National Guidelines
on responsible
Business conduct
MINISTRY OF CORPORATE AFFAIRS
Government of India
National Guidelines
on
Responsible Business Conduct
Technical support provided by
1
Table of Contents
Message: Hon'ble Prime Minister, Government of India5
Foreword: Union Minister of Finance and Corporate Affairs6
Description and Explanation of Terms7
Chapter 1: Introduction11
Chapter 2: Core Elements14
ANNEXURES29
Annexure 1: Guidance on Adoption of NGRBC30
Annexure 2: Guidance for Micro, Small and Medium Enterprises35
Annexure 3: Business Responsibility Reporting Framework38
Annexure 4: SDGs Mapped Against NGRBC Principles50
Annexure 5: Business Case Matrix52
Annexure 6: Guidance for Businesses on Using the BRRF as a Self-
Assessment Tool53
Annexure 7: Indian Laws Principles (Indicative)55
Annexure 8: Resources59
National Guidelines on Responsible Business Conduct 3
Prime Minister of India
MESSAGE
Our motto, Sabka Saath Sabka Vikas has been the cornerstone for pursuing welfare for all
by ensuring that the benefits of good governance reach everyone. Business has primarily
been seen as wealth creators for their shareholders, but it has the potential to go beyond
that and induce inclusive socio-economic transformation. The Gandhian philosophy of
trusteeship captures the business responsibility towards society.
The philosophy of giving back to the society has been an integral part of the culture,
which has also been imbibed in traditional Indian businesses since time immemorial. In
order to integrate this into the core business philosophy, the Government has obligated
companies to take responsibility for the society by incorporating it as part of the fiduciary
duties of a director. Besides, this universal obligation across all classes of companies,
those meeting certain threshold in terms of turnover, networth or net profit are obligated
to set apart two per cent of their net profit for corporate social responsibility activities.
Responsible Business Conduct is a globally recognized concept founded on the idea that
businesses can perform better when engaged in re-vitalizing the society from which
they extract resources for production. The National Guidelines on Responsible Business
Conduct, 2018 (NGRBC), which is an improvement over the existing National Voluntary
Guidelines on Social, Environmental & Economic Responsibilities of Business, 2011
(NVGs), are a means of nudging businesses to contribute towards wider development
goals while seeking to maximize their profits. The NGRBC is dovetailed with the United
Nations Guiding Principles on Business & Human Rights (UNGPs). The NGRBC intends to
not just make companies more responsible and accountable but also to create a whole
ecosystem to `Protect1, `Respect1 & `Remedy' as envisaged in the UNGPs.
I sincerely hope that the NGRBC would usher a new philosophy of responsible and
sustainable business.
(Narendra Modi)
New Delhi
December 10, 2018
National Guidelines on Responsible Business Conduct 5
FINANCE AND CORPORATE AFFAIRS MINISTER
NEW DELHI, INDIA-110001
Foreword
Hon'ble Union Minister of Finance and Corporate Affairs
The constitutional vision of our country promotes inclusive growth and sustainable
development. The challenge is to attain these goals by cautiously balancing
developmental needs with welfare goals. We have constantly strived to take all
possible initiatives to lead India to assume a leadership role in the comity of
nations. However, in the collective journey to achieve global salience, involvement
of businesses is crucial. The National Guidelines for Responsible Business Conduct,
2018 (NGRBC) brought out by Ministry of Corporate Affairs are part of government's
pursuit to equitably deliver benefits of growth by engaging `India Inc.' in the country's
developmental agenda.
The NGRBC urge businesses to conduct business responsibly and sustainably and
also encourage and support their suppliers, vendors, distributors, partners and other
stakeholders to follow the same principle. The guidelines, articulated as a set of nine
principles and their attendant core elements enunciate the thrust of the United
Nation Guiding Principles (UNGPs) on Business and Human Rights and Sustainable
Development Goals and yet remain true and specific to the Indian context.
I am sure that in pursuance of these guidelines, Indian businesses shall not only
gain global prominence but also garner goodwill and growth for their business and
contribute beneficially to society.
(Arun Jaitley)
6 National Guidelines on Responsible Business Conduct
Description and
Explanation of Terms
Some of the key terms used in this document are Consumer: A person or business that buys
described here. These descriptions are only indicative. products or services for personal use, resale or use
They have been selected based on a review of Indian in production and manufacture. It also includes the
and international definitions, and their applicability user of the product or service other than the buyer.
in the context of these Guidelines.
Corporate Social Responsibility (CSR): Corporate
Accountable: Being responsible and answerable for Social Responsibility (CSR) means and includes but
their actions, willing to explain them to others, and is not limited to (i) Projects or programs relating
taking ownership of all repercussions if so required. to activities specified in Schedule VII of the Indian
Companies Act 2013; or (ii) Projects or programs
Circular Economy: This is an alternative to a relating to activities undertaken by the board of
traditional linear economy (make, use, dispose), in directors of a company (Board) in pursuance of
which resources are used for as long as possible, the recommendations of the CSR Committee of the
maximum value is extracted from them whilst in use, Board as per declared CSR Policy of the company,
after which products and materials are recovered subject to the condition that such policy will cover
and regenerated at the end of each service life. The subjects enumerated in Schedule VII of the Act.
idea of a circular economy is called circularity. It is
also referred to as "cradle-to-cradle". Disclosure: An organization's practice of reporting
to all stakeholders on its economic, environmental
Collective Bargaining: Negotiating between and social impacts. It also presents the organization's
the employees' organization and employer's values and governance model and demonstrates
oorganization; management in good faith with the link between its strategy and its commitment to
a view to agree on terms and conditions of work sustainable development.
and / or settlement of disputes and grievances of
employees represented by a representative body of Discrimination: Unjust or prejudicial treatment of
employees people, especially on the grounds of, but not limited
to, caste, creed, sex, race, ethnicity, age, colour,
Complicity: Refers to involvement of the business in religion, disability, socio-economic status or sexual
violations of any of the Principles and Core Elements orientation.
by third parties connected with its operations. It is
generally made up of the following: Diversity: An understanding that every individual
is unique and therefore embracing and respecting
· An action or omission (failure to act) by a business, the differences on account of, but not limited
or individual representing a business, that `helps' to, caste, creed, sex, race, ethnicity, age, colour,
(facilitates, legitimize, assists, encourages, etc.) religion, disability, socio-economic status or sexual
another, in some way, to perpetrate a violation; orientation.
· The business was or should have been aware Employee: A person employed, directly or by or
that its action or omission could provide such through any agency (including a contractor), whether
help; for remuneration or not, for carrying out activities of
· Complicity may be direct, beneficial or silent. the organization or any part thereof, incidental to or
National Guidelines on Responsible Business Conduct 7
connected with those activities, in pursuance of the perpetuator knows or ought to know is threatening
organization's stated objectives. It would also include or disturbing.
those who undertake these activities outside of the
business's premises including their own homes. Intellectual Property (IP): Refers to creations of
the mind, such as inventions, literary, musical and
Equity: An approach which recognizes the need, artistic works, and symbols, names, images, and
plans and delivers a fair and equivalent opportunity designs used in commerce, for which the IP owners
across stakeholders to engage gainfully from their are granted certain exclusive rights under the
interactions with the business. corresponding national IP laws. Common types of IP
include patents (inventions), copyrights, trademarks,
Ethical: Individual or collective behaviour that is in industrial designs, software, geographic indications
accordance with accepted written and / or unwritten and trade secrets, etc.
codes of principles and values that govern decisions,
actions and conduct within a business in the context Involuntary Labour: All work or service that
of a particular situation and is consistent with is extracted under the menace of penalty. Also
accepted norms of behaviour. includes terms such as forced labour, bonded labour
and modern slavery.
Fair Living Wages: A wage sufficient for a family to
meet its basic needs and which provides some ability Participation of Workers: Situation where
to deal with emergencies. workers are involved in some way in the decision-
making process of a business organization. Worker
Freedom of Association: Workers and employers, participation can take many forms. There might be
without distinction whatsoever, have the right a consultative council in the company where trade
to establish and, subject only to the rules of the unions and management meet regularly to discuss
organization concerned, to join organizations of their points of mutual interest. Workers can be organized
own choosing without previous authorization. in quality circles and meet regularly in small groups
Governance: Relates to "how" an organization makes to discuss ways in which their work could be better
decisions, how it operates to achieve its objectives organized.
and how stakeholders have their say in the processes. Precautionary Principle: When human activities
Governance Structure: The formalized individual may lead to morally unacceptable harm that
or group of individuals charged with the ultimate is scientifically plausible but uncertain, actions
responsibility of oversight of a business. This would shall be taken to avoid or diminish that harm.
refer to the equivalent of the Board for companies, Morally unacceptable harm refers to that which
the partners for partnership firms and the owner of may threaten human health, or is seriously and
the business for sole proprietorships. effectively irreversible or inequitable to present or
future generations, or imposed without sufficient
Grievance Redressal Mechanism: Mechanism consideration of the human rights of those affected.
for any stakeholder individually or collectively to
raise and resolve reasonable concerns affecting Product: Any good and / or service produced for
them without impeding access to other judicial or introduction to trade or commerce, possessing
administrative remedies. The mechanism should be: intrinsic value and capable of delivery to a consumer
in tangible form, intangible form or a combination
· Clear, transparent and have independent thereof.
governance structures
· Accessible Product Life Cycle: This refers to all the stages of
· Predictable a product from extraction or acquisition of raw
· Equitable materials through manufacturing and processing,
· Based on dialogue and mediation distribution and transportation, use and reuse,
recycling and disposal. In the case of services, it
Harassment: Wide range of offensive behaviour refers to all activities and processes from the design
that is unwanted by the recipient and which the to delivery.
8 National Guidelines on Responsible Business Conduct
Stakeholder: Individual or group concerned or Value Chain: Refers to both the supply chain as well
interested with or impacted by the activities of the as the value created by the distribution channel for
businesses and vice-versa, now or in the future. end-use customers. It also includes business partners
Typically, stakeholders of a business include, but is and those employed by value chain partners who
not limited to, its investors/shareholders, employees may work out of their own premises.
(and their families), customers, communities,
value chain members and other business partners, Vulnerable and Marginalized Groups: Group of
regulators, civil society actors, and media. individuals who are unable to realize their rights or
enjoy opportunities due to adverse physical, mental,
Sustainability: The outcome achieved by balancing social, economic, cultural, political, geographic or
the social, environmental and economic impacts of health circumstances. These groups in India can be
business. It is the process that ensures that business identified on the basis, inter alia, of the following:
goals are pursued without compromising any of the
three elements. · Gender and transgender (women, girls et al.)
· Age (children, elderly et al.)
Sustainable: Being aligned with the tenet of meeting · Descent/identity/ethnicity (caste, religion,
the needs of the present without compromising the scheduled castes, scheduled tribes, et al.)
ability of future generations to meet their own needs. · Occupation (displaced, landless small / marginal
farmers, migrant workers, et al.)
