CSR OF RELIANCE INDUSTRIES

India has a long tradition in the field of corporate social responsibility and industrial welfare has been put to practice since late 1800s. Historically, the philanthropy of business people in India has resembled western philanthropy in being rooted in religious belief. Business practices in the 1900s that could be termed socially responsible took different forms: philanthropic donations to charity, service to the community, enhancing employee welfare and promoting religious conduct. The concept of CSR has evolved from being regarded as detrimental to a company’s profitability, to being considered as somehow benefiting the company as a whole, at least in the long run. This report tries to analyze the CSR initiatives of Reliance Foundation in India, and focuses on the finding & reviewing the impact of its CSR initiatives.

Corporate social responsibility (CSR) is on the rise all over the world, and India is no exception. The history of corporate paternalism has played an important part in shaping community expectations and CSR practices in India. Civil society, consumers and other actors have increased the pressure on companies to adhere to social and environmental standards, and this new “civil regulatory” environment has had impacts on business in India. In the words of Prof.N.R.Sheth, A corporate enterprise has been recognized as a "person" in law. It should also be recognized as a person in society. A corporate takes birth and grows in response to needs and labours of various stakeholders- entrepreneurs, managers, workers, local community, larger society, buyers, suppliers and of course, the state. Healthy survival and development depend on adequate nurturing by all these stakeholders. The concept of social responsibility should therefore include the whole spectrum of stakeholders. Responsibility should be clearly perceived and projected as responsibility and therefore be kept away from ideas of philanthropy, charity, generosity and the like. A corporate, as a citizen, should understand that its own well-being is inextricably linked with the well-being of all stakeholders. Its financial management as well as human resources should notionally cover all stakeholders. One practical way of defining social responsibility is to allocate resources for material and human investment beyond legal obligations. How far and how should one contribute to the short-and long-term welfare of employees, clients, suppliers, people in the vicinity (especially those who supply human capital) and the wider population? What can be done to build bridges of understanding and mutuality with various categories of stakeholders? RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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How does one demonstrate a mindset which emphasizes interest in other beyond the realm of selfinterest? Indian corporate sector is spending 0.2 percent of their profits towards CSR activities only. Indian government has mandated CSR activities for corporate firms which are earning profits as per company’s act-2013. The study of CSR activities RIL is very important as the firms is competing to emerge as leader in CSR India.

India is the 2nd highest populous country in the world. Most of the population is living in the villages. India has achieved 65 % literacy rate only. Majority of the rural people are illiterates, not accessible to good health facilities and nutritious food. 20 percent of the rural people are in the poverty line. The business houses are earning profits by rendering their services to customers in society. The government alone can’t uplift the downtrodden people. The corporate houses and non-governmental organizations have to come forward to eradicate various social evils and play vital role in society development their activities such as providing quality education, extending healthcare facilities, nutritious food, creating awareness on environment safety ,drinking water facilities, sponsoring the sports events, participating in natural disaster management programmes,ethical values promotion, enriching the Indian culture ,etc.The corporate houses have to come forward to do their part towards development of the society. This contribution will be helpful to the organizations to enhance their brand awareness and reputation in the market. The society development should be treated as an integral part of the organization’s strategy. CSR strategies promote the corporate sustainable development as well as society as at large. Therefore community development is a responsibility of the government, non-governmental organizations and business organizations as well.

The study is intended to achieve the following objectives: •

The main purpose of the study is to analyze the corporate social responsibility (CSR) activities carried out by Indian private (RIL).

The study is based on the secondary data collected from the annual reports of Reliance Industries Limited (RIL) 2009-10 to 2012-13. The study adopts descriptive and analytical research design. According to the section 135, Schedule VII of Companies Act-2013 initiatives of CSR. 2

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

Reliance Industries Ltd is an India-based company. The company is India's largest private sector company on all major financial parameters. They are the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 117th amongst the world's Top 200 companies in terms of profits. The company operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara. The company operates in three business segments: petrochemicals, refining, and oil and gas. The petrochemicals segment includes production and marketing operations of petrochemical products. The refining segment includes production and marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of crude oil and natural gas. The other segment of the company includes textile, retail business and special economic zone (SEZ) development. In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was started as a small textile manufacturer unit. In May 8, 1973 RIL was incorporated and conformed their name as RIL in the year 1985. Over the years, the company has transformed their business from manufacturing of textiles products into a petrochemical major.

Social welfare and community development is at the core of Reliance’s Corporate Social Responsibility (CSR) philosophy and continues to be a top priority for the Company. It revolves around the Company’s deeply-held belief in the principle of symbiotic relationship with the local communities, recognizing that business ultimately has a purpose - to serve human needs. Close and continuous interaction with the people and communities in and around the manufacturing divisions has been the key focus while striving to bring around qualitative changes and supporting the underprivileged. The key philosophy of all CSR initiatives of RIL is guided by three core commitments of SIS: a) S- SCALE b) I- IMPACT

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

c) S- SUSTAINABILITY

Corporate social responsibility (CSR) is a form of business self-regulation to incorporate social and environmental concerns. It represents a business model that adheres to laws, ethical standards, and international norms. As part of the business model, businesses have to take into account the impact of their activities on the environment, employees, communities, stakeholders, and other members of the public. In short, CSR represents the deliberate inclusion of the public’s interest in a business’ decision making to ensure a triple bottom line that considers the planet, people, and profits. In general, CSR involves some kind of standardized reporting that allows the business to collect information on how it is making progress on various fronts. Businesses that engage in CSR typically focus on some or all of the following: •

Environment: This requires a look at the environmental impacts of products and services, as well as what the business does outside the company to improve the environment.

