a study on corporate goernance
TRANSCRIPT
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A STUDY ON CORPORATE GOERNANCE
(CSR IN ONGC)
INTRODUCTION
1947 1960
During pre-independence, the Assam Oil Company in the North-Eastern and Attock Oil company in North-
Western part of undivided India ere the only oil companies producing oil in the country! "he ma#or part of Indian
sedimentary $asins as deemed to $e unfit for development of oil and gas
resources!
After independence, the %overnment reali&ed the importance of oil and gasfor rapid industrial development and its strategic role in defence!
Conse'uently, hile framing the Industrial (olicy )tatement of *+, the
development of the hydrocar$on industry in the country as considered to
$e of utmost necessity!
.ntil *+//, private oil companies mainly carried out e0ploration of
hydrocar$on resources of India! Assam Oil Company as producing oil at
Dig$oi, Assam 1discovered in *+2 and the Oil India 3td! 1a /45 #oint
venture $eteen %overnment of India and 6urmah Oil Company2 as engaged in developing to fields
Naharkatiya and 7oran in Assam! In West 6engal, the Indo-)tanvac (etroleum pro#ect 1a #oint venture $eteen
%overnment of India and )tandard 8acuum Oil Company of .)A2 as engaged in e0ploration ork! "he vast
sedimentary tract in other parts of India and ad#oining offshore remained largely une0plored!In *+//, %overnment of India decided to develop the oil and natural gas resources in the various regions of thecountry as part of (u$lic )ector development! With this o$#ective, an Oil and Natural %as Directorate as set upin *+// under the then 7inistry of Natural 9esources and )cientific 9esearch! "he department as constitutedith a nucleus of geoscientists from the %eological survey of India!
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CONTENTS
Sr No. TOPICS
1 Meaning and Development
2 Corporate Philanthropy and CSR
3 Social compliance !ocial acco"nta#ility and CSR
$ %ene&it! o& CSR
' Developing CSR policie!
( Challenge! o& CSR and it! !ol"tion
) Driver!
* +o, to develop and implement CSR initiative!
- +"man re!o"rce and comm"nity relation!
1. CSR/ companie! in ne,!
11 CSR/ Indian !cenario
T0T0 !teel
T0T0 con!"ltancy !ervice!
T0T0 chemical!
T0T0 motor!
12 Ca!e !t"dy/ CSR in ONC
13 Concl"!ion
MEANING:
Corporate Social Responsibility is defined as operating a business that meets or exceeds
the ethical, legal, commercial and public expectations that society has of business.
Corporate social responsiilit! CSR al!o called corporate re!pon!i#ility corporate
citien!hip re!pon!i#le #"!ine!! and corporate !ocial opport"nity4 i! a concept ,here#y
organiation! con!ider the intere!t! o& !ociety #y ta5ing re!pon!i#ility &or the impact o& their
activitie! on c"!tomer! !"pplier! employee! !hareholder! comm"nitie! and other
!ta5eholder! a! ,ell a! the environment6 Thi! o#ligation i! !een to e7tend #eyond the
!tat"tory o#ligation to comply ,ith legi!lation and !ee! organiation! vol"ntarily ta5ing&"rther !tep! to improve the 8"ality o& li&e &or employee! and their &amilie! a! ,ell a! &or the
local comm"nity and !ociety at large6
DE"E#OPMENT:
%"!ine!! ethic! i! a &orm o& the art o& applied ethic! that e7amine! ethical principle! and
moral or ethical pro#lem! that can ari!e in a #"!ine!! environment6
In the increa!ingly con!cience9&oc"!ed mar5etplace! o& the 21!t cent"ry the demand &or more
ethical #"!ine!! proce!!e! and action! 5no,n a! ethici!m4 i! increa!ing6 Sim"ltaneo"!ly
pre!!"re i! applied on ind"!try to improve #"!ine!! ethic! thro"gh ne, p"#lic initiative! and
la,! e6g6 higher U: road ta7 &or higher9emi!!ion vehicle!46
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%"!ine!! ethic! can #e #oth a normative and a de!criptive di!cipline6 0! a corporate practice
and a career !pecialiation the &ield i! primarily normative6 In academia de!criptive
approache! are al!o ta5en6 The range and 8"antity o& #"!ine!! ethical i!!"e! re&lect! the
degree to ,hich #"!ine!! i! perceived to #e at odd! ,ith non9economic !ocial val"e!6
+i!torically intere!t in #"!ine!! ethic! accelerated dramatically d"ring the 1-*.! and 1--.!
#oth ,ithin ma;or corporation! and ,ithin academia6 mitigating or remedying operational harm>
and !"!taina#le development o& nat"ral re!o"rce!6
0chieving commercial !"cce!! in ,ay! that honor ethical val"e! and re!pect people
comm"nitie! and the nat"ral environment6
0ddre!!ing the legal ethical commercial and other e7pectation! !ociety ha! &or
#"!ine!! and ma5ing deci!ion! that &airly #alance the claim! o& all 5ey !ta5eholder!
Companie! that con!cio"!ly integrate !trategie! that !ee5 to ma7imie the creation o&
environmental and !ocial val"e ,ithin their core #"!ine!! model! operation! and
!"pply chain!6
SOCIA# COMP#IANCE ' SOCIA# ACCOUNTA&I#ITY %CORPORATE SOCIA#RESPONI&I#ITY:
The idea o& re!pon!i#le #"!ine!! #ehavio"r i! &ar &rom ne,6 %"t !ince the 1--.! increa!ing
concern over the impact! o& economic glo#ali!ation ha! led to ne, demand! &or corporation!
to play a central role in e&&ort! to eliminate poverty achieve e8"ita#le and acco"nta#le
!y!tem! o& governance and en!"re environmental !ec"rity6 In e!!ence the approach i! to vie,
#"!ine!! a! part o& !ociety and to &ind ,ay! to ma7imi!e the po!itive #ene&it! that #"!ine!!
endeavo"r can #ring to h"man and environmental ,ell9#eing ,hil!t minimi!ing the harm&"l
impact! o& irre!pon!i#le #"!ine!!6 The agenda that ha! re!"lted &rom the!e concern! ha!
vario"!ly #een called corporate citiens*ip+ corporate social responsiilit!+ (CSR)'
corporate acco,ntailit!+ or si-pl! corporate responsiilit!+.
