India - 8-Responsible Business ConductIndia - Responsible Business Conduct
Among the companies there is a general awareness of standards for responsible business conduct. The Companies Act of 2013 established the framework for India’s corporate social responsibility (CSR) laws. The India Responsible Business Index (IRBI) notes, for example, that in 2015 there were only nine firms that had held public hearings regarding project impact with communities, but there were 13 in 2016. Similarly, there were only 27 firms with a provision for conducting impact assessments in 2015; this number increased to 31 in 2016. A CRISIL study reported that only 30% of 5,500 companies listed on the Bombay Stock Exchange met the criteria for mandatory spending and reporting under the CSR.
The Ministry of Corporate Affairs (MCA) administers the Companies Act of 2013, and is responsible for regulating the corporate sector in accordance with the law. MCA is also responsible for protecting the interests of consumers by ensuring competitive markets. While the CSR obligations are mandated by law, non-government organizations (NGOs) in India also track activities under the CSR and in some cases provide recommendations for effective use of CSR funds.
India does not adhere to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Afflicted and High-Risk Areas. There are provisions to promote responsible business conduct throughout the supply chain.
India is not a member of Extractive Industries Transparency Initiative (EITI) nor is it a member of Voluntary Principles on Security and Human Rights.Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
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