chapter 4 reporting practices in the corporate world 4.1...
TRANSCRIPT
67
Chapter 4
Reporting Practices in the Corporate World
4.1 Corporate Practices in place
The study revealed that the companies are following various
practices with regards to fulfillment of social objective. However, it
has been found that there is no one method or standard followed
by these companies. In order to report to the stakeholders about
various social activities undertaken, reporting has become an
integral part of annual report but, it is difficult to understand the
contribution made by the companies for such social
responsibilities. Having studied 100 companies, it is interesting to
find areas for social activities related to various social issues
which contribute to the upliftment of the people at large. They are
Table 4.1
Areas of Social Activities
1 Community Development 10 Farmer Welfare
2 Health & Safety 11 Flood Relief &
Rehabilitation
3 Education 12 Relief measures for
calamities victims
4 Environment 13 Promotion of Sports
68
5 Energy 14 Sustainable Livelihood
6 Employees 15 Women Empowerment
7 Promotion of Arts 16 Upliftment of street children
8 Rural Development 17 Access to financial services
9 Training & Development
of poor people
It has been found that the companies follow reporting through
combination of social reporting statement, MDA (Management
Discussion Analysis), Director Report, Photographs & narrative of
the contribution with quantification. There is no single method of
reporting but in the combination of such formats. Such practices
fail to assess the impact of Social Expenditure. The style of
reporting is so fragmented that users of the information find it
difficult to comprehend the status of CSR by an individual
company. Such reporting structure does not give scope for
comparison between two companies that which company is better
in terms of CSR practices.
4.2 Corporate Practices Focus
The focus of social Reporting Practices are given in the following
table (i.e. 4.2) for each of the 100 companies. The entire survey
explores the areas where the focus is concentrated on, as well as
the types of reporting practices reserted to by the companies.
And, wherever available the amount of expenditure for such
activities is also shown. The data & information are pertaining to
the year 2010-11 which was available for the survey.
69
Table 4.2
Social Reporting Practices (on the basis of Annual Reports
for the year 2010 -11) – Nifty based Companies
Sr
No.
Companies Name Social
Reporti
ng
Statem
ent
(SRS)
MDA Direct-or
Report
(DR)
Photo
graph
Narrative (with
quantification)
Areas Covered Amount
Spent
1
ACC Ltd No Yes Yes No No Health & safety
Renewable
Energy
Community
Development
Human
Resources
70
2 Ambuja Cement Ltd No Yes Yes No
ACF reach 4000
farmers for
better cotton
initiative.
ACF conducted
Training
programme at
Dahod.
Community
Health
Environment
Stakeholder
ESOS
Education
Rs. 28.10
Crores spent
on CSR
3 Axis Bank Ltd No No Yes No
Axis Bank
foundation
associated with
44 NGO
covering 58000
individual in the
field of
Education,
Medical &
livelihood.
Education
Livelihood
Community
Development
Rs. 24.47
Crores
donted.
71
4 Bajaj Auto Ltd Yes No No No 425 employee
donate blood
Education
Health
Employee
Voluntary
Rural
Development
Environment
Rs. 0.34
Crore
donate –
Education
5 Bharti Airtel Ltd Yes No No No 500 primary &
50 secondary
school reaching
2 Lacs children
36 employee
volunteering
give their
knowledge &
experience
Education
Employee
Volunteering
Community
Development
Environment
Health
Farmer Welfare
72
6 BHEL Yes No No Yes Community
Development
Education
Environment
Health & Safety
Rs.21.55
crores
spend on
CSR & Rs.
0.18 Crore
of donation
7 BPCL
No No Yes Yes 15000 children
were educated
3500 employee
voluntarily
spend time on
Education &
water
conservation.
Education
Health
Environment
Community
Development
Employees
Volunteering
Social Over-
heads
Rs. 26.15
crores
8 Cairn India Ltd Yes No No Yes 1000 people
trained
400 women’s
enhanced their
Community
Development
Education
Health
73
livelihood
24 libraries
open
Mobile van visit
100 villages
benefiting
50000 people.
Infrastructure
9 Cipla Ltd No No Yes No 7000 Cancer
Patients are
treated.
Health
Education
Community
Development
Rs.5 Crores
donate to
Cipla
Foundation
10 Coal India Ltd No Yes No No Education
Health
Community
Development
Environment
Social over -
heads is Rs.
2270.12
Crores
74
Employees
benefit
Others
11 DLF Ltd Yes No No No 150000
villagers were
been treated
250 people were
trained in skill
development
programme
44 villages
covered 5000
children for
education.
