CORPORATE SOCIAL

RESPONSIBILITY
We make a living by what we get, but we make a life
by what we give
- Winston Churchill
Social responsibility is an idea that has been of concern to mankind for many
years. Over the last two decades, however, it has become of increasing concern
to the business world. This has resulted in growing interaction between
governments, businesses and society as a whole. In the past, businesses
primarily concerned themselves with the economic results of their decisions.
Today, however, businesses must also reflect on the legal, ethical, moral and
social consequences of their decisions.
Corporate social responsibility is no longer defined by how much money a
company contributes to charity, but by its overall involvement in activities that
improve the quality of peoples lives. Businesses are an essential part of the
society within which they operate. Intelligent organizations know that businesses
can never be prosperous if they operate within societies that are unsuccessful.
This is regardless of whether the society is failing due to social, governance or
environmental challenges.
There are several factors which explain the growing interest in corporate social
responsibility. The first factor is the new concerns and expectations of citizens,
consumers, public authorities, globalisation and industrial change. The second
factor is the increasing influence of social criteria on the investment decisions of
individuals and institutions, as investors or consumers. The third factor is the
growing concern about environmental degradation. This is a particularly
important concern given the fact that environmental conservation has become
an increasingly significant for everyone in society today. With multi-corporations
raking in millions, it is only justified that they give back to the community.
Social responsibility investment combines investors financial goals with their
obligation and dedication to factors that ensure the well-being of society such as
environmental friendly practices, economic growth and justice in society. These
elements are not only aspects of corporate social responsibility, but also a show
of the ethical standards of a company. Corporate social responsibility is therefore
viewed as a control mechanism to ensure that multi-corporations are responsible
for their actions.

CSR IN INDIA

CSR in India has traditionally been seen as a philanthropic activity. And in

keeping with the Indian tradition, it was an activity that was performed but not
deliberated. As a result, there is limited documentation on specific activities
related to this concept. However, what was clearly evident that much of this had
a national character encapsulated within it, whether it was endowing institutions
to actively participating in Indias freedom movement, and embedded in the idea
of trusteeship. As some observers have pointed out, the practice of CSR in India
still remains within the philanthropic space, but has moved from institutional
building (educational, research and cultural) to community development through
various projects. Also, with global influences and with communities becoming
more active and demanding, there appears to be a discernible trend, that while
CSR remains largely restricted to community development, it is getting more
strategic in nature (that is, getting linked with business) than philanthropic, and
a large number of companies are reporting the activities they are undertaking in
this space in their official websites, annual reports, sustainability reports and
even publishing CSR reports. The Companies Act, 2013 has introduced the idea
of CSR to the forefront and through its disclose-or-explain mandate, is promoting
greater transparency and disclosure. Schedule VII of the Act, which lists out the
CSR activities, suggests communities to be the focal point. On the other hand, by
discussing a companys relationship to its stakeholders and integrating CSR into
its core operations, the draft rules suggest that CSR needs to go beyond
communities and beyond the concept of philanthropy. It will be interesting to
observe the ways in which this will translate into action at the ground level, and
how the understanding of CSR is set to undergo a change.

BENEFITS OF A ROBUST CSR PROGRAMME:

1) Communities provide the licence to operate: In India, an increasingly
important stakeholder is the community, and many companies have
started realising that the licence to operate is no longer given by the
governments alone, but communities that are impacted by a companys
business operations. Thus, a robust CSR programme that meets the
aspirations of these communities not only provides them with the licence
to operate, but also to maintain the licence.
2) Attracting and retaining employees: Interventions that encourage and
enable employees to participate are shown to increase employee morale
and a sense of belonging to the company.
3) Communities as suppliers: There are certain innovative CSR initiatives
emerging, wherein companies have invested in enhancing community
livelihood by incorporating them into their supply chain. This has
benefitted communities and increased their income levels, while providing
these companies with an additional and secure supply chain.
4) Enhancing corporate reputation: The traditional benefit of generating
goodwill, creating a positive image and branding benefits continue to exist
for companies that operate effective CSR programmes. This allows
companies to position themselves as responsible corporate citizens.

