CSR OF RELIANCE INDUSTRIES

India has a long tradition in the field of corporate social responsibility and industrial welfare has been put to practice since late 1800s. Historically, the philanthropy of business people in India has resembled western philanthropy in being rooted in religious belief. Business practices in the 1900s that could be termed socially responsible took different forms: philanthropic donations to charity, service to the community, enhancing employee welfare and promoting religious conduct. The concept of CSR has evolved from being regarded as detrimental to a company’s profitability, to being considered as somehow benefiting the company as a whole, at least in the long run. This report tries to analyze the CSR initiatives of Reliance Foundation in India, and focuses on the finding & reviewing the impact of its CSR initiatives.

Corporate social responsibility (CSR) is on the rise all over the world, and India is no exception. The history of corporate paternalism has played an important part in shaping community expectations and CSR practices in India. Civil society, consumers and other actors have increased the pressure on companies to adhere to social and environmental standards, and this new “civil regulatory” environment has had impacts on business in India. In the words of Prof.N.R.Sheth, A corporate enterprise has been recognized as a "person" in law. It should also be recognized as a person in society. A corporate takes birth and grows in response to needs and labours of various stakeholders- entrepreneurs, managers, workers, local community, larger society, buyers, suppliers and of course, the state. Healthy survival and development depend on adequate nurturing by all these stakeholders. The concept of social responsibility should therefore include the whole spectrum of stakeholders. Responsibility should be clearly perceived and projected as responsibility and therefore therefore be kept away from ideas of philanthropy, charity, generosity and the like. A corporate, as a citizen, should understand that its own well-being is inextricably linked with the well-being of all stakeholders. Its financial management as well as human resources should notionally cover all stakeholders. One practical way of defining social responsibility is to allocate resources for material and human investment beyond legal obligations. How far and how should one contribute to the short-and long-term welfare of employees, clients, suppliers, people in the vicinity (especially those who supply human capital) and the wider population? What can be done to build bridges of understanding and mutuality with various categories of stakeholders? RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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How does one demonstrate a mindset which emphasizes interest in other beyond the realm of selfinterest? Indian corporate sector is spending 0.2 percent of their profits towards CSR activities only. Indian government has mandated CSR activities for corporate firms which are earning profits as per company’s act-2013. The study of CSR activities RIL is very important as the firms is competing to emerge as leader in CSR India.

India is the 2nd highest populous country in the world. Most of the population is living in the villages. India has achieved 65 % literacy rate only. Majority of the rural people are illiterates, not accessible to good health facilities and nutritious food. 20 percent of the rural people are in the poverty line. The business houses are earning profits by rendering their services to customers in society. The government alone can’t uplift the downtrodden people. The corporate houses and non-governmental organizations have to come forward to eradicate various social evils and play vital role in society development their activities such as providing quality education, extending healthcare facilities, nutritious food, creating awareness on environment safety ,drinking water facilities, sponsoring the sports events, participating in natural disaster management programmes,ethical values promotion, enriching the Indian culture ,etc.The corporate houses ha ve to come forward to do their part pa rt towards development of the society. This Th is contribution will be helpful to the organizations to enhance their brand awareness and reputation in the market. The society development should be treated as an integral part of the organization’s strategy. CSR strategies promote the corporate sustainable development as a s well as society as at large. Therefore community development is a responsibility of the government, non-governmental organizations and business organizations as well.

The study is intended to achieve the following objectives: •

The main main purpose purpose of the the study study is to analyze analyze the the corporate corporate social social responsibil responsibility ity (CSR) (CSR) activi activities ties carried out by Indian private (RIL).

The study is based on the secondary data collected from the annual reports of Reliance Industries Limited (RIL) 2009-10 to 2012-13. The study adopts descriptive and analytical research design. According to the section 135, Schedule VII of Companies Act-2013 initiatives of CSR. 2 e g a P

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

Reliance Industries Ltd is an India-based company. The company is India's largest private sector company on all major financial parameters. They are the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 117th amongst the world's Top 200 companies in terms of profits. The company operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara. The company operates in three business segments: petrochemicals, refining, and oil and gas. The petrochemicals segment includes production and marketing operations of petrochemical products. The refining segment includes includ es production and marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of crude oil and natural gas. The other segment of the company includes textile, retail business and special economic zone (SEZ) development. In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was started as a small textile manufacturer unit. In May 8, 1973 RIL was incorporated and conformed their name as RIL in the year 1985. Over the years, the company has transformed their business from manufacturing of textiles products into a petrochemical major.

Social welfare and community development is at the core of Reliance’s Corporate Social Responsibility (CSR) philosophy and continues to be a top priority for the Company. It revolves around the Company’s deeply-held belief in the principle of symbiotic relationship with the local communities, recognizing that business ultimately has a purpose - to serve human needs. Close and continuous interaction with the people and communities in and around the manufacturing divisions has been the key focus while striving to bring around qualitative changes and supporting the underprivileged. The key philosophy of all CSR initiatives of RIL is guided by three core c ore commitments of SIS: a) S- SCALE b) I- IMPACT

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c) S- SUST SUSTAI AINA NABI BILI LITY TY

Corporate social responsibility (CSR) is a form of business self-regulation to incorporate social and environmental concerns. It represents a business model that adheres to laws, ethical standards, and international norms. As part of the business model, businesses have to take into account the impact of their activities on the environment, employees, communities, stakeholders, and other members of the public. In short, CSR represents the deliberate inclusion of the public’s interest in a business’ decision making to ensure a triple bottom line that considers the planet, people, and profits. In general, CSR involves some kind of standardized reporting that allows the business to collect information on how it is making progress on various fronts. Businesses that engage in CSR typically focus on some or all of the following: •

Environment: This requires a look at the environmental impacts of products and services, as well as what the business does outside the company to improve the environment.

