Reflections from my intervention at the 3rd National Conference on Responsible Business Conduct (NCRBC) 2025, organised by the School of Business Environment, Indian Institute of Corporate Affairs (IICA)
As global supply chains undergo a strategic reset, driven by geopolitical shifts, sustainability pressures, and rising stakeholder expectations, India finds itself at a pivotal moment. With its vast manufacturing base, skilled yet vulnerable workforce, and growing international influence, the country has an opportunity not just to integrate into global value chains, but to shape them. To seize this opportunity, however, India must move beyond a compliance mindset and toward leadership in responsible and inclusive business conduct.
Global benchmarks, such as the Corporate Human Rights Benchmark (CHRB), Gender Benchmark, and Social Benchmark, offer a practical tool to support this shift. These benchmarks assess companies not only on their direct operations but also on their actions in their supply chains. This includes subcontracted and informal segments, which are often invisible in ESG assessments but where the most serious human rights risks and social impacts typically occur.
In India, where informal employment accounts for a large share of the workforce, benchmarking is particularly relevant. It brings transparency to supply chains, enables comparisons across companies and sectors, and provides civil society, investors, and policymakers with evidence to demand stronger corporate accountability. For Indian businesses, benchmarking offers a roadmap for improvement that aligns with global expectations while reinforcing long-term competitiveness.
However, visibility is only the first step. Companies must also take action to meaningfully include the voices and rights of informal workers and small suppliers. This begins with value chain mapping that captures home-based workers, micro-enterprises, and informal actors who are typically excluded from ESG reporting. Companies should invest in worker voice mechanisms such as surveys, community-based feedback systems, and partnerships with trade unions and local NGOs to ensure that the perspectives of vulnerable groups are heard and acted upon.
Procurement practices must evolve as well. While many companies communicate human rights and sustainability expectations to suppliers, few offer the support needed to implement them. This gap must be closed. Responsible procurement means enabling suppliers to succeed through fair terms, training, and access to grievance mechanisms. It requires companies to build partnerships rather than extractive transactional relationships.
Importantly, ESG due diligence in India should not be viewed as an external pressure imposed by the EU or international markets. It must be embraced as a national priority and as a framework to protect India’s people, environment, and future. Indian workers deserve dignified livelihoods not because of regulatory requirements, but because justice, resilience, and sustainability demand it.
Indian businesses, civil society actors, and policymakers all have a role to play. Benchmarks are not an end in themselves. They are tools to foster transparency, highlight gaps, and drive progress. By using benchmarking strategically, India can become a leader in shaping supply chains that are not only globally competitive but also socially just and environmentally responsible.
This is the moment to act. Not by cutting costs through lower wages and weaker standards, but by demonstrating that inclusive, rights-based supply chains are the foundation of a truly sustainable future.
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