The top 100 companies listed on the Bombay Stock Exchange (BSE) as per market capitalisation on March 31, 2012, were mandated by a circular of SEBI to issue annual Business Responsibility Reports (BRRs) as part of their annual reports . The sample for the study, using the IRBI 2015, was restricted to self-disclosed data of these top 100 companies, consistent with the date referred to in the above-mentioned circular. In IRBI 2016, the list of companies used is top 100 BSE listed companies as on 31st March 2015.
SOURCES OF INFORMATION
Documents available in the public domain and self-disclosed (largely sourced through websites of respective companies) as on 31st October 2016 was used for the purpose of this analysis.
DATA COLLECTION TOOL
Questions related to the five elements of the index (namely: community development, community as business stakeholders, strengthening the supply chain, non-discrimination in the workplace and respecting employee dignity and human rights) from the NVG principles and BRR formats were framed. The questions are based exclusively on the NVG document and the BRR template.
KEY STEPS FOLLOWED
To summarise, three principles that govern the IRBI and highlight their genuine implementation are:
- Only “Policy commitment” is being measured, not performance or compliance
- Policies and mechanisms are measured only if they get disclosed in the public domain. These are polices that pertain to the wider public and by virtue of the constituencies they are meant for, they should be in the public domain and easily accessible by these communities. Even though companies may have very progressive policies. It is possible that companies have progressive policies for these stakeholders but if they are not easily accessible in the public domain, this index assumes that they are not available.
- Self-disclosure by the company gets measured. Indexation is not based on any third party data, such as in the form of newspaper reports.