•

Employees: It’s important to ensure that all employees are cared for adequately. Businesses usually focus on workplace conditions, benefits, be nefits, living wages, and training. 4 e g a P


•

Communities: Engaging the surrounding communities is an important part of not just creating good human capital that can serve the business, but also securing a reputation that can further establish the business.

•

Regulations: Respecting regulations to the fullest and often exceeding them is part of being socially responsible.

•

Crisis Preparedness: Being ready to address business crises and ensure safety for employees and surrounding communities is critical. Having plans ready and tried are important in ensuring minimal losses during times of crises.

CSR is about how companies manage the business processes to produce an overall positive impact on society.

Take the following illustration:

Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). circle). 2. The nature and quantity of their impact impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance. RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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On 8th August 2013 the proposed new Companies Bill, 2012 was passed by Rajya Sabha. This bill will soon replace the Companies Act, 1956, which has governed Indian business for over 50 years. The new Company’s Act -2013will come into effect at a future date not yet determined. The Act contains an important clause (Clause 135) that mandates CSR regulations for Indian companies. It has many merits for one thing; it simplifies many issues and aims at greater transparency and ease of doing business in India. It has also introduced class action lawsuits, which will protect small holders, a remarkable move. As per companies act 2013, CSR is mandatory 2 percent spend for companies with profits over 50 million Rupees ($816, 000) in the last three years. While this mandatory spend may seem like an excellent move and a great business opportunity, especially for smaller consultancies and reveals that which is simply not true. Only companies of a certain size are included in Clause 135.The rules define the companies affected as those having net worth of Rs 500 crore or more; or annual turnover of Rs 1000 crore or more; or annual net profit of Rs 5 crore or more (net profit before tax, not include profits arising from branches outside India).

CSR needs not be altruistic to be effective

According to India's Corporate Affairs Minister Sachin Pilot, "CSR should be viewed as something that you are doing – whether through cash or kind, or man-hours, or anything else e lse – to bring smiles to the people's faces and not for your EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)." While inspiring, Pilot's declaration pivots CSR from being a call of business to something undefined and unrelated – something more. But CSR need not be altruistic to be effective. Companies like Pepsi Co and Coca- Cola invest in projects like water treatment facilities and a zero waste footprint for their products because it helps them reduce their resource use, which in turn helps them become sustainable and achieve higher profits. General Motors and saves itself millions of dollars because it is good business and impacts its bottom line while pushing innovation, better technology and building accountability.

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What CSR is, and should do?

The Indian business scenario is not without its merits and CSR has an enormous role to play as long as it has guidelines to help in its progression. These guidelines need to play up India’s strengths like innovation. Jugaad has always been a way of life in India – now if we can take this intrinsic concept and mix it with some systems thinking to streamline evolution, Indian Inc. will have a global playing field. Besides, CSR should encourage cross-pollination of ideas, systems thinking and holistic problem solving. It should support transparency, innovation, and stakeholder engagement and consumer empowerment, all in order to make businesses do better by creating products and services that put human and environmental health at the forefront. Confusing these goals with mere policy will result in a stagnation of CSR. Sadly, this is what the mandatory spend encourages. Corporate Social responsibility in India

•

Most Mo st compan companie iess are are not not doi doing ng any CSR CSR

•

Many companies companies are are only only making making token gestures gestures towards towards CSR in in tangentia tangentiall ways ways such such as donations to charitable trusts or NGOs, sponsorship of events, etc.

•

Most compani companies es believe believe that that charity charity and philanth philanthropy ropy equals equals to to CSR; very few few companies companies are using their core competence to benefit the community.

•

Most companies companies use use CSR as a marketi marketing ng tool tool to further further spread spread the the word word about their business. business. For instance, donation of a token amount to some cause on purchase of a particular product. The fact that companies are hiring advertising agencies for their CSR further highlights this.

•

Only Few Few Indian Indian companies companies (from this study) publish publish a Corporat Corporatee Sustainabi Sustainability lity Report to measure and assess the impact of their business b usiness on the environment .

•

Very few few companies companies openly state the process processes es followe followed d by them, them, the damage damage caused caused by these these processes, and the steps taken to minimize this damage.

•

Very few few companies companies state state how much much they they spend on CSR. CSR. There is no mention mention of the amount amount spent in any of their balance sheets or annual reports. Most companies just list and describe their CSR activities and seem to be spending minimal amounts on CSR.

•

Very few companie companiess are engaged in CSR CSR activiti activities es in the local local commun communities ities where they are based.

•

Very few companie companiess have a clearly clearly defined defined CSR philosop philosophy. hy. Most Most implem implement ent their their CSR CSR in an ad-hoc manner, unconnected with their business process.

•

Most companies companies spread spread their their CSR funds funds thinly thinly across across many many activitie activities, s, thus thus somewher somewheree losing losing the purpose of undertaking that activity.


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•

Most companie companiess appear appear reluctant reluctant to to themselves themselves fulfill fulfill their their CSR unless unless it it is mandator mandatory y by law. law.

•

Generally Generally speaking, speaking, most companies companies seem seem either unaware or don’t don’t care about CSR. However, However, all companies can be considered to be an upward learning curve with respect to CSR and it is expected that the situation will improve.

RIL, Tatas most admired cos for CSR activities

Corporate behemoth Reliance Industries and two Tata Group firms -- Tata Motors and Tata Steel -have emerged as the country's most admired companies for their corporate social responsibility initiatives, says a survey. According to a survey by global consultancy firm The Nielsen, RIL is on top followed by Tata Motors and Tata Steel as the most admired companies by stakeholders for their CSR initiatives.

The business benefits of corporate social responsibility

Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits. Building a reputation as a responsible business sets you apart. Companies often favour suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers.