•

Employees: It’s important to ensure that all employees are cared for adequately. Businesses usually focus on workplace conditions, benefits, living wages, and training. 4

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•

Communities: Engaging the surrounding communities is an important part of not just creating good human capital that can serve the business, but also securing a reputation that can further establish the business.

•

Regulations: Respecting regulations to the fullest and often exceeding them is part of being socially responsible.

•

Crisis Preparedness: Being ready to address business crises and ensure safety for employees and surrounding communities is critical. Having plans ready and tried are important in ensuring minimal losses during times of crises.

CSR is about how companies manage the business processes to produce an overall positive impact on society.

Take the following illustration:

Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance. RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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On 8th August 2013 the proposed new Companies Bill, 2012 was passed by Rajya Sabha. This bill will soon replace the Companies Act, 1956, which has governed Indian business for over 50 years. The new Company’s Act -2013will come into effect at a future date not yet determined. The Act contains an important clause (Clause 135) that mandates CSR regulations for Indian companies. It has many merits for one thing; it simplifies many issues and aims at greater transparency and ease of doing business in India. It has also introduced class action lawsuits, which will protect small holders, a remarkable move. As per companies act 2013, CSR is mandatory 2 percent spend for companies with profits over 50 million Rupees ($816, 000) in the last three years. While this mandatory spend may seem like an excellent move and a great business opportunity, especially for smaller consultancies and reveals that which is simply not true. Only companies of a certain size are included in Clause 135.The rules define the companies affected as those having net worth of Rs 500 crore or more; or annual turnover of Rs 1000 crore or more; or annual net profit of Rs 5 crore or more (net profit before tax, not include profits arising from branches outside India).

CSR needs not be altruistic to be effective

According to India's Corporate Affairs Minister Sachin Pilot, "CSR should be viewed as something that you are doing – whether through cash or kind, or man-hours, or anything else – to bring smiles to the people's faces and not for your EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)."

While inspiring, Pilot's declaration pivots CSR from being a call of business to something undefined and unrelated – something more. But CSR need not be altruistic to be effective. Companies like Pepsi Co and Coca- Cola invest in projects like water treatment facilities and a zero waste footprint for their products because it helps them reduce their resource use, which in turn helps them become sustainable and achieve higher profits. General Motors and saves itself millions of dollars because it is good business and impacts its bottom line while pushing innovation, better technology and building accountability.

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What CSR is, and should do?

The Indian business scenario is not without its merits and CSR has an enormous role to play as long as it has guidelines to help in its progression. These guidelines need to play up India’s strengths like innovation. Jugaad has always been a way of life in India – now if we can take this intrinsic concept and mix it with some systems thinking to streamline evolution, Indian Inc. will have a global playing field. Besides, CSR should encourage cross-pollination of ideas, systems thinking and holistic problem solving. It should support transparency, innovation, and stakeholder engagement and consumer empowerment, all in order to make businesses do better by creating products and services that put human and environmental health at the forefront. Confusing these goals with mere policy will result in a stagnation of CSR. Sadly, this is what the mandatory spend encourages. Corporate Social responsibility in India

•

Most companies are not doing any CSR

•

Many companies are only making token gestures towards CSR in tangential ways such as donations to charitable trusts or NGOs, sponsorship of events, etc.

•

Most companies believe that charity and philanthropy equals to CSR; very few companies are using their core competence to benefit the community.

•

Most companies use CSR as a marketing tool to further spread the word about their business. For instance, donation of a token amount to some cause on purchase of a particular product. The fact that companies are hiring advertising agencies for their CSR further highlights this.

•

Only Few Indian companies (from this study) publish a Corporate Sustainability Report to measure and assess the impact of their business on the environment .

•

Very few companies openly state the processes followed by them, the damage caused by these processes, and the steps taken to minimize this damage.

•

Very few companies state how much they spend on CSR. There is no mention of the amount spent in any of their balance sheets or annual reports. Most companies just list and describe their CSR activities and seem to be spending minimal amounts on CSR.

•

Very few companies are engaged in CSR activities in the local communities where they are based.

•

Very few companies have a clearly defined CSR philosophy. Most implement their CSR in an ad-hoc manner, unconnected with their business process.

•

Most companies spread their CSR funds thinly across many activities, thus somewhere losing the purpose of undertaking that activity.

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•

Most companies appear reluctant to themselves fulfill their CSR unless it is mandatory by law.

•

Generally speaking, most companies seem either unaware or don’t care about CSR. However, all companies can be considered to be an upward learning curve with respect to CSR and it is expected that the situation will improve.