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0! ,e all 5no, Corporate Social Re!pon!i#ility CSR4 i! an e7pre!!ion "!ed to de!cri#e
,hat !ome !ee a! a company=! o#ligation to #e !en!itive to the need! o& all to ta5e acco"nt
not only o& the &inancial?economic dimen!ion in deci!ion9ma5ing #"t al!o the !ocial and
environmental con!e8"ence!6
16SUST0IN0%@A DABA@OPMANT/
ONA o& the mo!t !igni&icant development! in the &ield o& CSR over the pa!t &e, year! ha!
#een the gro,th in p"#lic e7pectation! that the companie! not only ma5e commitment! to it!
!ta5eholder! in it! #"!ine!! operation!6 The principle i! clo!ely lin5ed ,ith the imperative o&
en!"ring that the!e operation! are !"!taina#le that i! that CSR i! recogni!ed a! not only
nece!!ary #"t al!o develop !y!tem! to manage implementation and !y!tematically a!!e!! and
report on progre!! relative to tho!e commitment!6 Corporate acco"nta#ility encompa!!e! the
!y!tem! a company e!ta#li!he! to develop policie! indicator! target! and proce!!e! to
manage the &"ll range o& activitie!6 The !cope o& operation! &or ,hich companie! are e7pected
to #e acco"nta#le ha! increa!ed dramatically in recent year! to incl"de not only company=!
o,n per&ormance #"t al!o that o& the #"!ine!! partner! and other actor! thro"gho"t the
company=! val"e chain6 The mechani!m! a company "!e! to demon!trate acco"nta#ility arevaried and inevita#ly need to change and gro, a! a company evolve!> at the !ame time
e&&ective !y!tem! &or increa!ing acco"nta#ility generally allo, the company to #e incl"!ive
re!pon!ive and engaged ,ith it! !ta5eholder!6
26CORPOR0TA 0CCOUNT0%I@ITE/
0cco"nta#ility in it! #a!ic !en!e implie! render9ing o& acco"nt! and #y e7ten!ion indicate
an!,er9a#ility to an e7ternal agency or gro"p and &"rther implie! en!"ring propriety legality
and !a&eg"arding p"#lic intere!t in !ati!&action o& the e7pectation! o& the e7ternal agency or
gro"p6 Social 0cco"nta#ility !"gge!t! acco"nta#ility to the people> thi! i! a core val"e in a
democratic !et9"p6 In a decentrali!ed democracy the #a!ic o#;ec9tive i! po,er to the people6
Corporate acco"nta#ility today !pan! emerging CSR i!!"e! li5e #"!ine!! ethic! diver!itymar5etplace #ehavio"r governance h"man right! and la#o"r right! a! ,ell a! more
traditional area! o& &inancial and environmental per&ormance6 There&ore an increa!ing
n"m#er o& companie! are reporting p"#licly on their !ocial environmental and ethical
per&ormance #oth a! a comm"nication to !ta5eholder! and a! a management tool6 +o,ever
a! thi! practice ha! only #ecome more ,ide!pread !ince the mid91--.! there are a! yet no
!tandard &ormat! to addre!! the type o& in&ormation companie! choo!e to report or ho, that
in&ormation i! collected analy!ed and pre!ented6
A&&ective and acco"nta#le management !y!tem! help companie! !hape c"lt"re! that !"pport
and re,ard CSR per&ormance at all level!6 0! part o& thi! e&&ort many companie! are ,or5ing
to increa!e acco"nta#ility &or CSR per&ormance at the %oard level6 Thi! can lead to change!in ,ho !erve! on the %oard ho, Director! handle !ocial and environmental i!!"e! and ho,
the %oard manage! it!el& and &"l&il! it! re!pon!i#ilitie! to inve!tor! and other !ta5eholder!6
Companie! are al!o !ee5ing to #"ild acco"nta#ility &or CSR per&ormance at the !enior
management level in !ome ca!e! #y creating a dedicated po!ition re!pon!i#le &or #road
over!ight o& a company=! CSR activitie!6
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companie! recogni!e that veri&ication #y a third party can add val"e to the overall !ocial and
environmental reporting proce!! #y enhancing relation!hip! ,ith !ta5eholder! improving
#"!ine!! per&ormance and deci!ion9ma5ing aligning practice ,ith organi!ational val"e! and
!trengthening rep"tation ri!5 management6
36CSR 0ND OOD OBARN0NCA/
One o& the mo!t !igni&icant i!!"e! ,ithin the CSR agenda concern! the dynamic relation!hip
#et,een CSR and good p"#lic governance6 The limit! #oth to corporate acco"nta#ility
thro"gh la, and to Gvol"ntary= CSR9related action! #y #"!ine!!e! lie ,ith the p"#lic good
governance agenda6 @egi!lation to deal ,ith ,or!t ca!e in!tance! o& irre!pon!i#le #ehavio"r
and to !et a minim"m &loor &or #"!ine!! cond"ct ,ill not ,or5 in the a#!ence o& e&&ective
driver! &or #"!ine!! implementation and en&orcement ,hether they are mar5et9#a!ed or a
re!"lt o& en&orcement thro"gh the !tate66
The need i! to implement !ocial ethical and environmental policy commonly 5no,n a!
code! o& cond"ct4 thro"gh the development o& o#;ective! programme! and mechani!m! &or
monitoring !ocial compliance per&ormance6
One very important a!pect o& en!"ring !ocial acco"nta#ility i! e!ta#li!hing !ocial compliance
thro"gh contin"o"! a"dit and monitoring6 The demand &or increa!ed corporate acco"nta#ility
today come! &rom all !ector!6 Th"! !ocial acco"nta#ility en!"re! tran!parency red"ce!
