Indian Oil Vs Reliance CSR Activities

 

CORPORATE SOCIAL RESPONSIBILITY  “ We make a living by what we get, but we make a life by what we give” - Win ins ston Chu Churchill  Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions.  Today,  Today, ho however, wever, businesses businesses must also reect reect on the legal, ethical, ethical, moral and social consequences of their decisions. orporate social responsibility is no longer de!ned by how much money a company contributes charity,lives. but by its overallare involvement in activities that improve the quality ofto people"s #usinesses an essential part of the society within which they operate. Intelligent organi$ations know that businesses can never be prosperous if they operate within societies that are unsuccessful.  This is regardless regardless of of whether the society is failing due to social, go governance vernance or environmental environm ental challenges.  There are are several several factors factors which e%plain e%plain the growing growing interest interest in corporate corporate social social responsibility. The !rst factor is the new concerns and e%pectations of citi$ens, consumers, public authorities, globalisation globalisation and industrial change. The second factor is the increasing inuence of social criteria on the investment decisions of individuals and institutions, as investors or consumers. The third factor is the growing concern about environmental degradation. This is a particularly important concern given the that environmental conservation has become an increasingly signi!cant forfact everyone in society today. &ith multi'corporations raking in millions, it is only (usti!ed that they give back to the community. Social responsibility investment combines investors" !nancial goals with their obligation and dedication to factors that ensure the well'being of society such as environmental friendly practices, economic growth and (ustice in society. These elements are not only aspects of corporate social responsibility, but also a show of the ethical standards of a company. orporate social responsibility is therefore viewed as a control mechanism to ensure that multi'corporations are responsible for their actions.

CSR IN INDIA

 

S) in India has traditionally been seen as a philanthropic activity. *nd in keeping keepi ng with the Indian tradition, it was an activity that was performed performed but not deliberated. *s a result, there is limited documentation on speci!c activities related to this concept. +owever, what was clearly evident that much of this had a national character encapsulated within it, whether it was endowing institutions to actively participating in India"s freedom freedom movement, and embedded in the idea of trusteeship. *s some observers have pointed out, the practice of S) in India still remains within the philanthropic space, but has moved from institutional building educational, research research and cultural- to community development through various pro(ects. pro(ects. *lso, with global inuences and with communities becoming more active and demanding, there appears to be a discernible trend, that while S) remains largely restricted to community development, it is getting more strategic in nature that is, getting linked with business- than philanthropic, and a large number of companies are reporting the activities they are undertaking in this space in their ocial websites, annual reports, sustainability reports and even publishing S) reports. The ompanies *ct, /012 has introduced the idea of S) to the forefront and through its disclose'or'e%plain mandate, is promoting greater transparency and disclosure. Schedule 3II of the *ct, which lists out the S) activities, suggests communities communities to be the focal point. On the other hand, by discussing a company"s relationship relationship to its stakeholders and integrating S) into its core operations, the draft rules suggest that S) needs to go beyond communities and beyond the concept of philanthropy. It will be interesting to observe the ways in which this will translate into action at the ground level, and how the understanding of S) is set to undergo a change.

BENEFITS FITS OF A ROBUST ROB UST CSR C SR PROGRAM PRO GRAMME ME4 BENE 1- Communities provide te !i"en"e to oper#te 4 In India, an increasingly increasingly important stakeholder is the community, and many companies have started realising that the 5licence to operate" is no longer given by the governments alone, but communities that are impacted by a company"s business operations. Thus, a robust S) programme that meets the aspirations of these communities not only provides them with the licence to operate, but also to maintain the licence. /- Attr#"tin$ #nd ret#inin$ emp!o%ees4 Interventions that encourage and enable employees to participate are shown to increase employee morale and a sense of belonging to the company. 2- Communities #s supp!iers& There are certain innovative S) initiatives emerging, wherein wherein companies have invested in enhancing community livelihood by incorporating them into their supply chain. This has bene!tted communities and increased their income levels, while providing these companies with an additional and secure supply chain. '( En#n"in En#n"in$ $ "orpor#te "orpor#te reput#tio reput#tion& n& The traditional bene!t of generating goodwill, creating a positive image and branding bene!ts continue to e%ist for companies that operate e6ective S) programmes. This allows companies to position themselves as responsible responsible corporate citi$ens.