RIL, Tatas most admired cos for CSR activities

Corporate behemoth Reliance Industries and two Tata Group firms -- Tata Motors and Tata Steel -have emerged as the country's most admired companies for their corporate social responsibility initiatives, says a survey. According to a survey by global consultancy firm The Nielsen, RIL is on top followed by Tata Motors and Tata Steel as the most admired companies by stakeholders for their CSR initiatives.

The business benefits of corporate social responsibility

Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits. Building a reputation as a responsible business sets you apart. Companies often favour suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers.

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

1. Trophy for its work done under the National AIDS Control Program phase-III from Population Foundation of India (Hazira Manufacturing Division Reliance Community Care Centre) 2. The Golden Peacock Award - 2012 for Corporate Social Responsibility by Institute of Directors (IOD) 3. (Vadodara Manufacturing Division) 4. Red Cross Gold Medal for the “Reliance Dhirubhai Ambani Protsahan” Educational initiative from Governor of Andhra Pradesh for FY 2011-12 5. Golden Peacock National Training Award – 2012 (Patalganga Manufacturing Division) 6. The National Award for Innovative Training Practices for security training practices by Indian Society for Training and Development (Nagothane Manufacturing Division) 7. The Greentech Gold Award for HR Excellence (Dahej Manufacturing Division ) 8. Oliver Kinross’s Asia Oil & Gas Award 20 13 for Corporate Social Responsibility - Company of the Year (RIL KG-D6) 9. “Best ART (Anti-Retroviral Therapy) Centre Award 2013” by Gujarat State AIDS Control Society (GSACS) on World AIDS Day (Hazira Manufacturing Division) 10. Award for leadership excellence in corporate social welfare/CSR by“The Greatest Corporate Leaders of India” initiative (Hazira Manufacturing Division) 11. ‘Best corporate social responsibility practices’ and ‘Best use of CSR practices in manufacturing’ awards (Hazira Manufacturing Division)

(CSR & G Committee) •

RIL's Board of Directors have formed a CSR&G Committee. This committee, along with the CSR team, to be responsible for the decision making with respect to RIL CSR policy.

•

CSR&G Committee recommended the policy to RIL's Board of Directors and the Board of Directors have approved this policy.

•

The Board level Committee to meet at least twice a year to review the implementation of CSR projects/ programs and give suitable direction 0 1

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

BUDGET

•

The Board of RIL to ensure that minimum of 2% of average net profit of the last

•

3 years is spent on CSR initiatives undertaken by RIL

•

All expenditure towards the programs to be diligently documented

•

In case at least 2% of average net profit of the last 3 years is not spent in a financial year,

•

reasons for the same to be specified in the CSR report Any surplus generated out of the CSR activities not to be added to the normal business profits of RIL.

FINANCIAL DETAILS OF THECOMPANY

CSR Expenditur e

3.24 % of profit after tax Spent on Corporate

1.

Paid up capital (INR): 3,232 crore

2.

Total turnover (INR): 4,01,302crore

3.

Total profit after taxes (INR): 21,984 crore

4.

Total spending on Corporate Social Responsibility (CSR) as

Social Responsibility

percentage of profit after tax (%): 3.24%

RIL’s CSR policy demonstrates its efforts towards social and economic development. RIL’s community development initiatives focus on education, healthcare, skill enhancement, infrastructure development, promoting sportsmanship, women empowerment, among others. Following are some of the initiatives RIL has undertaken during FY 2013-14: •

Ensuring well-being of local communities

•

Building capabilities for employment generation

•

Empowering women

•

Creating access to health care

•

Conserving environment

Modes

through

which

programs/projects

undertaken

(through

in-house

team/own

foundation/external NGO/government structures/ any other organization)

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

– A comprehensive approach towards community development RIL implements a number of its community development initiatives through Reliance Foundation (RF). RF has a comprehensive approach towards community development with focus on five pillars of

Rural Transformation, Education, Health, Urban Renewal and Arts, Culture and Heritage. Through various initiatives under these core areas, the Foundation strives to bring a synergetic approach towards community development. •

Reliance Foundation BIJ- Bharat India Jodo

•

Information services

•

Health Programmes

•

Reliance Foundation Drishti

•

The Dhirubhai Ambani Scholarship Programme

•

Sports for Development Arts, Culture & Heritage Disaster Response

•

Environmental Sustainability 2 1

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

Creating sustainable livelihood solutions, addressing poverty, hunger and malnutrition

Affordable solutions for healthcare through Health

i mp ro ve d a cc es s , a wa re ne ss a nd health seeking behaviour

Access to quality education, training and Education

Environment

Arts, Heritage and Culture

skill enhancement

Environmental sustainability, ecological balance, conservation of natural resources

Protection and promotion of India’s art, culture and heritage

Disaster Response

Managing and responding to disaster

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

. CSR During FY 2013-14, RIL spent ` 711.72 crore on community development initiatives expenditure incurred by RIL

is

on

various

projects

pertaining to

education,

healthcare,

livelihood support, rural development, heritage conservation, environment, safety etc.

