Business Responsible Reporting and Environmental Social and Governance Disclosures: Current status & Challenges in India

Abstract

The essential feature of capitalism is giving priority to financial performance of enterprises and gives least priority to non-economic factors like social responsibility. But the sustainability of enterprises is not only byproduct of financial performance but also social, environmental and governance performance. Investors, stakeholders, and regulators of the market are consistently asking for more disclosures related to organization performance related to environmental, social and governance (ESG) for evaluating the risk. As more disclosure bring transparency, which leads to better accountability and finally impact the organization's sustainability performance. Business responsible reporting is the source of business social responsible performance. The responsible reporting or sustainable reporting are more evolved and voluntarily adopt in most of a developed country. Internationally organization and regulator are working towards business responsible reporting standards, principles and disclosures practices. Developing nations like India, the business responsibility reporting is mandated by market regulator to large organizations as per market cap.