Trust lowers transaction cost and also curbs corruption in the organisation says Adi Godrej
Adi Godrej (Photo: PTI/ File)
Hyderabad: Family-owned businesses in India could well become a force in tackling rising costs and corruption, feels Adi Godrej, the chairman of the Godrej group.
Speaking on the sidelines of the Fifth Asian Invitational conference on family business at the Indian School of Business on Saturday, Mr Godrej said that “Trust lowers transaction cost and also curbs corruption in the organisation.”
“Also, given the strong family ties in India, family businesses are less prone to threats as they are quick to react,” he added. According to the chief of the conglomerate giant, more than two-thirds of the world’s companies are family owned and 90 per cent of the registered companies in India are family businesses. These businesses also contribute to half of the world’s GDP.
Commenting on the expected reforms in the Union Budget, he said that a reduction in expenditure of the government, along with rationalisation of subsidies, would be instrumental in bringing reforms.
( Source : dc correspondent )
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