A REPORT
ON THE
Karmayog Corporate Social Responsibility
Ratings 2008
of the
1000 Largest Indian Companies
March 2009
In a democracy like India's, sustainable solutions to society's problems can only be found though the
collaboration and involvement of all stakeholders. Karmayog, established in 2004, is a unique
organization that connects citizens, civil society groups, corporates, academicians, media and
government through online and offline methods. Visit us on www.karmayog.org
Contents
1. Why a Rating on Corporate Social Responsibility?
2. Definition of CSR
3. Importance of CSR Ratings for Different Stakeholders
4. Methodology for the CSR Ratings and Study
5. Results of the Karmayog CSR Ratings of the 1000 largest Indian companies, 2008
6. Rating Criteria
7. Some observations from the Study and Ratings
8. Karmayog’s Recommendations to companies
9. Industry Sector Analysis
10. CSR by Group Companies
11. Some Recent Trends in CSR in India
12. Some Developments in CSR in India since the first Karmayog CSR Ratings in 2007
13. Closing Statement
14. Karmayog CSR web-sections
15. About Karmayog
16. Annexure 1: Table of Level 4 rated companies
17. Annexure 2: Table of Level 3 rated companies
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
2
Karmayog Corporate Social Responsibility Ratings
of the 1000 largest Indian companies - 2008
www.karmayog.org/csr2008
Why a Rating on Corporate Social Responsibility?
The problems and issues that confront 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 even countries, and thus corporates are important stakeholders in
society.
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.
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 and from the
CSR initiatives of other companies.
Usually corporates are invited to enter or nominate themselves for CSR awards, and hence only the
good companies are highlighted, whereas a rating enables a comparative study across all companies.
Karmayog undertook a CSR study and rating to understand the CSR activities of all companies on an
equal level, thus showing up companies doing no CSR, as well as showcasing companies doing good
work.
The Karmayog CSR Ratings also help to identify areas where corporates, government and civil society
organizations can work together.
This is the second CSR study and ratings undertaken by Karmayog, the first of which was done in 2007.
Definition of CSR
“Every company harms the environment and people!”
Corporate Social Responsibility is thus just about two aspects
1. The steps taken by the company to neutralise, minimise or offset the negative effects caused by its
processes and product-usage
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
3
2. The further positive steps a company takes using its resources, core competence, skills, location and
funds for the benefit of 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.
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.
Importance of CSR Ratings for different stakeholders
Corporates and their activities are connected to a large number of people, directly and indirectly. These
include employees, suppliers, consumers/customers, government, investors, citizens/community and the
environment. Each of these has a role to play to make CSR effective and sustaining, and the CSR
Ratings helps to identify their individual and collaborative roles.
Some of these roles for different stakeholders are as listed below:
For Companies
 To sensitize their directors and their employees about their responsibility towards society
 To identify CSR activities they can and should undertake
 To understand the various international guidelines and norms for CSR and to effectively
implement these
 To learn about and from the CSR initiatives of other companies
For Industry and trade associations
 To get a snapshot of the state of CSR in India
 To set benchmarks of CSR for companies to follow
 To prepare case studies and highlight best practices of CSR
 To provide consultation on CSR
 To work with Government and NGOs and international organizations to upgrade and improve
CSR activities in India and to set milestones for companies
 To recognize companies doing good CSR activities by instituting awards based on these
parameters
 To understand the huge scale and magnitude of the benefits that are possible if an entire sector
spends at least the recommended minimum amount on CSR.
For Government bodies
 To make industry wise guidelines and to introduce legislations that cause companies to work
effectively towards reducing environmental damage, and restoring damage done (in the areas of
raw material sourcing and usage, by product and waste disposal, product usage and end
disposal)
 To make legislation that rewards CSR and penalizes damage to the environment
For NGOs and consultants
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
4



To know about the areas of CSR work undertaken by companies thus enabling partnerships
with them
To be able to identify companies which are not doing CSR or doing in a token manner, so as to
approach these companies to initiate meaningful projects
To assist companies to formulate CSR objectives, implement CSR activities and monitor and
evaluate their CSR activities
For Media
 To stop eulogizing corporate leaders whose companies are damaging the environment and
harming lives
 To present a clear view of CSR that is separate from philanthropy, charity, marketing,
advertising, or expanding business scope and to sensitize the public about this.
 To highlight companies which are practicing good CSR, and to negate those companies which
are actually engaged in marketing or advertising their products or services under the guise of
CSR
 To encourage and enable business publications to have a regular feature or column dedicated to
CSR initiatives along with feedback from NGOs and other stakeholders
For researchers
 To study CSR practices and results
 To influence the shaping of CSR policy and regulations
For students and colleges/ institutions
 To become sensitized about the role and responsibility of companies and to understand the
impact and consequences of everyday processes and actions
 To join a company that is working to benefit society and not one that is harming it
 To develop a holistic view of life and living
For citizens, shareholders and investors
 To understand that as consumers and stakeholders of companies , we can and need to influence
companies to change harmful policies and adopt CSR practices due to the huge impact and
power that companies have on people and the environment
 To ensure that through our purchase choices we get desirable values for society to be reflected
in how companies do business.
