Ericsson’s Indian subsidiary has filed insolvency petitions against Reliance Communications and two of its companies to recover unpaid dues of Rs 1,150 crore, the mobile operator said in a stock exchange filing on Wednesday.
This led shares of Reliance Communications to fall as much as 2.3% in early trading on Thursday.
Ericsson, a Swedish telecoms equipment maker, signed a seven-year deal in 2014 to operate and manage Reliance Communications’ nationwide network. “Ericsson has done this as a last resort to resolve an issue regarding debt that Reliance owes to Ericsson for services provided under a contract,” Reuters quoted the Swedish firm as saying.
The Anil Ambani-controlled Reliance Communications said it planned to challenge the insolvency petitions. They come as the company is trying to seal deals to sell stake in its mobile tower assets business to Canada’s Brookfield and to merge its mobile services business with rival Aircel.
The National Company Law Tribunal, the designated court for bankruptcy cases, will take up the matter on September 26.
R-Com making losses
Last month, Reliance Communications reported its third quarterly loss in a row. It is trying to find ways to cut its debt after creditors gave it a reprieve on loan repayments until the end of 2017.
The company’s losses are, in part, a result of competition from free voice and cut-price data plans offered by Reliance Jio Infocomm, the telecom start-up backed by Anil Ambani’s elder brother Mukesh Ambani.
It's not just about goodwill - inclusivity is a good business decision.
To reach a 50-50 workplace scenario, policies on diversity need to be paired with a culture of inclusiveness. While diversity brings equal representation in meetings, board rooms, promotions and recruitment, inclusivity helps give voice to the people who might otherwise be marginalized or excluded. Inclusion at workplace can be seen in an environment that values diverse opinions, encourages collaboration and invites people to share their ideas and perspectives. As Verna Myers, a renowned diversity advocate, puts it “Diversity is being invited to the party, inclusion is being asked to dance.”
Creating a sense of belonging for everyone is essential for a company’s success. Let’s look at some of the real benefits of a diverse and inclusive workplace:
Better decision making
A whitepaper by Cloverpop, a decision making tool, established a direct link between inclusive decision making and better business performance. The research discovered that teams that followed an inclusive decision-making process made decisions 2X faster with half the meetings and delivered 60% better results. As per Harvard Business School Professor Francesca Gino, this report highlights how diversity and inclusion are practical tools to improve decision making in companies. According to her, changing the composition of decision making teams to include different perspectives can help individuals overcome biases that affect their decisions.
Higher job satisfaction
Employee satisfaction is connected to a workplace environment that values individual ideas and creates a sense of belonging for everyone. A research by Accenture identified 40 factors that influence advancement in the workplace. An empowering work environment where employees have the freedom to be creative, innovative and themselves at work, was identified as a key driver in improving employee advancement to senior levels.
A research by Catalyst.org stated the in India, 62% of innovation is driven by employee perceptions of inclusion. The study included responses from 1,500 employees from Australia, China, Germany, India, Mexico and the United States and showed that employees who feel included are more likely to go above and beyond the call of duty, suggest new and innovative ways of getting work done.
Shirley Engelmeier, author of ‘Inclusion: The New Competitive Business Advantage’, in her interview with Forbes, talks about the new global business normal. She points out that the rapidly changing customer base with different tastes and preferences need to feel represented by brands. An inclusive environment will future-proof the organisation to cater to the new global consumer language and give it a competitive edge.
An inclusive workplace ensures that no individual is disregarded because of their gender, race, disability, age or other social and cultural factors. Accenture has been a leading voice in advocating equal workplace. Having won several accolades including a perfect score on the Human Rights Campaign’s Corporate equality index, Accenture has demonstrated inclusive and diverse practices not only within its organisation but also in business relationships through their Supplier Inclusion and Diversity program.
In a video titled ‘She rises’, Accenture captures the importance of implementing diverse policies and creating an inclusive workplace culture.
To know more about inclusion and diversity, see here.
This article was produced by the Scroll marketing team on behalf of Accenture and not by the Scroll editorial team.