MCA releases National Guidelines on Responsible Business Conduct to assist businesses in complying with requirements of regulatory compliance
The Ministry of Corporate Affairs (“MCA”) has recently released National Guidelines on Responsible Business Conduct (“NGRBC”) to assist businesses to perform above and beyond the requirements of regulatory compliance.
Previously, MCA had released a set of guidelines in 2011 called the National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business (“NVGs”) to provide guidance to businesses on what constitutes responsible business conduct. To align the NVGs with the Sustainable Development Goals and the ‘Respect’ pillar of the United Nations Guiding Principles, the process of revision and updating the NVGs started in 2015. Therefore, the revised and updated principles are now released which are called the National Guidelines on Responsible Business Conduct.
The NGRBC are designed to be used by all businesses, irrespective of their ownership, size, sector, structure or location. It is expected that all businesses investing or operating in India, including foreign multinational corporations (MNCs) will follow these guidelines.
Key Principles of the NGRBC:
- Businesses should conduct and govern themselves with integrity, and in a manner that is ethical, transparent, and accountable
- Businesses should provide goods and services in a manner that is sustainable and safe
- Businesses should respect and promote the well-being of all employees, including those in their value chains.
- 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