit years. It is the basic foundation for operational existence. In this article, we explore the philosophical depth of this quote, uncover its origins, and provide practical insights into how business leaders and professionals can apply this mindset to build resilient and purpose-driven organizations today.
What does this mean
When Shiv Nadar says, “I admire companies that give back to communities,” he is highlighting the monumental shift from traditional shareholder capitalism to modern stakeholder capitalism.
The quote is divided into two important parts. First, the “absolutely essential” mandate: companies must actively monitor, reduce and improve their footprint across the environmental and social spectrum. It is a recognition that businesses do not operate in a vacuum; they draw critical resources from the planet and society and therefore owe an eternal debt of stewardship.
The most striking and intellectually challenging part of the quote is the conclusion: “This is a necessary condition, not a sufficient condition.” Logically speaking, Nadar argues that doing no harm—and even doing some quantifiable good—is just the entry fee for running a business in the modern world.
It is a baseline (required). To be truly exceptional, successful, or “enough,” a company must go further. They must innovate, lead and integrate this philosophy of giving into their very business model, going well beyond basic compliance or reactive philanthropy.
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Where does it come from?
This philosophy is deeply rooted in Shiv Nadar’s personal and professional trajectory and reflects his evolution from technology pioneer to institutional builder.
After expanding HCL into a global IT powerhouse, Nadar focused heavily on community upliftment and in 1994 founded the Shiv Nadar Foundation.
The quote comes from his continuing reflections on the role of modern corporations in developing countries, particularly India, where the disparity between corporate wealth creation and local community infrastructure can be incredibly stark. Nadar has historically championed the idea of ”creative philanthropy”—not just writing checks to charities, but building lasting educational institutions that create long-term, generational social impact.
How to apply it today
Takeway 1: Moving from Compliance to Core Strategy
Don’t treat corporate social responsibility (CSR) as a separate, isolated department or an annual checklist designed only to satisfy government regulators. Integrate community well-being and environmental sustainability directly into your primary supply chains and business operations. Whether it’s ethical sourcing, moving towards net zero emissions or supporting the local ecosystems where your offices are located, make it part of your everyday corporate DNA.
Takeway 2: Measure your true operational impact
Nadar specifically emphasizes the need to “monitor, mitigate and improve”. This requires strict data monitoring. Today’s organizations must use advanced analytical tools and transparent ESG reporting tools to measure their impact on the environment and community health. What gets measured gets managed. You cannot improve your social footprint unless you have a clear, honest and public assessment of the resources you consume.
Takeaway 3: Aim for the baseline
Remember the basic lesson that doing good is a “necessary, not sufficient” condition. Once your organization has rigorous mitigation practices in place to prevent harm, ask your leadership, “What’s next?” Challenge your teams to innovate products or services that actively heal the environment or create new economic opportunities for underserved communities. Use your business as a proactive engine for systemic change.
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About Shiv Nadar
Shiv Nadar is a pioneering Indian billionaire industrialist, technology pioneer and philanthropist. Born in 1945 in Tamil Nadu, India, he co-founded HCL in a garage in Delhi in the mid-1970s, transforming it into a global enterprise that was instrumental in establishing India as the world’s IT services hub. Under his decade of leadership, HCL Technologies has become synonymous with cutting-edge computing hardware and software.
However, Nadar’s lasting legacy is defined both by his wealth distribution and his immense wealth creation. In 1994, he founded the Shiv Nadar Foundation, committed to creating equitable opportunities through world-class transformative education. The foundation has established leading institutions like SSN College of Engineering, Shiv Nadar University and VidyaGyan Leadership Academy which actively support gifted children from rural and economically marginalized backgrounds to become global leaders.
Recognized for his immense contribution to the technology industry and civil society, Nadar was awarded the Padma Bhushan, India’s third highest civilian honor, in 2008. Consistently ranked among the most generous philanthropists in Asia, he embodies his own belief that true corporate and personal success is inextricably linked to prosperity, health and wellness.
