**Executive Summary**
The Indian Institute of Corporate Affairs (IICA) and the International Labour Organisation (ILO) convened the fifth inter-ministerial consultation on March 15, 2026, to strengthen policy coherence regarding Responsible Business Conduct (RBC) and ESG. The meeting focused on integrating social safeguards into sectoral policies and aligning India’s statutory frameworks with global sustainability benchmarks. Key future actions include integrating labor data into SEBI’s disclosure framework and developing tiered compliance mechanisms for smaller enterprises.
**Key Points / Main Content**
**Policy and Regulatory Framework**
* **Companies Act 2013:** The mandate for responsible business is considered inbuilt within the Act, serving as a global benchmark for regulatory compliance.
* **National Guidelines (NGRBC):** Policy milestones are being mapped against the nine principles of the National Guidelines on Responsible Business Conduct.
* **BRSR Core:** SEBI has rationalized sustainability disclosures to essential indicators, positioning them as tools for market differentiation and capital access rather than just compliance burdens.
**Labour and Social Safeguards**
* **Labour Codes:** Structural changes are being introduced via four Labour Codes, focusing on minimum wages, appointment letters, and universal social security.
* **Social Security Extension:** The Social Security Code abolishes area-specific notifications for ESIC, extending coverage nationwide and to hazardous industries regardless of size.
* **Worker Protection:** Proposals are in place to strengthen remedy mechanisms for informal and migrant workers.
**Sector-Specific Initiatives**
* **Manufacturing and PLI:** The Ministry of Heavy Industries is reviewing global supply chains to embed responsible business standards into the Production Linked Incentive (PLI) scheme for the auto sector.
* **Food Sector:** FSSAI is working to balance responsible product standards with the compliance burden of front-of-pack nutrition labeling.
* **Insolvency and Bankruptcy:** The IBC prioritizes employee wage dues during liquidation; discussions are ongoing to embed ESG considerations into the resolution framework.
**Institutional Coordination**
* **Data Integration:** There is a move to integrate labor data from PLFS, ESIC, and EPFO with SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework.
* **Capacity Building:** Public sector entities are identified as "early adopters" to demonstrate responsible business practices for private sector supply chains.
**Impact Analysis**
**Stakeholder: Corporate Entities and Investors**
**Impact:** Businesses face evolving expectations where RBC is linked to economic competitiveness and international trade integration.
**Action Required:** Shift perspective of sustainability disclosures from "compliance burden" to a tool for market differentiation; ensure alignment with BRSR Core indicators.
**Stakeholder: Public Sector Undertakings (PSUs)**
**Impact:** PSUs are viewed as high-visibility entities capable of setting industry standards.
**Action Required:** Act as early adopters and demonstration cases for responsible business practices to influence private sector supply chains.
**Stakeholder: MSMEs (Micro, Small, and Medium Enterprises)**
**Impact:** Small businesses often struggle with the heavy compliance burdens of global standards.
**Action Required:** Prepare for the implementation of tiered and voluntary RBC compliance mechanisms tailored to smaller scales.
**Stakeholder: Ministry of Corporate Affairs (MCA) and IICA**
**Impact:** These bodies are responsible for the continued evolution of India's sustainability governance.
**Action Required:** Conduct ongoing research to map national initiatives to NGRBC principles and strengthen the statutory framework for "new age" businesses.
**Stakeholder: Labour and Workforce**
**Impact:** Workers in hazardous industries and the informal sector are set to receive broader social security and better remedy mechanisms.
**Action Required:** Regulatory bodies must ensure the integration of labor data across platforms (ESIC, EPFO) to provide transparent social safeguard coverage.
Key Entities Referenced
National Guidelines on Responsible Business Conduct (NGRBC): The primary policy framework in India consisting of nine principles that guide businesses on sustainable and ethical conduct.
Business Responsibility and Sustainability Reporting (BRSR): SEBI's mandatory disclosure framework used by Indian companies to report their performance on environmental, social, and governance (ESG) parameters.
Indian Institute of Corporate Affairs (IICA): An autonomous body under the Ministry of Corporate Affairs responsible for convening inter-ministerial consultations and conducting policy research on responsible business conduct.
Labour Codes: A set of four legislative reforms, including the Social Security Code, which provide the statutory framework for the social dimension of ESG, such as minimum wages and social security coverage.
Companies Act 2013: The principal legislation governing the corporate sector in India, which provides the underlying mandate and statutory framework for responsible business practices.
Ministry of Corporate Affairs
IICA Convenes Fifth Inter-Ministerial Consultation
on Responsible Business Conduct and Social
Dimension of ESG
Posted On: 15 MAR 2026 1:07PM by PIB Delhi
The Indian Institute of Corporate Affairs (IICA), under Ministry of Corporate Affairs, Government of
India, convened the Fifth Inter-Ministerial Consultation on Responsible Business Conduct (RBC) and the
Social Dimension of Environmental, Social and Governance (ESG) recently in New Delhi.
The consultation was organised by the School of Business Environment (SoBE), IICA, in collaboration
with the International Labour Organisation (ILO) to strengthen policy coherence and institutional
coordination on responsible business conduct and sustainability governance in India.
