Sukaran Ltd., a leading textile manufacturing company, has been facing criticism from its employees regarding various workplace concerns. Some…
CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · May 2025
Sukaran Ltd., a leading textile manufacturing company, has been facing criticism from its employees regarding various workplace concerns. Some employees have raised issues about delayed salary payments, while others have reported excessive working hours that affect their work-life balance. Additionally, a few workers have complained about inadequate safety measures in the factory, leading to frequent minor accidents. Which principle of BRSR deals with this? Mention the core elements of this principle.
Suggested Answer and Working Notes:
(a) Principle 3 – Promote Well-Being of All Employees Including those in the Value Chain: The third principle relates to all the initiatives an entity has to take for the benefit of its employees from the point of view of their dignity, health, well-being. The essence of the core elements associated with the principle is: (a) The entity should ensure compliance with all regulatory requirements as far as employees are concerned. (b) The entities are to respect the dignity of employee as a human being and should not restrict their freedom of associations, unions, and other participatory mechanism for collective bargaining of their rights and redressal of issues they face at the workplace. (c) The entities should prevent all kinds of child labour, bonded labour, and any other forms of involuntary labour. (d) The entities should have a system in which the work-life balance of the employees is not compromised. (e) The businesses have to ensure timely payment of the worker's wages and compensation. (f) The payment of the wages has to be as per the living wages, that can take care of the basic needs and provide economic security to the employees. (g) The entities are responsible to create a workplace and work environment that is safe, hygienic, and comfortable for people to work for long durations. (h) The skill development, career development and training of the workforce is another responsibility of the entities employing them. (i) The creation of a workplace which is free of harassment and violence is also a responsibility of the entity. In the given case, employees have raised issues about delayed salary payments, excessive working hours that affect their work-life balance and complained about inadequate safety measures in the factory. In view of the above, Sukaran Ltd. must take corrective actions to align with this principle.
Topics: Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance
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