1.8 lacs tree
were planted.
Health
Livelihood
Education
Environment
75
12 Dr. Reddy’s
Laboratory Ltd
Yes No No Yes Generate
25403
Livelihood
In Andhra
Pradesh 120
teacher
imparting
education to
2500 student
Health
Education
Sustainable
Livelihood
Training &
Development
Rs. 8.8
crores
Donation
made to Dr.
Reddy’s
foundation
for social
development
13 GAIL No Yes No Yes 270 students
have completed
their training.
Education
Community
Development
Health
Environment
Infrastructure
Relief Measure
for calamities
victims.
Rs. 70
Crores spent
on CSR
76
14 Grasim Industries
Ltd
Yes No No Yes 900 children
were educated
1000 student
given school
bag
2392 eye
camps were
conducted
850 operated
for Cataract
35000 villager
were provide
safe drinking
water
Health
Community
Development
Education
Donation –
Rs.16.03
Crores
15 HCL Technologies
Ltd
No CSR
Reports
16 HDFC Ltd Yes No No No 45000 student
were educated
Education
Health
Shelter
Assistance
77
Community
Development
Research
Initiative
Environment
Art & sport
Reserve –
Rs. 8.88
Crores
17 HDFC Bank Ltd No No Yes No 7 school
covering 1850
children in
Mumbai & 10
school covering
5000 children
in Pune.
Education
Livelihood
Environment
Health
Employee
Participation
Rural Initiative
18 Hero Motocorp Ltd No Yes No Yes Education
Associated with
NGO
Health
Donation of
Rs. 16.27
Crores
78
19 Hindalco Industries
Ltd
Yes No No Yes Concentrate
CSR in 660
villages
325000 villager
covered for
medical
2563 Medical
camps & 5.25
Lacs people
treated
14,82,131
children took
polio
12365 student
were educated
12976 rural
youth were
been skilled
Education
Health
Skill
Development
Donation –
Rs. 36.15
Crores
79
20 HUL No Yes Yes No 124.7 Million
People – were
informed about
Lifebuoy Hand
wash
Education
Health
Community
Development
Environment
21 ICICI Bank Ltd Yes No No No 300 Master
trainer who will
train 4500
teachers who in
turn will train1
lac service
teacher
Health
Education
Community
Development
Employees
Volunteering
Improving
access to
Financial
Services
80
22 IDFC Ltd No Yes No Yes Environment
Community
Development
Education
Health
23 Infosys Ltd No No Yes Yes 1.5 mn persons
were trained
172000
notebook were
donated to
45000 children
Education
Sustainability
Initiative
Community
Development
Rs. 30
Crores
donated to
Karnataka
Flood Relief
Rs.12 Crores
to Infosys
Science
Foundation
81
24 ITC Ltd No No Yes No Community
Development
Education
Environment
Health
others
25 Jindal Steel & Power
Ltd
Yes No No Yes 10000 student
in O.P Jindal
Global
University
3445 person
examined &
8335 Person
examined in
mobile van
230 women
trained
Education
Health
Community
Development
Infrastructure
Development
Sustainable
Livelihood
Donation of
Rs. 73.96
Crores
82
26 Jaiprakash
Associates Ltd
No Yes No No 24 bedded
hospital
created
Drinking water
supply provided
Irrigation facility
provided
Community
Development
Education
Healthcare
Training &
Development
27 Kotak Mahindra Bank
Ltd
Yes No No Yes 8900 trees
planted
Education
Enviornment
Community
Development
28 L&T Ltd Yes No No Yes Health -
2,20000
women &
Children life
benefits
Health
Learning
Development
Community
Development
83
29 Mahindra & Mahindra
Ltd
No Yes No No 70000 girls got
education
through Nanhi
Kali
2400 student
got education
through
Mahindra Pride
school
Employee
Social Option –
employee
working on
volunteer-ing
basis (each
sector
contribute 0.5%
of PAT to
ESOP)
Education
Health
Community
Development
Employee
Volunteering
others
1% of PAT –
CSR
activities
84
30 Maruti Suzuki Ltd Yes No No Yes 166 Driving
school
8.5 Lacs people
were trained for
safe driving
7095 hours
spend by
employees
Education
Health
Community
Development
Employees
contribution
31 NTPC Ltd No No Yes No 15 project
supported
benefiting 2153
household
Education
Community
development
Health
NTPC
foundation
Social
Overhead –
Rs. 473.88
Crores
32 ONGC Ltd No No Yes Yes Education
Health
Environment
Community
Compo-site
welfare
scheme – Rs
23.161
85
Development
Livelihood
Crores
Employee
welfare Trust
– Rs.0.15
Crores
Rs.0.31
Crores to
Education &
community
Rs. 0.47
Crores for
student
33 Powergrid
Corporation of India
Ltd
No No Yes No Education
Health
Infrastructure
development
1% of PAT
spend on
CSR
86
Community
Development
Actual Social
Over-heads
Rs. 150.75
Crores
34 PNB Ltd Yes No No Yes 30 centres in
which 27303
person are
trained
Farmer Welfare
Trust & PNB
centenary
Rural
Development
Trust
developed
Community
Development
Traning &
Development
Healthcare
Enviornment
Promotion of
Sports
35 Ranbaxy Laboratories
Ltd
Yes No No Yes 65000 people
are taken care
of in health
Health
Environment
Community
87
terms.
