C - S - R




India's National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs)[1] were released by the Ministry of Corporate Affairs (MCA)[2] in July 2011 by Mr. Murli Deora, the former Honourable Minister for Corporate Affairs. The national framework on Business Responsibility is essentially a set of nine principles that offer businesses an Indian understanding and approach to inculcating responsible business conduct.

“Responsible Business” conduct refers to the commitment of businesses to operating in an economically, socially and environmentally sustainable manner while balancing the demands of shareholders and other interest groups. It’s about managing risks and impacts, which affect business’ ability to meet its objectives. The NVGs are formulated with the objective of creating positive framework conditions to advance the role of business in economic growth which is socially and environmentally sustainable, while also ensuring enhanced competitiveness and integration into the global markets.

The NVGs serves as a guidance document for businesses of all size, ownership, sector, and geography to achieve the triple bottom line. In 2012, subsequent to the release of the NVGs the Securities and Exchange Board of India (SEBI),[3] a market regulator, mandated the Annual Business Responsibility Reporting (ABRR), a reporting framework based on the NVGs.

The NVGs are unique, not just in what they represent, which is “an India specific comprehensive understanding of business responsibility”, but also in the way they have been formulated. The “process” was premised on widespread intensive stakeholder consultations to bring out the commonly agreed elements of business responsibility in keeping with India’s unique developmental challenges and priorities.


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