 

CSR LA)S IN INDIA SECTION *+, OF INDIAN COMPANIES ACT- ./*+ 0*( 7very company having net worth of rupees !ve hundred crore or more, or turnover of rupees one thousand crore or more or a net pro!t of rupees !ve crore or more during any !nancial year shall constitute a orporate Social )esponsibility ommittee of the #oard consisting of three or more directors, out of which at least one director shall be an independent director. 0.( The #oard8s report under sub'section 2- of section 129 shall disclose the composition of the orporate Social )esponsibility ommittee. 0+( The orporate Social )esponsibility ommittee shall4

a- :ormulate and recommend to the #oard, a orporate Social )esponsibility ;olicy which shall indicate the activities to be undertaken by the company as speci!ed in Schedule 3II. b- )ecommend the amount of e%penditure to be incurred on the activities referred to in clause a-. c- .

&e up uphold ou our co commitment to to se serve an and pa partner wi with go government and quasiLgovernment agencies in nationLbuilding.

B.

&e sh shall re respect the the va varied tra traditions an and cul cultures of of ou our cou country and an d are are commit committed ted to pres preserv erve e and and docume document nt histor history y and art for the bene!t of present and future generations.

D.

&e bel believe and and pro promote an op open cor corporate cul culture tha that val values teamwork teamwor k while honouring individual commitment and mutual trust. &e do not accept or tolerate the use of child labour at any stage of the supply chain, cha in, gender gender discri discrimin minat ation ion,, disab disabilit ility, y, bias bias on the basis basis of caste caste or religion, and violation of human rights.

C.

&e ai aim to to me meet th the e% e%pectations of of sh shareholde lders an and in investors by by ma%imi$ing the group company"s value and active disclosure.

10.

&e sha shall ll nur urtu turre the the silve ilverrs and and gr gro oom the the yout uth h of of our our cou countr ntry in in response to various global and local concerns.

.4.

O32e"tive&

 The policy document is an attempt to articulate the group"s Social )esponsibility. The framework enables business heads to put in place policies and practices in line with this policy.

.4+

S"ope& /.2.1 The so social ial poli polic cy is an ov over era archin ching g poli policy cy app appli lica cabl ble e to the the entir ent ire e )elianc eliance e Aroup Aroup includ including ing al alll group group compa companie nies, s, busine business ss divisions and business units. /. /.2. 2./ / The The pol polic icy y con confo forrms to the the bus busin ines ess s str strat ateg egy y and and will will a app pply ly to all employ employees ees acros across s the bandwi bandwidth dth of group group compan companies ies.. Their Their commitment and involvement in putting the policy into action would

 

support us in achieving our principles and mandate, and adhering to global standards. standards. /.2.2 The soc social ial polic licy document is an att attempt to sho showcase the the linkage of our social ob(ectives with business strategy. /.2.9 The policy icy will al also ass assis istt and pr pro omote our our supplie liers and vendors in adhering to its i ts imperatives.

CSR ACTI5ITIES CREATING S1ARED PROSPERI PROSPERITY TY-- SUSTAINABL SUSTAINABLY  Y  &e contribute to the well being of people by introducing sustainable measures and providing assistance to institutions and welfare organisations. Our activities are spread across India and reach well beyond our business locations, impacting the lives of marginalised marginalised communities. Our initiatives have reached millions over the years and nearly 1,=0,000 people bene!t from our continuing programmes every month.

SUSTAINABLE DE5ELOPMENT &e have always consider considered ed sustaina sustainable ble developm development ent the corners cornerstone tone of our business strategy. &e seek to achieve sustainable and pro!table growth, creating thriving eco'systems around all our businesses. Our strategy includes fostering close and continuous interaction with the people and communities around our manu ma nufa fact ctur urin ing g divis divisio ions ns,, br brin ingi ging ng qual qualit itat ativ ive e chan change ges s in thei theirr lives lives and and supporting the underprivileged. underprivileged.

