CSR is the new driver of company goodwill, says Nielsen

Televisionpoint.com Correspondent | Mumbai
When it comes to building corporate reputations, nothing is as effective as a company's efforts in the area of Corporate Social Responsibility (CSR), according to the latest Nielsen Corporate Image Monitor 2007 (CIM) from Nielsen India, designed to measure people's perceptions of the image and reputation of India's leading companies.

Indian companies have become more aware of their role in CSR initiatives in the last few years. Infosys, Tata Steel, Tata Motors, Reliance Industries and ICICI Bank, rank at the top of Corporate Social Responsibility Index.

Environmental consciousness in the form of Maintenance of Parks and Roads, Primary Education, and Training are the top three investment areas for corporations. However, the study reveals that these initiatives fall short of stakeholder expectations and their vision for real social responsibility.

"While India is on a high growth trajectory, there are many areas of society in need of drastic improvement to sustain growth. There appear to be gaps between what Indian companies currently spend in support of CSR, compared to their stakeholders' expectations. It is important for corporations to take stakeholder CSR priorities seriously, bearing in mind the triple bottom-line of 'People, Planet & Profit'." said Palal Bhattacharjee, Associate Director, Client Solutions, The Nielsen Company, India.

The CI Monitor found that, overall the impression of the Top 20 companies, among people surveyed, had improved significantly in 2007. The average Net Image Goodwill of the Top 20 Companies saw a sharp improvement from 29 percent in 2006 to 41 percent in 2007. Companies showing sharp improvements were Tata Steel, Tata Motors, and Bharti Airtel. While ICICI Bank was the sole entrant from the banking sector, not one of the FMCG giants featured in the top ten list.

Among the various attributes rated by the stakeholders, quality of products and services, using latest technology to introduce products or services, reliability of products and services, continuous value-add, and enhancement of products and services came out on top. Additionally, 'Company's clear long term vision' and 'consistently making profit' were also voiced as critical factors that determine the image of a corporate.

Meanwhile, a company that contributes to government revenues, is involved in community welfare and achieves its targets in an honest manner, also ranked highly on the goodwill scale with the public. Companies attracting the best talent, having good scope for career development, and possessing an international perspective of management were also rated highly.

"Corporations must communicate their CSR initiatives to promote a positive image about the company in people's mind. News items in various media, word of mouth, and company reports are the three major sources of information for various social and environmental issues. Corporations should use regular media and company websites to promote welfare initiatives," continues Bhattacharjee.