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1. Trophy for its its work done under under the National National AIDS Control Control Program Program phase-III phase-III from from Population Population Foundation of India (Hazira Manufacturing Division Reliance Community Care Centre) 2. The Golden Golden Peacock Award Award - 2012 for for Corporate Corporate Social Social Responsib Responsibility ility by by Institute Institute of Directors (IOD) 3. (Vadoda (Vadodara ra Manuf Manufactu acturi ring ng Divis Division ion)) 4. Red Cross Gold Gold Medal for the the “Reliance “Reliance Dhirubhai Dhirubhai Ambani Ambani Protsahan” Protsahan” Educational Educational initiati initiative ve from Governor of Andhra Pradesh for FY 2011-12 5. Golden Peacock Peacock National National Training Training Award Award – 2012 2012 (Patalganga (Patalganga Manufactur Manufacturing ing Division Division)) 6. The National National Award for Innovati Innovative ve Training Training Practices Practices for security security training training practices practices by Indian Indian Society for Training and Development (Nagothane Manufacturing Division) 7. The Greentech Greentech Gold Gold Award Award for HR HR Excellence Excellence (Dahej (Dahej Manufactu Manufacturing ring Divisio Division n) 8. Oliver Kinros Kinross’s s’s Asia Asia Oil & Gas Award 2013 2013 for Corporate Corporate Social Social Responsibil Responsibility ity - Company Company of the Year (RIL KG-D6) 9. “Best ART ART (Anti-Retro (Anti-Retroviral viral Therapy) Therapy) Centre Centre Award Award 2013” by Gujarat Gujarat State State AIDS Control Control Society (GSACS) on World AIDS Day (Hazira Manufacturing Division) 10. Award for leadership excellence in in corporate social welfare/CSR welfare/CSR by“The Greatest Corporate Leaders of India” initiative (Hazira Manufacturing Division) 11. ‘Best corporate social responsibility practices’ and ‘Best use of CSR practices in in manufacturing’ awards (Hazira Manufacturing Division)

(CSR & G Committee) •

RIL's Board of Director Directorss have formed a CSR&G CSR&G Committe Committee. e. This This committee committee,, along along with with the CSR team, to be responsible for the decision making with respect to RIL CSR policy.

•

CSR&G Committee Committee recomm recommended ended the the policy policy to to RIL's RIL's Board Board of Directors Directors and the the Board Board of Directors have approved this policy.

•

The Board Board level level Committee Committee to to meet at least least twice twice a year to review review the implementati implementation on of CSR CSR projects/ programs and give suitable direction 0 1 e g a P


BUDGET

•

The Board Board of of RIL to to ensure ensure that that mini minimum mum o off 2% of aver average age net net profit profit of of the last last

•

3 years years is spent spent on on CSR CSR init initiat iative ivess under undertak taken en by by RIL RIL

•

All expen expendit diture ure towa towards rds the the progr programs ams to to be dilige diligentl ntly y documen documented ted

•

In case case at least least 2% of average net profit profit of the last 3 years is not not spent spent in a financial financial year, reasons for the same to be specified spec ified in the CSR report

•

Any surplus surplus generated generated out of the CSR activiti activities es not to be added added to the normal normal busines businesss profits profits of RIL.

FINANCIAL DETAILS OF THE COMPANY

CSRExpe xpenditur nditure e

3.24% of profit after tax Spent on Corporate Social Responsibility

1.

Paid up capital (INR): 3,232 crore

2.

Total turnover (INR): 4,01,302 cr crore

3.

Total profit aft after taxes (INR): 21,984 crore

4.

Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): (%): 3.24%

RIL’s CSR policy demonstrates its efforts towards social and economic development. RIL’s community development initiatives focus on education, healthcare, skill enhancement, infrastructure development, promoting sportsmanship, women empowerment, among others. Following are some of the initiatives RIL has undertaken un dertaken during FY 2013-14: •

Ensu En suri ring ng well well-b -bei eing ng of of local local com commu muni niti ties es

•

Buildi Building ng capabil capabiliti ities es for employ employmen mentt gener generati ation on

•

Empowering wo women

•

Crea Creati ting ng acce access ss to heal health th care care

•

Cons Conser ervi ving ng envi envirronm onment ent

Modes

through

which

programs/projects

undertaken

(through

in-house

team/own

foundation/external NGO/government structures/ any other organization)

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– A comprehensive approach towards community development RIL implements a number of its its community development initiatives initiatives through Reliance Foundation (RF). RF has a comprehensive approach towards community development with focus on five pillars of

Rural Transformation, Education, Health, Urban Renewal and Arts, Culture and Heritage. Through various initiatives under these core areas, the Foundation strives to bring a synergetic approach towards community development. •

Reli Relian ance ce Fou Founda ndati tion on BIJ BIJ-- Bhar Bharat at Ind India ia Jod Jodo o

•

Inf Inform ormatio ation n servi ervice cess

•

Healt alth Pro Programmes

•

Reli Relian ance ce Foun Founda dati tion on Dris Drisht htii

•

Thee Dhiru Th Dhirubha bhaii Amba Ambani ni Schol Scholar arsh ship ip Pro Progr gram amme me

•

Sports Sports for for Developm Development ent Arts, Arts, Cultu Culture re & Herita Heritage ge Disast Disaster er Respons Responsee

•

Envi En viro ronm nmen enta tall Susta Sustain inab abil ilit ity y 2 1 e g a P


Creating sustainable livelihood solutions, addressing poverty poverty,, hunger and malnutrition

Affordable Afford able solutions for healthcare hea lthcare through Health

i m p r o v e d a c c e s s , a w a r e n e s s a n d health seeking behaviour

Education

Environment

Arts, Heritage and Culture

Disaster Response

Access to quality education, training and skill enhancement

Environmental sustainability, ecological balance, conservation of natural resources

Protection and promotion of India’s art, culture and heritage

Managing and responding to disaster

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During FY 2013-14, RIL spent ` 711.72 crore on community development initiatives . CSR

expenditure incurred by RIL

is

on

various

projects

pertaining to

education,

healthcare,

livelihood support, rural development, heritage conservation, environment, safety etc.