Traditional Knowledge: This refers to any indigenous · Persons with disability
technical, ecological, scientific, medical or cultural · Political or religious beliefs
knowledge which is not necessarily documented
but is in use by or generally known to communities. Workplace: Place(s) where activities of the
Typical examples include antiseptic properties of organization are carried out in pursuance of its stated
neem, turmeric, etc. objectives.
Transparent: Being open about decisions and Work-life balance: Broad concept including proper
activities that affect society, the environment and balancing of "work" (career and ambition) on one
the economy, and the willingness of businesses to hand and "life" (pleasure, leisure, family and spiritual
communicate information in clear, accurate, honest, development) on the other. Related, though broader,
timely and complete manner. terms include "lifestyle balance" and "life balance".
National Guidelines on Responsible Business Conduct 9
Chapter 1:
Introduction
The Ministry of Corporate Affairs (MCA), Government Development which established seventeen
of India, released a set of guidelines in 2011 called Sustainable Development Goals (SDGs),
the National Voluntary Guidelines on the Social, comprising targets and indicators, as well as
Environmental and Economic Responsibilities of follow-up and review mechanisms. Significantly,
Business (NVGs). This was expected to provide the SDGs recognize the role of business as a major
guidance to businesses on what constitutes driver for economic growth and infrastructure,
responsible business conduct. In order to align the whilst explicitly calling for businesses to act
NVGs with the Sustainable Development Goals in accordance with the UNGPs. The SDGs are
(SDGs) and the `Respect' pillar of the United Nations mapped against the NGRBC in Annexure 4.
Guiding Principles (UNGP) the process of revision
of NVGs was started in 2015. After, revision and 3) Paris Agreement on Climate Change (2015):
updation, the new principles are called the National This is an agreement under the United Nations
Guidelines on Responsible Business Conduct Framework for Climate Change (UNFCC) reached
(NGRBC). As with the NVGs, the NGRBC has been in December 2015, in which countries have
designed to assist businesses to perform above and committed to take steps to combat climate
beyond the requirements of regulatory compliance. change and adapt to its effects. India ratified
the agreement on 2nd October 2016,and
Mandate & Rationale its commitments are called the National
Determined Contributions (NDCs). The Paris
The primary rationale for the update is to capture Agreement also constitutes SDG 13.
key national and international developments in
the sustainable development agenda and business 4) Core Conventions 138 and 182 on Child Labour
responsibility field that have occurred since the by the International Labour Organization
release of the NVGs in 2011. Some of the key drivers (ILO): India, in June 2017, ratified ILO Core
of the NGRBC are given below: Conventions 138 (minimum age of employment
of children) and ILO Core Convention 182 (worst
1) The UN Guiding Principles for Business and forms of child labour).
Human Rights (UNGPs): Through its resolution
17/4 of 16 June 2011, the UN Human Rights 5) Annual Business Responsibility Reports
Council endorsed the Guiding Principles on (ABRRs): In 2012, the Securities Exchange Board
Business and Human Rights: Implementing the of India (SEBI) amended the Listing Agreement
United Nations `Protect, Respect and Remedy' for companies listed in the stock exchanges in
Framework. The UNGPs are grounded in India, and mandated the submission of an ABBRs
recognition of, a) the State's existing obligations by the top 100 listed companies. The ABRR is
to respect, protect and fulfil human rights and based on the Business Reporting Framework
fundamental freedoms; b) the requirement of of the NVGs, and SEBI has since extended this
business enterprises to respect human rights, requirement to the top 500 listed companies.
and c) the need for access to effective remedy
6) Companies' Act 2013: Notified in the Gazette
for those who are affected by adverse business-
of India on 30 August 2013, Section 135 of
related human rights impacts or abuse. Since
the Companies Act 2013 requires companies
their release, the UNGPs have become the
to undertake Corporate Social Responsibility
authoritative global standard for Business and
(CSR) initiatives in communities, and has since,
Human Rights. In further support of the UNGPs,
provided additional rules and guidance on the
the UN Human Rights Council established
areas and target groups of such interventions
the UN Working Group (UNWG) and tasked it
in consistency with national socio-economic
with facilitating the global dissemination and
priorities.
implementation of the UNGPs. The UNWG has
strongly encouraged all States to develop a Applicability
National Action Plan (NAP) as part of the States'
responsibility to disseminate and implement the The NGRBC are designed to be used by all businesses,
UNGPs. irrespective of their ownership, size, sector, structure
or location. It is expected that all businesses investing
2) UN Sustainable Development Goals (SDGs): or operating in India, including foreign multinational
In September 2015, the UN General Assembly corporations (MNCs) will follow these guidelines.
adopted the 2030 Agenda for Sustainable Correspondingly, the NGRBC also provide a useful
National Guidelines on Responsible Business Conduct 11
framework for guiding Indian MNCs in their overseas adopt them to demonstrate their commitment to
operations, in addition to aligning with applicable being a responsible business, and accrue the full
local national standards and norms governing benefits of sustainable business strategies.
responsible business conduct.
Content and Structure
Furthermore, the NGRBC reiterate the need to
encourage businesses to ensure that not only do they The NGRBC consist of two chapters and an expanded
follow these guidelines in business contexts directly set of annexures. While the Principles have been
within their control or influence, but that they also updated, they have retained the articulation and
encourage and support their suppliers, vendors, description of those in the NVGs. The connected
distributors, partners and other collaborators to Core Elements enhance the operationalization of
follow them. each Principle. The details in the annexures provide
practical guidance to businesses on the adoption
Responsibility for Adoption and implementation of these guidelines. Keeping the
importance of Micro, Small and Medium Enterprises
Whereas the NVGs made several references to
(MSMEs) in view, the business case for adoption of
the critical role of the governance structure and
NGRBC by the MSMEs is given in Annexure 2.
companies' leadership in ensuring adoption and
review of the guidelines, the NGRBC has taken this An updated Business Responsibility Reporting
requirement a step further by identifying specific Framework (BRRF) has been included for reporting
aspects of each Principle as part of the duty and of actions taken by businesses vis-à-vis the Principles
responsibility of the highest governance structure and Core Elements. The BRRF is meant to serve
of the business to oversee the implementation and as an internal tool for companies to assess where
adherence to these guidelines in their business. they are in their journey of responsible business
While the highest governance structure, in the conduct and identify opportunities for improvement.
case of companies and corporations is the Board, Guidance on how this framework may be used by
the responsibility for adoption of the NGRBC in businesses is included as an annexure. Additionally,
proprietorships, partnerships, and other types of the BRRF can serve as a framework for regulators
business is assumed in the present context to rest with to develop disclosure formats (e.g. Annual Business
the owner/s, partner/s, and/or, any other structure Responsibility Report (ABRR) mandated by the
responsible for the highest level of decision-making Securities and Exchange Bureau of India (SEBI) based
and governance functions in the business. on NVGs).
It is worthwhile to emphasize that all Principles of The last part of the NGRBC contains a set of useful
the NGRBC are equally important, inter-related, inter- references and resources which businesses may
dependent and non-divisible, and businesses should consult as part of their implementation efforts.
12 National Guidelines on Responsible Business Conduct
Chapter 2:
Principles and
Core Elements
This chapter contains the nine thematic pillars of
business responsibility which are called Principles.
Each Principle is introduced as a statement and
followed by a narration of the essential aspects of
the Principle, referred to as the brief description.
A reading of each Principle and brief description
should provide a clear idea of the essential spirit and
intent of the Principle.
Each Principle is accompanied by a set of
requirements and actions that are essential to the
operationalization of the Principle, referred to as the
Core Elements. The information sought in Annexure 3
of the Guidelines (Business Responsibility Reporting
Framework) is derived from the Core Elements.
The Principles are interdependent, interrelated and
non-divisible, and businesses are urged to address
them holistically. Annexure 1 of the Guidelines
provides guidance to all businesses on the adoption
and implementation of the Principles. Furthermore,
businesses impact different stakeholders in different
ways. Therefore, while applying these principles,
businesses need to be sensitive to characteristics,
such as caste, creed, sex, race, ethnicity, age, colour,
religion, disability, socio-economic status or sexual
orientation. Though this has not been specifically
mentioned in the Principles and Core Elements,
businesses are expected to keep this in mind. Most
importantly, the ultimate responsibility for adoption
of the Principles rests with the highest governance
structure of the business.
National Guidelines on Responsible Business Conduct 13
Principle 1:
Businesses should conduct
and govern themselves with
integrity, and in a manner that
is ethical, transparent, and
accountable.
Brief Description 4. The Governance Structure should disclose and
communicate transparently and enable access
This Principle recognizes that ethical behaviour to information about the policies, procedures,
in all operations, functions and processes, is performance (financial and non-financial), and
the cornerstone of businesses guiding their decisions of their enterprise, that impact their
governance of economic, social and environmental stakeholders, especially those that are most at
responsibilities. risk to business impacts and communities that
are vulnerable and marginalized.
The Principle emphasizes that disclosures on business
decisions and actions that impact stakeholders 5. The Governance Structure should take
form the fundamental basis of operationalizing responsibility for meeting all its statutory
responsible business conduct and should be obligations in line with the spirit of the law,
accessible to all relevant stakeholders. enabling fair competition and ensuring it treats
all its stakeholders in an equitable manner.
It recognizes that businesses are an integral part of
society and that they will hold themselves accountable 6. The Governance Structure should ensure that
for the effective adoption, implementation, and the the business avoids complicity with the actions
making of disclosures on their performance with of any third party that violates any of the
respect to the Core Elements of these Guidelines. Principles contained in these Guidelines.
The Principle further emphasizes that the governance 7. The Governance Structure should put in place
structure of the business should ensure this, in line appropriate structures, policies and procedures
with SDG 16. to address conflicts of interest involving its
members, employees and business partners.
Core Elements
8. The Governance Structure should put in place
1. The governance structure should develop and appropriate structures, codes, policies, and
put in place structures, policies and procedures procedures to ensure that the business does not
that promote this Principle, prevent its engage in illegal and abusive practices, bribery
contravention and effect prompt and fair action and corruption, and ensure timely and fair
against any transgressions. action in case such transgressions are detected.
2. The Governance Structure should ensure 9. The Governance Structure should ensure that
that the Principles of these Guidelines are the business contributes to public finances by
understood, adopted and implemented timely and complete payment of all applicable
throughout the operations of their business. taxes in the letter and spirit of the laws and
3. The Governance Structure should also promote regulations governing such payments.
the adoption of this Principle across the value
chain of their business.
National Guidelines on Responsible Business Conduct 15
Principle 2:
Businesses should
provide goods and
services in a manner that
is sustainable and safe.
16 National Guidelines on Responsible Business Conduct
Brief Description Core Elements
This Principle recognizes the proposition of SDG 12, 1. Businesses should, in designing, producing and
that sustainable production and consumption are making available goods and services, endeavour
interrelated, contribute to enhancing the quality of to ensure that resource-efficient and low-carbon
life and towards protecting and preserving earth's processes and technologies are deployed to
natural resources. minimize adverse environmental and social
impacts.