Ranbaxy
sanjeevani
swasthya Sewa
covers 4.5 lacs
people in 180
villages.
Development
36 Reliance
Communication Ltd
No Yes No No 2100 employee
volunteer-ing
give service
6000 patient
eye care is
been done
10000
voluntary
donate blood.
Health
Environment
Community
Development
Employee
Voluntary
88
37 RIL Yes No No Yes 10000 sapling
were planted
13251 student
were educated
in 9 school
9000 free eye
surgery
Health
Education
Environment
Community
Development
38 Reliance Power Ltd Yes No No No Healthcare
Education
Enviornment
Other Social
Initiative
Rs 9.35
Crores
spend on
social
initiative
39 Reliance
Infrastructure Ltd
No Yes No No 80 hand Pumps
243 donor
donate blood
67 school
provide
education
Community
Development
Health
Education
Environment
Rs 0.50
Crore
donation for
Bihar flood
relief.
89
40 SAIL No No Yes No 25000 student
were educated
3800 camps
benefited 2.64
lacs people
Education
Health
Environment
Vocational
Training
2% of PAT –
CSR Actual
– Rs.68.27
Crores
Budgets –
Rs.94 Crores
SO
1294.57
Crores
41 Sterlite Industries Ltd Yes No No Yes Distribution of
1600 free note
book
Rural health
clinics covering
6270 people
benefiting 1500
people
40 employees
Education
Health
Community
Development
Self Groups
Employees
Volunteering
Rs. 278577
amount
spend by
297
employee
Rs.86 Crores
spent as
donation on
90
donate blood
Drinking water
sump covering
30000 liters
1000 self-
groups
covering 15000
rural women’s
CSR
42 SBI Ltd No Yes No Yes 2547 projects
covering
Health,
Education,
Environment
Adopt the girl
child.
Community
Development
Employee
Volunteering
Environment
Education
Health
Rs. 25.95
Crores for
health,
education,
Environment
etc.Adoption
of girl child
Rs.3.49
Crores
Rs.0.50
91
Crore for
education at
IIT Kanpur
SBI children
welfare Fund
Rs 0.05
crore
Education
partnering
Municipal
corporation
is Rs. 3.97
Crores
43 Siemens Ltd Yes No No Yes 600 toys &
book
distributed
Employee
collected 270
Education
Health
Community
Development
Environment
92
books & 300
toys for the
children
Employee
Voluntary
44 Sesa Goa Ltd Yes No No Yes 16th batches
rolled out
covering 726
student
Drinking water
benefit to 102
villages
Mobile health
unit covering
33670 people
Community
Development
Education
Sports
Health
Sustainable
Livelihood
45 Sun Pharmaceutical
Industries Ltd
No CSR Report
46 Tata Motors Ltd Yes No No Yes 50000 student
were provided
education
Education
Health
Environment
93
500 student
were given
scholarship
1600 women
were given
employment
10000 trees
planted
annually
50000 drivers
are trained
every year
2000 primary
teacher are
trained
300000 people
p.a are been
check on health
grounds
Community
development
Employment
94
47 Tata Steel Ltd Yes No No Yes AID awareness
& Mother & Child
health
Programmes
50 orphans is
been sponsored
the school fees.
