While the report by Corporate Responsibility Watch focuses on the significant issue of Disclosure - a ‘pivotal feature of market-based monitoring of corporate conduct’. Recent studies show that in countries with large and active equity markets, disclosure has been a powerful tool for influencing the behavior of companies, protecting investors, attracting capital and maintaining confidence in capital markets. The national voluntary guidelines consist of 9 core principles for the Social, Environmental and Economic Responsibilities of the Business. Companies need to provide their declaration/report on their compliance and level of compliance by providing numbers, data and any specific cases relevant to each of the principles.
The Top 10 in Companies in the Market as per their level of disclosure including policy implementation mechanism and performance are: National Aluminium Dabur India TATA Steel GAIL IDFC Oil India Jindal Steel Sesa Sterilite Ambuja Cement Glaxosmith Consumer HealthcareHowever, report also says that the BRR format is not comprehensive enough to assess certain parameters such as policy related mechanism and process, sensitization of employees and other stakeholders, engagement with stakeholders, periodic monitoring and evaluation. It is clear that the BRR format, though a positive step towards ensuring corporate transparency and accountability has limitations and needs further strengthening. Nevertheless, given the fact that these are top 100 companies and that the Securities and Exchange Board of India (SEBI) has mandated the submission of the report, the response to BRRs has been noteworthy and the availability of the BRR is the public domain is a good beginning.