CB BureauWhile the government of India is all set to announce the much-debated ‘companies bill’ that will have a clause making spending towards corporate social responsibility (CSR) mandatory, a KPMG survey has revealed that not many companies are prepared for the same.
The findings of the KPMG India Corporate Responsibility Survey 2011 show that only 16 per cent of the top 100 listed firms in India have a corporate responsibility strategy in place.
The reports says that India lags far behind the global scenario wherein 73 per cent of the world’s 250 largest companies have defined objectives, 65 per cent have key performance indicators related to set objectives, and around 60 per cent report on such identified indicators.
For Indian companies, the primary objective or the driving force behind CSR remains strengthening the reputation and brand image, while actual CSR objectives like cost savings, economic considerations, innovation and learning, and employee motivation as also their skill enhancement rank very low.
Globally, CSR campaigns or strategies primarily revolve around economic considerations, innovation, and employee motivation.
‘Most companies start with a “me too” approach, with a focus on developing a good-enough report. But during the journey, many realize the benefits of embedding sustainability in terms of managing stakeholder expectations, finding alternative solutions to raw material and fuels, and designing benign products and services,’ Arvind Sharma, KPMG India Director, Advisory-Climate Change and Sustainability Services, said in a media release.
The report also found that due to pressure from media, consumers, investors, NGOs, and the government, companies have been largely focusing on the issue of climate change. However, the findings indicate that companies are only looking at short-term goals, as only 23 of the top 100 Indian firms report on the ‘business risk’ of climate change, while 26 per cent report on the business ‘opportunities’ related to climate change.
Another interesting finding of the report is that companies are willingly seeking third-party opinions on their annual CSR reports. At present, 52 per cent of the corporate groups surveyed get external assurance on their reports.