Education
Health
Community
Development
Sustainable
Livelihood
Employees
Training
48 Tata Power Ltd Yes No No Yes They reached
285 schools
Provide job to
213 in BPO
13000 student
were educated
45890 people
were –
HIV/AIDS
awareness
Education
Health
Community
Development
Self Help
Groups
Employee
Volunteers
95
campaign
1480 member
from self-help
group saved 12
lakh people
49 TCS Ltd No No Yes No 1.5 lakh people
is been literate
in computers
10225 children
were educated
Education
Environment
Health
Community
Development
North
America-
$ 5 Lakh
donation for
education &
Health
UK &
Ireland - 2
lakh Pound
donation for
education &
Health
China –
RBM 26000
96
to help &
operate
needy
children
Australia - $
30000
contribute to
flood disaster
fund
50 Wipro Ltd Yes No No No Environment
Education
Community
Development
Employee
Volunteering
97
Table 4.3
Social Reporting Practices (on the basis of Annual Reports
for the year 2010 -11) – Non Nifty
Sr
No.
Companies Name Social
Report
ing
State
ment
(SRS)
MDA Direct-
or
Report
(DR)
Photo
graph
Narrative (with quantification)
Areas Covered Amount Spent
51 Adani Power Ltd No No Yes No 8000 patients in
mobile van &
1500 patients in
rural clinics every
month
Education
Community
Development
Livelihood
Development
Environment
Rural
Development
98
52 Aditya Birla Nuvo
Ltd
Yes No No Yes CSR activities
concentrated in
1082 villages
Medical camps
reached 31365
villagers
Eye camps at
veraval &
Jagdishpur
covering 1986
patient
13000 student
were enrolled for
free education
Education
Health
Community
Development
Sustainable
Livelihood
Environment
Donation of
Rs. 0.47
Crores
53 Bajaj Holdings &
Investment Ltd
Yes No No No 200 student were
educated by 20
staff
Education
Health
Environment
Rs.10 Crores
to
Kamalnayan
99
50000 plantation
giving support to
340 tribal
families
55000 Patients in
OPD & 7000
patients admitted
830 applied for &
250 got jobs
Community
Development
Baja Nursing
College
Rs.1.4 Crores
to Jankidevi
Bajaj College
of science
Bajaj Trust
donates Rs. 8
Crores to
shiksha
Mandal
54 BOB Ltd No No Yes Yes 79000 young
person working
for 36 sanstha
benefitting 50000
people
Community
Development
Training
Development
100
55 Biocon Ltd Yes No No Yes 800 toilets build
Biocon
Foundation - 8
clinic benefits
50000 people
500 school
reaching 50000
student
Health
Research &
development
Education
Flood Relief &
Rehabilitation
Welfare
expense –
Rs.
129145/-
56 Britannia India Ltd
No No Yes No Introduce
Nutrition based
concept
Health
57 CBI Ltd No CSR Report
58 CESC Ltd No Yes No No 47 school
10000 trees were
planted
Education
Health
Environment
59 Container
Corporation of India
Ltd
No No Yes No 147253 people
were education
from 20 Centre.
Education CSR – Rs.
2.93 Crores
101
60 Dabur India Ltd Yes No No Yes 45 day activity
covering 540
villages & 20
Lacs people
providing training
related to
Medical
2500 Women
were skill
development
Health
Environment
Community
Development
Women
Empowerment
61
Glaxosmithkline
Pharmaceutical Ltd
No No Yes No 150 women’s –
gynecology
check up
25 pregnant
women’s were
given nutrition.
Health
Education
Environment
62 Glenmark
Pharmaceutical Ltd
Yes No No Yes 500 employees
work on project
Community
Development
102
Health
Environment
Employee
Development
63 GMDC Ltd No No Yes No Irrigation to
farmers in
Kutch
Environment
Community
Development
64 Godrej Industries
Ltd
No No Yes Yes Recruiting
underprivileged
people
Supporting
physically
challenged
employee
1500 underprivi-
leged school
going children
are provided Mid
day meal
Education
Sustainable
Livelihood
Community
development
Rs.6.5 Crores
spend on staff
welfare
103
65 Godrej Properties
Ltd
No Yes No No Safe & healthy
environment for
the workers living
in construction
site.
Schools for the
children of
construction
workers.
Nutritious lunch,
snacks & regular
monitoring the
health of the
children in
schools.
Employee
Motivation,
development,
performance &
empowerment.
Education
Health
Environment
Employees
benefit
104
66 GSPL No No Yes No Education
Environment
Conservation of
energy
Donation Rs.
8.9 Crores
67 Hindustan Zinc Ltd Yes No No Yes 1 Lac patient
checkup & 544
children
164 student
enroll for higher
education
350 women’s
handloom
training
Health
Education
Sustainable
livelihood
Community
Development
Environment
68 HPCL No Yes No Yes 5100 girls
education
2900 Children &
600 women were
given medical
treatment
Education
Health
Community
Development
Donation of
Rs.19.69
Crores
105
69 IDBI Bank Ltd
No Yes Yes No Rural
infrastructure
Blood Donation
camp
It has adopted
village in Leh in
Jammu &
Kashmir.