Methodology for the CSR Ratings and Study






List of 1000 largest Indian companies is taken as per Sales figures from the BSE Sensex as in
June 2008
Information on the 1000 companies was collated from the company’s website and Annual
Report of 2007-2008
Impact of the products and processes of the company is taken into account
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.
Companies are rated from Level 0 to Level 5 (Level 5 being the highest)
Rating is based on Sufficient, Necessary and Negative Criteria for different levels (See
Karmayog’s detailed note on Criteria)
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
5


All companies were informed of the assigned rating and requested to respond with further
information, if necessary
The Karmayog CSR Rating of any company is open to review whenever new information is
provided by the company
Results of the Karmayog CSR Ratings of the 1000 largest Indian companies
Table showing the results of the Karmayog CSR Ratings of the 1000 largest Indian companies
Karmayog CSR Rating 2008
Level 5
Level 4 *
Level 3
Level 2
Level 1
Level 0 (Lowest)
Total
Number
of Companies
0
10
45
220
231
494
1000
Percentage
of companies
0%
1%
5%
22%
23%
49%
100%
* Companies with the highest rating of Level 4 are: ACC, Ballarpur Industries, HDFC, Infosys
Technologies, Jubilant Organosys, Kansai Nerolac Paints, Moser Baer, TCS, Tata Steel, and Titan
Industries.
Bar chart showing the results of the
Karmayog CSR Ratings of the 1000 largest Indian companies, 2008
Karmayog CSR Ratings
60%
% of Companies
50%
40%
30%
20%
10%
0%
5
4
3
2
1
0
Ratings from Le ve l 0 to Le ve l 5
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
6
Rating Criteria
A) Minimum Necessary Criteria
Necessary parameters that make a company eligible for a particular rating level:
Necessary Criteria
Explanation
If undertaking any CSR Activity
Where any kind of social, developmental or
community work is done
CSR activities that aim to improve processes
and products of the company.
If CSR is linked to reducing the
negative impacts of company’s own
products or processes
If CSR initiatives are for the local
community
Rating
Level
Level 1
Level 2
CSR activities that are focused on those who are
affected directly by the company
Level 3
If CSR is embedded in the business
operations
CSR activities form a part of the daily business
activities of the company.
Level 4
If innovative ideas and practices are
developed for CSR
CSR activities enable sustainable and replicable
solutions to problems faced by society.
Level 5
B) Sufficient Criteria for Minimum Rating
If the company is doing this, they automatically get this rating at least
Sufficient Criteria
What this means
Company fulfilling the basic needs of
society
e.g. manufacture of food
Unique CSR activity which would not
otherwise happen
e.g. Developing a mapping and
tracking software for adoption in India
Company reducing negative impact of
others
e.g. A company that makes water
purification & waste recycling systems
Company adopting the GRI
Framework for CSR reporting
The products and services of the company are
useful and benefits society
www.karmayog.org
Rating
Level
Level 1
The CSR activity being undertaken by the
company is not being done by government,
NGOs, etc.
Level 1
The company’s products or services provide
solutions to mitigate harm caused by actions of
companies, their products, etc.
Level 1
The company is committed to measuring and
reporting its CSR initiatives as per a voluntary
globally accepted framework.
Level 2
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
7
Company’s annual expenditure on
CSR = 0.2% of sales
The company is committed to a minimum
expenditure on CSR annually, and thus
considers CSR as an integral part of its business
Level 3
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
Companies that make liquor, tobacco,
genetically modified crops
These products are not needed by society, and
cause harm to people and the environment. The
CSR to do is to stop making these products.
CSR is not limited just to how a company
spends its money, but also to how it makes that
money in the first place
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
Companies that violate
laws/rules/regulations
Companies engaged in high impact
processes
www.karmayog.org
Rating
Level
Level 0
Level 1
Level 1
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
8
Some observations from the Study and Ratings
1. 509 out of 1000 companies (51%) are doing CSR.
2. 21 of the 1000 (2%) companies publish a separate Sustainability Report.
3. 30 (3%) of the 1000 companies have reported the amount spent on CSR
4. 107 out of 1000 (11%) companies are doing CSR through their own trust or foundation
5. All PSU’s undertake a basic minimum level of CSR based on mandatory regulations (e.g. relating to
employment, target groups of beneficiaries, etc.)
6. Many individual companies under a group report the same CSR activities across the group (See
Karmayog’s detailed note on Group Companies)
7. Several companies repeat the exact same information every year for CSR with no fresh records of the
current year’s CSR, showing their low commitment to CSR.