The Workshop commenced under the chairmanship of Shri Gyaneshwar Kumar Singh, Director General
and CEO, Indian Institute of Corporate Affairs, who highlighted the growing significance of responsible
business conduct in the context of evolving global supply chains and sustainability expectations. Mr Singh
noted that responsible business practices today extend beyond corporate reporting frameworks and are
increasingly linked to economic competitiveness, sustainable development, and international trade
integration.
Shri Shantanu Mitra, Senior Economic Advisor, Ministry of Corporate Affairs, delivered an address that
highlighted the policy significance of responsible business conduct within India’s corporate governance
ecosystem and its growing relevance for businesses operating within global value chains. Shri. Mitra
concluded that the mandate of responsible business is inbuilt in various provisions of the Companies Act
2013 and Ministry of Corporate Affairs is steadfast in ensuring that the statutory framework remains
conducive for new age businesses and serves as a global benchmark for statutory and regulatory
compliance.The consultation also featured a special address by Ms. Michiko Miyamoto, Director, International Labour
Organisation (ILO) Decent Work Technical Support Team for South Asia and Country Office for India, he
shared global perspectives and laid emphasis on India’s championing progress in responsible business
conduct. Ms. Miyamoto’s address further elucidated the importance of promoting decent work, labour
standards, and inclusive growth within evolving corporate sustainability frameworks.
Prof. Garima Dadhich, Head, School of Business Environment, IICA, in her presentation outlined the
evolution of India’s Responsible Business Conduct (RBC) journey, highlighting key policy milestones and
regulatory developments that have shaped the country’s responsible business framework. She also shared
insights from IICA’s ongoing research mapping national initiatives and policy measures to the nine
principles of the National Guidelines on Responsible Business Conduct (NGRBC).
The participating representatives highlighted key initiatives of the their respective ministries and
governmental bodies in the deliberations:
CEO of FSSAI, Shri Ranjit Punhani, drew attention to the parallel challenges faced by the food sector in
balancing responsible product standards with compliance burden, particularly around front-of-pack
nutrition labelling regulations.
Shri. Rajesh Dangeti, the Chief General Manager of SEBI, noted that the BRSR Core has rationalised
disclosures to the most essential social, environmental and governance indicators, and underscored that as
India aspires toward a USD 30 trillion economy, sustainability disclosures may be positioned not as a
compliance burden but as a tool for market differentiation and access to capital.
Further, Shri. Shiv Anant Shanker, Chief General Manager of IBBI, highlighted the unique feature of the
IBC that prioritises employee wage dues in liquidation, and proposed exploring how ESG considerations
can be embedded into the resolution framework to incentivise responsible business conduct.
Shri. Prashant Baijal, Joint Director, Ministry of Labour and Employment highlighted the significant
structural changes being introduced through the four Labour Codes, particularly on minimum wages,
appointment letters, and social security coverage. He noted that the Social Security Code abolishes the
area-specific notification system for ESIC, extending coverage on a PAN India basis, and making ESIC
applicable to hazardous industries regardless of workforce size.Dr. Renuka Mishra, Economic Advisor to the Ministry of Heavy Industries, indicated that a rolling review
on global supply chains for auto components is already in pipeline, and that sector-specific guidelines
under the PLI scheme can play an important role in embedding responsible business standards
progressively across the auto and advanced manufacturing sector.
Secretary of the Capacity Building Commission, Shri. Jaydeep Gupta, flagged that public sector entities,
given their scale and visibility, can serve as important early adopters and demonstration cases for
responsible business practices, creating demonstration effects for private sector supply chains.
Shri. Arvind Kumar, Senior Consultant at Ministry of MSME, Shri. Jeevan Kumar Jethani, Scientist at
Ministry of New and Renewable Energy, Shri. Arindam, Director at Ministry of External Affairs, Shri.
Chinnaraja Naidu, Additional Legislative Counsel at Ministry of Law and Justice, Shri. Vinod Kumar,
Deputy Secretary at Ministry of Home Affairs and Shri. Samir Kumar, Joint Secretary, National Human
Rights Commission collectively reflected on the cross-sectoral nature of responsible business and
sustainability governance, and identified key areas for follow-up action.
Like, including the embedment of social safeguards within PLI and sectoral policy design, integration of
labour data from PLFS, ESIC, and EPFO with SEBI’s BRSR disclosure framework, development of tiered
and voluntary RBC compliance mechanisms for micro and small enterprises, strengthening of access to
remedy mechanisms for informal and migrant workers, and the incorporation of ESG considerations into
insolvency and restructuring proceedings under the IBC.
It was noted that India has made significant progress in building a robust framework for responsible
business conduct through initiatives such as the National Guidelines on Responsible Business Conduct
(NGRBC), SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, the Labour
Codes, and evolving sustainable finance and due-diligence mechanisms.
Insights emerging from the consultation will contribute to ongoing research and policy work being
undertaken by IICA on responsible business conduct and decent work, aimed at strengthening India’s
responsible business ecosystem and supporting the continued evolution of sustainability governance
frameworks.
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