Health
Community
Development
Education
Environment
Livelihood
Improvement
70 Idea Cellular Ltd No No Yes No Community
Development
Employee
Based initiative
Environment
71 Indian Bank Ltd No Yes No No 3140 blood
donor in 29
Centre
770 & 54 senior
citizen were
Health
Upliftment of
street children
Sports
106
benefitted by eye
screening camp
1040 benefitted
by dental camp
72 Indian Hotels
Company Ltd
Yes No No No 45 Active
Projects
Promoting
artisan &
craftsmen
Sustainable
Livelihood
Community
Development
Education
Health
Associated with
NGO
Company
purchase 12
Crores
product from
NGO
73 JSW Energy Ltd No Yes No No 250 sanitation in
Ratnagiri
Education
Community
development
74 LIC Housing
Finance Ltd
No CSR Report
107
75 Mahindra &
Mahindra Financial
Services Ltd
Yes No No Yes Tree Plantation
Education for
underprivileged
children
1408 bottle of
blood donated
753 girl child
currently
supported
through nanhi
Kali programme
Education
Environment
Employee
Voluntary
Health
Rs.3.13
Crores of
donation
76 Mindtree Ltd Yes No No No Supporting
physical
challenge people
with specific
focus on
Assistive
Technologies
Education
Livelihood
Community
development
Others
Donation of
0.4 million to
Ashoka
Innovator to
support the
programe for
social
108
Improving quality
of Education
10 schools are
been supported
in kanakapura
taluk in
collaboration with
Sikshana
Setting up
tailoring institute
Providing toilets
for female
student
Entrepreneur.
77 Marico Ltd Yes 90 % reduction in
Plastic bottles
usage.
Energy
Environment
Health & Safety
Education
Community
Development
109
78 MRPL No No Yes No
Education
Health
Infrastructure
Women
Empowerment
programmed
Community
Development
MRPL
rehabilitation
colony
CSR amount
–Rs. 4.34
Crores
79 NHPC Ltd No No Yes No Education
Health
Community
development
Environment
Employees
benefit
Sports
Rs.10.45
Crores spend
on CSR
expenditure
110
80 OIL No No Yes No
1400 village
covered under
welfare scheme
Education
Health
Community
Development
Social Over-
head expense
–Rs. 161.42
Crores
81 PTC India Ltd
No CSR report
82 Punj Llyod Ltd Yes No No Yes 1400 student got
Education benefit
Education
Health
Community
Development
83 Petronet LNG Ltd No CSR Report
84 PFC Ltd No No Yes No Community
Development
Education
Rs.12 Crores
spend on
CSR
Rs. 5 Crores
for
construction
111
of houses for
flood affected
people
Rs. 3.38
Crores for
distribution of
solar lantens
in 169 villages
Rs. 3.5
Crores
Construction
of primary
school
85 Piramal Enterprise
Ltd
No Yes No No 475 mobile
health units
Education
Health
Youth
Empowerment
Preservation of
Indian Culture
112
86 Raymond Ltd No No Yes No 7400 student at
school were
provided with
education
4000 cattle were
taken for cattle
breed
improvement
programme
Education
Community
Development
Training
Development
Environment
Rs. 35.37
Crores
provision for
social
obligation
87 RECL No No Yes No 50 Solar LED
Lanterns will be
distributed in
each villages
covering 45
villages.
Education
Sports
Health
Community
Development
Environment
Rs.12.29
Crores spend
on CSR
Budget
sanctioned
was 5 Crores
88 Reliance Capital Ltd No Yes No No Blood Donation
Wheel chair
donation to
Community
Development
Health
113
handicap Education
Environment
89 Rallis India Ltd Yes No No Yes Provision for
Drinking water
AIDS awareness
Education
Health
Community
Development
Employee
90 SCI Ltd No Yes No No Company
committed 496
lacs on CSR
Project
Health
Community
Development
Training
Development
Flood relief
foundation
CSR reserves
–Rs. 5.67
Crores
91 Shriram Transport
Finance Ltd
No No Yes No Education
Community
Development
Rs. 2.72
Crores
donated to
charitable
organisation.
114
92
Tata Chemicals Ltd Yes No No Yes 317 women
trained
216 rural youth in
BPO
Installed 10000
liters water
capacity in 8
villages for pure
water.