10. Common areas in which CSR initiatives are undertaken include Education, Healthcare and Rural
development
11. Many companies spread their CSR funds thinly across many activities, thus reducing the
effectiveness and seriousness of their initiatives
12. The 1000 companies were grouped into 35 industry sectors and analysed. The Entertainment &
Media, Retail, Mining, Trading, and Construction industries all have low levels of CSR activities. The
Software, Banking and Paper industries are amongst those sectors with high levels of CSR.
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
9
Karmayog’s Recommendations to companies
The CSR study led to a set of recommendations from Karmayog to companies.
A) Mandatory Recommendations
There are 3 mandatory recommendations flowing from the premise that ‘every company must do
CSR’, and these are:
1. Minimum annual CSR expenditure
Every company must spend a minimum of 0.2% of its sales on CSR activities (i.e. Rs. 20 lakhs per Rs.
100 crores). The scale of operations of a company and its impact is connected with its turnover and not
with its profit. The larger the company the greater is the damage it is doing to the environment.
Conversely the greater is the company’s ability to do good.
Table showing Rupee impact of 0.2% of sales for CSR expenditure
Size by
Sales
1
200
400
600
800
1000
Company
Indian Oil Corp.
Indian Hotels
Ahluwalia Contracts
Trent
Technocraft Industries
Marathon NextGen. Realty
Sales
in
Rs. Cr.
226000
1800
880
500
310
100
Net Profit
in
Rs. Cr.
7000
370
51
30
30
60
Minimum CSR
Rs. (cr.)
at 0.2% of Sales
452
3.6
1.8
1.0
0.6
0.2
Total sales of 1000 companies: Rs. 25,00,000 crores
If recommended minimum CSR is spent @ 0.2% of sales, this = Rs. 5000 crores
2) CSR Reporting
A Corporate Sustainability section should be included in the Annual Report and preferably a separate
Corporate Sustainability Report (as per the Global Reporting Initiative framework) should be published
by the company.
CSR reporting should also include details of CSR expenditure by the company.
CSR is linked to the company’s processes. It is recommended that the section on CSR reporting should
come after the EHS (Environment Health and Safety) section in the Annual Report.
3) Recommended Steps for CSR
a) Adoption of industry guidelines for improving processes
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
10
The first step is to identify and adopt methods to minimize the environmental damage caused by the
products and processes. A comprehensive set of guidelines, both general as well as sector-specific, have
been drawn up by the World Bank. These are known as the Environment, Health and Safety Guidelines
(EHS) of the International Finance Corporation (IFC). The EHS Guidelines are technical reference
documents with general and industry-specific examples of good international industry practice.
b) CSR linked to the skills of a company
Companies must use their core competence, skills and strengths while undertaking CSR activities, as
CSR is not an un-related activity
c) CSR linked to the location of a company
Companies must first undertake CSR activities in the areas they are located in. (factories, plants,
offices, etc.) The greatest impact (in terms of land, pollution, livelihoods, etc.) is on the local
environment and community, and hence companies must focus on improving conditions in the
communities in which they operate.
B) Non Mandatory Recommendations
Karmayog has also made 9 non-mandatory recommendations on CSR to enable companies to make
their CSR programmes more meaningful and effective.
1. CSR philosophy to be defined
CSR philosophy and focus to be developed from and based on the company’s vision and mission
2. Ensure responsibility of suppliers
Every company should make efforts towards ensuring responsible behavior from their
suppliers/vendors who must follow all environmental, health and safety as well as human rights
guidelines and norms. It is recommended that reviews and audits of suppliers be conducted.
3. Create inclusive employment
Companies to offer employment to those who find it difficult to get jobs, by reserving a small
percentage of the workforce for such jobs, with a special emphasis on the local community
4. Link CSR initiatives to government’s development plans
It is recommended that companies undertake CSR activities that are connected with and supplement the
governments social and development goals for India, which are outlined in documents such as the Five
Year Plan, and implemented through various schemes at the centre and state level. Companies must
partner with government in the implementation of such programmes and schemes.
5. Involve employees in CSR
A company should involve their employees in its social responsibility efforts. This ensures
sustainability of CSR initiatives, as there is a commitment to CSR throughout the organisation. Further,
each employee acting in a socially responsible manner helps the company as a whole to do undertake
more effective CSR.
6. CSR activity to improve the industry sector
Companies, through their CSR activities, should work towards raising standards and setting
benchmarks for their specific industry sectors, thus gradually leading to an overall more socially
responsible sector.
7. Expand Reach to benefit society
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
11
Companies must extend their products & services to markets and areas that may not be as profitable to
the company, so as to extend solutions to the problems and issues in remote, under-serviced areas.
While companies do expand their markets into new areas, they must do so more beyond areas that are
potential new markets. Extending business into new areas that need development may not give
immediate profits to a company, but this has long-term positive impacts on the area and its people.
