Karmayog CSR Ratings-Oct2008

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/csr


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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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*evel @=9 companies out of


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*evel 8?@A companies out of


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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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"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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+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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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

Karmayog CSR Ratings-Oct2008

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Transcript of Karmayog CSR Ratings-Oct2008