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8/13/2019 Karmayog CSR Ratings-Oct2008
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Karmayog
Corporate Social Responsibility
Ratings 2007
of the largest 500 Indian Companies
www.karmayog.orgcsr
http://www.karmayog.org/csrhttp://www.karmayog.org/csrhttp://www.karmayog.org/csrhttp://www.karmayog.org/csrhttp://www.karmayog.org/csrhttp://www.karmayog.org/csr8/13/2019 Karmayog CSR Ratings-Oct2008
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Summary of Presentation
Easy everyday examples of social responsibility
What is Corporate Social Responsibility?
Results of the Karmayog CSR Rating
Ho e assigned the CSR Rating
!nferences from the CSR rating exercise
"ur Recommendations for companies
!mportance of the CSR Ratings for different sta#eholders
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Easy everyday examples
of
Social Responsibility
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Easy everyday examples of
social responsibility..
No. Type of Organisation Examples of socially responsible activities
$ Private Schools & olleges ! "etting #lumni to institute scholarships & pri$es% "ffering space for training & classes & sports' etc(% )dopting a local garden% Encourage volunteering for topical causes
* %ousing Societies ! Suggesting solutions for local problems to govt & media% +aintaining nearby public spaces' including footpaths% "ffering space in society ,garage' etc(- for use for training & classes( etc( and as a material collection centre
. Shops
e.g. hemists
! #'areness posters of symptoms of different diseases
% Collecting / donating old medicines to charitable hospitals% "ffering discounted medicines for poor patients
0 Private %ospitals ! reating a Patients( )nformation entre & *ibrary% Encouraging citi1ens to help accident victims by ta#ing careof legal aspects of accidents & emergency cases% 2isplaying 34atients and 2octors 5ill of Rights /
Responsibilities6
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Easy everyday examples of
social responsibility
No. Type of Organisation Examples of socially responsible activities
7 +ovie Theatre , +ultiplex, +alls
% Screening of 89"s films% Special shos for underprivileged groups% "ffering table space for 89"s% )dopting a nearby garden & open space and maintaining it
: Petrol Pumps % Chec#ing and offering tips to vehicle users% Ensuring 4;C certificates% 4romoting accident aareness' pedestrian safety
< %otels and -estaurants % 2onate excess food responsibly to 89"s & citi1ens(% Compost organic aste
= +edia T/0 print0 radio1 % >elecast&print profiles and achievements of 89"s & citi1ens% >elecast&print social service messages along ithadvertisements% 2edicated section on social / developmental issues' andfor citi1ens dialogue & feedbac#
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2hat isorporate Social -esponsibility3
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2hat is orporate Social -esponsibility3
>he Karmayog CSR study led to some very clear / simple insights' that@
4Every company harms the environment56
!"st as an indi#id"al does1
Corporate Social Responsibility is thus only about to aspects@
$- -educing the Negative Effects Steps ta#en by a company to
neutralise' minimise or offset the harmful effects caused by its
processes and product%usage
*- )ncreasing the Positive ontributionsAurther steps ta#en using
its resources' core competence' s#ills' location and funds for the
benefit of people and the environment
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-esults
of
the 7armayog S- -ating 899:
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7armayog S--ating
No. of ompanies ; of ompanies
*evel < highest1 9 9;
= = > ?;
@ =? A;
8 ?@: 8A;
? AB ?A;
9 lo'est1 88B no S-1 =C;
Total %D0 )nfosys0 Tata Steel0 Titan )ndustries%D0 )nfosys0 Tata Steel0 Titan )ndustries
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Fasis of assignment of the S- ratings
*evel =Only = companies out of he company has adopted all or most of the $$ recommendations onCSR made in the Karmayog CSR study'
Setting standards >he company raises the standards in its sector
ommitment toimprovement
>he company is transparent about its business processes' monitors /reports these' including setting improvement targets
)nnovative S-Strategies
>he company uses innovative ideas and strategy for its CSR activitiessimilar to its business practices
