The increasing importance of sustainable development goals has made the Ministry of Corporate Affairs update the National Voluntary Guidelines (NVGs) on social, environmental and economic responsibilities of business. The debates on climate change and enhanced role of business in engendering human rights are also part of the reason for this revision.
A new version of the guidelines, based on a report submitted a couple of years ago by a two -member committee set up by the government, is now up for public comments on the ministry's website. It calls for commitment by the boards of companies, conviction on the part of employees, engagement by stakeholders and, most of all, proactive public disclosure by companies of their impact on society and the environment.
While the draft is swathed in NGO jargon, the ministry is said to be prepared for all kinds of views and, if necessary, to review the guidelines.
These inputs from diverse stakeholders were “comprehensively reviewed, and where necessary, modifications made to the draft document.”
Among the guidelines is the recognition that ethical behaviour in all its functions and processes is the cornerstone of businesses guiding their governance of economic, social and environmental responsibilities. Emphasis has been laid on disclosures.
Sustainable production and consumption are inter-related and contribute to enhancing life, says the second guideline, emphasising that businesses design their products in a manner that creates value while minimising adverse impacts on the environment and society through all stages of its life—from design to final disposal.
Promotion of the well-being of all employees, including those in the value chain; respecting the interests of and being responsive to all stakeholders; respecting and promoting human rights; making efforts to protect and restore the environment; and being “responsible and transparent” when engaging in influencing public and regulatory policy, are some of the other guidelines in the updated version of the NVGs.
The draft put up also mentions inclusive growth and equitable development and providing value to consumers in a responsible manner.
The last date for public to respond on the website is July 20.