The CII‘s Centre of Excellence for Sustainable Development (CESD) has released the findings of survey of top 200 companies in India, in a report called ‘Business Responsibility India Survey 2013.’ The release of the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) in 2011 and the CSR Section 135 in the Companies Act, 2013 have led to a larger discussion amongst the stakeholders about the linkage between them. However, perceptions and practices vary and businesses continue to engage in a range of ways on these issues across the spectrum. In that context, CII-CESD thought it important to produce the necessary statistical evidence.
The prime objective of this survey was to provide statistical evidence on BR and CSR practices followed by the top 200 listed companies in India to its various stakeholders. The survey gives key insights into what the largest companies in India are already doing on BR and CSR. It highlights how these companies are responding to demands from various stakeholders to becoming more sustainable and responsive in their businesses and operations. The survey also provides insights to the government to evolve public policies on BR and CSR.
Being an industry association, CII has always encouraged and supported companies in their efforts to become more responsible and sustainable through its initiatives. This Survey provides some striking insights on how the companies in India are already doing on business responsibility. It talks about various sustainability reporting frameworks that companies already use, the percentage of profits they spend on Corporate Social Responsibility (CSR), and the way they honour human rights and address health and safety issues in their organisations.
Key Findings
- Strong areas in Business Responsibility (BR) are environment, employee affairs, and governance
- Areas of concern are human rights, corruption and supply chain
- The Regulatory mandate by SEBI requiring the top 100 listed companies to submit BR Reports based on the NVGs is the leading driver for demonstration on policies
- About 75% companies have incorporated BR into purchasing policy / supplier code of conduct
- About 48% of the companies have or are in the process of conducting ecosystem footprint
- About 25% companies surveyed spend at least 2% of PAT on CSR activities
- Women are under-represented at the workplace. Women employees account for less than 10% for more than half of the top 200 companies
- Nearly 50% companies have no women in the top management or on the Board
Key recommendations
- Survey findings suggest that many companies already spending 2% per cent or more on CSR. However, CII-CESD’s experience shows that companies find it difficult to exhaust this budget if areas and methods of spends are restricted. India faces many challenges that require innovative ways of solving them, strengthening or creation of new institutions, research, debate and on ground action – all of these are suggested to be qualified as CSR spends
- Almost every company engages with government departments for CSR activities. However, very few of them utilise public funds for these activities. From CII-CESD’s experience, it is known that partnerships with government can be a great means to address the various developmental challenges such as health, education, rural development, livelihoods, etc.
- CSR is a part of overall BR and sustainability strategies of companies, and is contained in the NVGs under Principle 8. This linkage between CSR Section 135 and the NVGs could be clarified under the Rules and implementation improved
- Overall, there are a lot that companies in India already in the CSR and BR space and regulatory frameworks appear to have complemented their efforts. Also, there is no debate that companies can no longer operate in the manner they used to and they will have to make sustainability a core aspect of their business sooner rather than later. However, it is too early to tell whether this will happen through mandatory regulatory frameworks or voluntary efforts. Perhaps, a middle path is the most pragmatic and effective solution.
About Confederation of Indian Industry
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India’s development process. Founded over 118 years ago, India’s premier business association has over 7100 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 enterprises from around 257 national and regional sectoral industry bodies. http://www.cii.in
About CII-ITC Centre of Excellence for Sustainable Development
A pioneering effort by CII, the Centre works to create and sustain an environment conducive to the growth of business, partnering business and government alike through training, advisory and consultative services. It is the fountainhead of transformative and inclusive solutions to promote sustainability, which nurtures clients to compete, expand opportunity and excel in today’s dynamic business environments. The Centre enables businesses to become sustainable, and channels the potential of Indian industry to power the country’s agenda for inclusive growth and sustainable development www.SustainableDevelopment.in
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