Health
Environment
Safety
Community
development
Employee
Volunteering
Training
Development
93 Tata
Communications Ltd
No No Yes No 80 people were
given training
800 volunteer
giving 660 hours
Education
Health
Environment
Community
Development
Employees
Volunteering
115
94 Tata Global
Beverages Ltd
Yes No No No Health
Education
Community
Development
Employees
Benefits
95 Tech Mahindra Ltd No No Yes No
Education
Women
empowerment
Community
development
Tech Mahindra
foundation
1.5% PAT to
CSR
CSR – Rs.
28.84 Crores
96 Ultratech Cement
Ltd
Yes No No Yes 3400 were
educated on
HIV/AIDS
48398 villager
were treated
Education
Health
Infrastructure
Community
Development
116
532 girls re-
enrolled & 14546
were given
books
40000 people
access to safe
drinking water
721 couple got
married
12 schools
building were
made
1112 youngster
received training
293 self-help
groups
empowers 3626
women
Sustainable
Livelihood
117
97 UBI Ltd No No Yes No 202 village
knowledge
centers open
103 union
Adarsh gram
8 financial
literacy & credit
counseling
Education
Health
Community
Development
Rs.1.75
Crores
donation on
Education
Health &
basis
amenities
98 Unitech Ltd No No Yes No 22000 people
safety measure
were taken
Education
Community
Development
Safety
Measures
99 United Spirit Ltd No CSR
Reports
100 Yes Bank Ltd No Yes No No Environment
Health Care
Education
Sustainable
Livelihood
118
4.3 CSR Initiative : A Snapshot
Table 4.4
Reporting Formats & CSR Areas – A snapshot
Nifty based Companies
Reporting Format CSR Areas
Companies
Name
SRS
MDA DR Phot
ogra
ph
Amou
nt
Spend
Narrati
ve
Quanti
ficatio
n
Educ
ation
Healt
h
Com
muni
ty
Deve
lopm
ent
Envi
orn
ment
Empl
oyee
s
Other
s
ACC Ltd
Ambuja Cement
Ltd
Rs.
28.10
Crore
119
Axis Bank Ltd Rs.
24.47
Crores
Bajaj Auto Ltd Rs.
0.34
Crores
Bharti Airtel Ltd
BHEL Rs.
21.55
Crores
BPCL
Rs.
26.15
Crores
Cairn India Ltd
Cipla Ltd Rs.5
Crores
120
Coal India Ltd Rs.
2270.12
Crores
DLF Ltd
Dr. Reddy’s
Laboratory Ltd
Rs. 8.8
Crores
GAIL Rs. 70
Crores
Grasim
Industries Ltd
Rs.
16.3
Crores
HCL
Technologies Ltd
- - - -
HDFC Ltd Rs.
8.88
Crores
121
HDFC Bank Ltd
Hero Motocorp
Ltd
Rs.
16.27
Crores
Dona-
tion
Hindalco
Industries Ltd
Rs.
36.15
Dona-
tion
HUL
ICICI Bank Ltd
IDFC Ltd
Infosys Ltd Rs.42
Crores
122
ITC Ltd
Jindal Steel &
Power Ltd
Rs.
73.96
Crores
Donation
Jaiprakash
Associates Ltd
Kotak Mahindra
Bank Ltd
L&T Ltd
Mahindra &
Mahindra Ltd
1 % of
PAT
on
CSR
Maruti Suzuki Ltd
123
NTPC Ltd Rs.
473.88
Crores
on
Social
Overh-
eads
ONGC Ltd Rs.
23.161
Crores
Powergrid
Corporation of
India Ltd
Rs.
150.75
Crores
PNB Ltd
Ranbaxy
Laboratories Ltd
124
Reliance
Communication
Ltd
RIL
Reliance Power
Ltd
Rs. 9.35 Crores
Reliance
Infrastructure Ltd
Rs. 0.50 Crore Dona-tion
SAIL Rs. 68.27 Crores
Sterlite Industries
Ltd
Rs. 86 Crores
SBI Ltd Rs.
25.95
Crores
125
Siemens Ltd
Sesa Goa Ltd
Sun
Pharmaceutical
Industries Ltd
- - - -
Tata Motors Ltd
Tata Steel Ltd
Tata Power Ltd
TCS Ltd Donate
d $ 5
Lakh
Wipro Ltd
126
Table 4.5
Reporting Format & CSR Areas – A Snapshot
CNX 200 Companies (Non Nifty)
Reporting Format CSR Areas
Companies CSR
Rep
ort
MDA DR Phot
ogra
ph
Amou
nt
Spend
Narrati
ve
Quanti
ficatio
n
Educ
ation
Healt
h
Com
muni
ty
Deve
lopm
ent
Envi
ornm
ent
Emp
loye
es
Other
s
Adani Power Ltd
Aditya Birla Nuvo
Ltd
Rs.
