A Study on Corporate Goernance

7/24/2019 A Study on Corporate Goernance

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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


11/21

CORPORATE SOCIA# RESPONSI&I#ITY 6COMPANIES IN NE4S:

ENRON:


12/21

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


13/21

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


14/21

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


15/21

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


16/21

: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


17/21

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


18/21

!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


19/21

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


20/21

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


21/21

$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

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A Study on Corporate Goernance