$ Mn

06-07

05-06 04-05

Revenue From Operations

66,979

4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

89,124 73,164

Total Income

68,470

4,10,238 3,79,117 3,45,984 2,61,703 2,02,860 1,48,388 1,44,898 1,18,832

89,807 74,614

Earnings Before Depreciation, Finance Cost and Tax Expenses (EBDIT) Depreciation and Amortisation Exceptional Items

6,645

Profit For the Year

3,669

1,467 -

Equity Dividend %*

2013-14

12-13

11-12

10-11

09-10

08-09

07-08

39,813 38,785

39,811

41,178

33,041

25,374

28,935

20,525

14,982 14,261

8,789

9,465

11,394

13,608

10,497

5,195

4,847

4,815

3,401 3,724

-

-

-

-

-

(370)

4,733

-

21,984 21,003

20,040

20,286

16,236

15,309

19,458

11,943

95

90

85

80

70

130

130

110

-

-

9,069 7,572 100

75

Dividend Payout

466

2,793

2,643

2,531

2,385

2,084

1,897

1,631

1,440

1,393 1,045

Equity Share Capital

539

3,232

3,229

3,271

3,273

3,270

1,574

1,454

1,393

1,393 1,393

-

-

-

-

-

-

69

-

60

-

-

-

-

-

Equity Share Suspense Account Equity Share Warrants

-

-

-

-

-

-

1,682

-

Reserves and Surplus

32,353

1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411 39,010

Net Worth

32,892

1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804 40,403

Gross Fixed Assets

44,109

2,64,281 2,32,270 2,05,493 2,21,252 2,28,004 2,18,673 1,27,235 1,07,061

91,928 59,955

Net Fixed Assets

25,223

1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387

71,189

62,675 35,082

TotalAssets

61,351

3,67,583 3,18,511 2,95,140 2,84,719 2,51,006 2,45,706 1,49,792 1,17,353

93,095 80,586

Market Capitalisation

50,139

3,00,405 2,49,802 2,44,757 3,42,984 3,51,320 2,39,721 3,29,179 1,98,905 1,10,958 76,079

Number of Employees Contribution to National Exchequer

5,236

23,853 23,519 31,374 28,950

23,166 28,197

22,661 28,719

23,365 17,972

24,679 11,574

84,889

25,487 13,696

24,696 15,344

12,540 12,113 15,950 13,972

CSR expenditure: (`in crore)

FY 2013-14

FY 2012-13

FY 2011-12

FY 2010-11

80.76

66.71

75.06

91.01

Health

416.69

140.72

91.03

46.99

Rural Development

165.72

73.10

21.69

28.35

0.52

1.20

2.15

0.76

Others

48.03

69.27

61.34

34.23

TOTAL

711.72

351.00

251.27

201.34

Education

Environment (Greening activities)

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A total of 1.36 million man- hours of training was imparted to workforce More than 460 Village Farmer Associations (VFAs) are being actively involved in the process of bringing about a change in the lives of nearly 40,700 farming households 3,552 HIV/AIDS patients were provided free consultation, counselling, investigation and treatment at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali Over 12,800 free corneal transplants across India till date (Reliance Drishti) Steps undertaken to ensure that community development initiatives are successfully adopted by the community

•

To work towards bridging the developmental gap between rural 'Bharat' and urban India by improving livelihood, addressing poverty, hunger and malnutrition. Key initiatives include:

•

Supporting Farm and non-farm livelihoods

• •

Improving water conservation and rain-water harvesting Developing community based initiatives like VFAs and producer companies towards building capacity of the community and ensuring sustainability.

•

Using technology towards delivering need based information for improving quality of life.

•

Improving food security and enhancing nutrition

•

Developing Community infrastructure

Billionaire Mukesh Ambani- run Reliance Foundation has undertaken a CSR initiative on rural transformation, which covers 24 of the poorest pockets across 10 states, engaging 20,000 farming households from 250 villages. For the initial phase, 24 pockets across Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu were selected. Reliance Rural Development Trust (RRDT)

RRDT during the year worked in 266 villages, constructing 173 Anganawadi buildings, 88 concrete roads and other rural facilities. RELIANCE FOUNDATION BIJ- BHARAT INDIA JODO

With the aim of bridging the rural-urban divide, the rural transformation initiative RF BIJ supports marginal farmers by ensuring livelihoods and supporting them in their journey out of poverty. While the programme aims at de risking farming and making the community self-sufficient, it also aims at RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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contributing towards conservation of nature and promoting sustainable

farming

practices.

Launched in 2010, the RF BIJ programme has come a long way and has its presence in 19 agro

ecological zones spread over 11 states in the country. Working on the three core pillars of direct action, participatory

approach

and

sustainable

development, RF BIJ reaches out to the most deserving communities characterised by low rainfall, rainfed agriculture, large tracts of cultivable wastelands and high poverty index. Today more than 460 Village Farmer Associations (VFAs) are being actively involved in the process of bringing about a change in the lives of nearly 40,700 farming households through its initiatives. Close to

15,600 hectares of land have been redeveloped under the Dharti farm initiative this year taking the cumulative land development since inception of the programme to over 31,000 hectares. Another significant intervention under the RF BIJ initiative, Reliance Nutrition Garden has positively influenced the nutritional intake RIL ensures its presence is established right from the commencement of the initiatives. RIL collaborates with communities from need identification stage to project implementation . The Company involves the community in decision-making process, right from the problem identification stage till implementation. The extensive engagement with the community establishes joint ownership of projects. All concerns are amicably addressed and the initiatives are adopted since they are designed as per the identified and prioritised needs of the communities, implemented with the active participation of the communities and progress is jointly evaluated with the community representatives.

