csr doc

2015

Amrutha Alisary (01)

Kritika (14)

Mitisha Gaur (16)

DFT 6th Sem

CSR Activities of Reliance

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Executive Summary

Flagrantly, nowadays CSR approach has been immensely exploited by the organizations and

non-governmental organizations in a negative manner since the global markets are

becoming competitive. The term corporate social responsibility has become a trend of

symbols to explicit the companys corporation as being socially responsible, however

intrinsic intention has been self-regulation and private interest of the company. Hence, the

reliance industry limited has taken the corporate social responsibility as their mainstream of

profit maximization in terms of being socially responsible to educational, environmental,

health care, and agricultural perspectives

Introduction

Reliance Power Ltd, along with its subsidiary companies, which have been set up as special

purpose vehicles (SPVs), (herein after collectively referred to as R Power) is Indias largest,

integrated coal resources and power Generation Company in the private sector. Its

generation project portfolio includes projects based on conventional (coal-based, gas-based,

large hydro) and renewable energy (solar and wind) technologies. Most projects and

operating plants are located in remote / rural areas, where basic infrastructure is

inadequate and socio-economic profile is relatively weaker. Our mission is to contribute

towards improving the quality of life of the communities living in these areas. We believe

that our success in executing and operating large-scale mining /generation projects is

critically dependent on following a participatory development-oriented approach that

strengthens our bond with the local population. R Power has undertaken /shall continue to

undertake appropriate Corporate Social Responsibility (CSR) measures having direct,

measurable and positive economic, social, and environmental impact on the community

with particular emphasis on the local area and areas around where it operates.

IMPORTANCE OF CORPORATE SOCIALRESPONSIBLITIES:

Conduction of Corporate Social Responsibility strategy has became vital trend for the

companies in a current highly competitive global market. Inherently, the CSR strategy has

remained the pillar of the sustainability of a business as far as the consumers and markets

taste and preference changes are concerned. Moreover, the CSR-Asia has described CSR

as the business operations incorporation in environmental and social perspectives with the

interaction of their stakeholders. Hence, CSR approach owes followingfeatures: Firstly, it

observes for the increasing of the shareholders profit in order to preserve the long-term

viability of the business. Secondly, environmental and social improvisation has been the

core objective of the CSR approach. Thirdly, the CSR concept is not a crowding out effect for

the business, but it is about the way that business is operated. In this sequence, CSR

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concept is concerned with the long-term sustainability of the business while maximizing the

shareholders interest and plays an active role in the development of community

CRITICAL REVIEW OF (CORPORATE SOCIAL RESPONSIBILITY:

Inherently, above discourse explicit that mainstream of CSR does concerns with social, legal,

and economical expectations of stakeholders. Therefore, CSR is flagrantly accountable for

capitalist apparatus that business solely considers their own private benefits of raising their

shareholders profit. For instance, on the one hand, Coca Cola company do informs African

nations of HIV in order to vest a vast reputation to its company, qua profit is considered as

core objective of business. On the other hand, it is a shame that they do not implement a

program for telling the world regarding tooth decay as such program would affect their

brand name reputation. Subsequently, in a survey of 1100 chief executives, 62% of those

chief executives have underpinned the CSR concept as vital forprofitability.Relatively; CSR

has a risk of compelling chief executives to besociopolitical players. As the government

shrinks and loses its power, the business chief executives remain with huge power in which

the businesses might acquit the power for their self-regulation profitability of the business.

Companies, such as, Glencorecompany, whose enjoying an immense portion of political

power income Africas nation,Is conducting the child labour extra-legal function for the

purpose of cost reduction. Relatively, CSR has been criticized by excluding the local

communities from policy-making decisions while working on Corporate Social Responsibility

strategy. Moreover, many contradictions exists in CSR approach, such as lack of financial

incentives, lack of legal literacy, etc. those disincentives the poorer group to use laws for

their protection of their civil rights.

CSR Policy

Guiding Principles: Reliance Power in its continuous efforts to positively impact the society,

especially the areas around its sites and offices, has formulated policies for social

development that are based on the following guiding principles:

1) Honour the spirit of law and be a responsible corporate citizen.

2) Pursue growths through harmony with the community via innovative management

techniques.