lea5age! &orce! proper !pending o& &"nd! generate! tr"!t and peace and create! demand led
improvement in !ervice!6 In a !en!e it i! a contin"ing a"dit and a con!tant chec5 on
mal&ea!ance6
&ENEITS O CSR:
The !cale and nat"re o& the #ene&it! o& CSR &or an organiation can vary depending on the
nat"re o& the enterpri!e and are di&&ic"lt to 8"anti&y tho"gh there i! a large #ody o& literat"re
e7horting #"!ine!! to adopt mea!"re! #eyond &inancial one! &o"nd a correlation #et,een
!ocial?environmental per&ormance and &inancial per&ormance6 +o,ever #"!ine!!e! may not
#e loo5ing at !hort9r"n &inancial ret"rn! ,hen developing their CSR !trategy6
The de&inition o& CSR "!ed ,ithin an organiation can vary &rom the !trict H!ta5eholder
impact!H de&inition "!ed #y many CSR advocate! and ,ill o&ten incl"de charita#le e&&ort! and
vol"nteering6 CSR may #e #a!ed ,ithin the h"man re!o"rce! #"!ine!! development or p"#lic
relation! department! o& an organi!ation o& may #e given a !eparate "nit reporting to the
CAO or in !ome ca!e! directly to the #oard6 Some companie! may implement CSR9type
val"e! ,itho"t a clearly de&ined team or programme6
/.$UMAN RESOURCES/
0 CSR programme can #e !een a! an aid to recr"itment and retention partic"larly ,ithin the
competitive grad"ate !t"dent mar5et6 Potential recr"it! o&ten a!5 a#o"t a &irm! CSR policy
d"ring an intervie, and having a comprehen!ive policy can give an advantage6 CSR can al!o
help to improve the perception o& a company among it! !ta&& partic"larly ,hen !ta&& can
#ecome involved thro"gh payroll giving &"ndrai!ing activitie! or comm"nity vol"nteering6
0.RIS1 MANGEMENT:
Managing ri!5 i! a central part o& many corporate !trategie!6 Rep"tation! that ta5e decade! to
#"ild "p can #e r"ined in ho"r! thro"gh incident! !"ch a! corr"ption !candal! or
environmental accident!6 The!e event! can al!o dra, "n,anted attention &rom reg"lator!
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co"rt! government! and media6 %"ilding a gen"ine c"lt"re o& doing the right thing ,ithin a
corporation can o&&!et the!e ri!5!6
2.&RAND DIERENTIATION/
In cro,ded mar5etplace! companie! !trive &or a "ni8"e !elling propo!ition ,hich can!eparate them &rom the competition in the mind! o& con!"mer!6 CSR can play a role in
#"ilding c"!tomer loyalty #a!ed on di!tinctive ethical val"e!6 Several ma;or #rand! !"ch a!
The Co9operative ro"p and The %ody Shop are #"ilt on ethical val"e!6 %"!ine!! !ervice
organi!ation! can #ene&it too &rom #"ilding a rep"tation &or integrity and #e!t practice6
3.#ICENSE TO OPERATE:
Corporation! are 5een to avoid inter&erence in their #"!ine!! thro"gh ta7ation or reg"lation!6
%y ta5ing !"#!tantive vol"ntary !tep! they can per!"ade government! and the ,ider p"#lic
that they are ta5ing i!!"e! !"ch a! health and !a&ety diver!ity or the environment !erio"!ly
and !o avoid intervention6 Thi! al!o applie! to &irm! !ee5ing to ;"!ti&y eye9catching pro&it!
and high level! o& #oardroom pay6 Tho!e operating a,ay &rom their home co"ntry can ma5e!"re they !tay ,elcome #y #eing good corporate citien! ,ith re!pect to la#o"r !tandard! and
impact! on the environment6
DE"E#OPING CSR PO#ICIES:
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Corporate comm"nity partner!hip!
S"pporting good ca"!e! in mar5eting campaign!
S"pporting and contri#"ting to comm"nity &or"m!
C$A##ENGES O CSR AND ITS SO#UTION:
/.C$A##ENGES IN CSR AND SOCIA# ACCOUNTA&I#ITY:
The #"!ine!! ca!e &or CSR i! not nece!!arily a !imple one6 0mong the challenge! i! the &act
that the !ocial and?or environmental impact di&&er! acro!! ind"!trie! complicated #y the &act
that the term CSR ha! di&&erent meaning! to di&&erent ind"!try !ector! in di&&erent part! o& the
glo#e6 0l!o !ome may 8"e!tion i& the me!!age CAO! comm"nicate a#o"t CSR i! an addFonor part o& company core #"!ine!! activitie!For i! it merely an in!incere e&&ort to #oo!t p"#lic
relation!J In !ome organi!ation! CSR i! !till con!idered to mean compliance and
philanthropy altho"gh !ome large companie! are no, placing CSR in a more !trategic
&rame,or56
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!tarted to move !igni&icantly over the la!t co"ple o& year!Fa very important development
#eca"!e it=! rema5ing the ,ay mar5et! ,or56
The T$IRDactor i! the government6Khether it=! thro"gh glo#al trade agreement! and the
KTO or ,hether it=! their o,n en&orcement o& la,! or !mart reg"lation that loo5! at
creating incentive! to engage the #"!ine!! comm"nity a! a partner the government remain!
