SUSTAINABLE BUSINESS DEVELOPMENT

Presented by: CS NESAR AHMAD‘Sankalp’ C-227Paryavaran ComplexNew Delhi-110 030Tel: +91-11-2953 6312Mob: +91-9810044367csnesar367@gmail.com

BACKGROUND

The role of corporates by and large has been understood in terms of a commercial business paradigm of thinking that focuses purely on economic parameters of success.

However, over the past few years, as a consequence of rising globalisation and pressing ecological issues, the perception of the role of corporates in the broader societal context within which it operates, has been altered

BACKGROUND

Corporations are expected to “build a better future” not only for their shareholders but also for their customers, workers, business partners, community, nation and the wider world.

Stakeholders today are redefining the role of corporates taking into account the corporates’broader responsibility towards environment, beyond social and economic performance, and are evaluating whether they are conducting their role in an ethical and socially responsible manner

SUSTAINABLE DEVELOPMENT

Sustainable development means:

Utilization of natural resources for a business or for any means of survival by human being in such a way which should meet the requirement of the present generation as well as requirements of all the coming generations in future.

SUSTAINABILITY REPORTING

Sustainability reporting is related to sustainable business development as it is the practice of measuring, disclosing, and making accountable the internal and external stakeholders on its:

EconomicPerformance

Social Performance

Environmental Performance

WHY REPORT?Increased Stakeholder awarenessIncreased Regulatory PressuresDemonstrating transparencyCreating Financial ValueManage Reputation and Brand ImageStrengthening Risk awareness and managementEstablishing Competitive Positioning

WHO SHOULD REPORT?

INSTITUTIONS REGULATING REPORTING ON SUSTAINABILITY

GLOBAL REPORTING INITIATIVE (GRI)

GRI is a non-profit organization that promotes economic sustainability. It has provided a comprehensive Sustainability Reporting Framework.

The cornerstone of the Framework is the Sustainability Reporting Guidelines.

The Framework enables all organizations to measure and report their economic, environmental, social and governance performance the four key areas of sustainability.

REGULATION ON SUSTAINABILITY REPORTING IN INDIA

NATIONAL VOLUNTARY GUIDELINES

The 9 cardinal principles of these guidelines are:

Businesses should conduct and govern themselves with ethics, transparency and accountability.

Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.

Business should promote the well-being of all employees.

Businesses should respect the interests of and be responsible towards all stakeholders especially those who are disadvantaged, vulnerable or marginalized.

NATIONAL VOLUNTARY GUIDELINES

Businesses should respect and promote human rights.

Businesses should respect, promote and make efforts to restore the environment.

Businesses, when engaged in influencing the public & regulatory policy, should do so in responsible manner.

Businesses should support inclusive growth and equitable development.

Businesses should engage with and promote value to their customers and consumers in a responsible manner.

SEBI CIRCULAR

SEBI CIRCULAR

As per format released by NVG Guidelines and adopted by SEBI, the Report is divided into 5 Sections namely:

Section A: General Information about the Company

Section B: Financial Details of the Company

Section C: Other details such as information relating to the Subsidiaries and various stakeholder groups and their contribution to BR initiatives of the Company.

STRUCTURE OF THE REPORT

Section D:

BR Information like directors responsible for compliance, governance related to BR etc.

Section E: Principle wise performance

COMPANIES ACT 2013

The Bill provides provisions related to Corporate Social Responsibility (CSR)

Every Company with net worth of: Rs 500 crore or more; or turnover of Rs 1,000 crore or more; ora net profit of Rs 5 crore or more

during any financial year to constitute a Corporate Social Responsibility Committee of the board consisting of three or more Directors, including at least one independent director.

COMPANIES ACT 2013

The committee shall recommend the policy for CSR to the board.

The board of every company to ensure that the company spends, in every financial year, at least 2% of the average net profits it made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

OBJECTIVES OF CSRSound corporate governance Providing equal job opportunities Workers Participation in Management Use of natural resources in very productive and efficient manner Being responsible for conditions under which goods are produced Being responsible for production of products which may be recycled naturally Avoiding mal practices such as bribery and corruptions Considering consumer protection

POINTS FOR CONSIDERATION FOR SBD

Sound Corporate Governance

Providing equal opportunity for job

Workers participation in management

Use of national resources in very productive and efficient manner

POINTS FOR CONSIDERATION FOR SBD

Being responsible for conditions under which goods are produced

Being responsible for production of products which may be recycled naturally

Avoiding malpractices such as bribery and corruption

Considering Consumer protection

It is true that industry has to spend some amount to fulfil its responsibility towards society but they should feel happy about it that they are not only running their business for the profits but they are doing welfare also and they are not only doing welfare but they contributing to save the future of their own successor.

All the measures discussed above of Sustainable reporting may help to achieve Sustainable development.

THANK YOU