BSE index to encourage CSR

The Bombay Stock Exchange (BSE) is planning to introduce a "Corporate Sustainability Index" so as to encourage social responsibilities among the corporates of the country.

"It would act as an instrument to activate the interest within the corporate sector about the need for social sustainability," said Rajnikant Patel, managing and the chief executive officer of BSE.

Currently the exchange is analysing different models about the index. "At the moment it is on the primary stage of information sharing, its on the concept stage, and to make it happen a huge cooperation from the corporates would be required," he added.

Presently such index is operational only in the BOVESPA, the Sao Paulo Stock Exchange at Brazil and BSE would be the first in Asia to have such index.

As par the CSI methodology existent at Bovespa, the corporations are selected on an integrated basis according to the triple bottom line (TBL), a concept introduced by the English consulting company Sustain Ability, which assesses economic, financial, social and environmental elements.

TBL principles have been added by corporate governance indicators, basic general ones and those related to the product nature.