At this point of time there is no authoritative, voluntary, CSR (corporate social responsibility) initiative that is business-led and engages with companies from all sectors, publicly ranking their CSR activity, whilst consolidating information demands made on companies. Thus what is required is a Corporate Social Responsibility Index which would help meet this need in India
The Index will help improve corporate responsibility by providing a systematic process that compares companies’ management processes and performance with those of others in their sector. It would provide a benchmark for companies who are committed to managing, measuring and reporting their impact on society.
The Corporate Strategy section looks at how the nature of a business’ activities influence its company values, how these tie into strategy and how they are addressed through risk management, development of policies and responsibilities held at a senior level in the company.
The Integration section looks at how companies organize, manage and integrate corporate responsibility throughout the operations. Is it part and parcel of the company culture? Is it integrated into the strategic decision-making processes of the company and linked through into internal governance and risk management systems?
The integration is assessed through the Management section where the processes for managing different stakeholder relationships are reviewed. This section looks at what the key issues are for the business in the Community, Environment, Marketplace and Workplace, the objectives and targets set to manage these issues and how it communicates, implements and monitors its policies, objectives and targets.
Community relates to the interface between business and society that can be both positively and negatively affected by a project, product or investment on a local or global level.
The Environment comprises the world’s ecosystems and natural resources and is affected directly and indirectly by a company’s operation, products and services. Being responsible means safeguarding both the systems and resources for future generations.
Responsibility in the Workplace is the creation of a working environment where personal and employment rights are upheld. Responsibility in the Marketplace is maintaining the highest standards of business practice when developing, purchasing, selling and marketing products and services.
The Performance and Impact section looks at companies’ performance across a range of social and environmental impact areas. The Corporate Responsibility Index would be a strategic management tool to enhance the capacity of businesses to develop measure and communicate best practice in the field of corporate social responsibility. It would do this through benchmarking corporate social responsibility strategy and implementation process.
The Index would be created by the support of leading businesses in the country as well as leading NGO’S who would be committed to continually improve their positive impact on society. Every year more & more successful companies would be invited to participate in the Corporate Responsibility Index by completing an online survey accessible via individual and secure usernames and passwords.
Even though the Corporate Responsibility Index will be a self-assessment exercise a central agency will have to monitor the whole process. This central agency will not be involved directly in the task of rating companies, but will act as the 'trustee' overseeing the integrity of the process.
This article is authored by eminent educationist and visionary Professor Dr. Uday Salunkhe, Director, Welingkar Institute of Management and Research (WE School), one of the leading B-Schools in India
For more information visit us Uday Salunkhe and Dr. Uday Salunkhe, Director - Welingkar Institute of Management
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