Sheetal Srivastava
Posted On Tuesday, April 14, 2009 at 02:50:37 PM
While it is difficult to quantify the reasons for companies to take up
Corporate Social Responsibility, it is clear that organisations must do
this, in order to help society improve
The issues that confront the society today are too large and complex to be
solved by government and NGOs alone. Sustainable solutions to society’s
problems can only be found through the collaboration and involvement of all
who are part of it. Companies have tremendous strengths; they have extremely
capable people, technology, access to money, the ability of geographical
reach, etc. Many companies worldwide and now even in India are more powerful
than governments, and thus corporates are important stakeholders in society.
Beyond economic value
“Co-creation and collaboration are sometimes essential to make CSR activity
more meaningful and participative,” – an official spokesperson from Godrej
Corporate Social Responsibility is about two main aspects. Firstly, the
steps taken by the company to neutralise, minimise or offset the negative
effects caused by its processes and product-usage, and secondly, the
positive steps that a company takes using its resources, core competence,
skills, location and funds for the benefit of its people and environment.
“Corporate Social Responsibility helps to define the contribution of a
company beyond economic value and creating employment, and weighs this
contribution against the damage done by the company through its products and
processes,” says Vinay Somani, trustee & founder, Karmayog, an organisation
which connects citizens, civil society groups, corporates, academicians,
media and government through online and offline methods.
“Corporate Social Responsibility is also a forward-action, i.e. it flows
from a company’s vision and mission and is part of the company’s everyday
actions, rather than a retrospective action that is undertaken by a company
at the end of its process,” adds Somani.
Go Rating!
The Karmayog Corporate Social Responsibility study and ratings of Indian
Companies was undertaken to explore and understand the role that corporates
are playing and can play in finding meaningful solutions to the problems
facing India today. The ratings also help to identify areas where
corporates, government and civil society organisations can work together.
“CSR Ratings are important to various stakeholders for different reasons:
government bodies can use CSR Ratings to develop industry-wise CSR
guidelines, industry associations can use them to set benchmarks of CSR for
companies to follow, NGOs get to know about the CSR undertaken by companies,
thus enabling partnerships with them, and companies themselves learn about
CSR initiatives of other companies,” confirms Somani.
Methodology for the CSR Ratings and Study:
1) A list of 1000 largest Indian companies is taken as per sales figures
from the BSE Sensex as in June 2008
2) Information on the 1000 companies is collated from the company’s website
and Annual Report of 2007-2008
3) Impact of the products and processes of the company is taken into account
4) CSR initiatives of the company for the current period is studied,
including a comparison with previously listed CSR initiatives, as well as
rating level assigned in the Karmayog CSR Ratings, 2007.
5) Companies are rated from Level 0 to Level 5 (Level 5 being the highest)
6) Rating is based on Sufficient, Necessary and Negative Criteria for
different levels
7) All companies were informed of the assigned rating and requested to
respond with further information, if necessary
8) The Karmayog CSR Rating of any company is open to review whenever new
information is provided by the company
Working together for a cause
So does the company take sole responsibility in carrying out the various CSR
activities or does it involve NGOs or local government bodies or social
organisations? Says an official spokesperson from Godrej, “Co-creation and
collaboration are sometimes essential to make CSR activity more meaningful
and participative. We follow a partnership approach so that a wider set of
relevant stakeholders are involved. This ensures implementation is done
effectively and a wider outreach.”
Aptech believes in a strong model of collaboration and is working with
several organisations like Udayan – A home for children of Leprosy patients,
Hope Foundation Lepra India Trust, CII-Shiksha, CRY and its associated NGOs,
Rotary International, Ashadeep Foundation, Corporation Higher Secondary
School, Washermanpet & Saidapet & Ganapathi Iyer School.
When companies take up activities that help improve society, they are
perceived as being better companies in other areas as well, such as having
better products and services, being a better place to work, and a better
company to invest in. Today, companies that are doing nothing to give back
to society are being looked at differently, despite the profits that they
make. Further, those companies that have included CSR as part of their
business are sure to be far ahead of the rest.