Saturday, July 16, 2011

National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business (ESG Guidelines)

http://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines_2011_12jul2011.pdf
Introduction to guidelines
The  Guidelines  presented  herein  are  a  refinement  over  the  Corporate  Social
Responsibility  Voluntary  Guidelines  2009,  released  by  the  Ministry  of  Corporate
Affairs  in  December  2009.  Significant  inputs,  received  from  diverse  stakeholder
groups  across  the  country  have  been  duly  considered,  and  based  on  these  inputs;
appropriate changes have been made in the original draft Guidelines produced by the
Guidelines Drafting Committee. This document therefore represents the consolidated
perspective  of  vital  stakeholders  in  India,  and  accordingly  lays  down  the  basic
requirements  for  businesses  to  function  responsibly,  thereby  ensuring  a  wholesome
and inclusive process of economic growth.

Mandate  and  process: These Guidelines  have  been  developed through  an  extensive
consultative  process  by  a  Guidelines  Drafting  Committee  (GDC)  comprising
competent  and  experienced  professionals  representing  different  stakeholder  groups.
The  GDC was  appointed  by the  Indian  Institute  of Corporate Affairs  (IICA) with  a
clear  brief that the Guidelines  must  provide  a  distinctively  'Indian' approach,  which
will  enable  businesses  to  balance  and  work  through  the  many  unique  requirements
of  our  land.  The  process  that  was  followed  in  developing  these  Guidelines  relied
heavily  upon  developing  a  consensus  on  various  ideas  that  emerged  from  various
stakeholder  groups.  Leading  trade  and industry  chambers,  who  were  represented  in
the  GDC  as  well  as  actively  engaged  in  the  consultative  process,  have  been  key
partners in the development of this consensus.
Applicability: The Guidelines are designed to be used by all businesses
irrespective  of  size,  sector  or  location  and  therefore  touch  on  the  fundamental
aspects  –  the  'spirit'  -  of  an  enterprise.  It  is  expected  that  all  businesses  in  India,
including multi-national  companies that  operate in the  country,  would  consciously
work towards  following the  Guidelines. The  Guidelines  also  provide  a  framework
for  responsible  business  action  for  Indian  MNCs  planning  to  invest  or  already
operating  in  other  parts  of  the  world.  Businesses  are  encouraged  to  move  beyond
the recommended minimum provisions articulated in the document.
For  business  leaders  and  managers  entrusted  with  the  task  of  deploying  the
principles  of  Responsible  Business,  it  is  worthwhile  to  understand  that  business
boundaries  today  extend  well  beyond  the  traditional  walls  of  a  factory  or  an
operating  plant  and  all  the  way  across  the  value  chain.  Businesses  are  therefore
encouraged to ensure that not only do they  follow the Guidelines  for areas directly
within  their  immediate  control  or  within  their  sphere  of  influence,  but  that  they
encourage  and  support their  vendors,  distributors,  partners  and  other  collaborators
across their value chains to follow the Guidelines as well.
The  Guidelines  are  applicable  to  all  such  entities,  and  are  intended  to  be  adopted
by them comprehensively, as they raise the bar in a manner that makes their valuecreating  operations  sustainable.  It  needs  to  be  emphasized  that  all  Principles  are
equally important  and  non-divisible  – this implies that if  a  business  endeavours to
function  responsibly, it would have to adopt each of the nine  (9) principles in their
entirety rather than picking and choosing what might suit them.

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