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A) Minimum Necessary Criteria
Necessary parameters that make a company eligible for a particular rating level:
|
Necessary Criteria |
Explanation |
Rating Level |
|
If undertaking any CSR Activity
|
Where any kind of social, developmental or community work is done |
Level 1 |
|
If CSR is linked to reducing the negative impacts of company’s own products or processes |
CSR activities that aim to improve processes and products of the company. |
Level 2 |
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If CSR initiatives are for the local community
|
CSR activities that are focused on those who are affected directly by the company |
Level 3 |
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If CSR is embedded in the business operations
|
CSR activities form a part of the daily business activities of the company. |
Level 4 |
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If innovative ideas and practices are developed for CSR
|
CSR activities enable sustainable and replicable solutions to problems faced by society. |
Level 5 |
B) Sufficient Criteria for Minimum Rating
|
Sufficient Criteria
|
What this means |
Rating Level |
|
Company fulfilling the basic needs of society
e.g. manufacture of food |
The products and services of the company are useful and benefits society |
Level 1 |
|
Unique CSR activity which would not otherwise happen
e.g. Developing a mapping and tracking software for adoption in India |
The CSR activity being undertaken by the company is not being done by government, NGOs, etc. |
Level 1 |
|
Company reducing negative impact of others
e.g. A company that makes water purification & waste recycling systems |
The company’s products or services provide solutions to mitigate harm caused by actions of companies, their products, etc. |
Level 1 |
|
Company adopting the GRI Framework for CSR reporting
|
The company is committed to measuring and reporting its CSR initiatives as per a voluntary globally accepted framework. |
Level 2 |
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Company’s annual expenditure on CSR = 0.2% of sales
|
The company is committed to a minimum expenditure on CSR annually, and thus considers CSR as an integral part of its business |
Level 3 |
C) Negative Criteria that usually determine the maximum possible Rating
Negative Criteria |
Reason |
Rating Level |
|
Companies that make liquor, tobacco, genetically modified crops
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These products are not needed by society, and cause harm to people and the environment. The CSR to do is to stop making these products. |
Level 0 |
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Companies that violate laws/rules/regulations
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CSR is not limited just to how a company spends its money, but also to how it makes that money in the first place |
Level 1 |
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Companies engaged in high impact processes
|
|
Level 1 | |
