Karmayog CSR Ratings of the largest 500 Indian companies – 2010 – Rating Criteria
A) Minimum Necessary Criteria
Necessary parameters that make a company eligible for a particular rating level:
|
Necessary Criteria |
Explanation |
Rating Level |
|
If undertaking any CSR Activity
|
CSR activities that cover any kind of social, developmental or community work |
Level 1 |
|
If CSR is also linked to reducing the negative impacts of company’s own products or processes |
CSR activities that aim to accordingly improve processes and products of the company. |
Level 2 |
|
If CSR initiatives are also for the local community
|
CSR activities that are focused on those who are affected directly by the company |
Level 3 |
|
If CSR is also embedded in the business operations |
CSR activities that form a part of the daily business activities of the company. |
Level 4 |
|
If innovative ideas and practices are also developed for CSR |
CSR activities that enable sustainable and replicable solutions to problems faced by society. |
Level 5 |
B) Sufficient Criteria
If the company is doing this, they automatically get this rating at least
|
Sufficient Criteria
|
What this means |
Rating Level |
|
Company fulfilling basic needs of society through its products or services e.g. providing financial services |
The products and services of the company are useful and benefit society |
Level 1 |
|
Unique CSR activity which would not otherwise happen e.g. Developing a mapping and tracking software for adoption in India |
The CSR activity being undertaken by the
company is helpful to government, NGOs, others, in tackling issues of society |
Level 1 |
|
Company helps to reduce the negative impact of other companies e.g. A company that makes water purification & waste recycling systems |
The company’s products or services provide solutions to mitigate harm caused by actions of companies, their products, etc. |
Level 1 |
|
Company adopting the GRI Framework for CSR reporting
|
The company is committed to measuring and reporting its CSR initiatives as per a voluntary globally accepted framework. |
Level 1 |
|
Company’s annual expenditure on CSR = 0.2% of sales, minimum
|
The company is committed to a minimum expenditure on CSR annually, and thus considers CSR as an integral part of its business |
Level 2 |
C) Negative Criteria that usually determine the maximum possible Rating
Companies in this category will not normally get a higher rating than the one shown
|
Negative Criteria |
Reason |
Rating Level |
|
Companies that make liquor, tobacco, genetically engineered / modified crops
|
These products are not needed by society, and cause harm to people and the environment. The best CSR to do is to stop making these products. |
Level 0 |
|
Companies that violate laws/rules/regulations
|
CSR is not limited just to how a company spends its money, but also to how it makes that money in the first place |
Level 1 |
|
Companies engaged in high impact processes
|
Processes that severely damage the environment require extraordinary efforts by the company to reduce and repair the damage, and require greater contributions to benefit society |
Level 1 |
|
Companies that report the same CSR activities (even, verbatim) as for previous years |
This indicates that the company does not take CSR seriously enough to be engaged in CSR initiatives every year, building on these, and reporting progress. |
One Level less than the previous year’s rating |