The 2Good Corporations of ET2Good4Good

Corporate Social Responsibility (CSR) in India has begun to evolve with many success stories, where a company’s mandated CSR activity, has in fact, been the harbinger of a meaningful social impact. But how do you differentiate the wheat from the chaff? How do you recognise the CSR initiatives that have gone well beyond a law and become agents of genuine change? And what are the parameters or frameworks that corporations need to formulate and implement to ensure that their CSR activities can make a genuine impact?

The Economic Times, along with KPMG in India as a knowledge partner has created “The ET 2 Good, 4 Good” is a certification scheme that certifies organizations based on their CSR performance, CSR processes and systems and over and beyond CSR expenditure of 2 % and 4% of their net profits.

THE 2GOOD CORPORATIONS:

 

Recognized for DistinctThe 2Good Corporations of ET2Good4Goodion

1. DALMIA BHARAT LIMITED

2. FORBES MARSHALL PRIVATE LIMITED

3. HERO MOTOCORP LIMITED

4. HINDALCO INDUSTRIES LIMITED

5. IDEA CELLULAR LIMITED

6. INDIAN METALS & FERRO ALLOYS LIMITED

7. MALCO ENERGY LIMITED

8. MINDTREE LIMITED

9. NMDC LIMITED

10. NTPC LIMITED

11. OIL INDIA LIMITED

12. ONGC LIMITED

13. TALWANDI SABO POWER LIMITED

14. TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED

15. TVS MOTOR COMPANY LIMITED

16. VEDANTA LIMITED

17. WNS GLOBAL SERVICE PRIVATE LIMITED

The 2Good Corporations of ET2Good4Good

The inaugural ET2Good4Good ratings has created a rigorous set of benchmarks and norms when it comes to evaluating the structure and impact of CSR programmes.

SR is a now a legal requirement for businesses. As per the law it is mandatory for corporations that generate annual revenues of over 10 billion rupees to spend 2% of their net profits on activities that demonstrate corporate social responsibility. This has resulted in a focus on disclosure and governance around CSR activities. However, until now there was no recognition for companies who discharge their CSR responsibility with well-defined strategy and governance structure. Moreover, there was  also a lack of acknowledgement of companies who spend more than the legally mandated amount – 2% of their net profits – on their CSR activities. 

The annual ET2Good4Good ratings platform has been created by The Economic Times with KPMG in India as the knowledge partner to provide recognition and to create a benchmark standard for rating the CSR activities of corporation across India. This is a benchmarking tool; hence it has been designed to a ratings system and not as an award or a ranking scheme. This ratings system creates two standardised benchmarks – 2Good and 4Good – for companies that have spent more than 2% or 4% respectively of their net profits for CSR and have good governance structures and strategy with respect to CSR. 

The qualification for this is through a very detailed assessment of the participating organizations with respect to a clearly defined questionnaire with scores and weightages. Only organizations that score more than a threshold earn their rating. Participation is voluntary on the part of the corporations. As a part of the process individual feedback to all participating companies benchmarking their performance against all participating companies is also provided. The rigorous process involves an exhaustive questionnaire with a total of 42 questions under 5 key sections. All answers have to be supported with documentation that is either available in the public domain or provided as attachments along with the application. 

After a thorough review of the application and the documentation, the submissions are scored as per the detailed criteria. Then the jury steps in to make a final determination. Only then is the annual listing of the benchmarked CSR ratings is ready. 

7 companies were conferred with the 2Good rating for their all-round excellence in CSR by the Jury for the ratings constituted by The Economic Times & KPMG in India 

 

ACC LIMITED

ACC Limited has a long tradition of engaging with the communities around its factories. They also publicly disclose their CSR performance and publish case studies of their CSR projects. 

AMBUJA CEMENTS LIMITED

BHARAT ALUMINIUM COMPANY LIMITED

The company has an elaborate stakeholder engagement policy and comprehensive procedure to ensure their active participation. Their strong CSR commitment is evident in the fact that their spend for 2015-16 stood at INR 21.28 crores against mandated spend of INR 0.3 crores. 

GAIL (INDIA) LIMITED

GAIL uses both conventional and social media to reach out to stakeholders and enhance their participation. GAIL carries out regular monitoring of CSR projects including monitoring of stakeholder engagement and their feedback. 

MARUTI SUZUKI INDIA LIMITED

An important element for MSIL’s strong CSR performance is its longterm and strategic approach towards CSR. Baseline studies are carried out and CSR programmes are designed basis the findings. MSIL has integrated certain core competencies used by them in manufacturing units for their CSR projects. 

TATA MOTORS LIMITED

The company has strong affirmative action towards socially weaker section as part of its CSR. The company has taken initiatives to build knowledge and capacities of implementation partners which positively impacts quality and long term sustenance of the projects. It also has innovative programmes like Tata Volunteering week and its employees also participate in Tata Group “ProEngage” programme. 

TECH MAHINDRA LIMITED

The foundation of Tech Mahindra’s CSR performance lies in strong governance around CSR. It has a comprehensive CSR policy covering the Objectives, Focus Areas, Governance Structure and Monitoring & Reporting Framework among others. They also conduct independent third party assessment of its major CSR initiatives at regular interval. 

Article Source: Economic Times