an incredi#ly !igni&icant actor and can #e a net negative net po!itive or ne"tral in term! o&
in&l"encing the 5ind! o& deci!ion! that #"!ine!!e! ma5e6
26C+0@@ANAS TO SOCI0@ COMP@I0NCA/
Tho"gh many m"ltinational retailer! can no, #oa!t o& a Code o& Cond"ct only a &e, have
#een a#le to roll o"t a &"ll !cale and independent monitoring programme6 The i!!"e! involve
&rom &inding re!o"rce! to con&lict! ,ith !hort9term #"!ine!! o#;ective!6 On the other hand
mo!t !"pplier! con!ider compliance programme! a ne, #"rden re!"lting in poor and
"ntr"!t,orthy partner!hip ,ith their #"yer! ,hen it come! to implementing the code o&
cond"ct6
A7ternal challenge! incl"de c"lt"ral diver!ity "nder!tanding the local la, and at time!&inding the local la, &inding local lang"age and dialect !5ill! &inding local a"dit and
monitoring pro&e!!ional! ,ho are ,ell conver!ant ,ith the local i!!"e! involving ,or5er!
local comm"nitie! NO! and other !ta5eholder!6
DRI"ERS:
/.CONCERN OR PROIT:
Corporation! li5e all other !ocial in!tit"tion! are an integral part o& !ociety and m"!t depend
on it &or their e7i!tence contin"ity and gro,th6 0! organiation! "!"ally #ehave in re!pon!eto mar5et &orce! they initiate certain !ocially re!pon!i#le activitie! that may have a direct
impact on their economic per&ormance 60ltho"gh the!e activitie! are !ocial in nat"re and aim
&or comm"nity ,el&are and !ocietal development !ome,here they have a hidden concern &or
pro&it!6 +ere the management care! only a#o"t it! company=! gain! pro&ita#ility and
organiational !"cce!! at any price6 Their main !trategy to have the!e activitie! i! to e7ploit
opport"nitie! &or corporate gain6 The!e activitie! have a direct economic #ene&it that i! clearly
vi!i#le6 0ctivitie! that are "nderta5en to improve the image or rep"tation o& an organiation
can #e incl"ded in thi! category6 0! the criteria &or legitimacy &or !"ch activitie! i! economic
in nat"re the co!t that i! inc"rred in implementing the!e activitie! i! treated a! an inve!tment6
Thi! i! the al!o termed a! the re8"ired #ehavio"r o& any organiation6 S"ch activitie! are
"nderta5en a&ter a detailed planning and doing a thoro"gh co!t #ene&it analy!i!6 The!eactivitie! generally #ecome an inve!tment that help! the organiation in improving long9term
economic per&ormance6 Organiation! &ollo,ing the!e activitie! are called a! Aconomic
Citien!6
0.CONCERN OR #A4:
Organiation! pre&er! to cond"ct it! operation! ,ithin the legal &rame,or5 impo!ed #y !ocial
!y!tem ,ithin ,hich it operate!6 Tho!e activitie! that are driven in re!pon!e to legal
con!traint! &all "nder thi! category6 Re!pon!i#le #ehavio"r that i! driven #y legal concern
aim! either at compliance ,ith the e7i!ting la,! or to avoid any litigation6 0! the criteria &or
legitimacy here i! legal in nat"re it implie! that #ringing corporate #ehavio"r to a level ,here
it i! congr"ent ,ith the prevailing legal &rame,or56 The!e activitie! intend not to violate la,!and e8"ate !ocial re!pon!i#ility ,ith &"l&illing minim"m legal re8"irement!6 Thi! i! the
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e7pected #ehavio"r o& any organiation6 0nd tho!e organiation! that do not a#ide ,ith the
legal &rame,or5 are termed a! illegal organiation!6 Organiation! &ollo,ing the!e activitie!
are called a! @egal Citien!6
2.CONCERN OR SOCIETY:
The!e activitie! have very limited relevance o& legal and mar5et &orce! and they are a#ove!"ch criteria6 0ltho"gh the!e activitie! are not comp"l!ory &or any organiation to "nderta5e
#"t the!e are de&initely appreciated #y the !ta5eholder!6 Organiation! or activitie! #elonging
to thi! category are driven #y a high concern &or !ociety6 0! the!e activitie! are not legally
&orced they are in congr"ence ,ith the prevailing !ocial norm! and val"e!6 Organiation!
having the!e activitie! do recognie the importance o& pro&ita#le operation! #"t al!o ta5e!
de&inite !tand on i!!"e! o& p"#lic concern6 0ll ongoing comm"nity development programme!
that are vol"ntary in nat"re and are "ltimately implemented to #ene&it the !ociety at large
come "nder in thi! category6 Thi! i! the de!ired #ehavio"r o& any organiation6Organiation!
having !"ch activitie! are progre!!ive> they are the leader! in the ind"!try and are called a!
Re!pon!i#le Citien!6
$O4 TO DE"E#OP AND IMP#EMENT CSR INITIATI"ES:
Kith company rep"tation via#ility and !ometime! !"rvival at !ta5e one o& the critical role!
o& the +R leader!hip today i! to !pearhead the development and !trategic implementation o&
the CSR thro"gho"t the organi!ation and promote !o"nd corporate citien!hip6 0! +R
leader! ,e can in&l"ence three primary !tandard! o& CSRFethic! employment practice! and
comm"nity involvementFthat relate either directly or indirectly to employee! c"!tomer! and
the local comm"nity a! o"tlined #elo,6 %y con!idering the!e three CSR !tandard! +R
leader! can then identi&y the CSR !tage o& their organi!ation #e&ore ma5ing deci!ion! to
develop and implement CSR initiative!6
5 ET$ICS
Athical !tandard! and practice! are developed and implemented in dealing! ,ith all company
!ta5eholder!6 Commitment to ethical #ehavio"r i! ,idely comm"nicated in an e7plicit
!tatement and i! rigoro"!ly "pheld6
5 EMP#OYMENT PRACTICES
+"man re!o"rce management practice! promote per!onal and pro&e!!ional employee
development diver!ity at all level! and empo,erment6 Amployee! are val"ed partner! ,ith
the right to &air la#o"r practice! competitive ,age! and #ene&it! and a !a&e hara!!ment9&ree
&amily9&riendly ,or5 environment6
5 COMMUNITY IN"O#"EMENT
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The company &o!ter! an open relation!hip that i! !en!itive to comm"nity c"lt"re and need!
