Responsible Business Performance
This part of the report covers
- Scoring of the companies based on governance, disclosure, stakeholders and sustainability
- Spending pattern of responsible business activities
- Mapping scores and spends to create the responsibility matrix and creating a distance to responsibility (how far away the company is from 2% spend and a score of 100)
- Five-year patterns across spending, scoring and responsibility matrix
Companies undertake many types of responsible business activities. It is difficult to comprehend easily the breadth and scope of their work. The study uses a measure called the Spread, which is indicative of how broad-based the responsible business activities of a company are and is a combined score of the four criteria shown below.
- Tata group companies occupy the prime position. Of the top five companies, three are from the Tata stable (as compared to four in the previous year).
- Ambuja Cement has moved up to the second position. Infosys, Bharat Petroleum Corporation Ltd, Hindustan Zinc and Indian Oil Corporation Ltd joined the top ten list.
- Two public sector companies have entered the top 10 list – Bharat Petroleum Corporation Ltd and Indian Oil Corporation Ltd.
- Like the previous years, this year too there is no foreign company in the top ten list.
- If we study the performance of companies in each the four parameters, then we find that stakeholder needs more attention. The remaining parameters of governance, disclosure and sustainability are relatively better with majority companies scoring more than half the maximum score.