•

To address issues around affordability and accessibility of quality healthcare and bring about improvement in awareness and health seeking behavior in various parts of India, enabling a better living, through initiatives such as:

•

Primary, secondary and tertiary care facilities

•

Conducting need based health camps and pr oviding consultation, medicines etc.

•

Working on maternal and child health

•

Behavioral change for improved mother and child health

•

Improving healthcare delivery through innovative outreach programmes

•

Working for the visually impaired

•

Working in the areas of Communicable and non-communicable diseases

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•

Using technology for training, competency evaluation and clinical decision support for medical professionals with a view to improve quality of healthcare

HEALTH PROGRAMMES

The‘Health for all’ initiative focuses on the provision of good quality primary care through its mobile and static medical units and caters to the needs of the lower income group families in the area. It also aims at establishing an effective referral system to streamline the flow of patients to the higher centres of care. More than 350,000 individuals have enrolledfor the services and nearly 52,600 patients Similar have benefitted from the services within one and half years of initiating the programme. mobile medical units are operating in Uttarakhand and Madhya Pradesh. More than 14,300 patients from nearly 150 villages in Madhya Pradesh and Uttarakhand have benefitted from the services of the mobile medical units in this year. RELIANCE FOUNDATION DRISHTI

The Drishti programme aims at improving the lives of visually impaired. Implemented in association with the National Association for the Blind, the programme has transformed the lives of 1200 cataract affected individuals through successful corneal transplants this year (12,839 cataract surgeries since inception).Other initiatives like the Braille newspaper and calendar and campaigns

to promote eye donation are also integral aspects of the Drishti programme. RIL started the ‘Change Agents for Safety Health and Environment’ (CASHe)programme a decade ago.

Over the years, the CASHe programme has

evolved into a movement encompassing the entire enterprise with thousands of improvement projects. The programme has been instrumental in creating a culture of implementing health, safety and environment projects on a priority basis. This programme

has

helped

to

improve

the

Company’s

performance on the occupational health and safety front. It has been recognised in various international forums like the International Occupational Health Congresses held in Italy, South Africa and Mexico. During the year, RIL has also implemented a unique programme called ‘Task Based Health Risk Assessment’ (TBHRA). A very unique and significant initiative, ‘REFERS’ (Reliance Employee & Family Emergency Response Services) offers 24x7 assistance in case of any medical, accident, fire and security RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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exigencies.RIL’s Community Medical

Centres

established

near

most of its manufacturing

divisions, provide comprehensive healthcare services to local villagers. A joint initiative of RIL and National Association of Blind, Project Drishti, has undertaken over 12,800 free corneal graft surgeries till date across the country.

RIL’s initiative to combat TB and HIV/AIDS is a unique public- private partnershipprogramme between the Government, NGOs and the Company. It creates awareness and provides care, support and treatment (including free-of-cost treatment) to the poor. The Hazira Manufacturing Division’s HIV/AIDS Centre is one of the largest Anti-Retroviral Treatment Centre (ART Centre) in India. It is a fully functional 32-bed hospital for HIV/AIDS patients. ART Centre facilities are replicated as per the successful Hazira model in Jamnagar, Patalganga and Lodhivali. COMMUNITY HEALTHCARE Health Care initiatives

To inculcate the awareness of public health and sanitation among villagers, scientific disposal of waste and a total sanitation drive in association with Sulabh International is regularly carried out at Moti Khavdi, Meghpar, Padana and Nani Khavdi villages. A daily door-to-door collection of garbage, sweeping of village roads and disposal of waste collected at designated places outside village continued during the year.The Community Medical Centre at Moti Khavdi with an average of 400 OPD patients per day caters to the village Girls’ and fluting population mainly consisting of migrant labour staying in nearby villages.

The Centre

provides free-of-cost, round-the-clock comprehensive health services to about 45 villages/hamlets. The

intervention impacts health and hygiene needs of 1.5 million people. It also extends emergency life- saving services to accident victims on the Jamnagar-Dwarka highway. The Centre provides ARV treatment for AIDS patients free-of-cost since October 2007. This is the fi centre of its kind by a private sector company in this region. Doctors and nurses from the Centre visit 6 neighbouring villages twice a week. Free check-up and treatments are done and free medicines are provided to around 150 to 180 patients per trip.Audio-visual shows, poster exhibition, Sunday clinic for HIV/ AIDS awareness, pulse polio vaccination, multidiagnostic camps and blood donation camps are carried out regularly.

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PRIMARY HEALTH CENTRE OPERATIONS A total of 22,250 patients (male 9,844, female 12,406) from Gadimoga and Bhairavapalem Panchayats were treated during the year at static clinic Gadimoga and satellite clinic Bhairavapalem.