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Fasis of assignment of the S- ratings
*evel @=9 companies out of
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Fasis of assignment of the S- ratings
*evel 8?@A companies out of
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Fasis of assignment of the S- ratings
Other criteria considered for assignment of the S- rating
S- #mount )mount spent by a company on CSR relative to its sales
ExpandingmarHets to ruralareas
Considered asexpansion of the business and not part of CSR
Employeevolunteerism
4articipation of employees in unrelated volunteering is not considered tobe part of the companys CSR activities(
*evel 9**D companies out of 7 in this study have been assigned a evel rating
Companies doing no CSRCompanies producing cigarettes&tobacco products / liBuor
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)nferences
from the 7armayog S- rating exercise
?1 No S-
>he results of the CSR Rating exercise areextremely disappointing since almost half of
>he companies are not doing any CSR
C1 S-Philosophy
Fery fe have a clearly defined CSRphilosophy( +ost implement CSR in an ad%hoc manner' unconnected ith their businessprocess(
81 ToHen "estures
+any are only ma#ing to#en gestures toards CSR
in tangential ays such as donations to charitabletrusts' 89"s' sponsorship of events' etc(
:1 S- Transparency
Fery fe companies openly state the damage
caused by their processes and the steps beingta#en to reduce this damage
@1 S- Effectiveness
+ost spread their CSR funds thinly across manyactivities' thus reducing the effectiveness andseriousnes
A1 S- -eporting
"nly : companies publish a CorporateSustainability Report to measure and assessthe impact of their business on the
environment
=1 S- ommitment
+ost seem reluctant to do CSR activities unlessmandated by la
B1 S- Spend
Firtually no company states ho much itspends on CSR
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)ndustry SectorI'ise analysis
of the S- activitiesof the largest
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S- in 8A )ndustry Sectors
#n industry analysis of 8A sectors has also been done for the
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)mportance of the Sector!'ise analysis
Snapshot of sector !t presents a picture of an entire industry' their commonprocesses and products' their CSR initiatives' includingexamples of companies doing good CSR
Potential S- impact !t presents figures of the sales of the entire sector' the netprofit' and possible impact ith the recommended CSRexpenditure
Sector!specificguidelines
;niform norms get created for processes and CSR activitiesfor different sectors' / also a level playing field
Fest practices for thesector
5enchmar#ing of best practices internal to / externally bythe companies
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Sector Example ! The Paper )ndustry
7armayog S- -ating of *argest
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ompulsory S-!our = -ecommendations
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ompulsory S-!
Our = -ecommendations
?1 #doption ofindustryguidelines forprocesses
>o types of international guidelines already exist@ommon guidelineson Environment' Health and Safety,EHS- applicable to most industries
)ndustry!specific guidelineslin#ed to the processes of thatsector( e(g(sector%specific guidelines that include technicalreference documents for different sectors such as forestry'
manufacturing' poer' etc(
81 Sustainability-eporting in the#nnual -eport
Every company must include a Corporate Sustainability sectionin its )nnual Report ,Iust as >echnology ;p%gradation Report isincluded- and preferably publish a separate Corporate
Sustainability Report ,as per the 9lobal Reporting !nitiativeframeor#- also
@1 Protection andrestoration of theenvironment
Every company must be engaged in CSR activities thatminimise its "W8 harm to the environment
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ompulsory S-!
Our = -ecommendations
=1 +inimum annual
S- expenditure
Every company must spend a minimum of (*J of its sales
on CSR activities ,i(e( Rs( * a#hs per Rs( $ Crores-
Table sho'ing -upee impact of 9.8; of sales for S- expenditure
Si$eby
Sales
ompany Sales in-s. cr.1
Net Profit-s. cr.1
+inimum S--s. cr.1
at 9.8; of Sales
$st!ndian "il Corporation $0' 7' 8A9.9
$thFiIaya 5an# *'7 .7
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/oluntary S-!
Our : -ecommendations
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/oluntary S-!