and play! a proactive cooperative and colla#orative role to ma5e the comm"nity a #etter
place to live and cond"ct #"!ine!!6
$UMAN RESOURCE AND COMMUNITY RE#ATIONS:
One o& the mo!t vi!i#le CSR initiative! i! in comm"nity relation!6 Strong comm"nity
relation! can have a po!itive impact on company rep"tation and #rand6 Thro"gh comm"nity
programme! that highlight the company doing good ,or5 ,e can lin5 critical i!!"e!F
decrea!ing t"rnover !aving! on co!t per hire and attracting talented individ"al!Fto CSR and
the #ottom line6 There are many other po!!i#ilitie! that +R leader! co"ld e7plore to match
#oth company and comm"nity need! &or e7ample c"lt"ral &acilitie! &or the comm"nity
recreational &acilitie! &or employee! and their &amilie! an ed"cational pro;ect to help prepare
tomorro,=! ,or5&orce4
6 0! +R leader! a development pro&e!!ional can per&orm the &ollo,ing/ 6
L Scan the environment to identi&y potential threat! &or e7ample competition &or talent
,ithin the organi!ation=! ind"!try !ector46
L %"ild per!onal and pro&e!!ional capa#ility o& the ,or5&orce &or e7ample e7pand
intellect"al capital ,ithin the organi!ation and in colla#oration ,ith other organi!ation!46
L Incl"de ethical concern! in !ta&& per&ormance mea!"re!6 L S"pport participative deci!ion9
ma5ing6
L An!"re highe!t !tandard! in ,or5place health and !a&ety6
L Anco"rage active engagement in comm"nity activitie!6
Moving
34 create a !en!e o& o,ner!hip #et,een the !ta&& ,ho !et "p a pro;ect and tho!e ,ho
implement it6
%eyond incl"ding CSR in the +R management !y!tem o"r role a! a change agent contin"e!
thro"gh 5eeping the CAO and other mem#er! o& the !enior management team in&ormed o&
h"man capital initiative! the !tat"! o& comm"nity relation! mea!"rement! o& employment
activitie! and development o& partner!hip! &or CSR programme! #oth in!ide and o"t!ide the
organi!ation6
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CORPORATE SOCIA# RESPONSI&I#ITY 6COMPANIES IN NE4S:
ENRON:
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CRITICS= OPINION 9Critic! have !"gge!ted that Ni5e !ho"ld p"#lici!e all o& it! &actorie!
and allo, independent in!pection to veri&y condition! there6 0ny a"diting carried o"t #y Ni5e
!ho"ld #e made p"#lic6 0 lot o& &oc"! i! given to ,age rate! paid #y the company=! !"pplier!6
%y and large a"dit! have &o"nd that ,age rate! are a#ove the national legal minim"m #"t
critic! contend that thi! doe! not act"ally con!tit"te a &air living ,age
CSR : T$E INDIAN SCENARIO:
Kith the retreat o& the !tate in economic activity in India the imperative &or #"!ine!! to ta5e
"p ,ider !ocial re!pon!i#ilitie! i! gro,ing6 0t all level! there i! a &elt need &or companie! to
grad"ate to !trategic intervention! in CSR ,hich at pre!ent in many ca!e! remain ad hoc6 0!en!e o& !trategic direction i! a vital component in an e&&ective approach to corporate
re!pon!i#ility6 Eet &or all the!e !ign! o& progre!! CSR in India ha! yet to reali!e it! &"ll
potential6 Individ"al and colla#orative initiative! contin"e to #e dominated #y !el&9a!!ertion
rather than acco"nta#ility6 There i! certainly no lac5 o& CSR programme! and pro;ect! in
India/ ,hat i! a#!ent ho,ever are clear metric! &or eval"ating their act"al impact in
improving !ocial condition!6Many Indian #"!ine!! ho"!e! private !ector and p"#lic !ector
companie! have "nderta5en ma;or initiative! till date and have adopted !everal mode! o&
practice related to CSR in India6 Several innovative mea!"re! have al!o #een adopted #y
companie! to,ard! the in!tit"tionali!ation o& CSR that incl"de! CSR initiative! #y @"pin
Cipla Ran#a7y NIIT TCS %PC@ and Ion A7change6
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Tata Steel! CSR activitie! !tarted a! early a! it! inception6 Initially the!e activitie!
,ere only philanthropic in nat"re and the company #elieved more in Ggiving= #ac5 to
the !ociety6
CSR activitie! are no, ranging &rom comm"nity development improving health care
red"cing poverty occ"pational health and !a&ety ri!5 control and protecting theenvironment that mean! covering almo!t all the !ta5eholder!6
The ideal! and philo!ophy o& the T0T0 ro"p originated &rom the &o"nding &ather
am!hed;i N"!!er,an;i Tata 1*3-91-.$46 In 1*-' he e7plained/
Ke do not claim to #e more "n!el&i!h more genero"! or more philanthropic than
other! #"t ,e thin5 ,e !tarted on !o"nd and !traight&or,ard #"!ine!! principle!
con!idering the intere!t! o& the !hareholder! o"r o,n and health and ,el&are o& o"r
employee!the !"re &o"ndation o& pro!perity6
The!e !o"nd and !traight&or,ard principle! carried thro"gh the generation! o&Tata! !till ha! in&l"ence on the prevailing #"!ine!!e! and practice!6 Kith !"ch a
!trong tradition o& corporate re!pon!i#ility it i! no !"rpri!e that very recently Ratan
Tata ha! #een hono"red ,ith Carnegie Medal o& Philanthrophy in Pitt!#"rgh on
Kedne!day Octo#er 22 2..)
