Examining the Evolution of Leadership Speeches in India's Cement Sector Following BRSR Reporting

Purpose - The research paper analysed the top five Indian cement companies: Ultratech Cement, Ambuja Cement, ACC Limited, Shree Cement Limited, and Dalmia Bharat Cement regarding their adoption of BRSR (Business Responsibility and Sustainability Reporting) mandated by the Indian stock market regulator SEBI (securities and exchange board of India) for the top 1000 companies in 2021. It tests whether the BRSR mandate has worked in highly polluting cement sector.

Design/ Methodology/ Approach - The speech messages of these five cement companies' CEOs/MDs in integrated annual reports were analysed based on content analysis of keywords as per the nine BRSR principles and compared the pre- (2019-21) and post-BRSR periods (2021-23). The Mann-Whitney test was used to identify any significant changes in the leadership messages due to the BRSR.

Findings - The average CSR spending of the five cement companies increased by 8%, from INR 2.4 billion before BRSR to INR 2.6 billion after BRSR. Of the nine BRSR principles, the most cited were principle 2, principle 5, and principle 8 by the cement companies. These principles highlight that company leadership is focused on providing goods or services sustainably and safely and promoting inclusivity for stakeholders such as employees or suppliers. Ultratech Cement, Ambuja Cement, and Shree Cement are at the forefront of the sustainability agenda.

Originality - The novel aspect of the research paper is that it has contributed to the evolving literature on the role of BRSR reporting in cement companies in India. The mandatory BRSR reporting seems to have helped promote the sustainability agenda in country, but SEBI efforts must up the ante. As a significant pollution-emitting sector, the executives in the sector stand to benefit from the paper.