Our : -ecommendations
?1 Define S- philosophy
>he CSR philosophy and obIectives should be
clearly stated ,starting ith areas that directly
concern the companys on business processes-
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Some developments in S- after our study
-eserve FanH of )ndia outlines guidelines for financial sector
Dec. 899:@ R5! 8otification to all 5an#s / Ainancial !nstitutionsrecommending that 8on Ainancial Reporting ,8AR- be underta#en as astep toards Responsible 5an#ing(
+inistry of orporate #ffairs recommends reporting of S-
Lune 899A >he +C) has stated that it ould li#e to encourage allcompanies to 3disclose on their balance sheets the social or# that theydo6(
"overnment of "uMarat mandates S- expenditure
Sept. 899A@
% 9uIarat 9ovt( directs : 4SEs to set aside .J of their profit before tax tocarry out elfare activities across 9uIarat(
% 2raft industrial policy of 9uIarat 9ovt( mandates CSR for industryassociations and corporate houses in the state( Companies to be allocateddevelopmental activities in sectors li#e health' education / environment
in respective talu#as' villages or districts(
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)mportance of the S- -atings for
Foard of Directors
>o implement international CSR
guidelines and norms
>o sensitise employees about the
value of CSR
>o identify possible CSR
activities
>o learn from others CSR
initiatives
)ndustry & Trade #ssociations
>o understand the huge scale and
magnitude of the benefits that are
possible if an entire sector spends even
(*J of turnover on CSR
>o get a snapshot of the state of CSR
/ set benchmar#s for companies
>o prepare case studies' highlight
best practices / give aards
>o provide consultation on CSR
>o or# ith 9overnment' 89"s
and international organisations to
upgrade and improve CSR activities
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)mportance of the S- -atings for
"overnment bodies
>o develop industry%ise guidelines
for CSR
>o introduce las that ould reard
companies that are or#ing toardsreducing environmental damage and
las that ould penalise companies
that continue to do harm(
,e(g( the polluter%pays principle-
>o enable companies to partner ith
government in implementing social
elfare and developmental schemes
,e(g( adoption of !>!s-
N"Os
>o #no about the areas of CSR
or# underta#en by companies'
thus enabling partnerships ith
them
>o be able to identify companies
hich are not doing CSR or doing
so in a to#en manner' so as to
approach these companies to initiate
meaningful proIects
>o assist companies to formulate
CSR obIectives' implement CSR
activities' and monitor and evaluate
their CSR activities
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)mportance of the S- -atings for
+edia
>o stop eulogising leaders hosecompanies / products are damaging
the environment / harming lives
>o highlight companies practising
good CSR' and to negate those
companies hich are actually
engaged in mar#eting of their
products under the guise of CSR
>o present a clear vie of CSR that
is separate from philanthropy' charity/ expanding business scope' and to
sensitise the public about this
>o encourage publications to have a
regular feature on CSR initiatives
iti$ens0 )nvestors0 Shareholders
>o understand that as consumers and
sta#eholders of companies' e can
and must influence companies to
change harmful polices and adopt
proper CSR practices( ,due to the
huge impact and poer that
companies have on people and the
environment-
>o ensure that our purchase choices
align companies to do business in aay that reflect our desirable values
for society(
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)mportance of the S- -atings for
Students
>o be sensitised about the role and responsibility of companies
>o understand the impact and conseBuences of everyday processes and
actions
>o develop a holistic vie of life and living
Fefore Moining a company@ to Ioin a company that is or#ing to
benefit society and not one that is harming it
2ithin any company@ to improve the functioning of the company to
ma#e it a business that contributes to society
Feyond the business@ use the core competence and resources of the
company to improve society
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losing Statement
Enlightened businesses orldide' small and large' have
begun to realise that responsible practices enhance
profitability / ensure long%term survival( Companies not
doing CSR ill not survive L its only a Buestion of hen(
Aor those companies hich disrespect the environment or
living beings' e' as responsible citi1ens' need to individually
and collectively' reard or penalise them through our voices
and our allets
..
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Lubilant Organosys0 a pharmaceutical company0 'hile acHno'ledging
the harm caused in manufacturing its chemicals0 actively 'orHs to
minimise the damage. )t is one of the only C )ndian companies that
published a orporate Sustainability -eport last year.
%&here are stakeholders who can #oice their concerns
today while we engage them. &here is another category
of stakeholders like flora' fa"na and physical
en#ironment' whose #oices we cannot hear' b"t who
are affected by anthropogenic (i.e. ca"sed by h"mans)
impacts of global pop"lation. &he f"t"re generation is
another important gro"p of stakeholders that does not
e*ist today b"t will be impacted by o"r acti#ities ++, Lubilant Or anos s *imited
losing Statement
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Karmayog
Corporate Social Responsibility
Ratings 2007
of the largest 500 Indian Companies
www.karmayog.orgcsr