CSR LAWS IN INDIA

SECTION 135 OF INDIAN
COMPANIES ACT, 2013
(1) Every company having net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five crore
or more during any financial year shall constitute a Corporate Social
Responsibility Committee of the Board consisting of three or more directors, out
of which at least one director shall be an independent director.
(2) The Board's report under sub-section (3) of section 134 shall disclose the
composition of the Corporate Social Responsibility Committee.
(3) The Corporate Social Responsibility Committee shall:
(a) Formulate and recommend to the Board, a Corporate Social Responsibility
Policy which shall indicate the activities to be undertaken by the company as
specified in Schedule VII.
(b) Recommend the amount of expenditure to be incurred on the activities
referred to in clause (a).
(c) Monitor the Corporate Social Responsibility Policy of the company from time
to time.
(4) The Board of every company referred to in sub-section (1) shall:
(a) after taking into account the recommendations made by the Corporate Social
Responsibility Committee, approve the Corporate Social Responsibility Policy for
the company and disclose contents of such Policy in its report and also place it
on the company's website, if any, in such manner as may be prescribed.
(b) Ensure that the activities as are included in Corporate Social Responsibility
Policy of the company are undertaken by the company.
(5) The Board of every company referred to in sub-section (1), shall ensure that
the company spends, in every financial year, at least two percentage of the
average net profits of the company made during the three immediately
preceding financial years, in pursuance of its Corporate Social Responsibility

Policy provided that the company shall give preference to the local area and
areas around where it operates, for spending the amount earmarked for
Corporate Social Responsibility activities:
Provided further that if the company fails to spend such amount, the Board shall,
in its report made under clause (o) of sub-section (3) of section 134, specify the
reasons for not spending the amount.

Reliance Industries Limited

Reliance Industries Limited (RIL) is an Indian conglomerate holding

company headquartered in Mumbai, Maharashtra, India. Reliance owns
businesses across India engaged in energy, petrochemicals, textiles, natural
resources, retail and telecommunications. Reliance is the second most profitable
company in India, the second-largest publicly traded company in India by market
capitalization and the second largest company in India as measured by revenue
after the government-controlled Indian Oil Corporation. The company is ranked
215th on the Fortune Global 500 list of the world's biggest corporations as of
2016. RIL contributes approximately 20% of India's total exports. It is ranked
14th among the Top 250 Global Energy Companies by Platts.

SHAREHOLDING
The number of shareholders in RIL are approx. 3 million. The promoter group,
Ambani family, holds approx. 45.34% of the total shares whereas the remaining
54.66% shares are held by public shareholders, including FII and corporate
bodies. Life Insurance Corporation of India is the largest non-promoter investor in
the company with 7.98% shareholding.

OPERATIONS
The company's petrochemicals, refining, and oil and gas-related operations form
the core of its business; other divisions of the company include cloth, retail

business, telecommunications and special economic zone (SEZ) development. In

201213, it earned 76% of its revenue from Refining, 19% from Petrochemicals,
2% from Oil & Gas and 3% from Other segments.
In July 2012, RIL informed that it was going to invest US$1 billion over the next
few years in its new aerospace division which will design, develop, manufacture,
equipment and components, including airframe, engine, radars, avionics and
accessories for military and civilian aircraft, helicopters, unmanned airborne
vehicles and aerostats.

Major subsidiaries and associates

Reliance Retail

Reliance Life Sciences

Reliance Institute of Life Sciences

Reliance Logistics

Reliance Clinical Research Services

Reliance Solar

Reliance Industrial Infrastructure Limited

Relicord

Reliance Jio Infocomm Limited (RJIL)

CSR POLICY
2.1

Guiding Charter:

1.

We are committed to ensuring ethical business practices, honouring

in spirit the legal norms of the country we operate in and transparency in
all our activities to be a good corporate citizen.

2.

We shall strive to preserve and uphold natural resources and reduce

the environmental impact of our products and services throughout their
lifecycle in order to be a responsible corporate citizen.

3.

We believe in creating synergies with our partners in growth and

success: the communities. We are committed to augment the overall
economic and social development of local communities by discharging our
social responsibilities in a sustainable manner.

4.

We uphold our commitment to our customers by making our

products and services greener and within reach of the common masses,
leading to maximization of customer satisfaction and enriching quality of
life.

5.

We are dedicated to promote and invest resources for joint learning

in the areas of quality improvement, productivity enhancement, and
implementation of greener and advanced technology and processes across
our supply chain for the benefit of the larger society and the business.
Thus, we wish to build strong partnerships with suppliers and work with
them to fulfil our social responsibilities together.

6.

We uphold our commitment to serve and partner with government

and quasigovernment agencies in nationbuilding.

7.

We shall respect the varied traditions and cultures of our country

and are committed to preserve and document history and art for the
benefit of present and future generations.

8.

We believe and promote an open corporate culture that values

teamwork while honouring individual commitment and mutual trust. We do
not accept or tolerate the use of child labour at any stage of the supply
chain, gender discrimination, disability, bias on the basis of caste or
religion, and violation of human rights.