/.TATA STEE#:
S$ARING 4EA#T$ TO DIMINIS$ DISPARITIES
Kith the "nder!tanding that the h"nger &or employment can never #e !ati!&ied de!pite it! #e!t
e&&ort! the Company too5 an enlightened deci!ion to addre!! the need! o& tho!e ,ho
migrated to it! vicinity in !earch &or employment6 It &ir!t !tim"lated entreprene"r!hip andeconomic development in the Steel City and then reached o"t to the r"ral poor empo,ering
them ,ith the mean! to create #etter livelihood! ,ithin their o,n village!6Tata Steel i! India=!
ac5no,ledged Corporate Social Re!pon!i#ility leader and i! recogni!ed a! a mo!t h"mane
organi!ation6 Avery le!!on learned every piece o& 5no,ledge gathered the Company o&&er!
to all tho!e ,ho ,i!h to ,or5 along!ide it to Himprove the 8"ality o& li&e o& the comm"nitie!
it !erve!6H
EDUCATION
Tata Steel ha! in&l"enced the integration o& tri#al! in the economy in a le!! o#vio"! and
immediate ,ay #y propping "p the ed"cation o& tri#al children and yo"th o& vario"! age! and
at vario"! !tage! o& their academic career6The TCS #ear! the entire e7pen!e o& t,o tri#al
!t"dent! ,ho !ec"re admi!!ion! &or management ed"cation at the Tata In!tit"te o& Social
Science!6 0n "n"!"al pro;ect called Sahyog implemented in &ive !chool! help! tri#al
!t"dent! to develop !el&9e!teem and plan their &"t"re6The avier In!tit"te &or Tri#al Ad"cation
near am!hedp"r ha! al!o #een !"pported #y Tata Steel6
TRI&A# CU#TURE
A&&ort! to !"pport tri#al! may ,ell leave them at the door!tep o& development ,itho"t a !en!e
o& #elonging! and their c"lt"ral heritage6 Thi! Centre !ho,ca!e! the tri#al legacy o& &o"r
ma;or and &ive minor tri#e! o& har5hand and Ori!!a and evo5e! a lot o& intere!t amid!t
!cholar! re!earcher! and even layper!on!6 TCC not only doc"ment! relevant re!earch #"t
al!o ena#le! the contin"ation o& the tradition #y !haring it ,ith the yo"th and non9
tri#al!60dditionally a Santhali @ang"age @a#oratory ha! al!o #een initiated in the Centre
!ince 2..29.36
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INCOME GENERATION OR TRI&A#S
In order to help tri#al! addre!! their #a!ic need! in a !el&9reliant and !"!taina#le ,ay Tata
Steel ha! long #een involved ,ith increa!ing the agric"lt"ral prod"ctivity &or them in the
r"ral area! thro"gh a!!"red irrigation6Tata Steel holding the #elie& that the tri#al! 5no, #e!t&or them!elve! ha! a!!i!ted in the &ormation o& many Sel& +elp ro"p! S+!46The!e S+!
ena#le the tri#al! to arrange &or credit and engage in micro9enterpri!e! li5e ma5ing Do5ra
item! carpet ,eaving terracotta paper #ag ma5ing mat ma5ing &ood proce!!ing po"ltry
m"!hroom &arming piggery pi!cic"lt"re and &loric"lt"re6 Tata Steel provide! the!e gro"p!
,ith training net,or5ing and a!!i!tance in mar5eting6
$EA#T$ CARE
0mong the mo!t active !pon!or! o& the @i&eline A7pre!! Q a ho!pital on ,heel!9 Tata Steel
ha! endeavored to ta5e medical care &ar #eyond tho!e connected ,ith it! operation!6 Thi!
"ni8"e train travel! at the #ehe!t o& it! !pon!or! to tho!e part! o& r"ral India le&t "nto"ched #y
modern medicine6 0t am!hedp"r the Company r"n! a *'.9#ed general ho!pital ,ith a!peciali!ed %"rn Centre Di!pen!arie! and S"per Di!pen!arie! to reach o"t to it! employee! a!
,ell a! a large n"m#er o& citien! acro!! the !teel cityThro"gh the e&&ort! o& the Tata Steel
R"ral Development Society TSRDS4 and the Tata Steel
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TCS management ,ill de&ine health !a&ety and environment goal! and o#;ective! identi&y
role! and re!pon!i#ilitie! &or policy implementation mea!"re per&ormance and allocate
nece!!ary re!o"rce!6 It ,ill integrate re!o"rce planning ,ith health !a&ety and environment
concern!
4OR1 P#ACE
TCS manager! ,ill revie, the ,or5 environment and !"gge!t improvement! in line ,ith thi!
policy6 The policy ,ill al!o initiate energy con!ervation ,a!te recycling and paper
red"ction in priority area!6 The mea!"re! and initiative! emerging a! a re!"lt o& thi! policy
,ill #e doc"mented a! proce!!e!6
2.TATA C$EMICA#S:
TATA C$EMICA#S SOCIETY OR RURA# DE"E#OPMENT
Tata Chemical! !et "p the Tata Chemical! Society &or R"ral Development TCSRD4 in 1-*.
to promote it! !ocial "pli&t pro;ect! &or comm"nitie! in and aro"nd Mithap"r in the !tate o&";arat in ,e!tern India4 %a#rala in the !tate o& Madhya Prade!h in northern India4 and
+aldia in the !tate o& Ke!t %engalin ea!tern India46
Thro"gh TCSRD Tata Chemical! ,or5! to improve the 8"ality o& li&e o& the people and
comm"nitie! aro"nd it! operation! and to !"pport !"!taina#le development a theme that i!
central to the company! corporate philo!ophy6
The initiative! that TCSRD i! involved in incl"de/
0gric"lt"ral development
Ad"cation
Komen! programme!