One male doctor, one lady doctor and two pharmacists are available between 9 AM to 5.30 PM on all working days at the Gadimoga Static Clinic. The doctors extend their services to the Bhairavapalem village community twice a week, The Static Clinic at Gadimoga and the Satellite Clinic at Bhairavapalem are functioning since

2005 and 2006 respectively, to cater the health needs of fishermen community

with a budget outlay of about 0.24 crore annually.

DHIRUBHAI AMBANI HOSPITAL During the year, the Dhirubhai Ambani Hospital at Lodhivali, Maharashtra engaged significantly to improve the quality of life in surrounding communities. Medic al diagnostic camps were arranged in nearby areas for providing medical consultation, diagnosis and medicines to the needy. During FY 2013-14, 13 medical camps were conducted.In addition, during the year, the following initiatives were taken for providing healthcare facilities to the local • Medical care was provi ded to 54 road accident trauma pati ents free-of-c ost or at highly subsid ised rates • An Orthoped ic camp for Osteoporo sis patient s was conducted at Dhir ubhai Ambani Ho spital at Lodhivali, where 70 persons were attended. 3,552 HIV/AIDs patients were provided free consultation, counselling, investigation and treatment till 31st March 2014 at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali.

LIVELIHOOD SUPPORT PROGRAMMES

RIL has always been at the forefront in implementing initiatives especially for the welfare of rural women and youth of surrounding villages through various self-help groups (SHG). Continuing with the services and keeping up the tradition, Hazira, Vadodra, Nagothane, Gadimoga and many other manufacturing divisions offer training programmes through various SHGs help the rural women and youth to be "self sustaining" and generating income for themselves and supporting their families

•

To work on several educational initiatives to provide quality education, training, skill enhancement for improving the quality of living and livelihood. Initiatives are aimed at:

•

Promoting primary and secondary education

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•

Enabling higher education through merit cum means scholarships, including for differently abled across the country.

•

Using sports as a tool for development of students in both urban and rural settings

•

Promoting higher education including setting up and supporting universities

•

Skill development and vocational training

To build a rich pool of human resources for India, RIL has developed its own network of 12 schools in and around the manufacturing units of the company at Jamnagar Surat, Vadodara, Patalganga, Nagothane and Nagpur benefitting more than 15,000 students. These schools promote the education among the children of the underprivileged communities. The J .H. Ambani School at Patalganga provided education to many underprivileged children from nearby villages in Lodhivali during the current year. To attract children to attend schooland foster a love for k nowledge among them, several initiatives were taken during the year. These included construction of a school building at Meghpar village in Jamnagar; construction of exclusive girls' school at Motikhavdi ; distribution of school benches at Nagothane ; providing school kits at Jamnagar; distributing school bags to children at Nagpur and Silvassa and providing notebooks and uniforms to schoolchildrenof Gadimoga and Bhaira vapalem Panchayat. Also, financial support was extended to ‘ Bruhad Gujarat Sanskrit Parishad' for imparting knowledge on Sanskrit, Karmakand and Astrology. RELIANCE DHIRUBHAI AMBANI PROTSAHAM SCHEME

A flagship CSR initiative in its own right, Reliance Dhirubhai Ambani Protsaham Scheme, financially supports poor and meritorious students (Class X pass-outs) from the East Godavari district. Recipient students get admissions in corporate junior (intermediate) colleges of their choice. A total of 178 meritorious students were selected for the academic year 2013-14 and received support of ` 1 crore.With this year’s admissions, the total number of students supported

under the scheme reached 1,326. Since 2010- 11, RIL has been providing financial aid to the deserving candidates (among Protsaham recipients) for pursuing their higher studies in engineering and medical streams. MUMBAI INDIANS ‘EDUCATION FOR ALL’ INITIATIVE

Smt. Nita M. Ambani – an educationist – who pioneered the concept of ‘Education for All’ programme believes in the cause to uplift a child through equal education opportunities. In the past four years, this programme hasbeen able to impact the lives of over 27,000 underprivileged

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children. Apart from monetary support, it has built awareness amongst various groups so that the

movement can expand and impact more children. GIRLS’ EDUCATION INITIATIVE

RIL Jamnagar supported the Government of Gujarat’s drive to promote girls’ education. Approximately 1,600 school kits were distributed in the villages to encourage enrollment of girls in schools. More than 1,500 kits are distributed in 42 villages of Jamnagar and Lalpur talukas every year since 2006. This has resulted in a remarkable rise in enrollment of girls in the first standard. Construction of girls’ primary school at the Moti Khavdi village in the vicinity of Jamnagar Complex was undertaken during the year at the behest of villagers. A two-story building with the necessary facilities has been constructed. The school building is earthquake resistant, and has the provision for vertical extension.

Girls’ Primary School at Moti Khavdi

Furniture and computers were provided to Moti Khavdi Boys’ Primary School. Ten computers were donated to the primary school at Kanalus village.In Ranchi and other places of Jharkhand, school benches were provided to various schools according to requirements.

Financial assistance to Bhil Community in Tripura and Assam for educational needs of

underprivileged children was given.

