Purpose
The Business Responsibility Report
has been outlined as a tool to help companies understand the principles and
core elements of responsible business practices and start implementing
improvements which reflect their adoption in the manner the company undertakes
its business.
Applicability
SEBI vide Notification no. SEBI/LAD-NRO/GN/2015-16/013
dated 2nd September, 2015, initiated the SEBI (LODR) Regulation,
2015 which necessitates the top hundred listed entities which are calculated as
on March 31 of every financial year based on market capitalization to submit
Business Responsibility Report as part of their Annual Report as per the format
prescribed in the aforesaid Regulation. The said Notification also mentions
other listed entities to disclose on a voluntarily basis the Business
Responsibility Reports as part of their Annual Reports. The provisions of this
Notification shall come into force on the ninetieth day from the date of their
Publication in the Official Gazette.
Format
With reference to Regulation
34(2)(f) read with Regulation 101(2) of SEBI (LODR) Regulations, 2015, SEBI on
November 4, 2015 issued a circular CIR/CFD/CMD/10/2015
wherein a suggested format of Business Responsibility Report in
Annexure I & Annexure II has been prescribed which is equivalent to the
format prescribed vide circular CIR/CFD/DIL/8/2012
dated 13th August, 2012 issued
under Clause 55 of Equity Listing Agreement.
Regulation 34
The aforesaid Regulation discusses
Annual Report and its contents wherein sub-regulation (2) clause (f) specifies
the mandatory disclosure of Business Responsibility Report of the top hundred
listed entities based on market capitalization, as part of the Annual Report.
The regulation also suggests voluntary disclosure of Business Responsibility
Report as part of Annual Report to the listed entities other than top 100
listed companies based on market capitalization and also to listed entities
which have listed their specified securities on SME Exchange
Contents
The format prescribed in Annexure I
& Annexure II circular CIR/CFD/CMD/10/2015
dated November 4, 2015 contains the following key particulars:
Annexure I – SUGGESTED FORMAT FOR
BUSINESS RESPONSIBILITY REPORT
Section A – General Information
about the company
Section B – Financial Details of the
Company
Section C – Other Details
Section D – BR Information
1. Details of Director/Directors responsible
for BR
2. Principle-wise (as per NVGs) BR
Policy/policies
3. Governance related to BR
Section E – Principle – wise
Performance (Principle – wise Performance further contains Principle 1 to
Principle 9)
Annexure II – PRINCIPLES TO ASSESS
COMPLIANCE WITH ENVIRONMENTAL, SOCIAL AND GOVERNANCE NORMS
Principle 1: Businesses should
conduct and govern themselves with Ethics, Transparency and Accountability
Principle 2: Businesses should
provide goods and services that are safe and contribute to sustainability throughout
their life cycle
Principle 3: Businesses should promote the wellbeing of
all employees
Principle 4: Businesses should respect the interests of,
and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized
Principle 5: Businesses should respect and promote human
rights
Principle 6: Business should
respect, protect, and make efforts to restore the environment
Principle 7: Businesses, when
engaged in influencing public and regulatory policy, should do so in a
responsible manner
Principle 8: Businesses should
support inclusive growth and equitable development
Principle 9: Businesses should
engage with and provide value to their customers and consumers in a responsible
manner
Conclusion
Though there have been no changes
made in the format or the contents of Business Responsibility Report, the new
format shall be effective from 90 days of the notification, i.e. on and
from 2nd December, 2015.
- See more at:
http://taxguru.in/sebi/business-responsibility-report-sebi-listing-regulation-2015.html#sthash.0AGcuwho.dpuf
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