The National Voluntary Guidelines on the social, environmental and economic responsibilities of businesses (NVGs) were drawn up to promote Business Responsibility in India. This report examines the process of developing the NVGs and the merits of taking a voluntary rather than compulsory approach.
The report finds the the voluntary approach was appropriate in the context of weak regulatory enforcement mechanisms and the lack of an agreed social understanding of what is expected from business responsibility.
The authors examined the process of developing the NVGs and offer lessons, including the need for an iterative approach and the important role of specific individuals in promoting a consensual outcome.
The report ends with suggestions from promoting the take up of the NVGs among Indian businesses.