Social Audit

 Impact Assessment  Study By HR LAB.    *BIRENDRA K JHA  The ancient port of Dwarka, shown in yellow circle is treasure of human mankind. This site remains submerged and visible to satellite during specific period. On this Ancient Port, the Nayara Energy Limited has established premise for unloading crude petroleum products for the Jamnagar refinery. There is huge petroleum seepage recorded here ( see below satellite photographs), which shows that the Environment Pillar of the ESG is not maintained in good condition in this company. ( Source: Taken from the Social Impact Assessment Report conducted by Author )                                                          ( Warning :  " The Experimental Science Rating Method in Social Audit” is a tool developed by this Social Auditor (the author). This is an intel...

                                                *BIRENDRA K JHA  Volkswagen emission scandal had global implications, including in India. The case involved Volkswagen installing software in its diesel vehicles, which manipulated emissions testing results. This allowed vehicles to pass emissions tests. This was the worst example, where deceitful route has been used to promote green environment- This was "Greenwash." In Reckitt Benckiser (India) Pvt. Ltd. vs. Hindustan Unilever Limited case, a complain was filed  against the Reckitt Benckiser (India) Pvt. Ltd. for wrong advertisement for claiming better environmental impact than the  Hindustan Unilever’s product. Reckitt Benckiser was given a directive  to delete  the advertisement. This was a "Greenwash" activity  In Wipro vs. Hindustan Unilever Limited case, the  Kissan Tomato Ketchup...

                                                   * BIRENDRA K JHA The SEBI(Mutual Funds) Regulations, 1996 has been amended in 2023. This has allowed multiple "green investment" in mutual fund. But, to meet this multiple investment,  the Asset Management Company (AMC) shall obtain an independent reasonable assurance on an annual basis regarding their ESG scheme’s with the strategy and objective of the scheme, as stated in respective Scheme Information Documents (SID). For 22-23, this is required to be filed by 31.12.2023. After 2023, this assurance is required in the Annual Report. The Board of AMCs shall ensure that the ESG scheme shall be audited properly with the necessary expertise. There should not be any conflict of interest, with the AMC and the audit agency.  The board of directors of AMCs, based on comprehensive internal ESG audit, shall ...

*BIRENDRA K JHA   Fight against poverty is not so easy when our auditors have no skill and knowledge in adopting the social audit standards. This is not "stable" which produces "good horse". This is "horse" alone, known for its skill and talent. Big audit firms are just "stable". It needs "good horse", with good skill, knowledge and talent to improve the social audit business in India. Talent may be there in financial audit business. But there is huge quality and skill gap in the social audit business and the ESG Audit business in India. This gap is just nightmare. This is difficult to  fight against poverty.    This is quality question mark from not less than the big social audit firm, PricewaterhouseCoopers Private Limited (PwC). The PwC conducted Social Impact Assessment Audit of CSR Projects of REC Limited in Orissa. Audited utilization certificate which is financial in nature, are relied strongly by the auditor along with the proje...

                                                                                    * BIRENDRA K JHA  Bangladesh, Pakistan and China are the worst poor rated countries, with poor human resource practices. Many garment factories and fastener industries  in Bangladesh   are supplying to the Indian industries and automobile industries, various supply chain products, for such leading brands in India. The iPhone market in India is mostly depended on China, where large scale worker disturbances and clash with Chinese police are seen frequently for poor and awful working condition and bad human resource practices. This doesn't mean the supply chain position of India is good. The large scale big companies in India, are sourcing supply chain products from the black...

 Impact Assessment Study by HR LAB.  I have demonstrated earlier,  the ESG rating, by agency like  CRISIL needs, more  good practice of inducting the third party "Social Audit" before publishing the ESG rating, when there is past history of ESG practice violation.   Any poor or exaggerated ESG rating shall alter the share market price. Now a days this is the perception of the investors that strong ESG compliance of company, is  good indicator of safe investment and excellent return. This is also the target of the Government of India to achieve the Sustainable Development Goal ( SDG Goal ). This SDG Goal mandate, mostly is achieved through  the regulatory authority SEBI.  The SEBI has mandatorily implemented the ESG evaluation of various companies. This rating evaluation now is not matured. The rating agency like the  CRISIL so far has been rating the ESG parameter of the various companies.    CRISIL mostly captures ES...