CSR ratings of Indian companies: Design of methodology and questionnaire

Abstract

CSR, i.e. Corporate Social Responsibility is the concept which almost all big organizations are now involved in, either in a big way or in little traces itself. There are several definitions of CSR, but in a broader sense it can be defined as the responsibilities that corporate bodies & organizations have towards the society where they operate and are a part of it. What is the need for CSR? - 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 a part of it. Companies have tremendous strengths, sometimes more than that of the governments and hence corporates are very important stakeholders of society. While CSR is applicable for large corporates, a similar terminology called ESR (Enterprise Social Responsibility) exists for SMEs. This is especially relevant to a developing country like India wherein SMEs play a vital role in the development of the nation. The measurement of CSR activities and ratings of companies hence play a very important role in determining the extent of internalization of this concept in the specific industries and companies. There is a clear difference between Indian and foreign countries w.r.t to the depth to which these ratings agencies have dissected the company’s activities and policies. The observation is that the foreign agencies have detailed quantifiable questions while the Indian agencies are still grappling to find out what is the perception of CSR in Indian companies. Hence a detailed study of some of the international rating agencies like BITC, UNIDO, FTSE4Good and domestic rating agencies like Karmayog, Partners in Change have been done to understand the points of difference and parity. Finally a questionnaire has been developed which is a combination of quantifiable and objective questions by keeping in view the Indian context.