Be Good. Do Good: The Quantum Way

In the business environment, good corporate governance is paramount to the success and sustainability of organisations. It is a framework that ensures companies operate with transparency, accountability, and integrity, fostering trust among stakeholders and promoting long-term value creation.

A Landmark Event

On July 19, 2024, Quantum hosted, ‘The Secret Sauce for Success: Corporate Governance’, where luminaries known for their unwavering ethical compass, shared their invaluable perspectives on good corporate governance. The event also coincided with for the 5-Year Anniversary of the Quantum ESG Best In Class Strategy Fund.

Unveiling the Little White Book of Governance

The spotlight was the launch of The Little White Book of Governance, a collection of quotes from visionaries on what it takes to build the foundation of governance and why it matters in the world of investments. Sundararaman Ramamurthy, MD & CEO, BSE along with Quantum co-founders Mr. Ajit Dayal and Mr. I.V. Subramaniam successfully launched the book to a good audience reception.

Keynote Address

Mr. Ramamurthy eloquently set the underlying tone of the event, with the core message, when Ichha along with Dhyan fortifies into Kriya, based on a strong foundation of Corporate Governance, the result is success. Mr. Ramamurthy spoke of having a ‘fire in the belly’ a desire that would be equivalent to the need of using a product. The confluence of knowledge, good attitude, and action is what drives success, when it is rightfully done. Corporate governance is the thread that binds these three drivers of success.

In every business there are various touchpoints, like the entrepreneur, the consumer, the society and environment. When all these stakeholders are in equilibrium, then good corporate governance prevails – in equitable equation for all.

“The Secret Sauce - How world class governance helps build world class businesses”

The esteemed panel which included Mr. Ajay Nanavati, the former MD & CEO, 3M India & current Chairman of Quantum Advisors and Mr. Ramakrishnan Mukundan, MD & CEO, Tata Chemicals Ltd. have over 60 years of experience between them. The panel underscored the importance of adopting good governance always and in everything you do – to have long-term impact and build a world class business.

Mr. Mukundan noted that corporate governance is a continuous and constant journey. There is almost no fixed destination for this journey, but it is the process of good corporate governance that is the key driver. Niyat, Niti, and Niyam, are the guardrails for good corporate governance with good intent being very critical to the conversation. From a company perspective there are two bookends to life. The first bookend is about purpose and the other bookend is about values and culture. Improving the quality of life using the spectrum of business is fundamental to good corporate governance.

“Measuring the Secret Sauce: Do companies with high ‘Integrity Score’ & adherence to BRSR standards have higher investment returns?”

Taking the audience down memory lane on the evolution of Quantum’s Proprietary Integrity Screen, the panel highlighted that the 5-year track record of the Quantum ESG Best In Class Strategy Fund is the proof in the pudding of good corporate governance. The panel included Mr. Dayal, Chirag Mehta, CIO at Quantum AMC, and Mr. Subramaniam.

In 1981, in a letter to his son, Dr. Dayal told Mr. Ajit Dayal to ‘Do Good and Be Good’. In 1996 since the inception of Quantum, the integrity screen began with a dozen parameters to gauge the ‘goodness’ of a company. Today these parameters have grown to more than 200 indictors that serve as parameters to rank a company’s integrity score. It’s a well-known fact that data talks. Therefore, companies with a high integrity score have the potential for better risk-adjusted returns in the long run. Quantum puts into practice in the rawest form, from Dr. Dayal’s wise words to his son.

The key takeaway is that,

Good corporate governance is an essential component of successful and sustainable business operations. By adhering to the principles of accountability, transparency, fairness, responsibility, and independence, companies can build a solid foundation for long-term growth and resilience. Despite the challenges, the implementation of robust governance practices is a worthwhile investment, yielding benefits in terms of reputation, investor confidence, operational efficiency, risk management, and sustainability.

Wrapping up,

As the business landscape continues to evolve, the importance of good corporate governance will only become more pronounced, underscoring its critical role in the corporate world. Click on the link for your e-book.

Name of the Scheme	This product is suitable for investors who are seeking*	Riskometer of scheme
Quantum ESG Best In Class Strategy Fund (An Open-ended equity scheme investing in companies following Environment, Social and Governance (ESG) theme assessed through a Best In Class Strategy)	• Long term capital appreciation • Invests in shares of companies following Environment, Social and Governance (ESG) theme assessed through a Best In Class Strategy	Investors understand that their principal will be at Very High Risk

^*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Above article is authored by Quantum.

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