9.

We aim to meet the expectations of shareholders and investors by

maximizing the group companys value and active disclosure.

10.

We shall nurture the silvers and groom the youth of our country in
response to various global and local concerns.

2.2

Objective:

The policy document is an attempt to articulate the groups Social

Responsibility. The framework enables business heads to put in place policies
and practices in line with this policy.

2.3

Scope:
2.3.1
The social policy is an overarching policy applicable to the
entire Reliance Group including all group companies, business
divisions and business units.
2.3.2
The policy conforms to the business strategy and will apply to
all employees across the bandwidth of group companies. Their
commitment and involvement in putting the policy into action would

support us in achieving our principles and mandate, and adhering to

global standards.
2.3.3
The social policy document is an attempt to showcase the
linkage of our social objectives with business strategy.
2.3.4
The policy will also assist and promote our suppliers and
vendors in adhering to its imperatives.

CSR ACTIVITIES
CREATING SHARED PROSPERITY, SUSTAINABLY
We contribute to the well being of people by introducing sustainable measures
and providing assistance to institutions and welfare organisations. Our activities
are spread across India and reach well beyond our business locations, impacting
the lives of marginalised communities. Our initiatives have reached millions over
the years and nearly 1,50,000 people benefit from our continuing programmes
every month.

SUSTAINABLE DEVELOPMENT
We have always considered sustainable development the cornerstone of our
business strategy. We seek to achieve sustainable and profitable growth, creating
thriving eco-systems around all our businesses. Our strategy includes fostering
close and continuous interaction with the people and communities around our
manufacturing divisions, bringing qualitative changes in their lives and
supporting the underprivileged.

COMMUNITY INFRASTRUCTURE AND ENVIRONMENT

A large number of initiatives are focused on developing community infrastructure
and protecting the environment. Reliance has developed infrastructure for water
conservation and constructed community halls, schools, and health centers in
various locations.
Some of Reliance's initiatives to promote environment protection include
investing in renewable energy sources, promoting green plantations and
spreading environmental awareness.

Environment Protection Drives

Environmental impact assessment and qualitative risk analysis are
central to all our new projects. We have converted acres of arid
lands into major green zones

EDUCATION AND SKILL ENHANCEMENT

Reliance supports local schools with logistical and financial support, capacity
building of teachers and infrastructure development.
Reliance also organises skill development and income-generating programmes
for local communities. Assistance is also given to such communities by helping
them to start Self Help Groups and empowering them with marketing knowhow

Women and Youth Empowerment Programmes

Reliance Community Development Programmes.

Project Jagruti

Reliance Dhirubhai Ambani Protsahan Scheme.

COMMUNITY HEALTHCARE
Reliance provides affordable curative and preventive healthcare services to the
community through various healthcare programmes. It has constructed health
centers, operates mobile medical clinics and emergency ambulance services,
and conducts various camps on health awareness.
Reliance is also focusing on specific areas like addressing maternal mortality and
providing support to patients suffering from chronic ailments such as AIDS and
TB.

Reliance Primary Health Centre.

Reliance Employee Health Care Services.

Reliance HV/DOTS Therapy Centre.

Dhirubhai Ambani Hospital.

RELIANCE FOUNDATION
Reliance has always made sustainable development the cornerstone of its
business strategy to achieve sustainable and profitable growth, creating in its
wake thriving eco-systems around all its businesses. To provide impetus to
various philanthropic initiatives of RIL, Reliance Foundation (RF) was set up in
2010 as an expression of its vision towards sustainable growth in India.

Introduction: Indian Oil

Indian Oil Corporation (Indian Oil) is Indias Largest
Commercial Enterprise, with a net profit of 103.99
billion (US$1.5 billion) for the financial year 2015-16.
Standing true to its corporate vision of being The
Energy of India, Indian Oil has been successfully
meeting the energy demands of India for more than
five decades. Being Indias flagship national oil
company, Indian Oil with a work-force of 33,000
efficient minds is living their vision of becoming a
globally admired company. It is the leading Indian
Corporate in Fortunes prestigious Global 500
listing of worlds largest corporates at 161st position

Indian Oil's business interests overlap the entire hydrocarbon value-chainfrom

refining, pipeline transportation and marketing of petroleum products to
exploration & production of crude oil. And from marketing of natural gas to
petrochemicals. Also, Indian Oil has ventured into alternative energy and
globalization of downstream operations. With subsidiaries in Sri Lanka, Mauritius
and the UAE, Indian Oil is scouting for new business opportunities in the energy
markets across Asia and Africa. It has also formed about 20 joint ventures with
reputed business partners from India and abroad to pursue diverse business
interests

