Ministry of Corporate Affairs, Government of India, in July 2011, came out with the ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business’ – NVGs.
SEBI – as a part of its circular on 13th August 2012, makes it mandatory for top 100 BSE and NSE listed companies (as on March 2012) to disclose their Business Responsibility Practices through a report adhering to the NVG framework.
If you are in the list then read on… Even if you are not, nothing stops you from reporting how responsible you are in conducting your business. So read on in either case…
The NVG Framework talks about Sustainability. Govt. of India, through the National Voluntary Guidelines want companies to:
That’s not much to ask for, is it? Also, NVGs are applicable to all businesses operating in India and Indian MNCs operating elsewhere irrespective of sector, size, orientation or ownership.
The deemed influence of an organisation/company lies in the green area where the important factors are Customers, Employees, Shareholders, etc., No doubt that an organisation exerts considerable influence on these aspects and vice-versa. But not just these, any organisation exerts influence on other larger aspects such as Economy, Policy, Community Relations, Environment and the like.
So, we need organisations which look beyond their primary influence and target broader Sustainability goals…which is what a lot of companies are doing of late. This provides advantages to the organisation such as:
Coming to NVGs, they come with a broad framework of 9 principles which help companies achieve these benefits & comply to requirements.
Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
Principle 2: Businesses should provide goods &services that are safe and contribute to sustainability throughout their life cycle.
Principle 3: Businesses should promote the well being of all employees.
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders,especially those who are disadvantaged, vulnerable and marginalised.
Principle 5: Businesses should respect and promote human rights.
Principle 6: Business should respect, protect, and make efforts to restore the environment.
Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
Principle 8: Businesses should support inclusive growth and equitable development.
Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner.
So for each of these principles, companies need to provide their declaration/report on their compliance and level of compliance by providing numbers, data and any specific cases relevant to each of the principles.
The format of a Business Responsibility Report is given in the figure below
Note: If an organisation is already reporting their impacts through a Sustainability Report in any of Internationally accepted formats (GRI, IIRC, etc.,), it need not prepare a new BR Report again. It can just point out specific sections in the Sustainability Report or Annual Report which highlights its compliance to the 9 principles.
Here you are. If you are interested in reporting your Business Responsibility impacts or are mandated by SEBI to do so, get in touch with us. We can:
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