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 |