8. Support areas and issues that are neglected
In a developing country such as India, there are some areas and issues that require sustained support of
a greater depth, beyond what government and society is able to provide, and companies must come
forward to take up these. E.g. Sports such as chess, protection of endangered species of wildlife,
heritage conservation, etc. are all issues that require corporate support.
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
12
Industry Sector Analysis
The 1000 companies were grouped into 35 industry sectors and analysed
Consolidated Sector Wise CSR Ratings
S.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Industry Sector
Auto Ancillaries
Automobiles
Banking
Cement
Chemicals
Computers
Construction
Diversified
Electronics
Engineering
Entertainment &
Media
Fertilizers
Financial Services
FMCG & Consumer
Durables
Heavy Engineering
Hotels
Iron and Steel
Jewelry
Logistics
Metals
Mining
Miscellaneous
Oil and Gas
Packaging
Paper
Petroleum and
Petrochemicals
Pharmaceuticals
Polymers and
Plastics
Power
Retail
Software & ITES
Sugar
Telecommunication
Textiles
www.karmayog.org
No. of
Cos.
48
13
40
30
63
7
57
13
18
44
Sales
in
Rs. crores
45000
100000
260000
47000
45000
21000
65000
24000
35000
40000
Level 5
0
0
0
0
0
0
0
0
0
0
Level 4
0
0
0
1
1
1
0
0
0
0
Level 3
1
4
6
0
3
0
2
0
1
3
Level 2
11
4
9
11
14
0
9
4
2
10
Level 1
10
0
8
11
19
2
10
4
3
9
Level 0
26
5
17
7
26
4
36
5
12
22
15
19
32
8000
41000
50000
0
0
0
0
0
1
0
0
1
3
10
2
1
6
6
11
3
22
60
10
9
93
11
17
14
6
42
19
10
13
75000
31000
5300
180000
19000
27000
51000
13000
45000
750000
6300
7400
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
1
0
0
1
4
1
0
2
0
1
1
0
1
2
0
1
15
1
3
18
0
6
7
3
4
5
0
6
14
6
2
17
4
5
2
2
10
8
3
2
27
2
4
55
7
5
4
1
26
4
7
3
7
49
6800
43000
0
0
0
1
0
1
1
16
2
17
4
14
10
46
5
40
25
20
77
7000
140000
8000
88000
15000
64000
57000
0
0
0
0
0
0
0
0
0
0
2
0
0
0
1
2
0
2
0
2
2
0
11
1
13
7
2
10
5
8
2
6
3
6
16
4
25
2
17
15
10
49
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
13
35
Trading
68000
0
0
1
2
2
13
2487800
0
10
45
220
231
494
18
Total
1000
Industry Sectors that have high CSR: Banking, Software, Paper
Industry sectors with poor CSR: Retail, Entertainment & Media, Mining, Construction
Example of an industry sector with poor CSR: the Construction sector





57 of the 1000 companies are part of the construction industry
61% of the companies are doing no CSR work. 80% of the companies are below Level 2
2 companies which are at Level 3 are DLF and GMR Infrastructure
Total Sales of the 57 companies’ amounts to Rs.65000 crores.
If 0.2% of sales is spent on CSR (as per Karmayog’s recommendation), then annual CSR
expenditure would amount to Rs.130 crores.
Table of the CSR Ratings of companies in the Construction sector
Karmayog CSR Rating 2008
Number of Companies
Percentage
Level 5
Level 4
Level 3
Level 2
Level 1
Level 0
Total
0
0
2
10
10
35
57
0%
0%
4%
18%
18%
61%
100%
Bar chart showing the CSR Ratings of companies in the Construction Sector
% of companies
Construction Sector
70%
60%
50%
40%
30%
20%
10%
0%
61%
0%
0%
Level 5
Level 4
18%
18%
Level 2
Level 1
4%
Level 3
Level 0
Rating Levels
Example of an industry sector with good CSR: the Banking sector
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
14






40 out of 1000 companies are in the banking industry (this does not include financial
institutions) 57% of these companies are doing CSR
60% of the companies are working in the area of Rural development
There are 6 Level 3 companies: (Andhra Bank, Canara Bank, ICICI Bank, PNB, Union Bank of
India, Yes Bank)
Mandatory regulations on CSR for PSU banks makes this sector high performance
The total Sales of 40 companies is Rs.2,60,000 cr.
If 0.2% of sales is spent on CSR (as per Karmayog’s recommendation), then annual CSR
expenditure would amount to Rs.520 crores
Table of the CSR Ratings of companies in the Banking sector
Karmayog CSR Rating 2008
Number of Companies
Percentage
Level 5
Level 4
Level 3
Level 2
Level 1
Level 0
Total
0
0
6
9
8
17
40
0%
0%
15%
23%
20%
43%
100%
Bar chart showing the CSR Ratings of companies in the Banking sctor
Banking Sector
% of Companies
50%
43%
40%
30%
20%
23%
20%
Level 2
Level 1
15%
10%
0%
0%
Level 5
Level 4
0%
Level 3
Level 0
Rating Levels
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
15
Some Sector specific best CSR practices
No. Sector
Expected CSR
Example of a company doing this
1 Cement
Quarry Rehabilitation
ACC Ltd
2 Paper
Farm Forestry
Ballarpur Industries Ltd.
