SEBI has made business responsibility (BR) reporting mandatory for the top 100 listed companies by market capitalisation on the NSE and the BSE. SEBI has inserted a new clause (Clause 55) in the equity listing agreement for the purpose.
This report will disclose steps taken by listed companies from an environmental, social and governance perspective.
The circular will come into force for financial year ending December 31, 2012 onwards. However, listed entities that are yet to submit their FY12 Annual Reports may include BR Report in their annual reports voluntarily, said SEBI.
Principles to assess
The regulator has also outlined nine underlying principles to assess compliance with these norms. According to these, businesses should conduct and govern themselves with ethics, transparency and accountability; should provide safe and sustainable goods and services and promote employee wellbeing; should respect and promote human rights, protect and restore the environment; should be responsible while influencing public and regulatory policy and support inclusive growth and equitable development; and finally, they should provide value to their customers and consumers said SEBI.