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Corporate Social Responsibility: The Reward to Society



Introduction:

“We sometimes feel that what we do is just a drop in the ocean, but the ocean would be less because of that missing drop”

– Mother Teresa


The above given statement of Mother Teresa is a statement showing the importance of Corporate Social Responsibility. Corporate Social Responsibility (CSR) is an ideology that organizations have a commitment to consider the interests of customers, employees, shareholders, communities, and ecological considerations in all aspects of their operations. This commitment extends beyond their statutory obligation to comply with legislation. CSR is closely connected with the principles of Sustainable Development. The principle of Sustainable Development argues that organizations should make decisions considering not only financial factors such as profits or dividends, but also considering the short term as well as long-term social and environmental consequences of their activities. The organizations should take into consideration the needs of future generations. CSR is a concept based on the thinking that the organizations are responsible to the society because the very survival of the organizations is thanks to the society only. An organization gets several resources from the society, so it becomes its responsibility to give the reward to the society. This concept is known as the Social Responsibility of an organization.

(1) Tata Group:

    The CSR Philosophy of Tata Group:

At the Tata Group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.

What do they do?

The CSR philosophy of Tata group focuses on improving the quality of life. The group believes that whatever they earn, a part of it should be spent for the development of the society. Tata Group has aimed at improving the quality of life of the people concerned and over the years created sustainable value in terms of human, social, natural, economic capital - in a way that it supports an inexorable generation of financial wealth in the process.

Many companies of Tata are involved in a wide variety of community development projects and programmes. These programmes are principally in India but also, increasingly, in different parts of the world. The community development endeavours of Tata companies cover many areas, from health and education to livelihoods, women-children welfare and more.

The founders of Tata group have a strong belief of sharing of wealth. This has led them to endow a number of philanthropic trusts that annually support premier academic institutions, social and community causes, and programmes for the uplift of the under-privileged. Tata group runs several trusts such as Sir Dorabji Tata Trust, Sir Ratan Tata Trust, JN Tata Endowment.

Tata group has made several efforts for strengthening India’s base of learning, research, knowledge and intellectual capital. For this, Tata group has established several educational and research institutions such as Indian Institute of Science, Tata Institute of Fundamental Research, Tata Institute of Social Science, Tata Memorial Center, JRD Tata Eco-technology Center, and Tata Medical Center.

Tata's long-standing support for sports and the arts in India has spawned a wide variety of efforts in both spheres: from creating academies in different sporting disciplines and backing talented sportspeople to helping the cause of culture in the country in many ways.

(2) Reliance Group:

    The CSR Philosophy of Reliance Group:

Sustainability works only if its concepts are ingrained right to the grass-roots level. Through the focus on 'small acts' it is our endeavour to bring forth to the reader how sustainability is operational on the ground at Reliance. Sustainability is a collective endeavour. No single individual can win the battle of sustainability, but with each one of us doing their part the outcome can be nothing but victory. It is with this belief that we at Reliance propagated sustainability across our organization.

What do they do?

The CSR philosophy of Reliance group rests on sustainability concept. Reliance group provides life time employment. Reliance group believes “A good job is no longer the one that just pays well; but one that also trains well.” Reliance provides a platform for employees to enhance their knowledge, skills and capabilities on a regular basis. We have established partnership with National Institute of Technology, at Surat, one of the best among the NITs in India,

Reliance runs medical centers at almost all manufacturing divisions. They offer free medical diagnostic and therapeutic services for all the neighboring villages. Medical vans specially designed as mobile dispensaries move to surrounding villages on a scheduled basis all through the week. On an average the mobile dispensary attends to 50 to 60 patients daily, majority of them from the “below the poverty line” category. The initiative has made an important impact in reducing the prevalence of problems such as gastroenteritis, malaria, Tuberculosis, skin diseases such as scabies and fungal infections.

The Reliance group works for the woman empowerment. MADER (A trust sponsored and promoted by RIL) at Nagothane has been looking at avenues for women empowerment and greater access to resources.

In a unique public private partnership, RRDT took up the responsibility of implementing Gujarat Government's 'Gokul Gram Yojana' (GGY). It has been implementing this scheme on the ground in a planned and sustained manner since September, 2001. As a result, 3,112 facilities in 2,682 beneficiary villages of 141 taluka of 23 districts in the State have been created during the last five years.