3) Adopt an approach that aims at achieving a greater balance between social development

and economic development.

4) Respect culture and customs of every project / plant location.

5) Work towards elimination of all barriers for the social inclusion of disadvantaged groups -

such as the poor, socially backward, differently baled and others.

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6) Develop practices aimed at inclusive growth.

7) Thrust on Environment Protection.

Applicability: This CSR Policy is applicable to R Power and all its subsidiaries, which are

mandated with the CSR expenditure obligations as per Sec. 135 of the Companies Act, 2013

read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended

from time to time.

Focus Areas: R Power CSR areas targets inclusive growth of all stakeholders under eight

categories, mentioned under Sch. VII of The Companies Act, 2013.

These primarily fall under drinking water, sanitation, education, healthcare, social

development, livelihood opportunities and environment protection. These are:

1. Rural Development Projects

2. Healthcare including sanitation and drinking water

3. Education & Vocational Skills (incl. Educational Infrastructure)

4. Gender Equality & Women Empowerment (Incl. Old age homes)

5. Environmental Sustainability

6. Heritage Protections (Incl. Art and Culture)

7. Training for Promotion of Sports Talent

8. Other items as may be prescribed from time to time under Sch. VII of The

Companies Act, 2013.

Governance Structure

A three-tier governance structure is responsible for implementing CSR activities at R Power

and its subsidiaries. These include the CSR Committee of the Board, Corporate CSR Team,

and Operational CSR Teams located at respective project/plant site.

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Fig.1 Structure of CSR

Roles and Responsibilities

CSR Committee shall consist of three or more directors of which at least one shall be an

independent director. CSR committee shall be responsible for:

a) Formulation of CSR Policy.

b) Regular monitoring of implementation of CSR policy.

c) Identify key initiatives pursuant to the CSR policy.

d) Recommend to the Board CSR expenditure to be incurred.

e) Recommend to the Board, modifications to CSR policy as and when required.

Dedicated CSR team shall be constituted at Corporate Office for implementing the CSR

Policy. Corporate CSR Team, located at Mumbai, shall be responsible for

Implementation of CSR Policy.

a) Identify Key Result Areas (KRAs) and Key Performance Indicators (KPIs) to be tracked

at corporate level and Operational (plant/project location) level.

b) Develop Annual Operating Plan (AOP) and targets against each of the identified KPIs

at Corporate and Operational level. (To be developed on a bottom-up basis).

c) Secure necessary approvals for CSR AOP Facilitating allocation of funds along with

relevant SPVs/Operations Team.

d) Monitoring of CSR projects on a quarterly basis to establish effectiveness of CSR

efforts and report the same to the CSR Committee.

e) Compilation of Information & Preparation of annual reports on CSR activities and.

presenting the same to the CSR Committee.

f) Organize Training programmes for CSR staff. any other activity necessary to ensure

achievement of Rowers CSR mission

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Operational CSR Team located at respective plant / project locations is responsible for:

a) Provide Inputs for the CSR Policy Design.

b) Bottom-up preparation of CSR AOPs and identification of annual targets against

KPIs. I

c) mplementation of CSR Action Plans.

d) Conduct Needs Assessment Survey.

e) Own the CSR Programmes implemented and monitor effectiveness of CSR initiative

delivery.

f) Monthly reporting on progress of CSR interventions.

g) Any other activity necessary to ensure achievement of Rowers CSR mission.

To maintain continuity of community related interventions / programmes initiated during

the project development stage, team members engaged in such activities would be drawn in

as CSR team members at the project execution / operation stage, wherever possible and

augmented if necessary.

Depending on interventions / programmes, external experts shall be engaged on a contract

basis for development of baseline data, planning, implementation, monitoring effectiveness

of CSR initiatives, etc.

RELIANCE INDUTRIES LIMITED CSR ACTIVITIES:

Reliance industries have performed major social responsibilities towards the betterment of

the community. The company has valuable contribution in terms of health, education,

environment, corporation in natural disasters, and infrastructure development. Following

are vast disclosure regarding CSR activities of Reliance Industries Limited

Education:

Reliance Industries has constructed nine schools with improving the13, 251 students

education level across the India. Furthermore, the company conducts the Kenya Kelvin

program,

Which plays a vital role to the contribution of supporting Indian Governments projects

towards education of girls across all over the India?