The Principle further emphasizes that businesses
should focus on safety and resource-efficiency in the 2. Businesses should provide stakeholders across
design and manufacture of their products, and use the value chain with adequate information
their products in a manner that creates value while about environmental and social issues and
minimizing and mitigating its adverse impacts on impacts across product life cycle from design to
the environment and society through all stages of disposal. This may be done through appropriate
its life cycle, from design to final disposal. Over time, and relevant tools such as certifications, labels,
businesses should embrace the idea of circularity in ratings and other communication and disclosure
all its operations. platforms including reports, websites, etc.
In order to do so, the Principle encourages businesses 3. Businesses should increasingly take responsibility
to understand all material sustainability issues across for the safe collection, reuse and recycling of their
their product life cycle and value chain. products at life so as to build a circular economy
as a part of the notion of extended producer
responsibility that is increasingly becoming a
part of regulation in India and globally.
National Guidelines on Responsible Business Conduct 17
Principle 3:
Businesses should
respect and promote
the well-being of all
employees, including
those in their value
chains.
Brief Description and provide access to appropriate grievance
redressal mechanisms.
This Principle encompasses all policies and practices
4. Businesses should not use child labour, coercive
relating to the equity, dignity and well-being, and
or forced labour, or any form of involuntary
provision of decent work (as indicated in SDG 8), of all
labour, paid or unpaid.
employees engaged within a business or in its value
chain, without any discrimination and in a way that 5. Businesses should put systems and processes in
promotes diversity. The principle recognizes that the place to support the work-life balance of all its
well-being of an employee also includes the well- employees.
being of her/his family.
6. Businesses should ensure fair, timely and
Core Elements transparent payment of statutory wages of all its
employees, including contract and casual labour
1. The Governance Structure should ensure
without discrimination.
that the business complies with all regulatory
requirements pertaining to its employees, and 7. Businesses should aspire to pay fair living wages
that there are systems and processes in place to to meet basic needs and economic security of all
enable this to be done by its value chain partners. employees, including casual and contract labour.
2. Businesses should ensure equal opportunities 8. Businesses should provide a workplace
at the time of recruitment, during the course "environment that is safe, hygienic, accessible
of employment, and at the time of separation to the" - there is no space between the words
without any discrimination. differently abled and which upholds the dignity
of the employees. Businesses should engage and
3. Businesses should promote and respect the
consult with their employees on this provision.
right to freedom of association, participation
of workers, and collective bargaining of all 9. Businesses should ensure continuous
employees including contract and casual labour, upgradation of skill and competence of all
employees by providing access to necessary
learning opportunities, on an equal and non-
discriminatory basis. They should promote
career development through human resource
interventions.
10. Businesses should create systems and practices
to ensure a humane workplace free from,
violence and harassment (including sexual
harassment); a workplace where employees feel
safe and secure, with adequate provisions for
grievance redressal.
National Guidelines on Responsible Business Conduct 19
Principle 4:
Businesses should
respect the interests of
and be responsive to all its
stakeholders.
Brief Description Core Elements
This Principle recognizes that businesses operate in 1. Governance Structures should ensure that the
an eco-system comprising a number of stakeholders, business acknowledges, assumes responsibility,
beyond shareholders and investors, and that and is transparent about the impact of their
their activities impact natural resources, habitats, policies, decisions, products and associated
communities and the environment. operations on all stakeholders, and the natural
environment.
The Principle acknowledges that it is the responsibility
of businesses to ensure that the interests of all 2. Businesses should develop systems, processes
stakeholders, especially those who may be vulnerable and mechanisms to identify its stakeholders,
and marginalized, are protected. understand their expectations and concerns,
define the purpose and scope of the engagement,
The Principle further recognizes that businesses have consult with them in developing policies and
a responsibility to maximize the positive impacts processes that impact them, and commit
and minimize and mitigate the adverse impacts of to resolving any differences and redressing
its products, operations, and practices on all their grievances in a just, fair and constructive manner.
stakeholders.
3. Businesses should enable all stakeholders to
benefit fairly from the value generated by the
businesses, and any conflicts or differences
arising from the impact of business operations
or the sharing of the value generated by the
businesses should be resolved in a just, fair and
equitable manner.
National Guidelines on Responsible Business Conduct 21
Principle 5:
Businesses should
respect and
promote human
rights.
22 National Guidelines on Responsible Business Conduct
Brief Description Core Elements
This Principle recognizes that human rights are rights 1. The Governance Structure should ensure that
inherent to all human beings, and that everyone, the business undertakes to make its employees
individually or collectively, is entitled to these rights, aware of the human rights content of the
without discrimination. It further recognizes that Constitution of India, relevant national laws and
human rights are inherent, inalienable, interrelated, policies, and the International Bill of Human
interdependent and indivisible. Rights and their application to businesses as
outlined in the United Nations Guiding Principles
The Principle is inspired, informed and guided by for Business and Human Rights. It should further
the Constitution of India and the International Bill of ensure that the responsibility for addressing
Rights and recognizes the primacy of the State's duty such impacts is assigned to the appropriate level
to protect and fulfil human rights. and function within the business.
The Principle is further informed and guided by the 2. The Governance Structure should ensure that
UN Guiding Principles on Business and Human Rights the business has in place such policies, structures
in its articulation of the responsibility of businesses to and procedures that demonstrate respect for the
respect human rights. It affirms that the responsibility human rights of all stakeholders impacted by its
of businesses to respect human rights requires that business. This includes carrying out human rights
it avoids causing or contributing to adverse human due diligence to identify, prevent, mitigate and
rights impacts, and that it addresses such impacts account for how they address adverse human
when they occur. The Principle urges businesses to rights impacts.
be especially responsive to such persons, individually
or collectively, who are most vulnerable to, or at risk 3. The Governance Structure should ensure that
of, such adverse human rights impacts. their business, where it is causing, contributing
or otherwise linked to adverse human rights
impacts, takes corrective actions to address such
impacts.
4. Businesses should promote the awareness and
realization of human rights across its value chain.
5. Businesses should ensure that all individuals
and groups whose human rights are impacted
by them have access to effective grievance
redressal mechanisms.
National Guidelines on Responsible Business Conduct 23
Principle 6:
Businesses should
respect and make efforts
to protect and restore the
environment.
24 National Guidelines on Responsible Business Conduct
Brief Description 1. The Governance Structure should ensure that
the business formulates appropriate policies,
This Principle recognizes that environmental procedures and structures to assess, measure
responsibility is a prerequisite for sustainable and address its adverse impacts on the
economic growth and for the well-being of society. environment at all its locations, at all stages of its
life cycle from establishment to closure. Special
The Principle emphasizes that environmental issues care should be taken where these impacts occur
are interconnected at the local, regional and global in eco-sensitive areas.
levels, which makes it imperative for businesses to
address issues like pollution, biodiversity conservation, 2. Businesses should develop appropriate
sustainable use of natural resources and climate strategies for sustainable and efficient use of
change (mitigation, adaptation and resilience) in a natural resources and manufactured materials,
just, comprehensive and systematic manner. These are giving due consideration to expectations and
aligned with SDGs 11, 13, 14 and 15. concerns of all stakeholders.
The Principle encourages businesses to assess 3. Businesses should define measurable key
environment impacts of its products and operations performance indicators and targets to monitor
and take steps to minimize and mitigate its adverse their performance on environmental aspects
impacts where these cannot be avoided. such as water, air, land-use, forest, energy,
materials, waste, biodiversity, built environment
The Principle encourages businesses to adopt and so on.
environmental practices and processes that minimize
or eliminate the adverse impacts of its operations 4. Businesses should focus on addressing climate
and across the value chain. change through development of both mitigation
and adaptation measures, and build climate
The Principle encourages businesses to follow the resilience and in line with India's Nationally
Precautionary Principle in all its actions. Determined Contributions to the Paris Climate
Core Elements Change Agreement and the National/State
Action Plans on Climate Change.
5. Businesses should learn from industry best
practices for promoting reduction, reuse,
recycling and recovery of material and resources,
and encourage and motivate its stakeholders,
particularly consumers and business partners, to
do the same.
6. Businesses should seek to improve their
environmental performance by adopting
innovative, resource-efficient and low-carbon
technologies and solutions resulting in lower
resource footprint, lesser material consumption
and more positive impact on environment,
economy and society.
National Guidelines on Responsible Business Conduct 25
Principle 7:
Businesses, when engaging
in influencing public and
regulatory policy, should
do so in a manner that is
responsible and transparent.
26 National Guidelines on Responsible Business Conduct
Brief Description Core Elements
This Principle recognizes that businesses operate 1. The Governance Structure should ensure that
within specified national and international legislative its advocacy positions are consistent with the
and policy frameworks, which guide their growth Principles contained in these Guidelines and
and also provide for certain desirable restrictions and publicly disclosed.
boundaries.
2. Businesses should, to the extent possible,
The Principle recognizes the legitimacy of businesses undertake policy advocacy through trade and
to engage with governments for redressal of a industry chambers and associations, and other
grievance or for influencing public policy. similar collective platforms.
The Principle emphasizes that public policy advocacy 3. Businesses should ensure that its policy advocacy
must expand public good. positions promote fair competition and respect
for human rights.
National Guidelines on Responsible Business Conduct 27
Principle 8:
Businesses should promote
inclusive growth and equitable
development.
28 National Guidelines on Responsible Business Conduct
Brief Description Core Elements
This Principle recognizes the challenges of social and 1. The Governance Structure shall ensure that
economic development faced by India, and builds the business takes appropriate actions to
upon the national and local development agenda as minimize any adverse impacts that it has on
articulated in government policies and priorities. This social, cultural and economic aspects of society
is particularly significant in zones affected by social including arising from land acquisition and use,
disharmony and low human development. construction of facilities and operations.
The Principle recognizes the value of the energy and 2. Businesses should assess, measure and
enterprise of businesses and encourages them to understand their impact on social, and economic
innovate and contribute to the overall development development, and respond through appropriate
of the country with a specific focus on disadvantaged, action to minimize and mitigate its negative
vulnerable and marginalized communities, as impacts on society.
articulated in Section 135 of the Companies Act,
2013. 3. Businesses should innovate and invest in
products, technologies and processes that
The Principle also emphasizes the need for promote the well-being of all segments of
collaboration amongst businesses, government society, including vulnerable and marginalized
agencies and civil society in furthering this groups.
development agenda in line with SDG 17.
4. Businesses should respond to national and
The Principle reiterates that business success, local development priorities and understand
inclusive growth and equitable development are the needs and concerns of local communities,
interdependent. particularly vulnerable and marginalised
groups and in regions that are underdeveloped,
while designing and implementing their CSR
programmes.
5. Businesses should make efforts to minimize the
negative impacts of displacement of people
and disruption of livelihoods through their
business operations and where displacement is
unavoidable, this process must be undertaken
in a humane, participative, informed and
transparent manner, where just and fair
compensation is paid to those impacted.