0nimal h"!#andry
R"ral energy
Kater!hed development
Relie& ,or5
TATA STEE# RURA# DE"E#OPMENT SOCIETY
A!ta#li!hed in 1-)- the Tata Steel R"ral Development Society TSRDS4 i! involved in
vario"! !ocial development programme! aimed at helping the r"ral comm"nitie! living
aro"nd Tata Steel! operational "nit!6
TSRDS covered 32 village! aro"nd am!hedp"r in the !tate o& har5hand in ea!tern India4 in
it! &ir!t year o& operation6 Today the Society ha! !even !eparate "nit! !i7 in Tata Steel!
operational area! and cover! (.. village! in the !tate! o& har5hand and Ori!!a al!o in
ea!tern India46 TSRDS i! actively involved in the !phere! o& livelihood generation health and
hygiene and people empo,erment6
3.TATA MOTORS:
TEC$NICA# AND "OCATIONA# TRAINING OR YOUT$ MEM&ERS
1)- yo"th mem#er! having the minim"m 8"ali&ication o& SSC pa!!ed ,ere given &o"r
month! inten!ive training in technical !5ill! li5e electrician &itter t"rner and ,elder at Ram
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:ri!hna Shilpa Mandir6 1* other yo"th mem#er! ,ho ,ere ITI pa!!ed "nder,ent a
reorientation programme &or !i7 month! at o"r man"&act"ring "nit at am!hedp"r
TO4ARDS COMMUNITY DE"E#OPMENT 6 MM" TRADE COURSE AT
SA14AR
The chie& CSR pro;ect in Thane i! the GMotor Mechanic Trade Co"r!e MMB4= at Sa5,ar6The MMB Trade co"r!e i! carried o"t in a!!ociation ,ith the Rama5ri!hna Mi!!ion M"m#ai6
The !t"dent! !elected &or the MMB Trade Co"r!e are tri#al yo"th mem#er! ,ho have pa!!ed
at lea!t Cla!! BIII and are eager to learn the trade
INDUSTRY PARTNERS$IPS
Khile grappling ,ith the i!!"e o& ,ith!tanding the threat o& re!ervation! #eing introd"ced in
the private !ector the company commit! it!el& to #etter the pre!ent !tat"! o& the SC?ST
pop"lation! #y ta5ing mea!"re! to improve their ed"cational !tat"! enhance employa#ility
and create entreprene"r! thro"gh mentoring and promoting leader!hip among!t the SC?ST
comm"nity6
AID TO NGOs
The Donation! Committee revie,ed !everal application! &rom NO! and in!tit"tion! and
a&ter determining their need and merit approved donation!6 0 !"m o& R!6 161) million ,a!
di!#"r!ed in the la!t year to,ard! donation o& Tata vehicle! to organi!ation! li!t attached a!
0nne7"re I4 ,or5ing in the &ield o& health ed"cation and road !a&ety6 Donation! in 5ind to
the organi!ation! help the company to &orge relation!hip! ,ith the !ocial !ector #y playing an
important role in !"!taining the ,or5 o& !"ch organiation6
CASE STUDY: CSR in ONGC
A partial list o7 CSR S,ccess Stories o7 ONGC
Sa*ara6A *elpin8 *an9 to t*e 9estit,tes&ac8ro,n9
Shraddha Reha#ilitation
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The Camp provided 1)' caliper!?aip"r &oot to 11' no!6 o& needy and do,ntrodden
people in and aro"nd :arai5al ,ho co"ld not a&&ord to !pend money &or the !ame6 The
0!!et organied another Camp ,ith the a!!ociation o& Rotary Cl"# ,herein 1()
caliper!?aip"r &oot and cr"tche! ,ere provided to -) no!6 o& per!on! &rom 12 to 1)th
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!ocio9economic development6 PUR0 involve! identi&ication o& r"ral cl"!ter!
,ith gro,th potential and creating $ type! o& connectivity &or them
i4 Phy!ical connectivity in the &orm road tran!portation and po,er
connectivity
ii4 Alectronic connectivity in the &orm o& relia#le telecom internet
and IT !ervice!iii4 :no,ledge connectivity in the &orm o& good ed"cational and
training in!tit"tion!
iv4 Aconomic connectivity to ena#le &armer! and other! to get the
#e!t price &or their prod"ce6
Scope o& the pro;ect/ The PUR0 Anterpri!e! ,ill "nderta5e management o&
!chool! health care "nit! vocational training centre! chilling plant! !ilo!6
They ,ill al!o #e re!pon!i#le &or #"ilding a mar5et the #an5ing !y!tem a! ,ell
a! regional #"!ine!! or ind"!trial "nit!6 PUR0 a! the then Pre!ident envi!ioned
had to #e a #"!ine!! propo!ition i6e6 economically via#le and !el&9!"!taining
in the long r"n6
Detail! o& !election o& target pop"lation/ PUR0 !cheme aim! to !et9"p '....PUR0 centre! acro!! ( lac! village! that dot the Indian land!cape6
Implementation o& the pro;ect/ ONC la"nched PUR0 pro;ect on 1*6.$62..'
at Maichara o& Aa!t :ala#aria Panchayat in %elonia S"#9Divi!ion o& So"th
Trip"ra Di!trict6 Thi! pro;ect ,a! &ormally la"nched in the a"g"!t pre!ence o&
+on6#le Chie& Mini!ter o& Trip"ra CMD and Director! o& ONC6 The Pro;ect
involved &ollo,ing $ component!/
a4 %i;li har Po,er eneration
#4 Randhan Seva Comm"nity :itchen
c4 yan :endra @i#rary Comp"ter Centre
d4 Sama; Shi#ir Comm"nity +all
In the co"r!e o& implementation incl"ding identi&ication o& location ONC
ha! provided 2 #"n5 ho"!e! &or li#rary and comp"ter ed"cation and 1 #"n5
ho"!e &or comm"nity 5itchen !chool "ni&orm #oo5! and !port! material! &or a
total e7pendit"re o& R!6-'....?9 appro7imately6
@ong9term !"!taina#ility o& the pro;ect/ 6PUR06 Pro;ect ha! #een
concept"alied to &acilitate creation o& !el&9help gro"p in local and r"ral
pop"lace e!pecially in poor and !ocially #ac5,ard people dominated area!
