It is referred to as a company’s soul food. But corporate social responsibility still hasn’t taken off on in India according to a recent survey. In its second annual report, the Mumbai-based online organisation Karmayog reveals that nearly half of the top 1000 Indian companies it surveyed do nothing by way of corporate social responsibility.
The companies that received the highest rating were ACC, Ballarpur Industries, HDFC, Infosys Technologies, Jubilant Organosys, Kansai Nerolac Paints, Moser Baer, TCS, Tata Steel and Titan. Defaulters on the list include those that manufacture harmful products, violate laws and regulations, and damage the environment.
Corporate Social Responsibility is a voluntary exercise that business enterprises undertake to neutralise, minimise or offset the negative effects caused by its processes and product-usage. CSR also includes other positive steps a company takes using its resources, skills, location and funds for the benefit of people and environment. For instance, the expected CSR activity for a hotel would be to promote local tourism, while a software company could carry out e-waste management.
Karmayog suggests that every company must spend a minimum of 0.2% of its sales on CSR and make a mention of it in the annual report. “Many companies
repeat the same information for CSR activity year after year. Evading CSR could be one of the reasons behind the trend,” says Vinay Somani, trustee Karmayog.
Information technology hardware company Moser Baer, one of the better-rated companies, has started a number of social initiatives like Project E-Shiksha that brings digital literacy to underprivileged youth in Greater Noida. It also runs a livelihoods programme aimed at creating 1000 jobs in the region by conducting technical courses in hospitality, desktop publishing, and conversational English.
Among the software companies, TCS got a thumbs up for its involvement in girl child education in South Asia, adult literacy programs in South India, setting up and maintaining infrastructure for urban beautification, pollution reduction and healthcare, waste management in the office environment, tree plantation and water treatment.
Information about the companies’ CSR activity was collated from their official websites and annual reports of 2007-2008. Titled, ‘The Karmayog CSR Study and Ratings of the 1000 largest Indian companies, 2008’ the study was undertaken by a four-member team and is available online. The survey has generated plenty of response from netizens and activists who have posted their comments and suggestions on the website.