6. Businesses should respect all forms of intellectual
property and traditional knowledge and make
efforts to ensure that benefits derived from their
knowledge are shared equitably.
National Guidelines on Responsible Business Conduct 29
Principle 9:
Businesses should
engage with and provide
value to their consumers
in a responsible manner.
30 National Guidelines on Responsible Business Conduct
Brief Description Core Elements
This Principle is based on the fact that the basic aim 1. Governance Structures should ensure that the
of a business entity is to provide goods and services business minimizes and mitigates any adverse
to its consumers that are safe to use, and in a manner impact of its goods and services on consumers,
that creates value for both. . the natural environment and society at large.
The Principle recognizes that consumers have the 2. Businesses should ensure that they do not restrict
freedom of choice in the selection and usage of the freedom of choice and free competition in
goods and services, and that the enterprises will any manner while designing, promoting and
strive to make available products that are safe, selling their products.
competitively priced, easy to use and safe to dispose
of, for the benefit of their consumers. 3. Businesses should disclose all information
accurately, through labelling and other means,
The Principle also recognizes that businesses including the risks to the individual, to society,
should play a key role, along with other relevant and to the planet, from the use of the products,
stakeholders, in mitigating the adverse impacts that so that the consumers can exercise their freedom
excessive consumption of its products may have on to consume in a responsible manner.
the overall well-being of individuals, society and our
planet, in line with SDG 12. 4. Businesses should manage consumer data in a
way that does not infringe upon their right to
privacy.
5. Businesses should make consumers aware of,
and provide information and guidance to them
on, safe and responsible usage and disposal of
their products (including reuse and recycling),
and to eliminate over-consumption.
6. Businesses should promote and advertise their
products in ways that do not mislead or confuse
the consumers or violate any of the Principles in
these Guidelines.
7. Businesses should provide appropriate grievance
redressal mechanisms that are transparent and
accessible, to address consumer concerns and
feedback.
8. Businesses that provide essential services, e.g..
utilities, should enable universal access, including
to those whose services have been discontinued
for any reason, in a non-discriminatory and
responsible manner.
National Guidelines on Responsible Business Conduct 31
ANNEXURES
32 National Guidelines on Responsible Business Conduct
Annexure 1:
Guidance on Adoption of NGRBC
What does adoption mean? demonstrating the business benefit of being
responsible.
The Principles and Core Elements contained in the
NGRBC are designed to enable businesses to conduct · Employee engagement: The employees too
themselves responsibly. Therefore, adopting these must be convinced of the need to be
guidelines refers to the integration of the Principles responsible. Again, the Governance Structure
and Core Elements into the core business strategy and top management must communicate
and operations of an enterprise including its value this to all employees so that the Principles are
chain. fully understood across the organization and
So, how will the Governance Structure of a business comprehensively implemented.
know whether it has successfully integrated these
· Stakeholder engagement: Recognizing that
NGRBC? Here are some indicators:
all stakeholders play a crucial role in a business's
· It should have in place, policies and guidance that success, the top management of the company
are approved at the highest level and cover all the must map out its stakeholders and proactively
Principles. engage and build strong relationships with them
· The key performance indicators of the business on a consistent and continuous basis.
should incorporate all the Principles of the NGRBC · Disclosure and reporting: In addition to
and those Core Elements that significantly impact engaging with stakeholders including employees,
or are impacted by the business.
the proactive public disclosure by companies of
· The operating procedures of the business should their impact on society and the environment is
also cover those Core Elements that significantly also essential.
impact or are impacted by the business.
The Business Case for Adoption
The Business Responsibility Reporting Framework
That businesses are expected to conduct
(BRRF) provided in Annexure 3 of these guidelines
is designed as an internal tool to help businesses themselves responsibly is an essential component
determine how well aligned they are to the NGRBC. of the social contract between businesses
and society. Increasingly, businesses are also
Key Enablers recognizing that responsible business conduct
Experience suggests that there are some key enablers provides benefits to both the business and society
of businesses that help them successfully integrate in the short term as well as in the long term. To help
sustainability principles into their core processes. businesses determine these benefits, they may use
These include: a tool called the Business Case Matrix, provided in
· Leadership commitment: The Governance Annexure 5. Every business can develop such a
Structure of the business (Board in the case of matrix, in its own context, for each Core Element,
companies, owner(s)/partner(s) in other forms) and thus determine which of them are a relatively
needs to be convinced that the success of the higher priority to the business. However, as stated
business depends upon adopting the NGRBC. The earlier, the Principles detailed in these guidelines
Chairman/CEO/Owner-Manager needs to play are interdependent, interrelated and non-
a proactive role in convincing the Governance divisible, and responsible businesses are expected
Structure, which is most effectively done by to adhere to all the Principles and Core Elements.
National Guidelines on Responsible Business Conduct 33
· Vision, mission and values
· Business success factors
Prioritize · Material sustainability issues
Core · Laws, regulations, global covenants and good practices
Elements
· Map current policies, processes, guidelines vis-a-vis prioritized Core Elements
· Develop new policies where there are gaps (in consultation with stakeholders)
Review and · Get policies endorsed by the Governance Structure
develop
policies
· Determine performance level for each prioritized Core Element
· Two performance levels suggested in the Guidelines: Essential and Leadership
Determine
Ambition
· Select indicators for each prioritized Core Element that reflects the ambition
· Set targets for each indicator / issue
Set Targets
The Adoption Process material sustainability issues must be treated
as high priority. In cases where the business
The flowchart given below summarizes the process
has not undertaken its own materiality
businesses may follow to adopt the NGRBC and
assessment, it should go by suggestions
integrate them with the core business.
found in globally accepted guidelines.
Some of the key steps are described in greater detail
4. Legal and voluntary compliances: Every
below,
business must know the specific laws and
· Prioritizing the Core Elements: The first step regulations, current and emerging, which
is that the business must identify those Core pertain to each of the Core Elements. It is
Elements that are priority. As a rule of thumb, it is stressed that compliance with the laws and
highly likely that each Principle will have at least regulations of the land is non-negotiable. It
one Core Element which is of higher priority for may also be noted that those businesses that
the business. In order to do this prioritization, a are part of a supply chain are also subject to
business must map all the Core Elements against: codes and standards that their buyers may
require them to comply with.
1. Vision, mission and values: Those that
align with or contribute to these must be · Integrating Prioritized Core Elements into Core
considered priority. Business: All the prioritized Core Elements must
then be integrated into core business strategy. In
2. Business success factors: These are
order to do this, the business must:
typically articulated in the business strategy.
1. Review its current policies and guidelines
3. Material sustainability issues: Many
to ensure that they cover all the prioritized
businesses conduct a materiality analysis to
Core Elements. Where there are gaps, these
determine the environment and social issues
must be revised.
that are of high concern to its stakeholders
(ideally based on detailed stakeholder 2. In the case of those Core Elements where
engagements) and have a high impact on the Governance Structure has a role in
business (based on detailed internal analysis ensuring implementation, these policies
on key business success factors). The Core and guidelines must be endorsed by the
Elements that align with or contribute to these Governance Structure.
34 National Guidelines on Responsible Business Conduct
3. The business must determine what its The map will enable the business to ascertain
ambition is for each prioritized Core specific sustainability risks or opportunities
Element, i.e. the performance level it wishes that may reside in its value chain which may be
to achieve for each. As mentioned earlier, different from those faced by the business itself.
the base performance has to be compliance
· Prioritizing Core Elements for value chain
with the law or regulation, but a business
partners: Using the value chain map and as part
may decide to be more ambitious and
of the materiality assessment referred to earlier
take a leadership position by setting itself
in this annexure, businesses should prioritize
a higher performance target. Annexure 3
the Core Elements which are important for their
discusses this in greater details and suggests
value chain partners to align themselves with.
two performance levels Essential and
This is best done in consultation with their major
Leadership.
Tier 1 partners so that ownership is built from
the beginning.
4. Annexure 3 outlines the performance
indicators for relevant Core Elements at · Setting policy frameworks: Businesses
these two levels Essential and Leadership. should have in place, policies and guidelines
Businesses may select the indicators for their that facilitate adoption of the NGRBC across
prioritized Core Elements that reflect their their value chain partners. These policies and
ambition and set 3-5 year targets. guidelines, where required, should be endorsed
by the Governance Structure of the business.
Covering Value Chains Again, this will be most effective when done in
consultation with their Tier 1 partners.
Value chains, encompassing all upstream sourcing
channels and downstream distribution channels, are · Establishing engagement processes: The
an integral part of all businesses, have a definitive prioritized Core Elements should be embedded
role in their success, and feature in their core in processes for all points of engagement
strategies. While integrating the NGRBC into their with value chain partners including diligence,
core strategies and operations, businesses should selection, monitoring, periodic engagement,
specifically encourage their adoption by their value feedback, and recognition of good practice.
chain partners. Responsible businesses should be Such processes are an effective means to build
well placed to understand the social, environment actions around the prioritized Core Elements,
and economic impact their value chain partners have signal the business' responsible intent, can be
on their own enterprise as well as on the external used to incentivize integration of sustainability
world. principles across the value chain and, in the long
term, will enhance security of supply for the
Suggested steps for this include:
business through a stronger relationship with
· Mapping the value chain: Businesses should their partners.
create a map of their direct (or Tier 1) value chain
· Cascading responsibility: Businesses should
partners and also cover, to the extent feasible,
recognize that their value chains partners, direct
indirect members of the value chain who
and indirect, will range from large multinational
transact with the Tier 1 value chain partners. A
corporations to Micro, Small and Medium
value chain map, which traces the key activities
Enterprises (further details on the role of MSMEs
involved in bringing a product from key inputs
in value chains are provided in Annexure 2),
to the consumer, should be created for all major
who will have differentiated capacities and
products of a business and requires collaboration
considerations while adopting the Principles
among all functions within the business which
and Core Elements. Businesses should guide
work on the specific products. This should
and support them in their efforts to adopt these
provide visibility of physical locations, resource
guidelines including collaborating with other
dependencies, contractual/compliance
businesses. Businesses should also support their
status, financial status and storage/logistics
Tier 1 partners to cascade this process to the
arrangements for value chain partners as well
subsequent tiers in the value chain.
as any interdependencies between the partners.