3 Finance
Enabling access to affordable
housing
Software to improve public systems
HDFC Ltd.
4 Software
5 Pharmaceutical Reducing environment pollution
through process improvement
6 Paints
Development of environmentallyfriendly paints
7 Hardware
Improvement in product design and
use to benefit society
8 Steel
Mitigating impact on the natural and
human environment
9 Watches and
Employment of handicapped and
Jewellery
village artisans
Infosys Technologies Ltd., TCS
Ltd.
Jubilant Organosys Ltd.
Kansai Nerolac Paints Ltd.
Moser Baer Ltd.
Tata Steel Ltd.
Titan Industries Ltd.
Importance of the industry Sector-wise analysis of CSR of companies:
1. Snapshot of sector
It presents a picture of an entire industry, CSR initiatives undertaken by companies in that industry and
examples of companies doing good CSR
2. Potential CSR impact
The sector analysis shows the sales figures of the entire sector and the possible impact of spending
0.2% of sales (as recommended by Karmayog) on CSR by that sector
3. Sector-specific guidelines
The sector analysis helps to frame norms and guidelines for different processes across the entire sector
as well as develop and encourage sector specific CSR activities.
4. Best practices for the sector
The sector analysis showcases best CSR practices by companies in a sector, thus enabling other
companies to also take up such initiatives.
5. Comparison between sectors
The sector analysis enables comparisons between different sectors, and shows up sectors with low and
high CSR initiatives.
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
16
Industry sector-specific CSR initiatives
The CSR study helped to identify several sector-specific CSR initiatives that should be taken up by
companies of that industry sector, as these initiatives are directly connected to the processes and
products of that industry sector. As a society, we would expect any company working in these sectors to
be doing the following as an integral part of their CSR initiatives:
Table showing Expected CSR initiatives for different sectors
S.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Industry Sector
Example of expected CSR
Automobiles & Auto Ancillaries
Banking
Cement
Chemicals
Construction
Computers
Electronics
Engineering
Entertainment and Media
Fertilizers
Financial Services
FMCG and Consumer Durables
Heavy Engineering
Hotels
Iron and Steel
Jewelery
Logistics
Metal
Mining
Oil and Gas
Packaging
Paper
Petroleum and Petrochemicals
Pharmaceuticals
Polymers and Plastics
Power
Retail
Software and ITES
Sugar
Telecommunications
Textiles
Reduction of auto emissions
Support small entrepreneurs
Quarry Rehabilitation
Minimise air and water pollution
Low cost housing
E-Waste management
Energy efficient products
Reduce material content and wastage
Raising awareness on social issues
Promote use of organic fertilizers
Support small entrepreneurs
Reduce packaging
Mitigating impact on environment
Promote local tourism
Environment restoration
Promote local artisans and craftspeople
Fuel efficient vehicles
Environmental restoration
Quarry rehabilitation
Promote and develop alternate energy resources
Use of recyclable material
Farm Forestry
Environmental restoration
Focus on prevention of diseases
Environmental restoration
Use of renewable energy sources
Reduce use of plastic and packaging
Green IT
Using by-products and waste to generate energy
Improving connectivity and services in rural areas
Use of environmentally friendly materials
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
17
CSR by Group Companies
Observations:
1. No. of Groups in this study
Of the 1000 companies studied there are 30 groups with individual companies ranging from 2 to 24
2. Largest Groups
The 5 largest groups (by sales) in this study are: Tata Group, Aditya Birla Group, Mahindra Group,
Reliance (ADAG), and Essar Group
3. Same CSR reported
Most of the companies under the group report the same CSR activities across the group
4. Philanthropy
Some group companies contribute money to the group Foundation/Trust as a part of their CSR
5. CSR Expenditure
Individual companies do not mention the amount spent by the company; instead the group expenditure
is listed
6. Group Foundation
The common Foundation of the group undertakes all the CSR activities, as a result of which CSR is
often not connected to the processes & core competence of the individual companies
7. Benefits of CSR as a group
There are several benefits of having a Group of companies doing CSR together:
- the group can develop tools for its individual companies to measure the impact of their CSR
activities
- Individual companies can improve their CSR initiatives relative to each other, thus eventually
raising the CSR of the entire group
- Best practices can be shared and applied across all group companies (similar to all companies
in an industy sector)
Recommendation:
While there are synergies and various managerial reasons for companies to do CSR activities at a group
level, it is necessary for each company to undertake its own CSR activities (linked to its processes and
skills), while also contributing to the group’s CSR work.