It accounts for nearly half of India's petroleum products market share, 35%
national refining capacity and 71% downstream sector pipelines through
capacity
The Group owns and operates 11 of India's 23 refineries with a combined
refining capacity of 80.7 MMTPA (million metric tonnes per annum).
Its cross-country pipeline network, for transportation of crude oil to refineries
and finished products to high-demand centers, spans over 11,220 km
Throughput capacity of 80.49 MMTPA for crude oil and petroleum products and

Digboi
Refinery
Guwahati
Refinery
Bongaigon
Refinery
Barauni Refinery
Gujrat Refinery
Paradip
Refinery

Mathura CSR Policy

Haldia
Indian Oils

Panipat
Refinery

Refinery

Indian Oils Corporate Social Responsibility (CSR) Vision:

Indian Oil, through its Corporate Social Responsibility

initiatives, shall strive to enrich the quality of life in
different segments of the society.

In line with the above vision, Indian Oil aims...

To positively impact economic and social conditions of the

communities in which it operates.
To make efforts towards self-sustainability of CSR projects. To
take initiatives on environmental sustainability
To foster a culture of CSR amongst employees, business
associates and stakeholders.
To provide leadership and industry benchmarks in CSR initiatives
To earn societys goodwill and build a reputation as a responsible
corporate citizen.

The following shall be the thrust areas under CSR:

Safe drinking water

Healthcare and Sanitation
Empowering women and socially & economically backward groups
Education and employment-enhancing vocational skills
Environment sustainability
Protection of national heritage and promotion of art & culture
Rural development projects

Indian Oils CSR Policy will be operative within the overall ambit of CSR Provisions
contained in the Companies Act 2013, Companies (CSR Policy) Rules 2014,

Schedule-VII to the Companies Act 2013, and amendments thereof from time to
time.
CSR Committee of the Board: Indian Oil shall constitute a CSR Committee of
the Board consisting of at least three directors, out of which at least one director
shall be an independent director.
Budget: Indian Oil will earmark 2% of the average of its net profits earned
during three immediately preceding financial years as CSR Allocation for the
year, which will be non-lapsable. The surplus arising out of CSR projects or
programs or activities shall not form part of the business profits. If Indian Oil fails
to spend CSR budget of a year, the reasons for not spending the amount will be
specified in the Directors Report.
CSR Activities: CSR activities will include projects or programs or initiatives
relating to those specified in Schedule VII to the Companies Act 2013, excluding
activities undertaken in pursuance of normal course of business. Components of
CSR activities would include modalities of execution, implementation schedule,
modalities of utilization of funds, and monitoring mechanism.

IOCL: CSR ACTIVITIES

Reporting Mechanism: CSR Policy and its contents shall be displayed on the
company's web site, as per the format specified in Companies (CSR Policy) Rules
2014.
IndianOil Sachal Swasthya Seva
(ISS)- which literally means Mobile
Healthcare Service, is one of Indian Oils
largest CSR programs on healthcare,
which was launched in January 2012,
marrying 2 concepts viz. Healthcare for
the poor and Rural no-frill petrol/diesel
stations. Under this CSR project, villages
lacking access to any primary healthcare
services have been carefully selected as

Swarna Jayanti Samudaik Hospital,

Mathura- IndianOils 50-bed Swarna
Jayanti Samudaik Hospital was
established in 1999 to provide medical
assistance to residents of nearby areas
of Mathura Refinery. In addition, 2 mobile
dispensaries are operating to provide
primary medical care in the nearby
villages. The hospital provides free
treatment to the destitute and offers

Assam Oil School of Nursing (AOSN),

Digboi- established in 1986, offers
professional nursing/ midwifery courses to
unemployed girls of the North East and
offers 4 year Diploma in General Nursing
and Midwifery (GNM) to young girls (after
10+2). All expenses of the students
during the entire program are borne by
IndianOil. Since inception, 334 students
have successfully completed the course

IndianOil Education Scholarship

Scheme- IndianOil Education Scholarship
Scheme for the poor and deserving SC/ST
students was started in the year 1984-85
with 50 scholarships to SC/ST students
pursuing full time graduation courses in
Engineering/ Medical and post-graduation
courses in Business Administration /
Management.Today, IndianOil awards
2600 Scholarships on merit-cum-means
basis to students pursuing full-time
courses in 10+/ITI, Engineering, Medical
and Business Administration to nurture
and support talent among the deserving
students belonging to families with less