Relatively, RIL are implementing (Jakarta Project) for those students who are suffering

mentally from social and economical backwards and support them to obstacle with dyslexia.

Under the Jakarta Project, 35 trainees are spending 8800 hours in order to arise

the tolerance of underprivileged children to tackle with dyslexia. Consequently, the

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company owes partnership with UNESCO and BBC for the awareness of dyslexia to other

village student

Fig 2. Children welfare

Community Health Care:

Reliance Industries has brought pivotal improvisation to the Community Medical Centres for

providing ample health care services to the neighbouring villages. For instance, the Reliance

Company is acquitting drastic project, which is cooperated with the Association of Blind and

made contribution to 9000 free corneal grafted surgeries for those blinded folks who are

suffering from being underprivileged. Moreover, one of the manufacturing divisions of

Reliance Company (Hahira Manufacturing divisions) has commenced an Anti-Retroviral

Treatment Centre in the country and specifically for the cleaners and drivers of all product

transport vehicles. The program mainstream is for HIV / AIDS awareness.

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Fig.3 Mission Rahat

Sir H.N. Reliance Foundation Hospital and Research Centre inaugurated in Mumbai by PM

Shri Narendra Modi

On the evening of Saturday 25th October 2014, Hon. Prime Minister Shri Narendra Modi

inaugurated Sir H.N. Reliance Foundation Hospital and Research Centre. The Prime Minister

talked about the importance of good health and said that the Government and the people have

to work together for creating a healthy India. He congratulated Reliance Foundation & Smt. Nita

Ambani for their efforts towards this initiative. Speaking at the inauguration, he said, "Just as

this 90 year old hospital has undergone kayakalp (renewal), India too, can undergo a kayakalp,

in the health sector"

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Fig 4. Event for Sir H.N Reliance Hospital

Located in the heart of South Mumbai, the hospital in its 90th year, has been completely rebuilt

by Reliance Foundation, led by its Chairperson, Smt. Nita Ambani into a most-modern 19-storey

tower and two heritage wings. Founded in 1925 as Mumbai's first general hospital, it has a rich

heritage. The hospital celebrated its silver jubilee with Sardar Vallabhbhai Patel as its chief guest

and the Golden Jubilee celebrations were graced by Jayaprakash Narayan. During pre-

independence period, it treated many freedom fighters, including the Father of Nation,

Mahatma Gandhi.

The hospital has collaboration with John Hopkins, MD Anderson Cancer Centre, Massachusetts

General Hospital and University of Southern California. This hospital has state-of-the-art

operation theaters equipped with robotic surgery and on-line video conferencing enabling live

consultations with specialists across the world, a hybrid cath-lab- India's first for emergency

heart operations, state of the art diagnostics facility with Asia's first new generation CT scan.

The hospital is equipped with high-end Obstetrics & Gynecology services and Neonatal Intensive

Care Unit (NICU) and a learning centre, adapting the Millennium Development Goals of the

United Nations.

The general wards of the hospital will have the same level of treatment for the citizens at the

bottom of the pyramid. The hospital has adopted water recycling and rainwater harvesting

making it the greenest healthcare facility in India of its size.

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Environment Initiatives for the Community:

The Reliance Industry initiated a zero garbage campaign to develop the disposal of solid

wastage concept in its surroundings and residential area. The aim of the campaign is to

provide a cleanliness drive in order to sustain a disease-

The industry is acquitting a social and economical security program for woman rag pickers

with assistance of an NGO. The core objective of the project is to reduce the plastic litter for

preserving its commitments of being responsible care. Relatively, the company has

stretched a 900-meter road through the usage of 5% plastic waste in order to deduct the

construction cost and as well as to improve the roads construction quality and life.

RELIANCE RURAL DEVELOPMENT TRUSTS:

Reliance Rural Development Trust (RRDT) has initiated a rural infrastructure development

program by undertaking 797 projects in 760 villages of 24 different zone of GUJARAT states.

The project is consisted of 58 Concrete Cement Roads, 61 underground, and 06Check Dams.

Subsequently, all the check dams are constructed with accordance to the 8.7 mufti water

storage capacity and 1065 Hectors of the land would have access to the Check Dams water.

