7/4/23, 10:56 PM Rating Criteria, 2010 | Karmayog

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Karmayog CSR Ratings of the largest 500 Indian companies – 2010 – Rating Criteria

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 CSR activities that cover any kind of Level 1
social, developmental or community
work
If CSR is also linked to reducing the CSR activities that aim to accordingly Level 2
negative impacts of company’s own improve processes and products of the
products or processes company.
If CSR initiatives are also for the CSR activities that are focused on those Level 3
local community who are affected directly by the
company
If CSR is also embedded in the CSR activities that form a part of the Level 4
business operations daily business activities of the company.
If innovative ideas and practices are CSR activities that enable sustainable Level 5
also developed for CSR and replicable solutions to problems
faced by society.

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B) Sufficient Criteria

If the company is doing this, they automatically get this rating at least

Sufficient Criteria What this means Rating

Level
Company fulfilling basic needs of The products and services of the Level 1
society through its products or company are useful and benefit society
services
e.g. providing financial services
Unique CSR activity which would The CSR activity being undertaken by the Level 1
not otherwise happen
e.g. Developing a mapping and
tracking software for adoption in company is helpful to government, NGOs,

India others, in tackling issues of society

Company helps to reduce the The company’s products or services Level 1

negative impact of other
companies
e.g. A company that makes water
purification & waste recycling
systems
Company adopting the GRI
Framework for CSR reporting
Company’s annual expenditure on
CSR = 0.2% of sales, minimum
provide solutions to mitigate harm
caused by actions of companies, their
products, etc.
The company is committed to measuring Level 1
and reporting its CSR initiatives as per a
voluntary globally accepted framework.
The company is committed to a minimum Level 2
expenditure on CSR annually, and thus
considers CSR as an integral part of its
business

C) Negative Criteria that usually determine the maximum possible Rating

Companies in this category will not normally get a higher rating than the one shown

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Negative Criteria Reason Rating Level

Companies that make liquor,
tobacco, genetically engineered society, and cause harm to people and
/ modified crops
Companies that violate
laws/rules/regulations
Companies engaged in high
impact processes
Companies that report the same
CSR activities (even, verbatim)
as for previous years
These products are not needed by Level 0
the environment. The best CSR to do is
to stop making these products.
CSR is not limited just to how a Level 1
company spends its money, but also
to how it makes that money in the first
place
Processes that severely damage the Level 1
environment require extraordinary
efforts by the company to reduce and
repair the damage, and require greater
contributions to benefit society
This indicates that the company does One Level less
not take CSR seriously enough to be than the
engaged in CSR initiatives every year, previous
building on these, and reporting year’s rating
progress.

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