Sanskar Shibir

Sanskar shibir is a regular activity of CSR team of Nagothane Manufacturing Division. Sanskar Shibir

is

a

concept of enjoyable learning for school students. It is also a demonstration of

interactive teaching method for school teachers. Sanskar, synonymous with excellence in education equips its pupil with all the requisite skills to be tomorrow’s leaders with a critical and global outlook. Objective of the project is to motivate school children for improved life skills and also encourage the high moral values and cultural values towards the right ways of leading life.

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THE DHIRUBHAI AMBANI SCHOLARSHIP SCHEME

Good education, without doubt, is one of the main cornerstones for building a successful and prosperous society. The merit cum means scholarship by RF ensures that students get an opportunity to follow their dreams without worrying about the financial implications of pursuing higher education. The scholarship programme supports the top scoring Higher Secondary students from financially weak backgrounds and physically challenged students from across all states and union territories of India to pursue education at college level. A total of 393 scholarships have been awarded this year of which nearly 50% were awarded to girls and 111 to students from physically challenged category.The programme has positively influenced the lives of more than

10,000 young scholars and their families so far. RF organised the Dhirubhai Ambani scholarship award ceremony at Mumbai to award the scholarships to selected students in January 2014. SPORTS FOR DEVELOPMENT

Recognizing the value of sports towards education, fitness and well

being of students, RF

launched the Jr. NBA programme in partnership with the National Basketball Association (NBA). A comprehensive,

school based youth basketball programme in India, it is working towards

promoting health, fitness and an active lifestyle through basketball and teaches the values of the game such as teamwork, sacrifice, discipline, dedication and sportsmanship. Launched in the cities of Mumbai and Kochi, it has already reached 228 schools, 260 coaches and nearly 140,000 students. The programme aims at reaching one million youth in three years. It will also train 2,000 coaches and physical education instructorsacross India to sustain this effort over a longer period.

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RF is also implementing a programme in 30 villages of Agar, Madhya Pradesh with the aim of empowering children and communities through the medium of sports. The programme is working towards creating an enabling environment for improved educational status, gender inclusiveness and improved health outcomes through the active participation of children, parents, larger community and the local governance system. ARTS, CULTURE & HERITAGE

To work towards preserving the rich heritage, arts and culture of India for its future generation and make conscious efforts to ensure its continuity and enhance avenues for livelihoods of traditional artisans and craftsmen. Key initiatives include: Working towards protecting and promoting India's art, culture and heritage through various promotional and developmental projects and programmes. Support and promotion of artists and craftsman Promotion and preservation of traditional art and handicraft Documenting India's rich heritage for the benefit of future generations. Reliance Foundation focuses on preserving the rich heritage, arts and culture of India for its future generations and has made conscious efforts to contribute towards preserving the same. RF continued to support specific programmes to promote Indian art. DISASTER RESPONSE

Reliance Foundation has a capacity to respond to disasters in a timely manner and engage directly with the affected communities busing its experience of working closely with the communities. When Uttarakhand was affected by massive floods in June 2013, RF was one of the first organisations to lend a supporting hand. RF relief efforts reached the unreached that were cut off post the disaster. RF supported the rescue and relief operations by ensuring supply of relief material and prompt medical support. RF deployed a team of 20 doctors and 50 development professionals to reach out to more than 100 villages in Uttarakhand in the period following the disaster. RF constructed 50 family shelters, distributed more than5,500 relief kits and conducted medical camps that benefitted more than 8000 patients in the months following the calamity. RF is committed to continue the

efforts in Uttarakhand and has deployed two full time teams to streamline its efforts at Rudraprayag and Uttarkashi. RF is also committed to reconstruct some of the affected schools and houses in Uttarakhand. 3 2

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To enable enhanced livelihood and quality of life, promote environment sustainability through various initiatives for: •

Ecological sustainability

•

Promoting biodiversity

•

Conservation of natural resources

•

Maintaining quality of soil, air and water

•

Promoting renewable energy

•

Developing gardens and river fronts

•

Protection of national heritage, art and culture

RIL, in its journey towards environmental excellence, continues to achieve new milestones. Its efforts are directed to achieve environmental performance beyond compliance through adoption of global best practices. During the year under review, several initiatives were taken at manufacturing sites to improve the environmental performance and reduce the environmental footprint. Some of them are: Environment protection and awareness drives Green Cover in surrounding villages

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CSR activities as per Sec-135(Schedule, VII) of CSR activities S.No.

Type of the CSR activity

1

Eradicating extreme hunger and poverty

2

Promotion of education

3

Promoting gender equality and empowering women

4

Reducing child mortality and improving maternal health

5

Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases

6

Ensuring environmental sustainability

7

Employment enhancing vocational skills

8

Social business projects

9

Contribution to the Prime Minister's National Relief Fund or any other fundset up by the Central Government or the State Governments for socioeconomic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities andwomen.

10

Other activity not mentioned above

Source: Sec-135- (Schedule VII) Companies Act 2013

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A score of 10 was awarded if an activity was initiated which is mentioned above otherwise a score of 0 was awarded. A firm can score a maximum of 100 points and a minimum of 0. The scope of the study is confined to CSR activities under taken by RIL programmes towards CSR.

CSR SCORES OF RIL RIL CSR Score S.No.

