The nine listed areas shed great light on what modern responsible corporations will need to be demonstrative of in the next decade. They are:
1) Energy efficiency
2) Greenhouse gas (GHG) emissions
3) Staff turnover
4) Training & qualification
5) Maturity of Workforce
6) Absenteeism rate
7) Litigation risks
9) Revenues from new products
Source: Céline Louche, assistant professor of corporate responsibility, Vlerick Leuven Gent Management School, Belgium; and the Financial Times Lexicon.
As can be expected there is no mandatory or voluntary reporting of these facts in India. While a few companies write notes on their corporate social responsibility mandate in their ‘Annual Reports’ and Websites, they do not address important governance and ethical issues like Corruption and Absenteeism. Some would like to argue that the economic counterpane in India is a wrinkled spread and these issues are difficult to iron-out, much less admit to. Besides, how do you report on a matter such as corruption? However, these parameters seem to have been put there more as deterrents as opposed to any admission of such practices.
The Financial Times Lexicon also draws attention to: “The UN-backed Principles for Responsible Investment (PRI) provides a voluntary ESG framework for companies and funds, from which investors can make informed investment decisions that relate to sustainability and governance practices.” As more nodal agencies prescribe a set of ESG guidelines more sectors in industry will begin to adopt these measures. It will be of critical importance to the third-world and India to see how these measures percolate down the corporate river of obfuscation and misreporting.