The Reliance group runs Dhirubhai Ambani Foundation (DAF). The DAF, registered under the Bombay Public Trust Act in August 1995, was established under the patronage of Shri Dhirubhai H. Ambani. The overall objective of the Foundation is to make philanthropic interventions for the welfare of Indian Society and promote sustainable development of its people through initiatives in the fields of: Health, Hygiene and Sanitation Education Community Revitalisation Promotion of Social and Economic Welfare and Upliftment of the People Conservation of Natural Resources, Enviromental and Ecological Protection Rural Development Assistance to other organizations with similar objectives.

(3) ONGC:

    The CSR Philosophy of ONGC:

The Company is committed to follow the Guidelines on Corporate Social Responsibility (CSR) issued by the Department of Public Enterprises. The CSR initiative of ONGC are marked by continued commitment to several large-scale key projects as well as initiation of several new projects identified under the 12 focus areas of ONGC i.e. Education including vocational courses, Health Care, Entrepreneurship (self-help and livelihood generation) schemes, Infrastructure support near our operational areas, environment protection, ecological conservation, protection of heritage sites, UNESCO heritage monuments etc., Promotion of artisans, craftsmen, musicians, artists etc. for preservation of heritage, art and culture, Women empowerment, girl child development, gender sensitive projects, promoting sports/sportspersons, supporting agencies promoting sports/sportspersons, Water management including ground water recharge and Initiatives for physically and mentally challenged.

What do they do?

ONGC has adopted the guidelines on Corporate Social Responsibility issued by the Department of Public Enterprise. ONGC has undertaken following efforts in the field of CSR.

ONGC- GICIET-Computer Education Project with Bharatiya Vidya Bhavan: The initiative envisages setting up of five computer centres in Uttarakhand, Assam, Andhra Pradesh, Pondicherry and Gujarat for unemployed youth.

HEAT with Haemophilia Federation of India: A Pan-India operation to transform lives of 1000 children with Haemophilia (CwH) through education.

'Varishthjan Swasthya Sewa Abhiyan' with HelpAge India:Community based health services for destitute aged persons in ONGC’s operational areas all over the country through Mobile Medicare Units.

'Gram Sarv Utthan' with SEED (Society for Educational welfare and Economic Development): Community mobilization, in school intervention, adult education with special focus on female literacy, vocational training to community youth, health and sanitation, utilization of effluent water in 3 villages in Bokaro, Jharkhand.

Construction of Halls and Kitchen with SVS (Shramik Vikas Sansthan): Financial assistance for construction of additional Hall, staff room & kitchen for the hostel for tribal children in Bhekhadia village, Kawant Tehsil, Gujarat.

Greening of Southern Ridge, Delhi: Greening an approx area of 1.5 sq. km in Vasant Kunj institutional area near Southern Ridge in association with TERI University.

TERI-ONGC “Soldiers of the Earth” project: The Soldiers of the Earth campaign is an all encompassing, environmental awareness generation program. The campaign undertaken at Dehradun, Ankleshwar and Nazira is aimed at sensitizing children and young adults towards a greener future.

Badhte Kadam: A massive pan-India disability awareness raising program throughout the country.

Mokshda Green Cremation System: Setting up of 30 energy efficient and environmental friendly green cremation system in association with local municipal bodies at work centers of ONGC.

"Amulya Dharohar" Conservation of Ahom monuments with ASI & NCF: To support the endeavour of Archaeological Survey of India for conservation and development of four Ahom monuments at Sivasagar, Assam.

'Ashadeep' – Girl child education program: Aimed to ensure continued schooling of the girl students belonging to economically weaker sections of society, with observable improved learning levels of the support receiving students.

Project Saraswati with NGRI: Exploring deep underground water resources in Rajasthan to provide new sources of ground water in the desert / drought prone areas with possible scope for long distance recharge.

(4) NTPC:

    The CSR Philosophy of NTPC:

NTPC resolves to be a socially responsible corporate entity and to lead the sector in the areas of resettlement and rehabilitation with thrust on Community Development; environment protection, including effective ash utilization; and energy conservation. NTPC resolves to contribute towards sustainable power development by discharging corporate social responsibilities (CSR) that would positively impact on customers, employees, shareholders, communities, and the environment in various aspects of its operations. However, activities and expenditure related to staff benefits are not counted as CSR.

What do they do?

NTPC has the philosophy of community development. It largely focuses on resettlement and rehabilitation of communities. NTPC runs Rehabilitation and Resettlement Policy (R&R Policy). R&R policy provides for preparation and execution of the rehabilitation action plan (RAP) for project-affected persons, which includes Community Development plan for affected villages, resettlement colonies, and adopted villages.