National Guidelines on Responsible Business Conduct 35
Annexure 2:
Guidance for Micro, Small and
Medium Enterprises
Significance of MSMEs for NGRBC distinct although not mutually exclusive sub-
groups:
MSMEs contribute significantly to the GDP,
employment and social equity of India. They are the a. Global value chains linked: This group
2nd largest employer, after agriculture, employing accounts for increasing exposure of MSMEs
an estimated 100 million people which is almost ten to the global business environment since
times that of the employment in the government the 1990s. Those in product categories like
and large private sector put together. MSMEs are garments, sports goods, furniture, chocolates,
present in almost all economic activities, ranging beverages and other food products are well
from crafts to services and high-end industrial exposed to individual and collective buyer
activities. The product range spreads across sectors standards across environment, labour and
including handicrafts, handlooms, textiles, garments, other issues, and are hence reasonably in
leather, plastics, engineering, IT & IT enabled services, tune with various responsible business
hospitality, tourism, health care and several others. In guidelines, codes and standards.
terms of markets, these enterprises are connected
with rural markets to global value chains. Together b. Vendors/suppliers for large buyers with
they contribute to 37% of industrial output, 40% of domestic base: The MSMEs in this group are
manufactured exports and 37.54% of the GDP for linked across several sectors where global
2012-13 (Annual report of Ministry of MSME, Govt. of players have significant manufacturing or
India, 2015-16), with a considerable multiplier effect sourcing base in India, such as automobiles,
on the economy. engineering goods, aerospace, defence,
railways and large retail companies. There
Another remarkable feature of the MSMEs in India is is also a wide range of MSME suppliers for
that almost two-third of them are naturally organized public procurement supplying to railways,
around approximately 6000 geographic clusters, as a engineering companies, power sector
part of local, regional, national and global value chains. companies and a wide range of government
These clusters in groups of contiguous villages, blocks services across hospitals, schools, etc.
or districts are known for a range of crafts, industrial
products or services. c. Emerging high growth start-ups: The
phenomenon of technology-based high
MSMEs are, therefore, not a residual segment but a growth start-ups is beginning to surge.
very significant component of the larger social and This is significant not only for the growth
economic system, interconnected with a variety of individual enterprises but also with their
of stakeholders. Hence, for the NGRBC to succeed, power to disrupt the way classical brick-
widespread buy-in and adoption by the MSME sector and-mortar enterprises function. With a
is necessary. more positive socio-economic environment
for spawning start-ups with support from
Classification of MSMEs
academic institutions, private funding
The Indian MSME sector can be broadly categorized for risk capital, and government support,
into two types: this group is fast emerging as a significant
one. To illustrate there are technology-
1. MSMEs organized around local and regional value based aggregators of MSMEs that include
chains: These comprise a large number of very independent taxi operators, e-commerce
small enterprises and is estimated to contribute platforms and credit facilitators. These
between half to two-thirds of the total MSME entrepreneurs have joined the bandwagon
output. However, their share has been shrinking of globally integrated Indian MSMEs.
over the years making way for integration across
national and global value chains. The Business Case for MSMEs to adopt the NGRBC
2. MSMEs that are part of national & global value There is no doubt that smaller businesses have fewer
chains: These can be further broken into three resources and abilities to adhere to multiple laws,
36 National Guidelines on Responsible Business Conduct
regulations and guidelines. But the fact that several fund them at a premium or do not fund them at all.
of them already do clearly suggests that not only are The Indian Banks Association has recently come
they capable of doing so but it is worth their while in up with a set of National Voluntary Guidelines
other words, it makes business sense to do so. So, what for Responsible Finance, which asks members to
are the business benefits of adopting these Principles factor commitment to responsible business in
and Core Elements? Some of these are outlined here: their lending and investment decisions. MSMEs
that adopt the NGRBC may find themselves
· Increased access to markets and customers: better placed to negotiate better financial terms
MSMEs that are a part of national and global value with banks and financial institutions to meet their
chains know that for them to gain new customers growth plans.
and retain their existing ones, they have to
conform to a number of sustainability codes and Adopting the NGRBC
standards that go well beyond compliance with
local laws. These codes and standards, typically Annexure 1 described (a) what "adopting" means and
relating to issues regarding environment and (b) identifying the "enablers" for successful adoption.
labour, which are almost standard requirements These are applicable in full measure to MSMEs as well.
for those exporting to western countries, are Owners and partners have to play a leadership role
increasingly becoming universal, with several in understanding the Principles and Core Elements
Indian companies also expecting their supply outlined in the NGRBC, adopting them and making
chains to conform to sustainability requirements. their employees, customers and funders aware so
Adopting the Principles herein may enable MSMEs that they derive full benefit from this commitment.
to become preferred suppliers to the increasing Reporting their commitments and activities is an
number of customers who expect responsible effective way of communicating their performance to
behaviour from their value chains. these key stakeholders.
· Better preparedness for compliance: India The steps that MSMEs should take to adopt the NGRBC
was a signatory to two global agreements in are also described in Annexure 2. Recognizing that
2015 the Sustainable Development Goals some of these steps can be undertaken only by those
and Paris Agreement on Climate Change. As a businesses that are relatively larger and more mature,
consequence, businesses will be expected to do given below are what MSMEs must do at the bare
more in the social and environmental spheres, minimum:
and this will, inevitably, lead to tighter regulations 1. Prioritizing the Core Elements. The first step in
over the years. The MSME sector too will face this adoption has to be prioritizing the Core Elements.
challenge. Further, there are already multiple In order to do this, the MSME must map all the
buyer codes and standards that MSMEs are Core Elements against:
expected to align themselves with and these will
only increase. Adopting the NGRBC will enable a. Its own vision, mission, values and business
MSMEs to be better prepared for this future. success factors: Those that align with or
contribute to these must be considered
· De-risking operations: Adopting these priority.
guidelines will enable MSMEs to reduce the risk
of their operations being affected due to non- b. Laws and regulations: All Core Elements that
compliance with either regulations or customer are governed by a law or regulation, current
expectations (as expressed in their own codes or emerging, have to be prioritized.
and standards).
c. Buyer/Customer codes: All codes adopted
· Cost savings and increase in productivity: There by buyers/customers, current and potential,
is mounting evidence, even amongst MSMEs, that must be studied and understood and those
investing in processes that reduce environmental Core Elements that cover these requirements
footprints, waste, and drudgery, and increase the must be prioritized.
quality of life of employees, provides benefits that
pays back these investments quickly and in good 2. Embedding Prioritized Core Elements: All the
measure. prioritized Core Elements must then be integrated
into the core business. This process has been
· Access to funds: Several banks and financial detailed in Annexure 2. All MSMEs must set their
institutions, including in India, are increasingly ambitions at the Essential level but those that set
looking at businesses that do not conform to themselves higher ambitions are likely to reap the
responsible business practices as risky and either benefits of this in the medium to long term.
National Guidelines on Responsible Business Conduct 37
Annexure 3:
Business Responsibility
Reporting Framework
This annexure details the reporting framework framework to voluntarily disclose their commitment
associated with the National Guidelines for to and performance against their economic, social
Responsible Business Conduct. It consists of three and environmental impacts. A growing number of
sections: (a) Section A General Disclosures, businesses are already doing this and are reporting
covering operational, financial and ownership several benefits, internal and external, as a result of
related information, (b) Section B Management and their commitment to disclosure and reporting.
Process Disclosures covering the structures, policies
Annexure 5 provides a note on how this framework
and processes to integrate the Guidelines, and (c)
may be used as a tool by businesses to assess their
Section C Principle-wise Performance Indicators
alignment with the NGRBC.
covering how well businesses are performing in
pursuit of these Guidelines. Care must be taken to Additional purpose of this reporting framework
identify measurable indicators and performance
against each Core Element of each Principle detailed While this reporting framework is not meant to be
in Chapter 2. a mandatory reporting format, a design principle
that was used in its development was that it can
Principal purpose of this reporting framework be adapted into one by any legitimate authority or
regulator. This was done keeping in mind that there
The principal purpose of this reporting framework is
is an increasing trend globally to mandate greater
to serve as an internal tool for businesses wishing to
transparency from all organizations that impact the
align themselves with the NGRBC. It should not be
society and the planet, something that SEBI also did
seen as a mandatory reporting format as that is the
when it mandated Business Responsibility Reporting
domain of a regulator or law.
against the NVGs in 2012.
The Performance Indicators in Section C are divided
Aggregate Reporting Useful methodology for
into two types Essential Indicators and Leadership
MSMEs in clusters
Indicators. All businesses irrespective of size, sector,
or ownership structure, should be able to complete MSMEs can now imbibe a method of preparing
the Essential Indicators to consider themselves an aggregate report, i.e. the result of applying the
responsible at a base level the extent to which Aggregate Reporting (AR) methodology to combine
they are able to complete this indicates how mature data from individual units that belong in the same
they are. The extent to which they can complete the cluster (i.e. region/location) in order to create one
Leadership Indicators indicates how far down the collective sustainability report. The small enterprises
path to leadership they have reached; the data gaps of India can benefit from this reporting process, that
identify Opportunities for Improvement. can identify significant issues that may impact the
business, and can lead to business benefits through
Further, by comparing how much of this framework
the process of measurement, management and
a business has been able to complete in the current
change. The methodology is outlined in the learning
year vis-à-vis the previous year, will help a company
document for the project, "Scaling Up Sustainable
determine if it is on the path to leadership and
Development of MSME". A link to this learning
whether the pace is in line with its ambition.
document and examples of Aggregate Reports are in
Of course, businesses may use this reporting Annexure 2.
38 National Guidelines on Responsible Business Conduct
SECTION A: GENERAL DISCLOSURES Employees
Company details 10. Number of permanent employees:
1. Name of the Company: 11. Contractual employees (seasonal, non-seasonal):
2. Year of registration:
12. Temporary employees:
3. Corporate Identity Number (CIN) of the Company
(if applicable): 13. Percentage of women:
a. On the Governance Structure:
4. Corporate address, telephone, email and
b. In top management, i.e. business and
website:
function heads;
Products/services
Associate entities
5. Sector(s) that the business is engaged in
(industrial activity code): 14. Names of subsidiary / associate companies;
6. Goods manufactured/services provided (top 15. Details of Trust/Society/Section 8 company to
three by revenue): further its CSR agenda:
7. Brands (top five by respective share of market) a. Names;
owned and percentage of revenue contributed:
b. Organization form (Trust, Society, Company)
Operations and year of establishment;
8. Location of plants (in case of manufacturing
c. Main objects/purpose;
businesses)
a. National (Districts and states top five by d. Amounts and sources of funds received in
employee strength): the reporting year;
b. International (Country top three by 16. Contact details of Nodal Officer for this report
employee strength)): (name, designation, email id, phone number).
9. Location of major offices (in case of service SECTION B: MANAGEMENT AND PROCESS
businesses) DISCLOSURES
a. National (Districts and states top five by This section is aimed at helping businesses
employee strength): demonstrate the structures, policies and processes
b. International (Country top three by put in place towards adopting the Principles and
employee strength)): Core Elements.