$ Mn

2013-14

12-13

11-12

10-11

09-10

08-09

07-08

06-07

05-06 04-05

RevenueFromOperations

66,979

4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

89,124 73,164

Total Income

68,470

4,10,238 3,79,117 3,45,984 2,61,703 2,02,860 1,48,388 1,44,898 1,18,832

89,807 74,614

6,645

39,813

38,785

39,811

41,178

33,041

25,374

28,935

20,525

14,982 14,261

1,467

8,789

9,465

11,394

13,608

10,497

5,195

4,847

4,815

3,401 3,724

Exceptional Items

-

-

-

-

-

-

(370)

4,733

-

Profit For the Year

3,669

21,984

21,003

20,040

20,286

16,236

15,309

19,458

11,943

95

90

85

80

70

130

130

110

Earnings Before Depreciation, FinanceCostandTaxExpenses (EBDIT) Depreciation and Amortisation

Equity Dividend %*

-

-

9,069 7,572 100

75

Dividend Payout

466

2,793

2,643

2,531

2,385

2,084

1,897

1,631

1,440

1,393 1,045

Equity Share Capital

539

3,232

3,229

3,271

3,273

3,270

1,574

1,454

1,393

1,393 1,393

-

-

-

-

-

-

69

-

60

-

-

-

-

-

-

-

-

-

1,682

-

-

-

Equity Share Suspense Account Equity Share Warrants Reserves and Surplus

32,353

1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411 39,010

Net Worth

32,892

1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804 40,403

Gross Fixed Assets

44,109

2,64,281 2,32,270 2,05,493 2,21,252 2,28,004 2,18,673 1,27,235 1,07,061

91,928 59,955

Net Fixed Assets

25,223

1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387

71,189

62,675 35,082

TotalAssets

61,351

3,67,583 3,18,511 2,95,140 2,84,719 2,51,006 2,45,706 1,49,792 1,17,353

93,095 80,586

Market Capitalisatio Capitalisation n

50,139

3,00,405 2,49,802 2,44,757 3,42,984 3,51,320 2,39,721 3,29,179 1,98,905 1,10,958 76,079

Number of Employees Contribution to National Exchequer

5,236

84,889

23,853

23,519

23,166

22,661

23,365

24,679

25,487

24,696

12,540 12,113

31,374

28,950

28,197

28,719

17,972

11,574

13,696

15,344

15,950 13,972

CSR expenditure expenditure:: (`in crore)

FY 2012-13

FY 2011-12

FY 2010-11

80.76

66.71

75.06

91.01

Health

416.69

140.72

91.03

46.99

Rural Development

165.72

73.10

21.69

28.35

0.52

1.20

2.15

0.76

Others

48.03

69.27

61.34

34.23

TOTAL

711.72

351.00

251.27

201.34

Education

Environment (Greening activities)

FY 2013-14


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A total of 1.36 million man- hours of training was imparted to workforce More than 460 Village Farmer Associations (VFAs) are being actively involved in the process of bringing about a change in the lives of nearly 40,700 farming households 3,552 HIV/AIDS patients were provided free consultation, counselling, investigation and treatment at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali Over 12,800 free corneal transplants across India till date (Reliance Drishti) Steps undertaken to ensure that community development initiatives are successfully adopted by the community

•

To work work towards towards bridging bridging the developmental developmental gap between between rural rural 'Bharat 'Bharat'' and urban India by improving livelihood, addressing poverty, hunger and malnutrition. Key initiatives include:

•

Suppo Support rtin ing g Farm Farm and and nonnon-fa farm rm liv livel elih ihoo oods ds

•

Improv Improving ing water water conserv conservati ation on and and rainrain-wat water er harve harvest sting ing

•

Developing Developing communi community ty based based initiat initiatives ives like VFAs and producer producer companies companies towards towards building building capacity of the community and ensuring sustainability.

•

Using technology technology towards towards delivering delivering need need based based informat information ion for for improving improving quality quality of life.

•

Improv Improving ing food food secur security ity and enhanci enhancing ng nutriti nutrition on

•

Devel Develop opin ing g Com Commu muni nity ty infr infras astr truc uctu ture re

Billionaire Mukesh Ambani- run Reliance Foundation has undertaken a CSR initiative on rural transformation, which covers 24 of the poorest pockets across 10 states, engaging 20,000 farming households from 250 villages. For the initial phase, 24 pockets across Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu were selected. Reliance Rural Development Trust (RRDT)

RRDT during the year worked in 266 villages, constructing 173 Anganawadi buildings, 88 concrete roads and other rural facilities. RELIANCE FOUNDATION BIJ- BHARAT INDIA JODO

With the aim of bridging the rural-urban divide, the rural transformation initiative RF BIJ supports marginal farmers by ensuring livelihoods and supporting them in their journey out of poverty. While the programme aims at de risking farming and making the community self-sufficient, it also aims at RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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contributing towards conservation of nature and promoting sustainable

farming

practices.

ha s come c ome a long way and has its presence in 19 1 9 agro Launched in 2010, the RF BIJ programme has ecological zones spread over 11 states in the country. Working on the three core pillars of direct action, participatory

approach

and

sustainable

development, RF BIJ reaches out to the most deserving communities characterised by low rainfall, rainfed agriculture, large tracts of cultivable wastelands and high poverty index. Today more than 460 Village Farmer Associations (VFAs) are being actively involved in the process of bringing about a change in the lives of nearly 40,700 farming households through its initiatives. Close to

15,600 hectares of land have been redeveloped under the Dharti farm initiative this year taking the cumulative land development since inception of the programme to over 31,000 hectares. Another significant intervention under the RF BIJ initiative, Reliance Nutrition Garden has positively influenced the nutritional intake RIL ensures its presence is established right from the commencement of the initiatives. RIL collaborates with communities from need identification stage to project implementation . The Company involves the community in decision-making process, right from the problem identification stage till implementation. The extensive engagement with the community establishes joint ownership of projects. All concerns are amicably addressed and the initiatives are adopted since they are designed as per the identified and prioritised needs of the communities, implemented with the active participation of the communities and progress is jointly evaluated with the community representatives.