0.47
Crores
Bajaj Holdings &
Investment Ltd
Rs.10
Crores
BOB Ltd
127
Biocon Ltd Rs.
0.01
Crore
Britannia India Ltd
CBI Ltd
CESC Ltd
Container
Corporation of
India Ltd
Rs.
2.93
Crores
Dabur India Ltd
Glaxosmithkline
Pharmaceutical
Ltd
Glenmark
pharmaceutical
Ltd
GMDC Ltd
128
Godrej Industries
Ltd
Rs.6.5
Crores
Godrej Properties
Ltd
GSPL Rs.8.9
Crores
Hindustan Zinc
Ltd
HPCL Rs.
19.69
Crores
IDBI Bank Ltd
Idea Cellular Ltd
Indian Bank Ltd
Indian Hotels
Company Ltd
Rs. 12
Crores
JSW Energy Ltd
129
LIC Housing
Finance Ltd
Mahindra &
Mahindra
Financial
Services Ltd
Rs.
3.13
Crores
Mindtree Ltd Rs.
0.04
Crores
Marico Ltd
MRPL Rs.
4.34
Crores
NHPC Rs.
10.45
Crores
130
OIL Rs.
161.42
Crores
PTC India Ltd
Punj Llyod Ltd
Petronet LNG Ltd
PFC India Ltd Rs 12
Crores
Piramal
Enterprise Ltd
Raymond Ltd Rs.
35.37
Crores
RECL Rs.
12.29
Crores
Reliance Capital
Ltd
131
Rallis India Ltd
SCI Ltd Rs.
5.67
Crores
Shriram Transport
Finance Ltd
Rs.
2.72
Crores
Tata Chemicals
Ltd
Tata
Communications
Ltd
Tata Global
Beverages Ltd
Tech Mahindra
Ltd
Rs.
28.84
Crores
Ultratech Cement
Ltd
132
UBI Ltd Rs.
1.75
Crores
Unitech Ltd
United Spirit Ltd
Yes Bank Ltd
133
4.4 Reporting Practices Analysis
Table 4.6
Percentage (%) of Companies disclosing CSR details
% of companies
CSR details disclosed 93 %
CSR details not disclosed 7%
Table 4.7
Percentage (%) of Companies using Reporting Formats
Reporting Formats % of Companies
Social Reporting Statement 39%
Management Discussion Analysis
(MDA)
22%
Director Report (DR) 36%
Photograph 37%
Narrative – quantification 73 %
Information on amount spent 45%
134
Table 4.8
Percentage of Companies using CSR Areas
Companies presence in Social
Activities
% of Companies
Education 79%
Health 75%
Community Development 79%
Environment 49%
Employee 25%
Other 56%
The study reveals that the companies have followed maximum 3
formats together like few companies have given the reporting
through Management Discussion Analysis (MDA) & Director
Reports , few companies have given Management Discussion
Analysis (MDA) & Director Reports or Narrative, while few
companies have given Management Discussion Analysis (MDA) &
Quantification, few companies have given Social reporting
Statement, photograph & Narrative, few companies have given
Social reporting Statement, Amount Spent & Narrative, few
companies have given Management discussion Analysis (MDA),
Directors report & Quantification. The following observations
emerge from the analysis
135
1. Social Reporting Statements (SRS)
The Social reporting statement gives broader idea about
Corporate Social Responsibilities. There is vagueness &
ambiguity in the statement, perhaps majority of stakeholder
may not be reading such statements. So it has little value to
reporting. They do express the objective of social cause but
lack the depth of understanding about social
Responsibilities, since it is a mere statement of purpose.
However, such statements may help companies to define
scope & role for future planning in view of mandatory CSR
vide: The Companies Bill 2013. There are few examples of
such statements
a) L & T (2010-11)
b) Bharti Airtel Ltd (2010-11)
c) Bajaj Auto Ltd (2010-11)
2. Management Discussion Analysis (MDA)
MDA is just the description which is a substitute of Social
Reporting Statements (SRS). Either companies have
reported through Social Reporting Statements (SRS) or
Management Discussion Analysis (MDA). Such description
is also vague & difficult to understand the impact of such
social activities. There is little value to reporting.