Indian Oil Sports Scholarship

Scheme- Indian Oil introduced a Sports
Scholarship Scheme in the year 2006-07
for promising young sports persons
representing State in team games and
National ranking in others. The scheme
started with 55 scholarships in 7
games/sports. At present, 150
scholarships for 19 games/ sports are

IOCL: CSR ACTIVITIES

MoU with TATA Medical Centre TrustAdding one more feather in its CSR thrust
area of Health & Medical Care,
IndianOil launched Cancer Care Initiative
and signed an MoU with TATA Medical
Centre Trust & TATA Eastern Medical Trust
for development of Phase-II of TATA
Medical Centre, Kolkata for addition of
250 beds in a new building, which will
have well-trained professional staff and a
comprehensive Cancer Care Center
equipped with modern facilities. The new
Help for Flood/Cyclone affected
people in Uttarakhand & OdishaIndian Oil contributed ` 2 crore during the
year to Uttrakhand Chief Ministers Relief
Fund for relief and rehabilitation of people
affected by floods /cloud burst in
Uttrakhand. The Corporation also
contributed ` 1 crore to Odisha Chief
Ministers Relief Fund to help the cyclone
Sarve Santu Niramaya-To provide free
health consultation and medicines for
both human beings and livestock
population, IndianOil launched this
unique project in 8 villages near Digboi.
During 2013-14, 2,035 poor patients and
25,274 cattle / poultry (including 506
free vaccinations) have been treated
(with free medical consultation &

LPG Scheme of Government of India-In

accordance with Government of Indias
guidelines, 20% of 2% of Net Profit of
previous year (i.e. ` 20.02 crore) was
allocated towards release of one-time grant
to Below Poverty Line (BPL) families in the
rural areas for release of new LPG
connection under Rajiv Gandhi Grameen
LPG Vitarak Yojana. About 2.4 lakh BPL
connections were released during the year
Shikshak Dakshyata Vikas AbhiyanIndianOil organized a program christened
Shikshak Dakshyata Vikas Abhiyan along
with the district education department,
Government of Assam, which aims to
improve soft skills of government school
teachers. The program has been
planned in three stages, which would train
teachers from primary, middle and high
schools. During 2013-14, 121 teachers from

Comparative Study of CSR activities of

IOCL and RIL
Showing CSR expenditure of IOCL and RIL.
Company

Expenditure (Rs.
in cr.)

Indian Oil
Corporation
Reliance
Industries Ltd.

78.97

CSR expenditure
as % of profit after
tax
1.6%

357.051

1..7%

Rank

3 (Among public
sector companies)
2 (Among private
sector companies)

Descriptive Statistics of CSR and Sustainable Development

Activities of IOCL and RIL.
Serial No.

CSR and SD
activities

Eradicating
extreme hunger &
poverty
Promotion of
education
Promote gender
equality &
empower women
Reduce child
mortality &
improving
maternal
health
Combating
HIV/AIDS, Malaria
& other diseases
Ensure
environment
sustainability
Empowerment of
communities
Upliftment of the
marginalised &
underprivileged
sections of the
society
Social business
projects/infrastruc

2
3

7
8

INDIAN OIL
CORPORATION
Mean
SD
2.2
0.4

RELIANCE
INDUSTRIES LTD.
Mean
SD
2.5
0.5

8.7

2.23

9.1

1.22

1.3

0.45

0.89

3.2

0.40

4.2

0.87

3.6

0.66

4.0

0.89

12.9

1.14

14.1

1.04

2.3

0.64

3.1

0.83

3.7

0.46

3.9

0.3

3.3

1.19

3.5

0.92

ture
development
10
Contribution to PM 0.6
0.49
0.6
0.49
Relief Fund or any
other fund of
central & state
govt.
11
Relief & assistance 0.9
0.7
0.8
0.87
in the event of a
natural disaster
12
Average
3.88
0.79
4.34
0.80
As shown in the above table, RIL has more mean for 1st to 9th activities than
IOCL. It means that RIL is contributing its CSR funds in many activities in
comparison to IOCL. For 10th activity, both have same mean (0.6) which implies
that both are contributing equally in this activity. For 11th activity, IOCL has more
mean value (0.9) than RIL. On the basis of average of all activities, RIL is having
more average (4.34) than IOCLs average(3.88). The highest mean is in the
environmental sustainable activities which indicate that the companies are
contributing more in environment sustainability. But it may be due to
enforcement of various environmental laws upon these companies. After
emphasising upon environment sustainability, companies are investing more in
promotion of education.