Disclosure Questions P 1 P 2 P 3 P 4 P5 P 6 P 7 P8 P9
Policy and management processes
1. Names of the policy / policies that covers each Principle
2. Core Elements related to the Principle that the policy/
policies cover
3. Policy/ policies relating to each principle that has been
translated into guidelines and procedures
4. Extent to which manpower, planning and financial
resources have been allocated for the implementation
of the policy/ policies relating to each Principle
5. National and International codes and standards
adopted mapped to various Principles
Governance, leadership and oversight
6. Names of the above policies that have been approved
by the Board/top management
7. Name of the specified committee(s) of the Board/
Director/Officer and processes to oversee the
implementation of the policy/ policies
8. The process for board/ top management to review
performance against the above policies and
incorporating inputs (100 words)
National Guidelines on Responsible Business Conduct 39
Disclosure Questions P 1 P 2 P 3 P 4 P5 P 6 P 7 P8 P9
9. Process for board/ top management to review
compliance with statutory requirements of relevance
to the Principles and rectify any non-compliances (100
words)
10. Frequency of the reviews of the business's alignment
with the Principles and Core Elements conducted by
the board/ top management
Stakeholder Engagement
11. Description of the process to identify your business's
key stakeholders (100 words)
12. Description of the process to engage with your
stakeholders on the Principles (100 words)
13. Description of the processes to identify groups that are
vulnerable and marginalized stakeholders (100 words).
14. Description of the processes to identify issues related
to inclusion and impact of adopting the Principles on
vulnerable and marginalized stakeholders (100 words).
Communications
15. Description of process to communicate to stakeholders,
the impact of your policies, procedures, decisions and
performance that impact them (100 words)
16. Description of how the business communicates the
results of stakeholder engagement in the public
domain (100 words)
17. Description of the process of communicating
performance against these Guidelines to relevant
stakeholders (100 words)
18. Note on how disclosures and reporting helped in
improving business performance / strategy (50 words)
If answer to question (1) above is "No" i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The company has not understood the Principles
The company is not at a stage where it finds
itself in a position to formulate and implement
the policies on specified Principles
The company does not have financial or
manpower resources available for the task
It is planned to be done within next 6 months
It is planned to be done within next 12 months
Any other reason (please specify)
SECTION C: PRINCIPLE-WISE PERFORMANCE DISCLOSURE
This section is aimed at helping businesses demonstrate their performance in integrating the Principles and
Core Elements with key processes and decisions. The information sought is categorized as "Essential" and
"Leadership". While the Essential level is expected from every business that has adopted these Guidelines,
the Leadership level is expected of businesses which aspire to progress to a higher level in their quest to be
socially, environmentally, and ethically responsible.
40 National Guidelines on Responsible Business Conduct
PRINCIPLE 1
Essential Indicators Leadership Indicators
1. Month/year of last review by Governance 1. % coverage of all employees by awareness
Structure/ top management of performance programmes for the Guidelines:
of the business across the Principles and Core a. In reporting year
Elements of the Guidelines? b. Total to date
2. % Coverage of leadership team by awareness 2. % of suppliers and distributors (by value)
programmes on the Guidelines: covered by social and environmental audits:
a. In reporting year a. In reporting year
b. Total to date b. Total to date
3. % of suppliers and distributors (by value), in 3. Was report on responsible business conduct
the year: made, in the year:
a. Covered by awareness programmes for the a. As per mandatory/global reporting
Guidelines? frameworks.
b. Had responsible/sustainable business b. Available in the public domain.
policies in place? c. Assured by a third party
4. Number of meetings/ dialogues with minority 4. Details of non-disputed fines/penalties
shareholders that were organized in the year? imposed on your business by regulatory and
5. Number of complaints received on any aspect judicial institutions in the year available in public
of the NGRBC in the year from: domain.
a. Shareholders/investors 5. Provide examples (up to three) of corrective
b. Lenders action taken on the above fines/penalties
6. Number of the above complaints pending imposed.
resolution at close of year? 6. Provide examples (up to three) of corrective
7. Value of non-disputed fines / penalties action taken on the complaints / cases of
imposed on your business by regulatory and corruption and conflicts of interest to prevent
judicial institutions in the year? recurrence.
8. Number of complaints / cases of corruption
and conflicts of interest that were registered in
the year?
9. Details of unmet obligations (fiscal, social,
etc.) arising out of any benefits or concessions
provided by the central, state, or local
governments (100 words).
PRINCIPLE 2
Essential Indicators Leadership Indicators
1. List top three goods /services (revenue in the 1. For goods and services that incorporated
year) which incorporate environmental and social environmental and social concerns, give details of:
concerns, risks, and/or opportunities in their design. a. Resource use (energy, water, raw material)
2. Details of investments in specific technologies to per unit produced in the year.
improve the environmental and social impacts (top b. Reduction in resource use covering
three by value). sourcing, production, and distribution in
3. % of input material and services (by value), in the the year.
year, sourced from suppliers adhering to internal or c. Sustainability standards/codes/ labels
external sustainability standards / codes / policies / adhered to.
labels. d. Product life cycle assessment completed.
4. % of total raw material consumed in the year (by 2. Information on the impacts of your products across
value) that consisted of material that was recycled or the value chain communicated to:
reused (provide details in 50 words): a. To which stakeholder groups?
a. <5% b. By which channels for each group?
b. between 5% and 25%, c. At what frequency?
c. > 25%. 3. Provide examples (up to three) on how the
5. Describe the process in place to safely collect, feedback received from stakeholders is used for
reuse, recycle and dispose of your products at end-of- improvements?
life (100 words)
National Guidelines on Responsible Business Conduct 41
PRINCIPLE 3
Essential Indicators Leadership Indicators
1. Complaints received on cases arising out of 1. Categories of employees (list up to three)
discrimination: supported by affirmative action, and has there
a. Number received in the year been any change from the previous year?
2. Number of the above complaints pending 2. % of non-permanent employees that are
resolution at end of the ear? linked to any standing platform/association
3. % of permanent employees who are members
3. % of children identified as employed in your
of the employee association(s) recognized by
establishments / value chain that have been
the management?
remediated:
4. % of your establishments / value chain that
has been audited in the year for: a. In reporting year
a. Child labour b. Total to date
b. Forced/involuntary labour 4. % of forced/involuntary labour identified in
5. Number of cases of child labour in your your establishments / supply remediated:
establishments/ value chains identified to date: a. In reporting year
a. Resolved
b. Pending resolution b. Total to date
6. Number of cases of forced / involuntary 5. % of your suppliers (by value) that paid
labour identified to date: minimum wages to their employees last year
a. Resolved 6. Examples of steps taken (up to three)
b. Pending resolution to prevent adverse consequences to the
7. % of your employees that were paid above the complainant in the case of harassment cases.
legal minimum wage in the last year? 7. % of supply chain partners (by value) that
8. Ratio of the highest salary paid to the were assessed for adherence to health and
lowest salary paid amongst your permanent safety practices.
employees?
9. Number of cases of delay in payment of 8. % of accident-affected persons integrated
wages during the year: back into employment.
a. Resolved 9. Describe the work-life balance issues (up to
b. Pending resolution three) that were brought up by employees (100
10. Number of complaints related to harassment words).
to date: 10. Examples (up to three) of identified work-life
a. Resolved balance topics that have been implemented.
b. Pending resolution
11. Number of the following occurred during the
year:
a. Accidents at the workplace
b. Fatalities caused
c. Disability caused
12. % of employees (all categories) trained on
health and safety issues and measures:
a. In the year
b. Total to date
13. % of employees provided training and skill
upgradation:
a. In the year
b. Total to date
42 National Guidelines on Responsible Business Conduct
PRINCIPLE 4
Essential Indicators Leadership Indicators
1. List stakeholder groups that have been 1. Frequency of engagement with each
identified as key to your business? stakeholder group?
2. Positions / departments / functions 2. Examples (up to three) of how the business has
responsible for engagement with each incorporated inputs from stakeholders.
stakeholder category identified above? 3. List of the vulnerable and marginalized
3. Number of stakeholder groups that were groups in each stakeholder group.
formally engaged on environment and social 4. Examples of decisions and actions taken
issues in the last year? by the business to address the interests of
4. % of input material and services (by value), vulnerable/marginalized groups.
in the year, that were procured from local and
small vendors / producers?
PRINCIPLE 5
Essential Indicators Leadership Indicators
1. % of employees that have been provided 1. % of contractual employees and value
training on human rights issues: chain partners that have been made aware /
a. In the year provided training on human rights issues:
b. Total to date a. In the year
2. Employee categories that are covered by b. Total to date
the human rights policies of the business 2. External stakeholder groups and
Permanent/Contract/Casual. representatives that are covered by the human
3. Number of business agreements and rights policies of the business?
contracts with third party partners that were 3. Stakeholder groups that have been made
reviewed in the year, to avoid complicity with aware of the grievance mechanisms for
adverse human rights impacts in the previous human rights issues:
year. a. During the year
4. Stakeholders groups governed by the b. Total to date
grievance committee for human rights issues. 4. List (up to three) corrective actions taken to
5. Number of stakeholders that reported eliminate complicity with adverse human rights
human rights related grievances and/or impacts in the last year.
complaints: 5. Provide (up to two) examples of a business
a. Received in the year process being modified / introduced as a
b. Pending resolution result of addressing human rights grievances/
complaints.
6. Provide details of the scope and coverage of
any human rights due-diligence conducted
during the year.
National Guidelines on Responsible Business Conduct 43
PRINCIPLE 6
Essential Indicators Leadership Indicators
1. Material risks of potential or actual adverse 1. Information on environmental impact
impacts upon the environment and assessments undertaken in the year:
communities by the business: a. Have the results been communicated in the
a. Identified in the year public domain?
b. Mitigation and adaptation measures put in b. Provide details of any actions taken to
place for the above environmental risks? mitigate any negative social impacts.
2. Good practices (up to three) in reduction, 2. Risk management strategies and measures for
recycling, and reuse initiatives that contributed each material environmental risk identified for
to lowering the adverse environmental footprint the business:
of your business activities. a. Details of measures (100 words).
3. Examples of any collective action by your b. Targets and achievement values.
business with other businesses / NGOs / 3. Details of your specific contribution to
government agencies / international partners / India's Nationally Determined Contributions
development institutions undertaken to address (submitted at UNFCCC COP21 in 2015)
any of the environmental risks opportunities 4. New businesses-products-services created
identified above. to address the material environmental risks
4. Details of any adverse orders in respect of any identified:
show cause / legal notices from CPCB/NGT/SPCB a. Information on businesses created (100
received during the year. words)
b. % of revenue contributed by these
5. Details of good practices cited in reduction,
recycling, and reuse initiatives benchmarked
against industry best practice (100 words).
PRINCIPLE 7
Essential Indicators Leadership Indicators
1. Review public policy advocacy positions by
1. The public policy positions available in the
the governance structure for consistency with
public domain.
Principles of these Guidelines:
2. Examples (up to three) of any policy changes
a. Frequency
in the past year as a result of your advocacy
b. Month/year of last review.
efforts.
2. Names of trade and industry chambers and
3. Details of corrective action for anti-
associations that you are a member/affiliate of.
competitive conduct, taken by the business
3. Details of any adverse orders received from
based on adverse orders from regulatory
regulatory authorities for anti-competitive
authorities.
conduct by your business.
4. Monetary contributions (if any) that have been
made to political parties.
