Introduction

Business Responsibility and Sustainability Reporting is a mandatory reporting framework for top 1000 companies listed by the market capitalization. Those companies are asked to reveal their ESG performance in a perceptible and systematic manner from FY 2022-23 onwards through BRSR report. This BRSR framework asks for revelations about nine principles included in “National Guidelines on Responsible Business Conduct or NGRBCs.” which were issued by the Ministry of Corporate Affairs (MCAs). Reporting of these principles are compulsory for those companies whereas voluntary reporting is encouraged for leadership indicators.

The 9 Principles and their Benefits

Following are the nine principles that act as a guide for businesses to be sustainable and accountable:

1. Principle 1: Businesses should be maintained in an ethical, transparent and answerable manner. The main focus of this principle is on decision making in an ethical way, transparency in communication and being accountable for the actions taken. This includes actions such as establishing a powerful governance structure, enforcement of anti-corruption policies, transparency in disclosing financial data. This principle benefits the companies in developing trust of stakeholders and bringing efficient investors. This also leads to reduction in scandals related to company ethics.
2. Principle 2: Business should provide safe and sustainable goods and services. This principle focuses on reducing harmful impact on the environment due to goods and services and guaranteeing safety of the products throughout their lifespans. The actions of this principle are to carry out resourceful production processes, promote renewable energy sources, reduce waste, take safety measures while developing the products and give importance to sustainability. This benefits in the reduction of negative environmental impacts and decreases the operational cost. This principle extends protection to both the consumers and the environment.
3. Principle 3: Businesses should prioritize the well-being of the employees. The main focus of this principle is to treat all the employees in a fair way and ensure their safety and development in all aspects. This includes steps such as offering appropriate wages and benefits, creating an inclusive and positive working environment, providing training for career advancement and professional growth, and protecting the rights of employees. This principle benefits in boosting the morale of the employees which leads to productivity of the company, reduces the rate of turnover and brings talented people on board.
4. Principle 4: Businesses should show respect towards the interest of all stakeholders and be receptive towards them. This principle focuses on engagement with stakeholders of the company, especially those who have complaints such as marginalizations or any other vulnerabilities. Those concerns should be addressed quickly. The actions of this principle are establishing strong communication with stakeholders, having regular consultations with them, their involvement in decision making and finding solutions to the concerns raised by them. This benefits in developing their trust in your company, minimization in conflicts and strengthening social bonds.
5. Principle 5: Businesses should consider and publicize human rights. The main focus of this principle is protection of human rights during all the business operations and chains. This includes organization of human rights due diligence, adoption of anti-discrimination guidelines, assurance of fair labour in all the chains and development of strict rules against human rights violation. This principle benefits in maintaining ethics and being responsible, decreases the liability risks and leads to creating a more sustainable community.
6. Principle 6: Businesses should be considerate and take steps towards the protection of the environment. This principle focuses on reducing harmful impact on the environment, protecting natural resources and restoring the damaged environment. The actions of this principle include reduction in carbon footprint and greenhouse gases, protection of water bodies and other resources, reducing pollution and protecting overall biodiversity. This benefits in increasing environmental sustainability, lessen risks related to the environment and creates a positive image of the company in front of the world.
7. Principle 7: Businesses should be thoughtful and responsible while influencing the public and being engaged in the regulatory policies. The main focus of this principle is to boost responsible engagement with public and regulatory policies and finding solutions that are beneficial for the company and the society. This includes transparent participation in policy discussions, avoiding persuading activities that make the public lose interest in your company and making sustainability a priority. This principle benefits in maintaining healthy relations with the regulator and policy makers, promotes sustainable policies and lessens the chances of reputational damage.
8. Principle 8: Business should endure inclusive progress and equitable development. This principle focuses on the contribution to social and economic growth of their consumers and protection of equal distribution of opportunities. The actions of this principle include investment in local groups, increase in job opportunities, make improvements in infrastructure, extend access to healthcare and education, and involve in various partnerships. This benefits social well-being, reduces social discrimination and builds strong community relationships.
9. Principle 9: Businesses should engage with their consumers in an accountable manner and provide value to their demands. The main focus of this principle is to implement honest marketing practices, gaining trust of customers and providing value to them through transparency and ethically offered products. This includes avoiding false practices, providing correct and necessary information of the product, addressing concerns raised by customers promptly and focusing on customer satisfaction. The principle benefits in proving your loyalty to the customers, reduces their complaints and creates a good image of your brand.

Take Away

Above stated are the 9 BRSR principles which should be included in reports of companies. Please let us know through your valuable feedback and the suggestion in the drop box.