SU Limited is amongst the top 1000 listed entities. With the introduction of new reporting requirements by SEBI on ESG parameters called the…

CA Final · Advanced Auditing, Assurance and Professional Ethics · PYQS · May 2024
SU Limited is amongst the top 1000 listed entities. With the introduction of new reporting requirements by SEBI on ESG parameters called the Business Responsibility and Sustainability Report (BRSR), it requires SU Limited to make disclosures on their performance against the various principles of the "National Guidelines on Responsible Business Conduct". One of the principles emphasizes that the business decisions in an organization should be open to disclosure and accessible to the relevant interested parties. Elucidate the essence of core elements associated with the aforesaid principle.

Suggested Answer and Working Notes:

Principle 1 – Ethics, Transparency and Accountability: The first principle emphasizes that the business decisions in an organisation should be open to disclosure and accessible to the relevant interested parties. The essence of the core elements associated with the first principle are: (i) The entities' governing structure should develop policies, procedures, and practices for their offices, factories, and work areas, ensuring that ethics is not compromised. (ii) The information relating to the policies, procedures, and practices along with the performance should be made available to the stakeholders. (iii) In case of adverse effects, more care has to be taken for transparent disclosures. (iv) The entities in the value chain should be encouraged to adopt these principles by the governance structure. (v) The entities should proactively respond to the outside entities that violate the nine principles of the BRSRs. This includes their suppliers, distributors, sub-contractors, or regulatory officers that may engage with the business concern.

Topics: Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

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