By Rusen Kumar
The increase of responsible investment in the past couple of years and mandatory reporting on ESG (environmental, social, governance) information by the larger corporations in major developed and developing economies including India underscores the growing importance of corporate social responsibility (CSR) and sustainability management of business.
As voluntary international agreements on corporate social responsibility (CSR) are increasingly reflected in respective country’s regulations and required by global business organisations as purchasing requirements, international compliance management is now considered a competitive edge in the free market.
In recognition of the significant impact of ESG factors on a company’s financial performance, multinationals organisations transparently show the risks, opportunities, goals, and performances in economic, social, and environmental areas through various channels including sustainability report.
In particular, businesses systematically pursue sustainability management based on their mid to long-term sustainability management goals, and strive to meet the expectations of all major stakeholders are aspiring a global enterprise.
In the context of a global economic slowdown caused by the worldwide outbreak of COVID-19, businesses will be continually withstanding the uncertainties of the market environment and do their utmost to keep up business stability while creating economic, social, and environmental value.
Efforts to keep up constant growth and give to a sustainable future will continue and stay challenging. In the age of a digital transformation, larger corporation worldwide will remain steadfast in maintaining its sustainability through transparent disclosure of ESG information and active communication with stakeholders.
The major India global corporate citizen will be striving to fulfill their corporate social responsibilities (CSR). Indian businesses must listen closely to the individual voices of employees, communities and stakeholders, ensuring that those voices are appropriately reflected in their business management and functions.
As a corporate citizen with an obligation to fulfill social responsibility, corporate should also make sure that human rights are reflected in their operating standards, so that, human rights management can serve a cornerstone of corporate management.
Every year, businesses must look at the level of human rights awareness and practice among their employees, and offer consistent feedback on areas that need improvement. As a key community member and a responsible corporate citizen, business should affirm their commitment to the ESG, Corporate Social Responsibility (CSR) and Sustainability, with a goal to build a sustainable future of mutual growth both socially and economic with their stakeholders.
(Rusen Kumar writes on CSR, Sustainability, Corporate Governance, Business Affairs and Responsible Business. He is the founder of India CSR Network)