•

To address address issues issues around affordabili affordability ty and accessibili accessibility ty of quality quality healthcare healthcare and and bring bring about about improvement in awareness and health seeking behavior in various parts of India, enabling a better living, through initiatives such as:

•

Primar Primary, y, seconda secondary ry and tertia tertiary ry care care faci facilit lities ies

•

Conduct Conducting ing need need based based health health camps camps and provid providing ing consul consultat tation ion,, medicin medicines es etc. etc.

•

Work Workin ing g on on mat mater ernal nal and and chi child ld heal health th

•

Behavio Behavioral ral change change for improv improved ed mothe motherr and and child child health health

•

Improv Improving ing health healthcar caree deliver delivery y through through innova innovativ tivee outreach outreach progr programm ammes es

•

Work Workin ing g for for the the vis visua uall lly y imp impai aire red d

•

Workin Working g in the the areas areas of Commu Communic nicable able and and non-co non-commu mmunic nicabl ablee diseas diseases es

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•

Using technology technology for for training training,, competency competency evaluation evaluation and clinical clinical decision decision support support for medical professionals with a view to improve quality of healthcare

HEALTH PROGRAMMES

The‘Health for all’ initiative focuses on the provision of good quality primary care through its mobile and static medical units and caters to the needs of the lower income group families in the area. It also aims at establishing an effective referral system to streamline the flow of patients to the higher centres of care. More than 350,000 individuals have enrolled for the services and nearly 52,600 patients have benefitted from the services within one and half years of initiating the programme. Similar

mobile medical units are operating in Uttarakhand and Madhya Prade sh. More than 14,300 patients from nearly 150 villages in Madhya Pradesh and Uttarakhand have benefitted from the services of the mobile medical units in this year. RELIANCE FOUNDATION DRISHTI

The Drishti programme aims at improving the lives of visually impaired. Implemented in association with the National Association for the Blind, the programme has transformed the lives of 1200 cataract affected individuals through successful corneal transplants this year (12,839 cataract surgeries since inception). Other initiatives like the Braille newspaper and calendar and campaigns

to promote eye donation are a re also integral aspects of the Drishti programme. RIL started the ‘Change Agents for Safety Health and Environment’ (CASHe) programme a decade ago.

Over the years, the CASHe programme has

evolved into a movement encompassing the entire enterprise with thousands of improvement projects. The programme has been instrumental instrumental in creating a culture of implementing health, safety and environment projects on a priority basis. This programme

has

helped

to

improve

the

Company’s

performance on the occupational health and safety safety front. It has been recognised in various international forums like the International Occupational Health Congresses held in Italy, South Africa and Mexico. During the year, RIL has also implemented a unique programme called ‘Task Based Health Risk Assessment’ (TBHRA). A very unique and significant initiative, ‘REFERS’ (Reliance Employee & Family Emergency Response Services) offers 24x7 assistance in case of any medical, accident, fire and security RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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exigencies.RIL’s Community Medical

Centres

established

near

most of its manufacturing

divisions, provide comprehensive healthcare services to local villagers. A joint initiative of RIL and National Association of Blind, Project Drishti , has undertaken over 12,800 free corneal graft surgeries till date across the country.

RIL’s initiative to combat TB and HIV/AIDS HIV/A IDS is a unique public- private partnership programme between the Government, Gove rnment, NGOs and the Company. It creates awareness and provides care, support and treatment (including free-of-cost treatment) to the poor. The Hazira Manufacturing Division’s HIV/AIDS HIV/AIDS Centre is one of the largest Anti-Retroviral Anti-Retroviral Treatment Centre (ART Centre) in India. It is a fully functional 32-bed hospital for HIV/AIDS patients. ART Centre facilities are replicated as per the successful Hazira model in Jamnagar, Patalganga and Lodhivali. COMMUNITY HEALTHCARE Health Care initiatives

To inculcate the awareness of public health and sanitation among villagers, scientific disposal of waste and a total sanitation drive in association with Sulabh International is regularly carried out at Moti Khavdi, Meghpar, Padana and Nani Khavdi villages. A daily door-to-door collection of garbage, sweeping of village roads and disposal of waste collected at designated places outside village continued during the year.The Community Medical Centre at Moti Khavdi with an average of 400 OPD patients per day caters to the village Girls’ and fluting population mainly consisting of migrant labour staying in nearby villages. The Centre provides provid es free-of-cos free- of-cost, t, round-the-c round- the-clock lock comprehensi compr ehensive ve health healt h services servi ces to about 45 villages/ha villag es/hamlets. mlets. The

intervention impacts health and hygiene needs of 1.5 million people. It also extends emergency life- saving services to accident victims on the Jamnagar-Dwarka highway. The Centre provides ARV treatment for AIDS patients free-of-cost since October 2007. This is the fi centre of its kind by a private sector company in this region. Doctors and nurses from the Centre visit 6 neighbouring villages twice a week. Free check-up and treatments are done and free medicines are provided to around 150 to 180 patients per trip.Audio-visual shows, poster exhibition, Sunday clinic for HIV/ AIDS awareness, pulse polio vaccination, multidiagnostic camps and blood donation camps are carried out regularly.