44 National Guidelines on Responsible Business Conduct
PRINCIPLE 8
Essential Indicators Leadership Indicators
1. Social impact assessments of your business 1. With respect to these social impact assessments:
operations conducted: a. Results made available in the public domain
a. Number completed in the year? b. Details of any actions taken to mitigate any
b. Number conducted by an independent external negative social impacts (100 words).
agency. 2. Numbers benefitting from such beneficial products,
2. Examples of products, technologies, processes technologies or processes.
or programmes (up to three) that contribute to 3. With respect to projects during the year for which
the benefit of the vulnerable and marginalized R&R is applicable:
sections of society a. Was the R&R package developed in consultation
3. With respect to projects during the year for which with project-affected people?
R&R is applicable: b. Information on gross amounts, maid available in
a. Number of persons that were affected displaced the public domain
by these projects? 4. Channels/platforms used to communicate
b. Gross amount paid out to project-affected and information regarding resolution of grievances /
displaced persons? complaints from communities.
4. Grievances / complaints received from local 5. Examples (up to three) of economic and social value
community: addition in these underdeveloped regions (100
a. Number received during the year words).
b. Number pending resolution 6. Examples where benefits of this local traditional
5. Details of investments (top three by value) in regions knowledge being used by the business are shared
which are underdeveloped (100 words). with the community.
6. Examples of goods and services up to 3) that 7. Number of beneficiaries covered under your CSR
incorporate local traditional knowledge. projects (as per Section 135 of Companies Act 2013),
7. Details of adverse orders or judgments in disaggregated by the vulnerable and marginalized
intellectual property rights disputes related to group categories.
traditional knowledge during the year (100 words). 8. Examples of how the impact of your community
8. Summary of the key themes covered by CSR initiatives contribute to local and national
initiatives (as per Section 135 of Companies Act 2013) development indicators?
or linked to the CSR Policy of the business (up to 100
words).
PRINCIPLE 9
Essential Indicators Leadership Indicators
1. Examples (up to three) where adverse impacts of 1. Corrective actions taken on adverse impacts of
goods and services of your business have been raised goods and services of your business:
in public domain. a. Details (100 words).
2. % by value of goods and services of the business that b. Communicated in the public domain.
carry information about: 2. List of national-international product labels /
a. Environmental and social parameters relevant to certifications being used by the business.
the product. 3. Channels platforms where information on goods
b. Safe and responsible usage. and services of the business can be accessed.
3. Number of consumer complaints in respect of data 4. Steps taken to inform and educate vulnerable
privacy: and marginalized consumers about safe and
a. Received during the year. responsible usage of products (100 words).
b. Pending resolution. 5. On complaints received in respect of data privacy
4. Number of consumer complaints in respect of and advertising, indicate what corrective actions
advertising: were taken to ensure that these do not get repeated
a. Received during the year. (100 words).
b. Pending resolution. 6. Processes in place to inform consumers of any risk of
5. Number of consumer complaints in respect of disruption/discontinuation of essential services (100
delivery of essential services: words).
a. Received during the year.
b. Pending resolution.
Signature of the designated official responsible for this report.
Sd/-
Name:Designation:
Address:
Telephone number:
Email id:
-----------------
National Guidelines on Responsible Business Conduct 45
Annexure 4:
SDGs Mapped Against NGRBC
The chart demonstrates the alignment between the SDGs and relevant Principles of the NGRBC. It may be
noted that this is indicative.
46 National Guidelines on Responsible Business Conduct
Annexure 5:
Business Case Matrix
The Business Case Matrix (BCM) is designed as a tool to map the business benefits of integrating these
Guidelines. The BCM here highlights some significant benefits which may accrue to businesses from integrating
the Principles from these Guidelines. This is not exhaustive and it is critical for each business to assess the
benefits in their respective contexts.
Risk
Revenue Brand
Cost savings and management/
Principle growth and Access to capital Human capital value/
productivity license to
market access reputation
operate
1. Integrity, New customers; Good governance Positively seen Attract and Positively
Ethics, Business partner practices are by communities, retain quality seen by
transparency, of choice attractive to NGOs, local employees customers,
accountability investors, banks, governments, regulators,
financial markets regulators media
2. Safe and New customers; Efficiency gains in Lower risk Reduced risk Attract and Enhanced
sustainable Customer loyalty supply chain and perception is of action from retain quality brand value
goods and production attractive to regulators employees
services investors and and consumer
lenders activists
3. Well-being of Increased Improved labour Attract and Employer of
employees productivity; high relations leading retain quality choice
morale; reduced to less disruptions employees
absenteeism
4. Respect and New customers; Efficiency Good governance Positively seen Attract and Positively
responsive- Customer loyalty gains across practices are by stakeholders retain quality seen by
ness to all procurement, attractive to - communities, employees customers,
stakeholders production investors and NGOs, regulators,
distribution, after- banks governments, media
sales regulators
5. Respect and Access to Enhanced Good governance Positively seen Attract and Positively
promote international productivity practices are by communities retain quality seen by
Human rights capital and attractive to and NGOs; Lower employees customers,
developed investors, banks, risk of non- regulators,
country markets financial markets compliance media
6. Respect, Business partner Lower operating Lower risk Positively seen Attract and Positively
protect and of choice, costs in the long perception is by communities, retain quality seen by
restore the especially for term; less danger attractive to NGOs, employees customers,
Environment sustainability- of"externalities" investors, banks, governments, regulators,
oriented buyers emerging as financial markets regulators; Lower media
liabilities. risk of non-
compliance
7. Responsible Positively seen Positively
and by governments, seen by
transparent regulators, NGOs customers,
policy regulators,
advocacy media
8. Promote Potential Lower costs of Lower risk Enhanced Potential source Positively
inclusive for market ensuring business perception is governmental of trained seen by
growth and expansion and continuity attractive to support to employees customers,
equitable acquisition of investors and initiatives; regulators,
development new customers lenders improved media
relations with
communities
9. Provide value New customers; Growth prospects Lower risk of Talent will be Customers
to consumer Customer loyalty attractive to consumer action drawn towards perceive
responsibly investors growing firm brand
and firm
favourably
National Guidelines on Responsible Business Conduct 47
Annexure 6:
Guidance for Businesses on Using
the BRRF as a Self-Assessment
Tool
The Business Responsibility Reporting Framework (BRRF) is a tool for businesses to assess how well-aligned
they are to the National Guidelines for Responsible Business Conduct (NGRBC), and identify opportunities for
improvement. This note provides guidance on how this can be done.
To begin with, it must be understood that there are two dimensions to alignment. The first may be referred to
as "completeness", which measures the extent to which the Principles and Core Elements are tracked by the
business. The second, which may be referred to as "Ambition", measures how evolved and challenging the
performance targets that the business sets for itself are, and what to extent these are achieved.
Given the stage of evolution of the NGRBC, this tool focuses on the Completeness aspect of alignment.
Completing the BRRF
Each business must attempt to complete all the three sections of the BRRF. Sections A and B have indicators
that all businesses are expected to complete. Section C has indicators divided into two categories Essential
Indicators and Leadership Indicators the latter being those indicators, that companies which are more
familiar and experienced in business responsibility and sustainability should be able to complete.
Once the business has completed this, it must identify all the specific questions and indicators that it has not
been able to complete. This forms the basis for it to determine where it is in terms of completeness.
Assessing Completeness
The following grid can assist companies in knowing what is the level of completeness, High being the highest
level of completeness and, Other, being the lowest. Businesses may choose to rate themselves against Section B
on each of the Principles.
Section/Sub- High (20) Medium (15) Low (10) Other (5)
section
Section B All complete Qs 1, 5, 7, 8 and Q 1 complete, Q Q 1 and five of
ten of the others 5 OR 7 OR Q 8 others complete
complete and seven of the
others complete
Section C All complete All Essential and All Essential Some but not all
Principles 1 to 9 some Leadership complete Essential complete
complete
Overall Above 180 150 180 120 180 Below 120
Businesses that wish to arrive at an overall score can do this by assigning scores to the level of completeness
against each of the sections and sub-sections. As an example, scores for each of the completeness levels range
from 20 for, High, and 5 for, Other, (and businesses are free to choose whatever score they want). Businesses
that wish to arrive at an overall score can do this by adding the score for each of Section B and the 9 Principles
of Section C. It is advisable to give equal weightages for each Principle since, as was stated earlier, all the
principles are inter-dependent, inter-related and non-divisible.
48 National Guidelines on Responsible Business Conduct
Annexure 7:
Indian Laws and Principles
(Indicative)
This annexure is only an indicative/suggestive mapping of each of the Principles against laws enacted in India.
Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 Principle 6 Principle 7 Principle 8 Principle 9
Principles(briefs) Integrity, Safe and Well beingof Respect for and Respect and Respect, Responsible Promote Provide value
List of Laws(indicative) Ethics, Sustainable Employees responsiveness Promote protect and and inclusive to consumer
Transparency goods and to all Human Rights restore the transparent growth and responsibly
& services stakeholders Environment policy equitable
Accountability advocacy development
Factories Act,1948
Companies Act,2013
Bureau of Indian Standards
Act, 2016
Prevention of Corruption Act,
1988
Trade Marks Act, 1999
Patents Act, 1970
Designs Act,2000
Competition Act, 2002
Prevention of Money
Laundering Act,2002
Right to Information Act,
2005
Micro, Small and Medium
Enterprises Development
Act, 2006
The Lokpal and Lokayuktas
Act, 2013
Industrial Disputes Act,1947
Trade Union Act, 1956
Plantations Labour Act, 1951
Equal Remuneration Act,
1976
Consumer Protection Act,
1986
National
Commission for Backward
Classes Act, 2017
Persons with Disabilities
(Equal Opportunities,
Protection of Rights and Full
Participation)Act,1995
Juvenile Justice (Care and
Protection of Children) Act,
2000
National Commission for
Minority Educational
Institutions Act, 2004
Commissions for Protection of
Child Rights Act,2005
National Rural Employment
Guarantee Act, 2005
Protection of Women from
Domestic Violence Act,2005
The Scheduled Tribes and
Other Traditional Forest
Dwellers (Recognition of
Forest Rights)Act,2006
Protection of Human Rights
(Amendment)Act,2006
National Guidelines on Responsible Business Conduct 49
Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 Principle 6 Principle 7 Principle 8 Principle 9
Principles(briefs) Integrity, Safe and Well beingof Respect for and Respect and Respect, Responsible Promote Provide value
List of Laws(indicative) Ethics, Sustainable Employees responsiveness Promote protect and and inclusive to consumer
Transparency goods and to all Human Rights restore the transparent growth and responsibly
& services stakeholders Environment policy equitable
Accountability advocacy development
Right to Fair Compensation
and Transparency in Land
Acquisition, Rehabilitation and
Resettlement Act, 2013
The Scheduled Castes And The
Scheduled Tribes (Prevention
Of Atrocities) Act, 1989
The Protection Of Women
Against Sexual Harassment At
Work Place Bill, 2010
Environment(Protection)
Act, 1986
Public Liability Insurance Act,
1991
Biological Diversity Act 2002
Hazardous and Other
Wastes (Management and
Transboundary Movement)
Rules, 2016
E-waste (Management), Rules,
2016
Laws in `Section A' (Labour
Laws)
Laws in `Section B'
(Environmental Laws)
Laws in `Section C' (Economic/
Finance Laws)
`Section A' `Section B'
Workmen's Compensation Act, 1923 Wildlife Protection Act, 1972
Children (Pledging of Labour) Act, 1933 Water (Prevention and Control of Pollution)
Act, 1974
Payment of Wages Act,1936 Water (Prevention and Control of Pollution)
Cess Act, 1977
Industrial Employment (Standing Orders) Act, 1946 Air (Prevention and Control of Pollution)
Act, 1981
Employees State Insurance Act, 1948 Forest (Conservation) Act, 1980
Amendments in 1988
Minimum Wages Act, 1948 National Environment Tribunal Act, 1995
Employees Provident Fund and Miscellaneous Provisions Act, 1952 National Environmental Appellate
Authority Act, 1997
Maternity Benefits Act, 1961 Energy Conservation Act, 2001
Payment of Bonus Act, 1965 Coastal Aquaculture Authority Act, 2005
Contract Labour (Regulation & Abolition) Act, 1970 Special Economic Zones Act, 2005
Payment of Gratuity Act,1972
Bonded Labour System (Abolition) Act, 1976
Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act,1979
Child Labour (Prohibition & Regulation) Act, 1986
Building and Other Construction Workers (Regulation of Employment and Conditions of Service)
Act,1996
Vishaka State of Rajasthan, (1997) 6SCC241
`Section C'
Essential Commodities Act, 1955
Union Duties of Excise (Distribution) Act, 1979
Central Excise Tariff Act, 1985
Customs (Amendment) Act, 1985
Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986
Direct Tax Laws (Amendment) Act, 1988
Foreign Trade (Development and Regulation) Act, 1992
Securities and Exchange Board of India Act, 1992
Customs and Central Excise Laws (Repeal) Act, 2004
National Tax Tribunal Act, 2005
50 National Guidelines on Responsible Business Conduct
Annexure 8:
Resources
National Resources
1. A Guidebook for Biodiversity Management IBBI and CII-ITC CESD
Insights on biodiversity and its links with businesses across seven major sectors.