,ith empha!i! on improving health ed"cation drin5ing ,ater vocational
training and mar5et acce!!i#ility need!6 Thi! ,a! concept"alied a! an
integral component o& ONC6! Corporate Social Re!pon!i#ility CSR4component6 +o,ever the !econd Pha!e o& the a#ove pro;ect ,hich aimed
at "tiliing idle ga! to develop agro9#a!ed ind"!trie! co"ld not ta5e o&& d"e
to coming "p o& a ga! crac5er plant at Trip"ra &or tapping the idle9ga!6
+o,ever in vie, o& o"r commitment to,ard! PUR0 at Trip"ra an NO &rom
North9Aa!t ha! #een a!!ociated to re9!tr"ct"re thi! pro;ect and ma5e it
&"nctional in 5eeping ,ith the local need! and the environment #y
a!!ociating the local pop"lation and a"thoritie! in thi! proce!!6
Methodology "!ed &or monitoring progre!! on the pro;ect and &eed#ac5/ 0
preliminary a!!e!!ment ,a! got done #y IISK%M &or ONC6! PUR0 Tr"!t to
monitor progre!! and receive &eed#ac5 o& ONC PUR0 Pro;ect6 It ,a!
!"gge!ted #y them that local yo"th at Maichara re8"ire motivation ?!en!itiation to ta5e vario"! !5ill improvement programme! and !et9"p !el&employment
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vent"re! !pecially in the &ield o& late7 ? r"##er ind"!try &ood
proce!!ing ind"!try handicra&t etc6 0 training in IT may al!o #e provided to
them6 In addition to that critical pro#lem! vi6 drin5ing ,ater need to #e
addre!!ed on priority6 Pre!ently ONC ha! invited a North Aa!t #a!ed NO
RBN to !t"dy in detail the pro;ect! and initiative! that &"rther #e ta5en "p to
ena#le ONC to &"l&ill it! commitment to,ard! PUR0 at Trip"ra6A7pendit"re inc"rred on the pro;ect/ ONC had &ormed PUR0 Tr"!t ,ith !eed
capital o& R!61. Crore!6 0part &rom that ONC ha! !pent appro7imately
R!61. lac! in the area o& Maichara6
@earning! &rom the pro;ect/ 0n initiative can achieve it! de!ired re!"lt only i&
it ha! entire !"pport &rom the comm"nity6 Only a&ter the thoro"gh need
e7erci!e !ho"ld a pro;ect #e initiated in a comm"nity6
E9,cational Pro8ra--e ;it* 1as*-iri Mi8rant C*il9ren
In Mi8rant Ca-ps
:a!hmiri migrant! are living in di&&erent camp! &or the la!t 1( year! in amm" and
Udhamp"r in :4 and other part! o& the co"ntry6 They ,ere &orced to &lee their ance!tralhome! and hearth! leaving #ehind everything #eca"!e o& the terrori!m in :a!hmiri valley6 0!
a re!"lt the!e are compelled to live in cla"!tropho#ic am#ience o& camp! ,itho"t #eing a#le
o& en;oy the #a!ic right! and care&ree childhood6 Some o& the!e children havelo!t their parent!
to the #"llet! o& terrori!t!6
In thi! conte7t an organiation called Socio9Service 0rt ro"p approached ONC
&or cond"cting programme! on ed"cational developmental and reha#ilitative nat"re &or
the :a!hmiri migrant children and yo"th!6 ONC readily agreed to !"pport the
programme to ,ipe o&& the !ocio9economic deprivation and v"lnera#ility o& the!e children
#eca"!e o& the tragic phenomenon 5no,n a! 6Migration66
It ,a! propo!ed to hold $ ed"cational ,or5!hop! in &o"r di&&erent camp! o& 1' day!
d"ration each #ene&iting aro"nd *.. :a!hmiri migrant children and yo"th6 The
programme incl"ded/ ed"cational dramatic?per&orming game!> Interaction ,ith
m"!ician!> Dra,ing6 Po!t the ,or5!hop it ,a! &o"nd that the children ,ere a lot le!!
!tre!!&"l !ho,ca!e their talent and connected ,ith their no!talgic moment!6
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CONC#USION
Corporate Social Re!pon!i#ility i! one !"ch niche area o& Corporate %ehavio"r and
overnance that need! to get aggre!!ively addre!!ed and implemented tact&"lly in the
organiation!6 0t the !ame time CSR i! one !"ch e&&ective tool that !ynergie! the e&&ort! o&
Corporate and the !ocial !ector agencie! to,ard! !"!taina#le gro,th and development o&
!ocietal o#;ective! at large6 India i! a &a!t gro,ing economy and i! #ooming ,ith national and
m"ltinational &irm!6 0t the !ame time the Indian land al!o &ace! !ocial challenge! li5e
poverty pop"lation gro,th corr"ption illiteracy ;"!t to name a &e,6 There&ore it i! all the
more imperative &or the Indian companie! to #e !en!itied to CSR in the right per!pective in
order to &acilitate and create an ena#ling environment &or e8"ita#le partner!hip #et,een the
civil !ociety and #"!ine!!6
The impact o& CSR i! "nder clo!e !cr"tiny6 There are three primary area! o& concern/
14 prod"ct re!pon!i#ility>
24 !trategie! &or !"!taina#ility>
34 the 8"ality o& CSR management
There&ore ,ith the gro,ing importance o& h"man capital a! a !"cce!! &actor &or today=!
organi!ation! the role o& +R leader!hip ,ill #ecome ever more critical in leading and
ed"cating organi!ation! on the val"e o& CSR and ho, #e!t to carry o"t the !trategic
implementation o& CSR policie! and programme! in India and a#road6
REERENCES
KA%SITAS
,,,6hind"6com
,,,65armayog6com
,,,6glo#ali!!"e!6org
,,,6tata6com
,,,6ongcindia6com
%OO:S
16 Corporate Social Re!pon!i#ility Ki5ipedia The
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$6 %"r5e A6 M6 1---4 Corporate Comm"nity Relation!/ The Principle o& the Neigh#or o&
Choice Ke!tport CT/ "or"m %oo5!6
SU%MITTAD %E /
EU0@ SIN+0@M%0 3C SACTION9D
0I%S4