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PRIMARY HEALTH CENTRE OPERATIONS A total of 22,250 patients (male 9,844, female 12,406) from Gadimoga and Bhairavapalem Panchayats were treated during the year at static clinic Gadimoga and satellite clinic Bhairavapalem.

One male doctor, one lady doctor and two pharmacists are available between 9 AM to 5.30 PM on all working days at the Gadimoga Static Clinic. The doctors extend their services to the Bhairavapalem village community twice a week, The Static Clinic at Gadimoga and the Satellite Clinic at Bhairavapalem are functioning since

2005 and 2006 respectively, to cater the health needs of fishermen community

with a budget outlay of about 0.24 crore annually.

DHIRUBHAI AMBANI HOSPITAL During the year, the Dhirubhai Ambani Hospital at Lodhivali, Maharashtra engaged significantly to improve the quality of life in surrounding communities. Medic al diagnostic camps were arranged in nearby areas for providing medical consultation, diagnosis and medicines to the needy. During FY 2013-14, 13 medical camps were conducted.In addition, during the year, the following initiatives were taken for providing provid ing health h ealthcare care facilities faci lities to the th e local loc al • Medical care was provided provided to 54 road accident trauma patients patients free-of-cost free-of-cost or at highly subsidised subsidised rates • An Orthopedic Orthopedic camp for Osteoporosis Osteoporosis patients patients was conducted at Dhirubhai Dhirubhai Ambani Hospital Hospital at Lodhivali, where 70 persons were attended. 3,552 HIV/AIDs patients were provided free consultation, counselling, investigation and treatment till 31st March 2014 at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali.

LIVELIHOOD SUPPORT PROGRAMMES

RIL has always been at the forefront in implementing initiatives especially for the welfare of rural women and youth of surrounding villages through various self-help groups (SHG). Continuing with the services and keeping up the tradition, Hazira, Vadodra, Nagothane, Gadimoga and many other manufacturing divisions offer training programmes through various SHGs help the rural women and youth to be "self sustaining" and generating income for themselves and supporting their families

•

To work work on several several educational educational initiatives initiatives to provide provide quality quality education education,, training, training, skill skill enhancement for improving the quality of living and livelihood. Initiatives are aimed at:

•

Prom Promot otin ing g prim primar ary y and seco second ndar ary y educat educatio ion n

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•

Enabling Enabling higher higher educatio education n through through merit merit cum means means scholars scholarships, hips, including including for for differen differently tly abled across the country.

•

Using sports sports as a tool tool for development development of of students students in both both urban urban and and rural rural settin settings gs

•

Promoting Promoting higher education education including including setting setting up up and and support supporting ing universiti universities es

•

Skill Skill dev devel elopm opmen entt and voca vocati tion onal al tra train inin ing g

To build a rich pool of human resources for India, RIL has developed its own network of 12 schools in and around the manufacturing units of the company at Jamnagar Surat, Vadodara, Patalganga, Nagothane and Nagpur benefitting more than 15,000 students. These schools promote the education among the the children children of the underprivileged communities. The J .H. Ambani School at Patalganga provided education to many underprivileged children from nearby villages in Lodhivali during the current year. To attract children to attend school and foster a love for k knowledge nowledge among them, several initiatives were taken during the year. These included construction of a school building building at Meghpar village in Jamnagar; construction of exclusive girls' girls' school at Motikhavdi ; distribution of school benches at Nagothane ; providing school kits at Jamnagar ; distributing school bags to children at Nagpur and Silvassa and providing notebooks and uniforms to schoolchildren of Gadimoga and Bhaira vapalem Panchayat. Also, Also, financial support was extended to to ‘ Bruhad Gujarat Sanskrit Parishad' for imparting knowledge on Sanskrit, Karmakand and Astrology. RELIANCE DHIRUBHAI AMBANI PROTSAHAM SCHEME

A flagship CSR initiative in its own right, Reliance Dhirubhai Ambani Protsaham Scheme, financially supports poor and meritorious students (Class X pass-outs) from the East Godavari district. Recipient students get g et admissions in corporate junior (intermediate) colleges of their choice. A total of 178 meritorious students were selected for the academic year 2013-14 and received support of ` 1 crore. With this year’s admissions, the total number of students supported

under the scheme reached 1,326. Since 2010- 11, RIL has been providing financial aid to the deserving candidates (among Protsaham recipients) for pursuing their higher studies in engineering and medical streams. MUMBAI INDIANS ‘EDUCATION FOR ALL’ INITIATIVE

Smt. Nita M. Ambani – an educationist – who pioneered the concept of ‘Education for All’ programme believes in the cause to uplift a child through equal education opportunities.In the past four years, this programme has been able to impact the lives of over 27,000 underprivileged

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children. Apart from monetary support, it has built awareness amongst various groups so that the

movement can expand and impact more children. GIRLS’ EDUCATION INITIATIVE

RIL Jamnagar supported the Government of Gujarat’s drive to promote girls’ education. Approximately 1,600 school kits were distributed in the villages to encourage enrollment of girls in schools. More than 1,500 kits are distributed in 42 villages of Jamnagar and Lalpur talukas every year since 2006. This has resulted in a remarkable rise in enrollment of girls in the first standard. Construction of girls’ primary school at the Moti Khavdi village in the v icinity of Jamnagar Complex was undertaken during the year at the behest of villagers. A two-story building with the necessary facilities has been constructed. The school building is earthquake resistant, and has the provision for vertical extension.

Girls’ Primary School at Moti Khavdi

Furniture and computers were provided to Moti Khavdi Boys’ Primary School. Ten computers were donated to the primary school at Kanalus village.In Ranchi and other places of Jharkhand, school benches were provided to various schools according according to requirements requirements..

