The Ministry of Corporate Affairs (MCA) issued the National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business (NVGs) in July 2011 with a view to provide a clear, broad-based framework for carrying out responsible business by companies and be accountable to all its associated entities or employees who get affected or affect its operations.
The NVGs are the outcome of a process initiated by MCA in September 2015. After extensive discussions between the MCA and the Indian Institute of Corporate Affairs (IICA), it was decided to update the National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business (NVGs), which were released in 2011.
Public comments are invited on the same and can be sent to garima.dadhich@gov.in within 10th August, 2018 in the prescribed format.
Objective of the Revision of NVGs:
The primary rationale for the update was to capture key national and international developments in the development agenda and business responsibility field that had occurred over the five years that have elapsed since the release of the NVGs. The updated version would also benefit by a more comprehensive resources section that would strengthen the overall guidance to the leadership and owners of businesses, large and small, in their efforts to implement the NVGs within their organizations.
Applicability:
The present Guidelines are designed to be used by all businesses, irrespective of their ownership, size, sector, or location. It is expected that all businesses investing or operating in India, including foreign multi-national corporations (MNCs) will make efforts to follow the Guidelines.
The NVG is divided into 9 thematic pillars of business responsibility which are referred to as Principles. Following are the same:
- Businesses should conduct and govern themselves with integrity in a manner that is Ethical, Transparent and Accountable.
- Businesses should provide goods and services in a manner that is safe and sustainable.
- Businesses should respect and promote the well-being of all employees, including those in the value chain.
- Businesses should respect the interests of and be responsive to all its stakeholders.
- Businesses should respect and promote human rights
- Businesses should respect and make efforts to protect and restore the environment.
- Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.
- Businesses should promote inclusive growth and equitable development.
- Businesses should engage with and provide value to their consumers in a responsible manner.
Source: Ministry of Corporate Affairs
