National Voluntary Guidelines for the Social, Environmental and Economic Responsibilities of Business, 2011 Ministry of Corporate Affairs, Government of India

The Ministry of Corporate Affairs, Government of India has formally released the ‘National Voluntary Guidelines for the Social, Environmental and Economic Responsibilities of Business, 2011” on 8th July 2011.

The Government of India released the Corporate Social Responsibility Voluntary Guidelines in 2009 for businesses. From March through October 2010 consultations were held with industry representatives and civil society. Based on these inputs appropriate changes were made in the original Guidelines and the Ministry of Corporate Affairs has recently released the new National Voluntary Guidelines.  

The formal adoption of the guidelines is a significant development since they emphasize that businesses should endeavor to become responsible actors in society, so that every action leads to sustainable growth and economic development. By replacing the term ‘CSR’ with ‘Responsible Business’, the Guidelines attempts to move the notion of CSR away from corporate philanthropy to strategic activities in line with a business’ goals. The term ‘Responsible Business’, encompasses traditional philanthropic CSR, as well as strategic philanthropy, sustainable business practices/operations, and social & environmental business activities. It is imperative to activate all principles since the boundaries of a business extend well beyond the traditional walls of a factory or an operating plant all the way across the value chain and multiple stakeholders. 

The guidelines have 9 basic principles which can be found here for details. A summary of the 9 principles is provided below for your perusal.

1. Ethics, Transparency and Accountability: Ethical conduct in all its functions and processes is the cornerstone of responsible business.
2. Goods and services that are safe and contribute to sustainability: All stages of the product life cycle, right from design to final disposal of the goods and services after use, have an impact on society and the environment.
3. Well being of employees: Well being of all categories of employees engaged in activities contributing to businesses, within or outside of its boundaries and covers work performed by individuals, including sub-contracted and home based work.
4. Responsive towards stakeholders: While appreciating that all stakeholders are not equally influential or aware, the principle encourages businesses to proactively engage with and respond to those that are disadvantaged, vulnerable and marginalized.
5. Respect and promote human rights: The principle recognizes that human rights are the codification and agreement of what it means to treat others with dignity and respect. This holistic and widely agreed nature of human rights offers a practical and legitimate framework for business leaders seeking to manage risks, seize business opportunities and compete in a responsible fashion.
6. Environment: The principle encourages businesses to understand and be accountable for direct and indirect environmental impacts of their operations, products and services and strive to make them more beneficial.
7. Influence public and regulatory policy in a responsible manner: Businesses operate within the specified legislative and policy frameworks prescribed by the Government, which guide their growth and also provide for certain desirable restrictions and boundaries. The principle emphasizes that policy advocacy must expand public good rather than diminish it or make it available to a select few.
8. Inclusive growth and equitable development: Reiterates that business prosperity and inclusive growth and equitable development are interdependent.
9. Provide value to customers and consumers: Recognizes that customers have the freedom of choice in the selection and use of goods and services, and enterprises would strive to make available goods that are safe, competitively priced, easy to use and safe to dispose of, for the benefit of customers.

Businesses are therefore encouraged to ensure that not only do they follow the Guidelines for  areas directly within their immediate control or within their sphere of influence, but encourage  and support their vendors, distributors, partners and other collaborators across their value chains to follow the Guidelines as well.

NASSCOM Foundation will be happy to assist you in realizing these guidelines into action agenda for your company. Please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it   for further assistance.