Financial assistance to Bhil Community in Tripura and Assam for educational needs of

underprivileged children was given.

Sanskar Shibir

Sanskar shibir is a regular activity of CSR team of Nagothane Manufacturing Division. Sanskar Shibir

is

a

concept of enjoyable learning for school students. It is also a demonstration of

interactive teaching method for school teachers. Sanskar, synonymous with excellence in education equips its pupil with all the requisite skills to be tomorrow’s leaders with a critical and global outlook. Objective of the project is to motivate school children for improved life skills and also encourage en courage the high moral values and cultural values towards the right ways of leading life.

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THE DHIRUBHAI AMBANI SCHOLARSHIP SCHEME

Good education, without doubt, is one of the main cornerstones for building a successful and prosperous society. The merit cum means scholarship scholarship by RF ensures that students get an opportunity to follow their dreams without worrying about the financial implications of pursuing higher education. The scholarship programme supports the top scoring Higher Secondary students from financially weak backgrounds and physically challenged students from across all states and union territories of India to pursue education at college level. A total of 393 scholarships have been awarded this year of which nearly 50% were awarded to girls and 111 to students from physically challenged category. The programme has positively influenced the lives of more than

10,000 young scholars and their families so far. RF organised the Dhirubhai Ambani scholarship award ceremony at Mumbai to award the scholarships to selected students in January 2014. 2014 . SPORTS FOR DEVELOPMENT

Recognizing the value of sports towards education, fitness and well

being of students, RF

launched the Jr. NBA programme in partnership with the National Basketball Association (NBA). (NBA). A comprehensive,

school based youth basketball programme programme in India, it is working towards

promoting health, fitness and an active lifestyle through basketball and teaches the values of the game such as teamwork, sacrifice, discipline, dedication and sportsmanship. Launched in the cities of Mumbai and Kochi, it has already reached 228 schools, 260 coaches and nearly 140,000 students. The programme aims at reaching one million youth in three years. It will also train 2,000 coaches and physical education instructors across India to sustain this effort over a longer period. 2 2 e g a P


RF is also implementing a programme in 30 villages of Agar, Madhya Pradesh with the aim of empowering children and communities through the medium of sports. The programme is working towards creating an enabling environment for improved educational status, gend er inclusiveness and improved health outcomes through the active participation of children, parents, larger community and the local governance system. ARTS, CULTURE & HERITAGE

To work towards preserving the rich heritage, arts and culture of India for its future generation and make conscious efforts to ensure its continuity and enhance avenues for livelihoods of traditional artisans and craftsmen. Key initiatives include: Working towards protecting and promoting India's art, culture and heritage through various promotional and developmental projects and programmes. Support and promotion of artists and craftsman Promotion and preservation of traditional art and handicraft Documenting India's rich heritage for the benefit of future generations. Reliance Foundation focuses on preserving the rich heritage, arts and culture of India for its future generations and has made conscious efforts efforts to contribute towards preserving the same. same. RF continued to support specific programmes to promote Indian art. DISASTER RESPONSE

Reliance Foundation has a capacity to respond to disasters in a timely manner and engage directly with the affected communities busing its experience exp erience of working closely with the communities. When Uttarakhand was affected by massive floods in June 2013, RF was one of the first organisations to lend a supporting hand. RF relief efforts reached the unreached that were cut off post the disaster. RF supported the rescue and relief operations by ensuring supply of relief material and prompt medical support. RF deployed a team of 20 doctors and 50 development professionals to reach out to more than 100 villages in Uttarakhand in the period following the disaster. RF constructed 50 family shelters, distributed more than 5,500 relief kits and conducted medical camps that benefitted more than 8000 patients in the months following the calamity. RF is committed to continue the

efforts in Uttarakhand and has deployed two full time teams to streamline its efforts at Rudraprayag and Uttarkashi. RF is also committed to reconstruct some of the affected schools and houses in Uttarakhand. 3 2 e g a P


To enable enhanced livelihood and quality of life, promote environment sustainability through various initiatives for: •

Ecol Ecolog ogic ical al sust sustai aina nabi bili lity ty

•

Prom Promot otin ing g biod biodiv iver ersi sity ty

•

Cons Conser erva vati tion on of natur natural al reso resour urce cess

•

Main Mainta tain inin ing g qual qualit ity y of soi soil, l, air air and and wat water er

•

Prom Promot otin ing g rene renewa wabl blee ener energy gy

•

Devel Develop opin ing g gar garden denss and river river fron fronts ts

•

Protec Protectio tion n of of nati national onal herita heritage, ge, art and cultur culturee

RIL, in its journey towards environmental excellence, continues to achieve new milestones. Its efforts are directed to achieve environmental performance beyond compliance through adoption of global best practices. During the year under review, several initiatives were taken at manufacturing sites to improve the environmental performance and reduce the environmental footprint. Some of them are: Environment protection and awareness drives Green Cover in surrounding villages

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CSR activities as per Sec-135(Schedule, VII) of CSR activities S.No.

Type of the CSR activity

1

Eradicating extreme hunger and poverty

2

Promotion of education

3

Promoting gender equality and empowering women

4

Reducing child mortality and improving maternal health

5

Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases

6

Ensuring environmental sustainability

7

Employment enhancing vocational skills

8

Social business projects

9

Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socioeconomic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

10

Other activity not mentioned above

Source: Sec-135- (Schedule VII) Companies Act 2013

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A score of 10 was awarded if an activity was initiated which is mentioned above otherwise a score of 0 was awarded. A firm can score a maximum of 100 points and a minimum of 0. The scope of the study is confined to CSR activities under taken by RIL programmes towards CSR.

CSR SCORES OF RIL RIL CSR Score S.No.