3. Director’s Report (DR)
Director’s Report (DR) basically aims at expressing &
exhibiting the achievements made by the companies during
the year in various sphere of business & non business
activities. Therefore, there is a fear of window dressing of
social activities. Moreover, social activities are in the least
136
proportion to all activities. It does not carry much weightage
of reporting value.
4. Photographs
Photographs carry visual impact on the users of information
but it has little value on any decision making to them. It does
create goodwill of the company among the readers, but fails
to express the actual impact. It is difficult for the companies to
exhibit photographs of all such activities. This may be
considered as the supplement to the core reporting.
5. Narration of activities with Quantification
Narration of activities with Quantification seems to be a good
indicator of social activities reporting. It does signify the
impact & the beneficiary which enable the reader of
information to conclude where the money has gone &
reached. However if in a proper format such quantification is
exhibited then it will convey meaning & relevance.
6. Amount Spent
This is a solid indicator of social expenditure & its reporting.
However, it is found from study that only 45 % of the
companies have shown the amount spent for social activities.
But, the absolute amount does not reflect the ability to spend
for the activities but it reflects the willingness to spend. It will
be more meaningful, if it is linked with sales & Profit. The
corporate world need to explore methodologies for such
linkage so that social reporting becomes effective.
The analysis of the reporting practices creates foundation for
sound reporting practices for social activities. It gives lot of
inputs for making social reporting effective.
137
4.5 Categories of companies & their reporting
practices
The study also reveals the comparison between two classes of
companies. One class is such where 50 companies constitute part
of NIFTY Index which means those companies are most sensitive
in the stock market because they are actively traded while other
class of 50 companies is active in trading but they do not form the
index, hence, do not reflect the economic indicator. So, it is
interesting to study whether companies which form part of Index
(say, X) reflect better social Reporting Practices than the
companies which do not form part of index (say, Y).
A. Overall Information
Table 4.9
Percentage (%) of Companies (representing X)
disclosing CSR details
% of companies
CSR details disclosed 96 %
CSR details not disclosed 4%
Table 4.10
Percentage (%) of Companies (representing Y)
disclosing CSR details
% of companies
CSR details disclosed 90 %
CSR details not disclosed 10%
138
This reveals that Nifty based companies seem to be more CSR
information sensitive companies than Non –Nifty based probably,
Company X preserve to be more responsible in terms of
information dissemination.
B Reporting Formats
Table 4. 11
Percentage (%) of Companies (representing X)
using Reporting Formats
Reporting Formats % of Companies
Social Reporting Statement 50 %
Management Discussion Analysis
(MDA)
22 %
Director Report (DR) 30%
Photograph 48%
Narrative – quantification 74%
Information on amount spent 50 %
139
Table 4.12
Percentage (%) of Companies(Representing Y)
using Reporting Formats
Reporting Formats % of Companies
Social Reporting Statement 28%
Management Discussion Analysis
(MDA)
22%
Director Report (DR) 42%
Photograph 26%
Narrative – quantification 72%
Information on amount spent 40%
If we look out reporting formats point of view, then companies X
seem to be more clear about what they want to achieve with regard
to CSR by way of social reporting statement than companies Y.
This also reveals the fact that companies X are more committed to
social cause than companies Y. However, with regard to Director
Report, companies Y prefer to disseminate information through
Director Report than companies X. However exhibiting information
through photographs is a better way to give a snapshot of social
activities. Hence, Companies X are more responsive than
companies Y using photos an reporting method.
However, it is very striking to observe that more than 70% of the
companies X & Y, both have given Information by way of narration
or explanation or paragraphs with mentioning of amount. Now, this
140
method, perhaps, is ineffective in terms of attracting attention of the
readers. Largely, almost 50% of the companies X & 40 % of Y have
shown amount of social expenditure.
C CSR Areas
Table 4.13
Percentage (%) of Companies (Representing X)
using CSR Areas
Companies presence in Social
Activities
% of Companies
Education 86%
Health 88%
Community Development 88%
Environment 54%
Employee 32%
Other 62%
141
Table 4.14
Percentage (%) of Companies (Representing Y)
using CSR Areas
Companies presence in Social
Activities
% of Companies
Education 72%
Health 62%
Community Development 70%
Environment 44%
Employee 18%
Other 50%
We attempted to study how the companies spend money for which
areas of social activities. Companies’ X has covered more than 80%
of Education, Health & Community Development. Environment has
not gained that much, while employees are at the bottom of all
activities.
Similarly companies Y have covered around 70% of Education,
Health & community Development. Still, Environment at the lower
side while employees at the least.