COMMUNITY INFRASTRUCTURE AND EN5IRONMENT * large number of initiatives are focused on developing community infrastructure and protecting the environment. environment. )eliance has developed infrastructure infrastructure for water conservation and constructed community halls, schools, and health centers in various locations. Some of )elianc Some eliance8s e8s initia initiativ tives es to pr promo omote te envir environm onment ent prote protecti ction on includ include e inve invest sting ing in renew enewab able le ener energy gy sour source ces, s, pr prom omot otin ing g gr gree een n plan planta tati tion ons s and and spreading environmental awareness. •

7nvironment ;rotection Mrives 7nvironmental impact assessment and qualitative risk analysis are central to all our new pro(ects. &e have converted acres of arid lands into ma(or green $ones

 

EDUCATION AND S6ILL EN1ANCEMENT )eliance eliance supports supports local local schools schools with logistical logistical and !nancial !nancial support, support, capacity capacity building of teachers and infrastructure development. development. )eliance also organises skill development and income'generating programmes for local communities. *ssistance is also given to such communities by helping them to start Self +elp Aroups and empowering them with marketing knowhow •

&omen and Nouth Nouth 7mpowerment 7 mpowerment ;rogrammes

•

)eliance ommunity Mevelopment ;rogrammes.

•

;ro(ect agruti

•

)eliance Mhirubhai *mbani ;rotsahan Scheme.

COMMUNITY 1EALT1CARE )eliance provides a6ordable curative and preventive healthcare services to the community through various healthcare programmes. It has constructed health centers, operates mobile medical clinics and emergency ambulance services, and conducts various camps on health awareness. )eliance is also focusing on speci!c areas like addressing )eliance addressing maternal mortality and providing support to patients su6ering from chronic ailments such as *IMS and  T#. •

)eliance ;rimary +ealth entre.

•

)eliance 7mployee +ealth are Services.

•

)eliance +3MOTS Therapy entre.

•

Mhirubhai *mbani +ospital.

RELIANCE FOUNDATION )elianc eliance e has always always made made sustai sustainab nable le develo developme pment nt the corner cornersto stone ne of its business strategy to achieve sustainable and pro!table growth, creating in its wak wa ke thrivi thriving ng eco'sy eco'syste stems ms aroun around d all its busine business sses. es. To prov provide ide impetu impetus s to various philanthropic initiatives of )I?, )eliance :oundation ):- was set up in /010 as an e%pression of its vision towards sustainable growth in India.

 

Introdu"tion& Indi#n Oi!  

Indian Oil orporation Indian Oil- is India"s ?argest ommercial 7nterprise, with a net pro!t of 102.CC billion JSK1.= billion- for the !nancial year /01='1>. Standing true to its corporate vision of being 5The 7nergy of India", Indian Oil has been successfully meeting the energy demands of India for more than !ve decades. #eing India"s agship national oil company, Indian Oil with a work'force of 22,000 ecient minds is living their vision of becoming 5a globally admired company". It is the leading Indian orporate in :ortune"s prestigious 5Alobal =00" "

Indian Oil8s business interests overlap the entire hydrocarbon value'chainPfrom re!ning, pipeline transportation and marketing of petroleum products to e%ploration H production of crude oil. *nd from marketing of natural gas to petrochemicals. *lso, Indian Oil has ventured into alternative energy and globali$ation of downstream operations. &ith subsidiaries in Sri ?anka,

0.9C

0.>

0.9C

)ethe lief H assisof taa nce 0.C 0.B 0.D 0.DB in event natural disaster 1/ *verage 2.DD 0.BC 9.29 0.D0 *s shown in the above table, )I? has more mean for 1st to Cth activities than IO?. It means that )I? is contributing its S) funds in many activities in comparison to IO?. :or 10th activity, both have same mean 0.>- which implies that both are contributing equally in this activity. :or 11th activity, IO? has more mean value 0.C- than )I?. On the basis of average of all activities, )I? is having more average 9.29- than IO?"s average2.DD-. The highest mean is in the environmental environm ental sustainable activities which indicate that the companies are contributing more in environment sustainability. #ut it may be due to enforcement of various environmental laws upon these companies. *fter emphasising upon environment sustainability, companies are investing more in promotion of education.