IICA Promotes Responsible Business Through Research and Training

The Indian Institute of Corporate Affairs (IICA), operating under the Ministry of Corporate Affairs, is dedicated to enhancing corporate governance through academic research and capacity building. Recently, IICA announced the National Conference on Responsible Business Conduct (NCRBC), an annual event aimed at fostering dialogue and knowledge exchange on responsible business practices. This initiative aligns with India’s evolving corporate responsibility framework, which emphasizes sustainability and ethical standards across various sectors.

Promoting Responsible Business Practices

The NCRBC serves as a platform for multi-stakeholder dialogue, focusing on responsible business conduct. It aims to create a shared understanding of best practices while enhancing academic insights into business responsibility. The conference does not function as a policymaking body; rather, it encourages discussions that can inform future government policies. By facilitating these conversations, IICA seeks to promote a culture of accountability and ethical behavior in corporate practices across India.

Framework for Sustainability Reporting

Business Responsibility and Sustainability Reporting (BRSR) is a crucial aspect of corporate governance in India. This approach was first introduced in the National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities of Business (NVGs) in 2011 and later integrated into the Companies Act of 2013. The guidelines were updated in 2019 to reflect the National Guidelines for Responsible Business Conduct (NGRBC). These frameworks expand the responsibilities of companies and their directors beyond mere shareholder interests to include stakeholders such as employees, communities, and the environment.

Regulatory Developments and Compliance

The Securities and Exchange Board of India (SEBI) has played a significant role in enforcing sustainability reporting among publicly listed companies. Since 2012, SEBI has required the top 500 listed companies by market capitalization to disclose their business responsibility and sustainability indicators through Business Responsibility Reports (BRRs). This requirement has since expanded to include the top 1,000 companies, with mandatory compliance for the fiscal year 2022-23. Recent circulars from SEBI have introduced BRSR Core, which outlines essential Key Performance Indicators (KPIs) that companies must assess and assure, starting with the top 150 listed entities in FY 2023-24.

Future Directions in ESG Disclosures

Looking ahead, SEBI plans to implement voluntary ESG disclosures for the value chains of the top 250 listed entities starting in FY 2025-26. Assurance and assessment of these disclosures will also be voluntary for the following fiscal year. These initiatives are designed to enhance transparency and accountability in both private and public sector companies. The Minister of State in the Ministry of Corporate Affairs, Shri Harsh Malhotra, provided this information during a recent session in the Lok Sabha, highlighting the government’s commitment to fostering responsible business practices in India.

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