The Karmayog CSR Ratings are assigned for an individual company, based on its own processes,
products, and work towards improvement of society; the CSR Ratings are not assigned to a Foundation,
Trust or Group, though these may be formed of the companies themselves.
An example of a Group that is doing CSR at an individual company level as well as a Group level: the
Tata Group

24 companies that are part of the Tata Group are included in this study of 1000 companies
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
18

The Tata Group has a Code of Conduct for all individual companies that includes CSR
initiatives that have to be undertaken by the company in the community near its factories and
offices.

The Tata Group has developed tools such as Tata Index for Sustainable Human Development
which is a model for measuring the social work that the group enterprises undertake

The CSR focus areas for companies of the Tata Group include education, health, environment,
rural development, sports, arts and employee relations.
Table showing CSR ratings of the 24 companies of the Tata Group
Karmayog CSR Rating 2008
Level 5
Level 4
Level 3
Level 2
Level 1
Level 0
Total
Number of Companies
Percentage
0
3*
7
10
3
1**
24
0
13%
29%
42%
13%
4%
100%
* TCS, Tata Steel, Titan Industries
** Tata Elexsi
Some recent trends in Corporate Social Responsibility in India
1. Increase in expectations of stakeholders
Various stakeholders have come to expect more from corporates, beyond just their profits
2. Government’s role as a regulatory body
The government has recognised the role of corporates in the development of the country, and is taking
steps to define this role and has introduced some mandatory and non-mandatory recommendations to
corporates
3. Increasing awareness amongst consumers, management colleges and students
There is an increasing awareness and interest among consumers towards CSR.
More seminars, discussions & summer projects are being held by colleges to sensitise students as future
leaders, about CSR.
4. Suppliers Responsibility
Companies are encouraging suppliers to adopt socially responsible business practices.
5. Disclosure about social & environmental performance
Stakeholders are demanding more information about a company’s social & environmental performance.
21 of the companies in this study have published a Sustainability Report, as compared to 6 companies
last year.
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
19
Some developments in CSR in India since the first Karmayog CSR Ratings in 2007
1. December 2007- RBI Notification to all Banks & Financial Institutions recommending that
Non Financial Reporting (NFR) be undertaken as a step towards ‘Responsible Banking
2. June 2008 - Ministry of Corporate Affairs has stated that it would like to encourage all
companies to “disclose on their balance sheets the social work that they do”
3. September 2008 - Government of Gujarat: mandates CSR expenditure - directs 6 PSUs to set
aside 30% of their profit before tax to carry out welfare activities across Gujarat.
Draft industrial policy of Gujarat Govt. mandates CSR for industry associations and corporate
houses in the state
4. February 2009- Petroleum Ministry says that it will be mandatory for public sector oil
companies to spend a minimum of 2% of their net profits on CSR activities
Closing Statement
While it is difficult to quantify the reasons for companies to take up Corporate Social Responsibility, it
is clear that all companies must be doing this, in order to help society as a whole to improve.
We, as consumers and stakeholders must accelerate and support those companies who have recognised
this and are taking steps to do business responsibly as well as contribute to benefit society.
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 in, and a better company to invest in. Today, companies that are doing nothing to give back to
society from which they have taken so much, are being looked at differently, despite the profits that
they make. Further, those companies that have already included CSR as part of their business, will be
far ahead of the rest, when CSR expenditure becomes mandatory for all companies, as it soon will.
Enlightened businesses worldwide, small and large, have begun to realise that responsible practices
enhance profitability & ensure long-term survival. For those which disrespect the environment or living
beings, we, as responsible citizens, need to individually and collectively, reward or penalise them
through our voices and our wallets.
The Karmayog 2008 CSR Study and Ratings presents a comprehensive picture of the state of CSR in
India. It is hoped that this study will be an effective base for industry associations, government bodies,
researchers and academia, and NGOs to work together with corporates in improving society.