NTPC focuses on the areas of “Preparedness and capacity building of the community” in disaster management processes through a dedicated Safety Group. The same shall be an important area of focus, particularly in disaster-prone areas. NTPC, shall partner with government and private agencies to strengthen and formalize their role in the disaster management process for ensuring preparedness of the communities towards disaster resilience.

Environment-related initiatives are taken up by NTPC through dedicated groups in NTPC Energy Technology Research Alliance (NETRA), Engineering & EMG Group under the respective policies. Considering the fact that NTPC is a member of UN Global Compact Program, the objectives of CD activities shall also relate to the United Nations Global Compact Programme on Environment. NTPC shall take all necessary precautions to minimize damage to the environment due to its operations, and in case any such damage takes place, shall make all necessary efforts to restore/ provide compensation for the same.

(5) IOC Ltd.

    The CSR Philosophy of IOC Ltd.:

Indian Oil envisions a greater societal role for itself to accomplish the cherished goal of a truly developed India, where all sections of citizens live with dignity. Indian Oil is committed to synergizing its present business practices and vision for the future with sustainable development. Indian Oil endeavors to abide by the principles of the United Nations Global Compact Program through its policies, processes, products, services and people.

What do they do?

Indian Oil is committed to incur expenditure up to 2% of the Retained Profit of the previous year towards corporate social responsibility every year, which is utilized as under:

  1. 5% of the 2% of Net Profit of previous year to be allocated to Community Kitchen Scheme.
  2. 15% of the 2% of Net Profit of previous year is allocated to Scheme for Free LPG connections for BPL families under Rajiv Gandhi Gramin LPG Vitarak (RGGLV) Scheme of Government of India
  3. Rs.10.00 crore is allocated to Indian Oil Foundation
  4. Out of the Balance Funds available, 40% is allocated to flagship Indian Oil programmes and balance 60% is utilized as per the following break-up:


  • A minimum of 35% towards National Causes/Natural Calamities
  • 35% towards Community Development activities including Special Component Plan and Tribal Sub Plan.
  • 30% towards IOC’s Scholarship Schemes –


Indian Oil Educational Scholarships of which 50% amount is utilized towards providing scholarships to the students belonging to SC/ST/OBC; 25% in each category/subcategory towards girl child and 10% in each category/subcategory towards Persons with Disabilities.

Indian Oil Sports Scholarships While utilizing the Community Development Funds, more emphasis is laid on the projects of providing Clean Drinking Water, Health & Medical Care and Education to the extent possible.

Conclusion:

“We Generate Wealth For The People. What Comes From The People Must, To The Extent Possible, Therefore Get Back To The People.”

- Bharat Ratna, J.R.D. Tata


In this manner, it is the obligation of an organization to give some reward to the society because the very survival of the organization depends upon the society. Beyond making profits, companies are responsible for the totality of their impact on people and the planet. “People” constitute the company’s stakeholders: its employees, customers, business partners, investors, suppliers and vendors, the government, and the community. Increasingly, stakeholders expect that companies should be more environmentally and socially responsible in conducting their business. In India, there are several companies that are performing their social responsibilities in many ways. This article reveals the social responsibility efforts of Tata group, Reliance group, ONGC, NTPC and IOC.

REFERENCES :

  1. Chatterjee, S. (2007), “Do Successful Companies Value Social Responsibility and Ethics in Marketing in India?”, paper presented at International Marketing Conference on Marketing and Society, IIM-K, April, 8-10, 2007, pp. 29-37
  2. Davda, R.H.(2012), “Social Responsibility of TCS Ltd. through Value Added Reporting”, REIMRJ, Vol. 2, no. 3, September, 2012, pp. 203-209
  3. Berad, N.R. (2011), “Corporate Social Responsibilities- Issues and Challenges in India”, International Conference on Technology and Business Management, March, 28-30, 2011, pp. 101-108
  4. Vohra, N. and Sheel, R. (2012), “Corporate Social Responsibility: Practice, Theory, and Challenges”, Vikalpa, Vol. 37, no. 2, April-June, 2012, pp. 73-84
  5. Sharma, A. and Kiran, R. (2013), “Corporate Social Responsibility: Driving Forces and Challenges”, International Journal of Business Research and Development, Vol. 2, no. 1, pp. 18-27

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Dr. Manish Bhaskarbhai Raval
SDJ International College
Surat

Mr. Ashish B. Gorvadiya
Phd Scholar
Saurashtra University
Rajkot

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