CSR Ranking Study Shows Interesting Pattern among Companies

[Zoher Doctorr]

CSR Ranking Study Shows Interesting Pattern among Companies

A recent study done in order to rank around 114 companies with
relation to their CSR activities, revealed a form of transformation in
the business sector in India.

Only 13.5 per cent of companies comprising of 10 cooperates among
studied found to be complying with the 2 per cent norm set by the
Indian Government. The current annual spending was found to be around
Rs. 2,251 crore among these 74 companies.These companies are spending
at an average of 1.02 per cent of their PAT, with around 55 companies
only spending less than 1 per cent and 19 others spending between 1-2
per cent.

In all those companies studied, complying with the 2 per cent criteria
is still considered to be a significant task among a large number.
According to the data, less than 2 per cent of PAT is being spent by
55 companies out of 75 studied, out of which 33 were spending even
less than 0.5 per cent.

It was observed that although few companies still find it difficult to
make a case for long term investment in sustainability, many others
were simply better in observing responsible growth. There is no
uniformity observed in terms of CSR policies across the cooperate
world.

Companies that were ranked higher in the study are the ones with
higher scores in governance in the area of CSR,as those companies with
lower ranks earned lower scores in the same area. However,a large
number of companies were still ranked lower in terms of disclosures.
The results remained varied when it comes to stakeholder based CSR,
something in which the mid-tier companies did better implying apparent
lack of focus from high ranking companies towards their
stakeholders.What's more is that a large number of companies were
bundled at the bottom when it comes to sustainability.

Manufacturing companies were found to be doing much better in CSR
activities than the companies in service industry. This result relates
to the level of importance given to sustainability issues from the
manufacturing sector. Public sector companies were found to be
spending at lower percentages than the private sector,but still
lagging behind in sustainability efforts. However, they were found to
be better in governance and stakeholder based CSR.

According to the study, manufacturing companies preferred spending in
diverse areas in terms of CSR, whereas service industry stayed limited
to same trend every year.



http://www.csrtimes.com/news/csr-ranking-study-shows-interesting-pattern-among-companies/281
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