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
20
Karmayog CSR sections
The Karmayog CSR Study and Ratings of Indian companies were started in 2007, and there are over
4000 pages of information on CSR on the Karmayog website:
A) Karmayog CSR Ratings of the 1000 largest Indian companies – 2008:
www.karmayog.org/csr2008








Announcing the Karmayog CSR Ratings of India's Largest 1000 Companies
o Presentation on the Karmayog CSR Ratings of the largest 1000 Indian Companies2008 - (pps)
o Executive Summary of the Karmayog CSR Ratings, 2008 - (2 page note) (doc)
o Report on the Karmayog CSR Ratings of the 1000 largest Indian companies - 2008 (25 pages) (doc)
Discuss your Company's CSR Rating and activities
o Form to submit the CSR initiatives of your company o Would you like to send feedback or discuss your company's CSR Rating? Karmayog CSR Rating 2008
o Karmayog CSR Rating 2008 of 1000 Biggest Indian Companies - Compiled Table
February 16th, 2009 (xls)
o Karmayog CSR Rating Criteria o Table of Level 3, Level 4 and Level 5 Companies - (xls)
o Quotes from Level 3 and Level 4 rated Companies - showing the company's overall
vision and mission, and CSR philosophy (xls)
o Citation to 10 companies with Level 4 rating o Certificates Awarded to the Karmayog CSR Ratings 2008-Ten Level 4 Companies (doc)
Alphabetical Tables of CSR Rating of 1000 companies 2008 (nos. in brackets)
o Alphabetical tables Details of CSR Activities of companies
o Individual CSR activities and profiles of the largest 1-500 companies o Individual CSR activities and profiles of the largest 501-1000 companies o Individual CSR activities and profiles of other companies Sector-wise analysis of CSR activities of companies
o Sector-wise listing and analysis of companies Sustainability Reports 2007-2008
o List of companies and their Sustainability Reports 2007- 2008 Media coverage
o Media coverage of the Karmayog CSR Ratings 2008 -
B) Karmayog CSR Ratings of the largest 500 Indian companies – 2007:
www.karmayog.org/csr2007
C) Corporate Social Responsibility: www.karmayog.org/csr
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
21
About Karmayog
Karmayog, established in 2004, is a unique organization that connects citizens, civil society groups,
corporates, academicians, media and government through online and offline methods
The Karmayog website has 70,000+ pages of information in researched modules on over 350 civic and
social causes, a directory of civil society organizations in India (17,000) and an active discussion group
of 43,000 people who daily share their concerns, opinions, ideas, news, etc .www.karmayog.org/
For more information contact:
Vinay Somani
Pooja Roy
Tanya Mahajan
Karmayog
C/o Shri R.O.Somani Charitable Trust
Shreeniwas House, 2nd Floor,
H. Somani Marg, Fort, Mumbai 400 001
Tel.: 022 – 22940109 / 22013535
Email: info@karmayog.org
Website: www.karmayog.org
www.karmayog.org
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
22
16. Annexure 1: Table of Level 4 rated companies
Karmayog CSR Rating of the largest 1000 Indian Companies in India for the year (2007-2008)
Summary of 3/5,4/5,5/5,CSR Ratings of largest 1000 companies
Karmayog CSR Rating
'07-'08
No.of Cos.
0
10
45
55
5/5
4/5
3/5
Total
%
0%
18%
82%
100%
Karmayog CSR Rating of the largest 1000 Indian Companies in India for the year (2007-2008)
Companies with 4/5 Karmayog CSR Rating:
No. No. Company
Industry Category
Sales
('07'08) in
crores.
(Rs.)
Recomm
ended
CSR
(0.2% of
sales) in
crores
(Rs.)
Actual
amoun
t spent
on
CSR in Registered
crores Office
(Rs.) Location State
CSR
Rating
('07-'08) CSR areas
Community welfare,
Health care, Education
12.2 Mumbai
Maharashtra
4
Community welfare,
Livelihood, Education,
Health, Environment &
Women
3.7 Chandrapur
4
1
11
ACC Ltd
Cement
9640
19.3
2
99
Ballarpur Industries Ltd
Paper
1030
2.1
Housing Development
3 374 Finance Corporation Ltd Financial Services
8000
16.0
5.4 Mumbai
4 416 Infosys Technologies Ltd Software and ITES
15000
30.0
20.0 Bangalore
5 465 Jubilant Organosys Ltd
Pharmaceuticals
2000
4.0
5.0 Gajraula
Uttar Pradesh
4
Kansai Nerolac Paints
6 480 Ltd
Chemicals
1300
2.6
0.5 Mumbai
Maharashtra
4
7 588 Moser Baer (India) Ltd.
Computers
1900
3.8
New Delhi
Delhi
4
8 887 Tata Steel Ltd.
Iron and Steel
20000
40.0
Mumbai
Maharashtra
4
Tata Consultancy
9 881 Services Ltd.
Software and ITES
18500
37.0
Mumbai
Maharashtra
4
Education, Health care,
Community welfare
Education, Children,
community welfare
Community welfare,
Environment, Education,
Health care
Environment, Health
care, Community welfare,
Education
Community welfare,
Education, Health care,
Environment, Physically
challenged
Environment, Health
care, Education,
Community welfare,
Women's empowerment
Rural development,
Education, Health care,
community welfare,
Environment, Women,
Poverty eradication
4
Community welfare, Rural
development, Education,
Physically Challenged,
Environment
10 907 Titan Industries Ltd.
Total
www.karmayog.org
Miscellaneous
3000
80370
6.0
Hosur
Maharashtra
4
Karnataka
4
Tamil Nadu
161
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
23
17. Annexure 2: Table of Level 3 rated companies
Companies with 3/5 Karmayog CSR Rating:
No.
No.
Sales
('07'08) in
crores.
(Rs.)
