How Indian companies fare on CSR

Only 31 percent firms report on corporate responsibility: KPMG survey

sweta-ranjan

Sweta Ranjan | August 9, 2011




About one third (31) of the top 100 companies in India report on corporate responsibility (CR) performance and 52 percent of these reporters provide reference to their sustainability strategy, KPMG has found in a recent survey.

The survey included the top 100 listed companies in India by revenue. KPMG examined information disclosed publicly by these companies to discern emerging trends in corporate responsibility reporting.

The report says, “The CSR agenda for most companies include education, health care, HIV/AIDS and community development but there is minimal clarity on how companies decide on such CSR projects. Reporting on stakeholder engagement is weak and companies do not articulate how they identify and prioritize the stakeholders and how they benefit from such engagement. It is also not clear how this engagement feedback is used in the companies to arrive at material issues or develop business strategies.”

The CSR debate has been in sharp focus throughout the world during last few years. Corporate conduct and its connect with the communities are being questioned by stakeholders including the government. With issues like corporate ethics and scams,  land acquisition and corporate growth and India-versus-Bharat debate, the corporate conduct is now at the cente rstage in the context of India Inc.

The Ministry of Corporate Affairs recently launched the new voluntary guidelines (NVGs) on social, environmental and economic responsibilities of business which proposed that the listed profitable companies voluntarily should devote two percent of their after-tax profit to CSR.

The report say that 23 percent of the companies surveyed reported the business risk of climate change, 21 percent disclosed their green house gases emissions and 13 percent identified and disclosed the business risk of corporate responsibility issues in their supply chain.

Arvind Sharma, director, climate change and sustainability, KPMG in India, says, “These kinds of reporting are highly prevalent in the developed nations and helps companies raise better financial resources and supply chain management.”

Companies that report on corporate responsibility initiatives include Reliance Industries, Tata Power, Tata Chemicals, Grasim Industries, Infosys and ONGC, he added.

As per the report, “CR reporting is at a very nascent stage in India. One third (31) of the N100 companies report on corporate responsibility performance in the public domain. Construction and building material companies are leaders in sustainability reporting followed by metals and mining, oil and gas and chemical companies. Transportation, finance, trade and retail and communications and media lag behind with almost no reporters amongst N100 companies.”

While the government is raising expectations from the corporate sector on non-financial performance and even talking of mandating CSR, the corporate sector is stressing that CSR should remain a subject of voluntary initiative. The KPMG survey shows the gap in expectation and performance clear terms.

You can read the report here.

Comments

 

Other News

Yoga Day has changed perceptions about it in ten years: PM

The expanding awareness of Yoga over the past ten years has changed perceptions associated with it, prime minister Narendra Modi said in Srinagar on Friday on the occasion of the International Day of Yoga.   “Yoga is now emerging beyond limited boundaries. The world is witnessing t

Listening to tomorrow: The imperative for youth-driven data in India

Over a decade and a half ago when I was still a student, millennials felt the burning need to break down the barriers of gatekeeping in traditional media. Young voices, brimming with ideas and opinions, were often sidelined, their perspectives deemed too marginal or unrefined for mainstream discourse. This

Israel-Palestine War: Lessons from Past Peace Efforts

Israel-Palestine War: Give Peace a Chance By Dr. Joseph K. Thomas IndiePress, 243 pages, Rs 399 T

How inner work helps subvert painful narratives

Unashamed By Neha Bhat HarperCollins, 240 pages, Rs 499   * How do I connect better with my partner? *&nbs

Heatwave spikes power demand: measures taken to ensure supply

The Northern Region has been experiencing high power demand conditions due to a prevailing heat wave since May 17. Despite these challenging conditions, the highest ever peak demand of 89 GW in the Northern Region was successfully met on June 17. This achievement was made possible by import

PM to release 17th installment of PM-KISAN at Varanasi on Tuesday

Prime minister Narendra Modi will release the 17th instalment of the PM-KISAN scheme on Tuesday at Varanasi and more than 9.26 crore farmers will receive the benefits amounting to over Rs.20,000 crore. The PM will also distribute the certificates to more than 30,000 SHGs trained as Krishi Sakhis to work as

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter