Corporate Social Responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits. Impact-driven CSRs are helping the corporate to earn the trust and respect of their stakeholders and others. The importance of CSR activities is highlighted even by the Ministry of Corporate Affairs (MCA) who has mandated the companies in India to spend 2 percent of their three-year average annual net profit on CSR activities in each financial year.
The KPMG Survey of Corporate Responsibility Reporting 2015 says that ‘India leads Corporate Responsibility Reporting Rates in the World with the highest increase of over 27%’. India is leading, with all top companies reporting on CR.
The corporate programs of companies are making a good impact in our society. But the main question comes here, ‘HOW GOOD?’.
The answer to this is given by ‘ET 2 Good 4 Good’ CSR ratings. A concept developed by The Economic Times and KPMG in India. The initiative aims to be the golden standard for the CSR activities carried out by corporate. For corporates, this is a tool for comparative benchmarking and continuous improvement in delivering better and deeper social impact. ET 2 good 4 good believes that it is not just about how much is spent but about how impactful and useful the work is.
The first edition of the ratings saw corporates participating and winning accolades. The second edition of the ratings are launched and this will be a five-stage process is mentioned below:
- Registration by corporates
- Evaluation of questionnaires by KPMG
- Award of ratings by jury
- Recognition in the Economic Times
- Individual feedback sessions with Corporate
A platform to make the corporates feel good about what they do and see the scope for improvement too. With the ratings, we can definitely expect a better impact from future CSR activities.