Author: Ankur Bhatnagar
Author Affiliation: Department of Economics, Satyawati College, University of Delhi.
Abstract: As the world gains from expansion in GDP, its future is threatened by the effects of such expansion on the environment, and these effects have been laid bare by the Covid pandemic. The relentless race to deliver shareholder value has given primacy to shareholders, while delivering possible harms to the ecosystem, consisting of and sometimes at the cost of non-human elements (climate and natural resources) and human elements (customers and supply chain vendors), even as these elements are stakeholders in business, on an equal footing with shareholders. The model of stakeholder capitalism accords an equal space and attention to all stakeholders, including shareholders as one of the stakeholders and not the primary stakeholder. While the concept of stakeholder capitalism is not new, it got renewed attention at the Round Table Conference in 2019, under the aegis of the World Economic Forum (WEF). This manifested as 21 core and 34 expanded ESG metrics, that align broadly with the SDGs (Sustainable Development Goals), with the tacit understanding that the world needs businesses that go beyond ‘profits’ and include stakeholders- employees, environment, supply vendors, customers, along with shareholders. Stakeholders take centerstage in the latest reporting format (BRSR) issued by SEBI in India. This paper employs the document analysis approach to review the BRSR framework and places it within the context of the model of stakeholder capitalism. We argue that the BRSR is important as it places various stakeholders at the center of the disclosures in the BRSR, implicitly embracing stakeholder capitalism as the key to India’s global ascendancy in encouraging and promoting sustainable businesses responsibly. Finally, we offer suggestions on how the format can be expanded and the spillover effects of such an expansion.
Keywords: Social responsibility, Stakeholder, Capitalism, India, BRSR.