Eminent jurist and former Chief Justice of India P N Bhagwati has said corporate houses too have social obligation and cannot be driven merely by motives of profit making considerations.
"Corporations play an important role in controlling and guiding the activities of a large number of people, they wield large influence not only on the economic life but also on social and political activities.
"It is absolutely essential that their activities should not be guided merely by profit motive, though profit making is absolutely integral to their existence," he said yesterday at a symposium titled 'Key to Effective Corporate Governance and Sustainable Growth' organised by International Academy of Law.
"Competition Law is the key for good governance as it promotes innovation and improves quality. In an aspirational and populous country like India open and effective competition is absolutely necessary. Competition Law fosters efficiency and stimulates innovation," he said.
Competition Law, also known as Anti Trust Law, seeks to eliminate monopolistic and restrictive trade practices that have an adverse effect on trade, and instead foster healthy and sustainable competition to promote the interests of both consumers and traders in the country.