National Guidelines on Responsible Business Conduct (NGRBC) 2019

There have been several national and international developments in the past decade that have prompted businesses to be sustainable and more responsible, the United Nations Guiding Principles on Business and Human Rights first (UNGP). These became the major drivers for further revisions in the guidelines. Some of these include emphasis on companies Act, 2013 on businesses to be more attentive to its stakeholders. Companies Act imposes fiduciary duty on directors A company requires them to promote the objects of the company for the benefit of their members, and in In the best interests of the Company, its employees, shareholders, the community and the protection of the environment. There UNHRC's 'Protect, Respect and Measures' framework and also articulate India's commitment to the Sustainable Development Goals (SDGs).

Ministry of Corporate Affairs (MCA), Government of India issued a set of guidelines in 2011, called National Voluntary Guidelines on Social, Environmental and Economic Responsibilities (NVG) of Business. This It was expected to provide guidance to businesses on the formation of responsible business conduct. To align NVG with the Sustainable Development Goals (SDGs) and the 'Honor' pillar of the United Nations' guide The process of revision of principle (UNGP) NVG was started in 2015. In March 2019, the Ministry of Corporate Matters revised National Voluntary Guidelines on Social, Environmental and Economic Responsibilities National Guidelines on Off Business (NVG) and Responsible Business Conduct (NGRBC) have been released. These The principles urge businesses to apply the principles in letter and spirit. NGRBC applies to all types of businesses, irrespective of their size, ownership, size, sector, structure or Place. It is expected that all businesses investing in or operating in or outside India adhere to these guidelines. NGRBC also provides a useful framework to guide Indian MNCs for their overseas operations.

The principles and the core elements of each of the principles as recommended by the NGRBC are summarized below:

Principle 1 : Businesses should conduct and govern themselves with integrity and in a manner that is ethical, transparent and accountable.

Principle 2 : Businesses should provide goods and services in a manner that is sustainable and safe.

Principle 3 : Businesses should respect and promote the well-being of all the employees, including those in their value chains.

Principle 4 : Businesses should respect the interests of and be responsible to all its stakeholder.

Principle 5 : Businesses should respect and promote human rights.

Principle 6 : Businesses should respect and make efforts to protect and restore the environment.

Principle 7 : Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.

Principle 8 : Businesses should promote inclusive growth and equitable development.

Principle 9 : Businesses should engage with and provide value to their consumers in a responsible manner.

Article Compiled by:-

Mayank Garg

+91 9582627751

Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including newspapers, mca website. etc.