Type

of

the

CSR activity

2009-10

2010-11 2011-12

2012-13

1

Eradicating extreme hunger and poverty

10

10

10

10

2

Promotion of education

10

10

10

10

3

Promoting gender equality and empowering women

10

10

10

10

10

10

10

10

4

Reducing child mortality and improving maternal

health

5

Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases

10

10

10

10

6

Ensuring environmental sustainability

10

10

10

10

7

Employment enhancing vocational skills

10

10

10

10

8

Social business projects

10

10

10

10

9

Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socioeconomic development a nd relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

10

10

10

10

10

Other

0

0

0

0

activity

not mentioned above

Average CSR Score

90

90

90 RIL Avg CSR score = 90

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•

•

A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining.

•

Employees are better motivated and more productive.

•

CSR helps ensure you comply with regulatory requirements.

•

•

•

Activities such as involvement with the local community are ideal opportunities to generate positive press coverage. Good relationships with local authorities make doing business easier. Understanding the wider impact of your business can help you develop new products and services. CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognize this and are more willing to finance you.

Corporate Social Responsibility is essential in India as more than 65% of population is living in rural areas. There are huge differenc es between urban and rural India in terms health care facilit ies, education levels, infrastructure, housing, nutritious food, awareness on their rights of protection, etc. In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013 encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities. CSR is viewed as vital tool for improving their competitive edge over their opponents. India is the first country in the world which made CSR compulsory for business houses as per companies act -2013. The corporate sector in India has to share responsibility with government for promoting the community development. Social welfare and community development is at the core of Reliance's CSR philosophy and this continues to be a top priority. Reliance embraces responsibility for impact of its operations and actions on all stakeholders including society and community at large. It revolves around our deeply-held belief in the principle of symbiotic relationship with the local communities, recognising that business ultimately has a purpose - to serve human needs. Close and continuous interaction with the people and communities in and around the manufacturing divisions has been the key focus while striving to bring around qualitative changes and supporting the underprivileged. RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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Reliance Industries Limited process the environment initiatives, education programs, health care programs, rural development program, etc. at their own working community for enhancing the quality life of the company’s employees and maximizing the shareholders profit. Although, CSR approach owes indispensible positive impacts to the society. Reliance also supports and partners with several NGOs in community development and health initiatives. Besides focusing primarily on the welfare of economically and socially deprived sections of society, Reliance also aims at developing techno-economically viable and environment-friendly products and services for the benefit of millions of its consumers, while at the same time ensuring the highest standards of safety and environment protection in its operations.

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a) Benn, Suza nne and Bolto n, Dianne (Ke y concepts in corpora te social responsibility, 2011). b) Broomhill, Ray (Cor porate Soc ial Respons ibility: Key Issues and Debates, 2007)

c) El Ghoul, Sadok, Gued hami, Omerane, C.Y. Kwok, Chuck, R. Mishra, Dev ( Banking of Journal and Finance, 9 th September 2011, p.g. 2388-2406). Volume 35.

d) Lober, Heike (cor porate manag ement, corp orate socia l responsibi lity and customers, 2014).

e) Ril.com (N.D.) Social Re sponsibility and Co mmunity De velopment (Onlin e). Available from: http://www.ril.com/html/aboutus/social_resp_comm_dev.html (access on 10th Dec 2014).

f) Ril.c om (N.D.) Reliance Group (Onli ne).on 10th Availa http://www.ril.com/html/aboutus/aboutus.html (access Decble 2014).from: g) ANAUAL REPORTS OF RELIANCE I NDUSTRIES LIMITED a) 2005-2006 b) 2006-2007 c) 2007-2008

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ABSTRACT

................................................................................................................................................ 1

INTRODUCTION

..................................................................................................................................... 1

SIGNIFICANCE OF THE STUDY ......................................................................................................... OBJECTIVES OF THE STUDY .............................................................................................................. METHODOLOGY PROFILE OF RIL

2

.................................................................................................................................... 2

....................................................................................................................................... 3

CSR PHILOSOPHY OF RIL LITERATURE REVIEW

.................................................................................................................... 3

........................................................................................................................... 4

WHAT IS CORPORATE SOCIAL RESPONSIBILITY? MEANING AND DEFINITION

................................................................... 4

............................................................................................................. 5

CSR POLICY AS PER INDIAN COMPANIES ACT 2013 CSR AWARDS

2

.............................................................. 6

.......................................................................................................................................... 9

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE .................. 10 RELIANCE FOUNDATION

.................................................................................................................. 12

RIL HAS IDENTIFIED 6 FOCUS AREAS: ...................................................................................... 13

SECONDARY DATA ANALYSIS

........................................................................................................ 14

COMPANY’S DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT PROJECTS

................................................................................................................................................ 14

FINANCIAL HIGHLIGHTS................................................................................................................ 14

RURAL TRANSFORMATION HEALTHCARE EDUCATION

15

......................................................................................................................................... 16

........................................................................................................................................... 19

ENVIRONMENT

.................................................................................................................................... 24

CONCLUSION

........................................................................................................................................ 27

REFERENCES:

......................................................................................................................................... 29

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