SEBI is blindly following the SEC model for reporting and disclosures by corporates in India. Apparently they have mandated Business Responsibility Reports by top 100 companies as per market capitalization. These companies have to give BRRs if their financial years closes after 31st December 2012, which means practically all companies in the 2012-13 financial year bracket. There is a format for the BRRs and recently they have released FAQs on the subject. The earlier circular of august 2012 wherein SEBI introduced the concept of BRRs is available at this link here and the recent faqs is available here
The format is an inclusive format and I am sure many companies would give more information than is mandated and it is more in the nature of a check box kind of report. Some of the information asked for could very well be confidential information so it remains to be seen how corporates deal with it.
Some of the principles enunciated are very vague for eg. Principle 4 talks about disadvantaged, marginalised & vulnerable stakeholders. Really who are these kind of stake holders. There needs to be clarity in this regard. I feel they have blindly copied from somewhere without ascertaining whether these apply to the Indian market.
Annexure 2 of the August 2012 circular is critical as it enumerates the broad based principles on which the BRR is based. These are very ideal principles which if adopted truly by the corporates will lead to very little litigation and cause for concern. But unfair competion, disparaging advertisement, squatting on domain names, human rights and child rights abuses, trampling of employee rights are more the norm rather than the exception.
These principles should be adopted by all corporates in India and not only companies but all persons doing businesses in all forms whether as companies, or partnerships or LLPs etc.
The format is an inclusive format and I am sure many companies would give more information than is mandated and it is more in the nature of a check box kind of report. Some of the information asked for could very well be confidential information so it remains to be seen how corporates deal with it.
Some of the principles enunciated are very vague for eg. Principle 4 talks about disadvantaged, marginalised & vulnerable stakeholders. Really who are these kind of stake holders. There needs to be clarity in this regard. I feel they have blindly copied from somewhere without ascertaining whether these apply to the Indian market.
Annexure 2 of the August 2012 circular is critical as it enumerates the broad based principles on which the BRR is based. These are very ideal principles which if adopted truly by the corporates will lead to very little litigation and cause for concern. But unfair competion, disparaging advertisement, squatting on domain names, human rights and child rights abuses, trampling of employee rights are more the norm rather than the exception.
These principles should be adopted by all corporates in India and not only companies but all persons doing businesses in all forms whether as companies, or partnerships or LLPs etc.
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