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Livelihood Support Program:

Reliance Industry has undertaken the self-help group (SHG) program for women and youth

generation of the surrounding Villages in order to enhance their quality life while being

self sustaining to support to their families. The program has facilitated The women by

providing various courses such as dress making and designing, beauty culture, health care,

nursing and hospital attendant. However, the program implements pump and hand pump

repairing, mobile repairing, computer hardware repairing, vehicle motor driving, and etc.

Courses

Improving Quality of Agriculture Produce:

Reliance Industry Limited has also participated in assistance of farming in terms of advanced

technologies, storage, handling and distribution of products. For instance, the company

vested Leno bags, which are made out of polypropylene and such bags are effective for

reducing the handling losses of fruits and vegetables. Explicitly the company enforced the

formers for the usage of advanced techniques (plastic) as it increases the productivity,

contributes to the reduction of losses and in enhancement earnings and distributed

promotional materials.

RELIANCE INDUSTRIES CSR CONTRIBUTIONTO ITS STRATEGIC MANAGEMENT):

In a current competitive global environment, corporations does exist vastly where social

responsibilities are concern. Therefore, to make more flagrant the contribution of corporate

social responsibility with corporate strategy, it is essential to explicit what corporate or

strategic management is? And what is mean by social responsibility?

Essentially, strategic managements core objective is to accomplish goals through standard

decision-making that concerns with determining objectives, policies and plans (Andrew,

1987). According to Andrews (1987), strategies main observations are regarding

the implementation of companies and businesses goals, their economic and non-economic

corporations and nature, and the relationship between the stakeholders, he furthermore

stated that corporate strategies are a complex concept as the top managements decisions

reflects an impact to the stakeholders who are independent with the company. However,

undoubtedly the strategic management decisions cover both the social as well as economic

aspects. According to Porter and Kramer (2006), there is strong correlation between

corporation and society. This is due to the fact of direct influence of companys activities to

the communities of their work and the strategic management department executives

should have strictly consider the societys needs and decisions with accordance to their

expectations. Hence, Reliance Company has processed various CSR activities in order to

make ease to their decision-making trends towards policies and plans in order to accomplish

the organizations goal.

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Conclusion:

To sum up, virtually the corporate social responsibility concept considers the ethical, social,

and environmental aspects of the stakeholders. Relatively, the organizations exploit the

corporate social responsibility as maximizing their shareholders profit through satisfying the

stakeholders mentioned expectations. Many organizations make the CSR approach as their

mainstream trend and apparatus for gaining reputation and catering a better working

environment for their employers in order to enhance the quality status of their organization

as well as acquitting the organizations prime goal. For instance, 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 companys employees and maximizing the shareholders profit. Although,

CSRapproach owes indispensible positive impacts to the society, the concept has extralegal

and negative disparity to the community. As far as the core objective of the organization

concerns with maximizing their profits, organizations misuse the CSR approach frothier own

private interest in terms of power (in case government shrinks the company remains with

mass power), cost (in order to recover the CSR projects cost the company rises the products

cost for the consumers), accountability, and etc.

Recommendation

Since many companies are interlinked with extralegal activities while implementing the CSR

activities due to owing immense power after the government in some Asian and African

countries and goes to disparity of their trends and code of ethics such as exploiting the child

labour method, they are recommended to follow the code of ethics they have established as

it might affect to the quality and status of the organization through the media

revealer.Furthermore, companies are required to motivate their CSR projects employees via

catering training facilities, bonuses, developed salary system in order to enhance their

productivity, thus, to reduce their total cost of the CSR project as higher cost for CSR project

remains the company with higher prices of the products to the customers. Therefore

customer tends to change their preferences to other market

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REFERENCES:

Benn, Suzanne and Bolton, Dianne (Key concepts in corporate social responsibility,

2011).

Broomhall, Ray (Corporate Social Responsibility: Key Issues and Debates, 2007)

El Ghoul, Sudoku, Guedhami, Operand, C.Y. Kwok, Chuck,R.Mishra, Dev ( Banking of

Journal and Finance, 9th September2011, peg. 2388-2406). Volume 35.Lober, Heike

(corporate management, corporate social responsibility and customers, 2012)