(http://www.sustainabledevelopment.in/uploads/pdf/1469421072IBBI%20BOOKLET%20FOR%20
WEB.pdf )
2. Affirmative Action for Scheduled Castes & Scheduled Tribes: A CII-ASSOCHAM Action Plan
Proposed concrete steps by Indian industry on affirmative action.
(http://www.cii.in/PolicyAdvocacyDetails.aspx?enc=IFXLRvnZcDACwloqWArEXIcvuANvzgDxEE-
JSWHB7rz5wGOZZgeDEwFRE76lKC5mfH1eO+UwMGUryNJwTMQk1Bg)
3. Aggregate Reports Samples from Ajmer and Punjab clusters
(http://database.globalreporting.org/reports/view/35253 | http://database.globalreporting.org/
reports/view/35252)
4. Constitution of India
(https://india.gov.in/my-government/constitution-india/constitution-india-full-text)
5. Corporate Governance in India @ 2016: Where Do We Stand - FICCI
A report on the state of corporate governance in India post introduction of Companies Act, 2013
(http://ficci.in/spdocument/20739/Corporate-Governance-report-2016.pdf )
6. Guidelines on Corporate Governance for Central Public Sector Enterprises
Issued by the Ministry of Heavy Industries and Public Enterprises in May 2010
(http://dpe.nic.in/sites/upload_files/dpe/files/gcgcpse10.pdf )
7. Inclusiveness and Accessibility Index - FICCI
A Toolkit to promote Inclusiveness of Persons with Disabilities.
(http://ficci.in/publication-page.asp?spid=20718)
8. Indian Companies with Solutions that the World Needs: Sustainability as a Driver for Innovation and
Profit - WWF & CII-ITC CESD
Report focusing on climate change and how businesses develop strategic responses.
(http://sustainabledevelopment.in/uploads/pdf/1445612272Indian_Companies_With_Solutions_
That_the_World_Needs.pdf )
9. India's Nationally Determined Contribution
Intended contribution of India towards the international climate agreement signed at the UNFCCC Con-
ference of the Parties (COP21) in Paris in December 2015.
(http://www4.unfccc.int/submissions/INDC/Published%20Documents/India/1/INDIA%20INDC%20
TO%20UNFCCC.pdf )
10. IS 16010: Guidance on Good Governance by Bureau of Indian Standards
Standard specifies principles and governance structures for a value based management approach.
(https://bis.gov.in/other/writeuponGG%20.pdf )
11. National Action Plan on Climate Change
NAPCC, under the Prime Minister's Council on Climate Change, brings together the existing national plans
on water, renewable energy, agriculture and others into a set of eight missions.
(http://www.moef.nic.in/sites/default/files/Pg01-52_2.pdf )
12. Scaling Up Sustainable Development Of MSME Clusters In India: Learning Document
(https://www.globalreporting.org/SiteCollectionDocuments/LearningDocument_SAI.pdf )
13. Stakeholder Engagement: Good Practice Handbook - IFC
Overview of good practices in stakeholder engagement, with a focus on groups that are "external" to the
core operation of the business.
(http://www.ifc.org/wps/wcm/connect/938f1a0048855805beacfe6a6515bb18/IFC_StakeholderEn-
gagement.pdf?MOD=AJPERES)
National Guidelines on Responsible Business Conduct 51
14. The Companies Act, 2013
Base regulation for incorporation of a company in India including responsibilities of the Board, and, Section
135 on corporate social responsibility mandated for companies.
(www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf )
15. The Micro, Small and Medium Enterprises Development Act, 2006
Base regulation for promotion and development of MSMEs in India.
(http://msme.gov.in/WriteReadData/DocumentFile/MSMED2006.pdf )
International Resources
1. Beyond Supply Chains - Empowering Responsible Value Chains - World Economic Forum
Report on the case for and issues within sustainable supply chains of businesses
(http://www3.weforum.org/docs/WEFUSA_BeyondSupplyChains_Report2015.pdf
2. Children's Rights and Business Principles
Guidance on how businesses can take action to respect and support children's rights
(https://www.unglobalcompact.org/docs/issues_doc/human_rights/CRBP/Childrens_Rights_and_
Business_Principles.pdf )
3. Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW)
UN International Treaty bill of rights for women
(http://www.un.org/womenwatch/daw/cedaw/)
4. Corporate Responsibility: Private Initiatives and Public Goals by OECD
Analysis of the results of an OECD fact-finding project on business approaches tocorporate
responsibility
(https://www.oecd.org/daf/inv/corporateresponsibility/35315900.pdf
5. Developing Value by Sustainability and IFC
Report on identifying opportunities to increase profits by making progress on sustainability.
(http://www.ifc.org/wps/wcm/connect/84a59480488559ca842cd66a6515bb18/Developing_
Value_full.pdf?MOD=AJPERES)
6. ISO 26000: International Standard
Guidance on how businesses and organizations can operate in a socially responsible way.
(http://www.iso.org/iso/home/standards/iso26000.htm)
7. Forging a path for business in the UN 2030 development agenda
Resources for businesses to map their initiatives within the UN 2030 development agenda including
the SDGs.
(http://www.businessfor2030.org/)
8. Global Reporting Initiative (GRI) Standards
Guidance for businesses to prepare and publish sustainability reports as per the GRI Standards.
https://www.globalreporting.org/standards/
9. Linking the GRI Standard and the SEBI BRR Framework
https://www.globalreporting.org/standards/resource-download-center/linking-the-gri-
standards-and-the-sebi-brr-framework/
10. ILO Declaration on Fundamental Principles and Rights at Work
Declaration commits Member States to respect and promote principles and rights in four categories
(https://www.ilo.org/declaration/lang--en/index.htm)
11. International Covenants on Civil and Political Rights and Economic, Social and Cultural Rights
Multilateral treaty adopted by the UN, committing its parties to work toward the granting of
economic, social, and cultural rights.
(http://www.ohchr.org/EN/ProfessionalInterest/Pages/CESCR.aspx)
52 National Guidelines on Responsible Business Conduct
12. International Integrated Reporting Council (IIRC) Guidelines
Guidance for businesses to prepare and publish an Integrated Report as per the IIRC framework.
(http://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-
FRAMEWORK-2-1.pdf )
13. Natural Capital Protocol and Sector Guides - Natural Capital Protocol
Draft framework to help inform and support business decisions by including their impact on natural
environment.
(http://naturalcapitalcoalition.org/protocol/development/)
14. OECD Guidelines for Multinational Enterprises
Guidelines on recommendations addressed by governments to multinational enterprises for
responsible business conduct
(http://www.oecd.org/investment/mne/1922428.pdf )
15. Public Sector Roles in Strengthening Corporate Social Responsibility - World Bank
Report on roles that public sector agencies have played in providing an enabling environment for
CSR.
(http://siteresources.worldbank.org/INTPSD/Resources/CSR/Taking_Stock.pdf )
16. Social Capital Protocol - WBCSD
A collation of tools for businesses to measure and value their interactions with people and society.
(http://www.wbcsd.org/SocialCapital.aspx)
17. Strengthening Implementation of Corporate Social Responsibility in Supply Chains IFC
A World Bank commissioned study on barriers to the achievement of better sustainability
performance in suppliers
(http://siteresources.worldbank.org/INTPSD/Resources/CSR/Strengthening_Implementatio.pdf )
18. Towards Responsible Lobbying: Leadership and Public Policy - Accountability and UNGC
A study to understand how organizations influence goals of sustainable development through
lobbying processes
(https://www.unglobalcompact.org/docs/news_events/8.1/rl_final.pdf )
19. UN Guiding Principles on Business and Human Rights
Implementing the United Nations "Respect, Protect and Remedy" Framework
(https://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf )
20. UN Guidelines on Consumer Protection
A set of principles for setting out the main characteristics of effective consumer protection legislation,
enforcement institutions and redress systems
(http://unctad.org/en/Pages/DITC/CompetitionLaw/UN-Guidelines-on-Consumer-Protection.
aspx)
21. UN Guiding Principles Reporting Framework
Guidance for businesses to report on how they respect human rights
(https://www.ungpreporting.org/wp-content/uploads/UNGPReportingFramework_2017.pdf )
22. Universal Declaration of Human Rights
Adopted by the UN General Assembly as a common standard of achievement for all peoples and all
nations.
(http://www.un.org/en/universal-declaration-human-rights/)
23. UN Sustainable Development Goals
17 goals with 169 targets adopted by the UN as part of its sustainable development agenda and
replacing the erstwhile Millennium Development Goals.
(http://www.un.org/sustainabledevelopment/sustainable-development-goals/)
National Guidelines on Responsible Business Conduct 53
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