Type

of

the

CSR activity

2009-10

2010-11 2011-12

2012-13

1

Eradicating extreme hunger and poverty

10

10

10

10

2

Promotion of education

10

10

10

10

3

Promoting gender equality and empowering women

10

10

10

10

4

Reducing child mortality and improving maternal health

10

10

10

10

5

Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases

10

10

10

10

6

Ensuring environmental sustainability

10

10

10

10

7

Employment enhancing vocational skills

10

10

10

10

8

Social business projects

10

10

10

10

9

Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socioeconomic developm development ent a nd relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

10

10

10

10

10

Other

0

0

0

0

activity

not mentioned above

90 Average CSR Score

90

90 RIL Avg CSR score = 90

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•

•

A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining.

•

Employees are better motivated and more productive.

•

CSR helps ensure you comply with regulatory requirements.

•

•

•

Activities such as involvement with the local community are ideal opportunities to generate positive posit ive press coverage cov erage.. Good relationships with local authorities make doing business easier. Understanding the wider impact of your business can help you develop new products and services. CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognize this and are more willing to finance you.

Corporate Social Responsibility is essential in India as more than 65% of population is living in rural areas. There are huge differences differenc es between urban and rural India in terms health care facilit ies, education levels, infrastructure, housing, nutritious food, awareness on their rights of protection, etc. In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013 encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities. CSR is viewed as vital tool for improving their competitive edge over their opponents. India is the first country in the world which made CSR compulsory for business houses as per companies act -2013. The corporate sector in India has to share responsibility with government for promoting the community development. Social welfare and community development is at the core of Reliance's CSR philosophy and this continues to be a top priority. Reliance embraces responsibility for impact of its operations and actions on all stakeholders including society and community at large. It revolves around our deeply-held belief in the principle of symbiotic relationship with the local communities, recognising that business business ultimately has a purpose - to serve human needs. Close and continuous con tinuous interaction with the people and communities in and around the manufacturing divisions has been the key focus while striving to bring around qualitative changes and supporting the underprivileged. RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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Reliance Industries Limited process the environment initiatives, education programs, health care programs, prog rams, rural develop dev elopment ment program, prog ram, etc. at their own working worki ng communit com munity y for enhancin enha ncing g the quality life of the company’s employees and maximizing the shareholders profit. Although, CSR approach owes indispensible positive impacts to the society. Reliance also supports and partners with several NGOs in community development and health initiatives. Besides focusing primarily on the welfare of economically and socially deprived sections of society, Reliance also aims at developing techno-economically viable and environment-friendly products and services for the benefit of millions of its consumers, while at the same time ensuring the highest standards of safety and environment protection in its operations.

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a) Benn, Suzanne Suzanne and Bolton, Bolton, Dianne (Key (Key concepts concepts in corporate corporate social social responsibility, 2011).

b) Broomhill, Broomhill, Ray (Corporate (Corporate Social Social Responsibili Responsibility: ty: Key Issues and Debates, 2007)

c) El Ghoul, Ghoul, Sadok, Guedhami, Guedhami, Omerane, Omerane, C.Y. C.Y. Kwok, Kwok, Chuck, R.Mishra R.Mishra,, Dev th ( Banking of Journal and Finance, 9 September 2011, p.g. 2388-2406). Volume 35.

d) Lober, Heike (corporate (corporate management, management, corporate corporate social social responsibility responsibility and customers, 2014).

e) Ril.com Ril.com (N.D.) (N.D.) Social Responsibi Responsibility lity and Community Community Develop Development ment (Online). (Online). Available from: http://www.ril.c http://www.ril.com/html/aboutus/ om/html/aboutus/social_resp_comm social_resp_comm_dev.html _dev.html (access on 10th Dec 2014).

f) Ril.com Ril.com (N.D.) (N.D.) Relianc Reliancee Group Group (Online). (Online). Availa Available ble from: from: http://www.ril.com/html/aboutu http://www.ril. com/html/aboutus/aboutus.html s/aboutus.html (access on 10th Dec 2014). g) ANAUAL REPORTS REPORTS OF RELIANCE RELIANCE INDUS INDUSTRIE TRIES S LIMITED LIMITED a) 2005-2006 b) 2006-2007 c) 2007-2008

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ABSTRACT ................................................................................................................................................

1

INTRODUCTION .....................................................................................................................................

1

SIGNIFICANCE OF THE STUDY .........................................................................................................

2

OBJECTIVES OF THE STUDY ..............................................................................................................

2

METHODOLOGY ....................................................................................................................................

2

PROFILE OF RIL .......................................................................................................................................

3

CSR PHILOSOPHY OF RIL ....................................................................................................................

3

LITERATURE REVIEW ...........................................................................................................................

4

WHAT IS CORPORATE SOCIAL RESPONSIBILITY? ................................................................... 4 MEANING AND DEFINITION ............................................................................................................. 5 CSR POLICY AS PER INDIAN COMPANIES ACT 2013 .............................................................. 6 CSR AWARDS ..........................................................................................................................................

9

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE .................. 10 RELIANCE FOUNDATION .................................................................................................................. 12 RIL HAS IDENTIFIED 6 FOCUS AREAS: ...................................................................................... 13

SECONDARY DATA ANALYSIS ........................................................................................................ 14 COMPANY’S DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT PROJECTS ................................................................................................................................................

14

FINANCIAL HIGHLIGHTS ................................................................................................................ 14

RURAL TRANSFORMATION

15

HEALTHCARE .........................................................................................................................................

16

EDUCATION ...........................................................................................................................................

19

ENVIRONMENT ....................................................................................................................................

24

CONCLUSION ........................................................................................................................................

27

REFERENCES: .........................................................................................................................................

29


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CSR OF RELIANCE INDUSTRIES

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