Reco
mmen
ded
CSR
(0.2%
of
sales)
in
crores
(Rs.)
Actu
al
amo
unt
spen
t on
CSR
in
crore
s
(Rs.)
Registered
Office
Location
CSR
Rating
('07'08)
Company
Industry Category
3M India Ltd
Aditya Birla Nuvo
Ltd
Trading
600
1.2
Bangalore
3
Textiles
4140
8.3
Veraval
3
Andhra Bank
Apollo Hospitals
Enterprise Ltd
Banking
4300
8.6
Hyderabad
3
Miscellaneous
1200
2.4
Chennai
3
Textiles
2300
4.6
Ahmedabad
3
Chemicals
1000
2.0
New Delhi
3
7730
15.5
Chennai
3
122000
25700
244.0
51.4
Mumbai
New Delhi
3
3
14200
28.4
Bangalore
3
New Delhi
3
Gurgaon
3
Hyderabad
3
Mumbai
3
New Delhi
3
1
2
2
17
3
48
4
59
5
64
6
66
Arvind Ltd
Asahi India Glass
Ltd
7
68
Ashok Leyland Ltd
Automobiles
8
9
123
125
Bharat Petroleum
Corporation Ltd
Bharti Airtel Ltd
Oil and Gas
Telecommunications
10
155
Canara Bank
Banking
11
193
Dabur India Ltd.
FMCG and
Consumer Durables
2120
4.2
12
215
DLF Ltd
Construction
5500
11.0
13
217
Pharmaceuticals
3330
6.7
14
221
Dr Reddys
Laboratories Ltd
Edelweiss Capital
Ltd
Financial Services
1100
2.2
4.5
15
275
GAIL (India) Ltd
18000
36.0
26.0
www.karmayog.org
Oil and Gas
7.6
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
24
16
299
17
305
18
319
19
GMR Infrastructure
Ltd
Godrej Industries
Ltd
Construction
220
0.4
Chemicals
800
1.6
1400
2.8
3.5
3
Mumbai
3
Navi Mumbai
3
Telecommunications
349
GTL Ltd
Hero Honda Motors
Ltd
Automobiles
10000
20.0
New Delhi
3
20
21
365
379
Hindustan Unilever
Ltd
ICICI Bank Ltd
FMCG and
Consumer Durables
Banking
14000
30000
28.0
60.0
Mumbai
Vadodara
3
3
22
439
Jain Irrigation
Systems Ltd
Polymers and
Plastics
1600
3.2
Jalgaon
3
23
464
Iron and Steel
12500
25.0
Mumbai
3
24
479
JSW Steel Ltd
Kanoria Chemicals
& Industries Ltd
500
1.0
Kolkata
3
25
521
Lanco Infratech Ltd
Engineering
1600
3.2
Hyderabad
3
26
523
Larsen & Toubro
Ltd
Heavy Engineering
25000
50.0
26.0
Mumbai
3
27
544
Mahindra &
Mahindra Ltd
Automobiles
11500
23.0
11.0
Mumbai
3
28
691
Engineering
700
1.4
3.0
Pune
3
29
708
Praj Industries Ltd.
Punjab National
Bank
14000
28.0
New Delhi
3
30
803
Siemens Ltd.
Electronics
8400
16.8
Mumbai
3
31
851
Sundaram Clayton
Ltd.
Auto Ancillaries
430
0.9
Chennai
3
32
869
Suzlon Energy Ltd.
Power
13700
27.4
Ahmedabad
3
33
883
Tata Metaliks Ltd.
Iron and Steel
1000
2.0
Kolkata
3
34
885
Tata Power
Company Ltd.
Power
5900
11.8
Mumbai
3
www.karmayog.org
Chemicals
Banking
1.3
Bangalore
4.2
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
25
35
888
Tata Tea Ltd.
FMCG and
Consumer Durables
1150
2.3
Kolkata
3
36
899
Thermax Ltd.
Engineering
3200
6.4
Pune
3
37
906
Tinplate Company
of India Ltd.
Metal
400
0.8
Kolkata
3
38
913
Transport
Corporation of India
Ltd.
Logistics
1200
2.4
Secunderaba
d
3
39
40
884
932
Tata Motors Ltd.
Union Bank of India
Automobiles
Banking
39000
9500
78.0
19.0
Mumbai
Mumbai
3
3
41
976
3000
6.0
Mumbai
3
42
983
Voltas Ltd.
West Coast Paper
Mills Ltd.
580
1.2
Dandeli
3
43
987
Wipro Ltd.
Software and ITES
17500
35.0
Bangalore
3
44
991
Yes Bank Ltd.
Banking
1300
2.6
Mumbai
3
45
997
Zensar
Technologies Ltd.
Software and ITES
335
0.7
Pune
3
443635
887
Total
www.karmayog.org
FMCG and
Consumer Durables
Paper
14.0
The Karmayog CSR Ratings of the 1000 largest Indian companies - 2008
26