CSR of Ril
CSR of Ril
CSR of Ril
INTRODUCTION –
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 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?
How does one demonstrate a mindset which emphasizes interest in other beyond
the realm of self- interest? 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.
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CSR NORMS IN INDIA
The Ministry of Corporate Affairs ("MCA"), vide its Notification dated 11 October
2018, has reconstituted the High Level Committee on Corporate Social
Responsibility. The Scope of the said committee is to review existing framework
under the Companies Act, 2013 ("Act") regarding CSR, recommend guidelines for
enforcement of CSR provisions, suggest measures for adequate monitoring and
evaluation of CSR by companies and examine and recommend audit (financial,
performance, social) for CSR, as well as analyse outcomes of CSR
activities/programmes/projects.
Applicability: As per Section 135 of the Act and rules issued thereunder, CSR
norms are applicable on companies which has (a) net worth of Rs 500 Crore or
more; (b) turnover of Rs 1000 Crore or more; or (c) net profit of Rs 5 Crore or
more.
OBJECTIVES
The study is intended to achieve the following objectives:
1. To understand the concept of corporate social responsibility
2. To study activities carried out by reliance industries
3.To analyze impact of CSR on society and employees
SCOPE OF STUDY
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.
History
1960–1980
The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's
as Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai
continued the polyester business of the firm.[15] In 1966, Reliance Textiles Engineers Pvt. Ltd.
was incorporated in Maharashtra. It established a synthetic fabrics mill in the same year
at Naroda in Gujarat.[16] On 8 May 1973, it became Reliance Industries Limited. In 1975, the
company expanded its business into textiles, with "Vimal" becoming its major brand in later
years. The company held its Initial public offering (IPO) in 1977.[17] The issue was over-
subscribed by seven times.[18] In 1979, a textiles company Sidhpur Mills was amalgamated with
the company.[19] In 1980, the company expanded its polyester yarn business by setting up a
Polyester Filament Yarn Plant in Patalganga, Raigad, Maharashtra with financial and technical
collaboration with E. I. du Pont de Nemours & Co., U.S.[16]
1981–2000
In 1985, the name of the company was changed from Reliance Textiles Industries
Ltd. to Reliance Industries Ltd.[16] During the years 1985 to 1992, the company expanded its
installed capacity for producing polyester yarn by over 145,000 tonnes per annum.[16]
The Hazira petrochemical plant was commissioned in 1991–92.[20]
In 1993, Reliance turned to the overseas capital markets for funds through a global
depositary issue of Reliance Petroleum. In 1996, it became the first private sector company in
India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable
outlook, constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade,
constrained by the sovereign ceiling".[21]
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA
and promoted Reliance Telecom Private Limited in India.[20]
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance
Gas.[20]
The years 1998–2000 saw the construction of the integrated petrochemical complex at
Jamnagar in Gujarat,[20] the largest refinery in the world.
2001 onwards
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters.[22] In 2001–02, Reliance Petroleum was
merged with Reliance Industries.[17]
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in
nearly three decades and one of the largest gas discoveries in the world during 2002. The in-
place volume of natural gas was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion
barrels of crude oil. This was the first ever discovery by an Indian private sector company.[17][23]
In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL),
India's second largest petrochemicals company, from the government of India.[24] IPCL was later
merged with RIL in 2008.[25][26]
In 2005 and 2006, the company reorganized its business by demerging its investments in power
generation and distribution, financial services and telecommunication services into four separate
entities.[27]
In 2006, Reliance entered the organised retail market in India[28] with the launch of its retail store
format under the brand name of 'Reliance Fresh'.[29][30] By the end of 2008, Reliance retail had
close to 600 stores across 57 cities in India.[17]
In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders.
In 2010, Reliance entered the broadband services market with acquisition of Infotel Broadband
Services Limited, which was the only successful bidder for pan-India fourth-generation (4G)
spectrum auction held by the government of India.[31][32]
In the same year, Reliance and BP announced a partnership in the oil and gas business. BP
took a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in
India, including the KG-D6 block for $7.2 billion.[33] Reliance also formed a 50:50 joint venture
with BP for sourcing and marketing of gas in India.[34]
In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl
rubber plant in Jamnagar, Gujarat, to be operational by 2018.[35]
Shareholding
Chairman and MD: Mukesh Ambani
The number of shares of RIL are approx. 3.1 billion.[36] The promoter group, Ambani family, holds
approx. 46.32% of the total shares whereas the remaining 53.68% shares are held by public
shareholders, including FII and corporate bodies.[36] Life Insurance Corporation of India is the
largest non-promoter investor in the company, with 7.98% shareholding.[37]
In January 2012, the company announced a buyback programme to buy a maximum of 120
million shares for ₹104 billion (US$1.5 billion). By the end of January 2013, the company had
bought back 46.2 million shares for ₹33.66 billion (US$470 million).[38]
Listing
The company's equity shares are listed on the National Stock Exchange of India Limited (NSE)
and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed
on Luxembourg Stock Exchange.[39][40] It has issued approx. 56 million GDRs wherein each GDR
is equivalent to two equity shares of the company. Approximately 3.46% of its total shares are
listed on Luxembourg Stock Exchange.[36]
Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National
Stock Exchange of India Limited (NSE).[41]
It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and Fitch. Moody's
and S&P have provided investment grade ratings for international debt of the company, as Baa2
positive outlook (local currency issuer rating) and BBB+ outlook respectively.[42][43][44] On the 28th
of December, 2017, RIL announced that it will be acquiring the wireless assets of Anil Ambani-
led Reliance Communications for about ₹23,000 crores.[45]
Operations
The company's petrochemical, refining, 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 2012–13, it earned 76% of its revenue from
refining, 19% from petrochemicals, 2% from oil & gas and 3% from other segments.[37]
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 aircraft, engine, radars, avionics and accessories for military and civilian
aircraft, helicopters, unmanned airborne vehicles and aerostats.[46]
Reliance Retail is the retail business wing of the Reliance Industries. In March 2013, it
had 1466 stores in India.[48] It is the largest retailer in India.[49] Many brands like Reliance
Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance
Trends, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance
Home Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel come under the
Reliance Retail brand. Its annual revenue for the financial year 2012–13 was ₹108
billion (US$1.5 billion) with an EBITDA of ₹780 million (US$11 million).[37][50]
Reliance Life Sciences works around medical, plant and
industrial biotechnology opportunities. It specializes in manufacturing, branding, and
marketing Reliance Industries' products in bio-pharmaceuticals, pharmaceuticals, clinical
research services, regenerative medicine, molecular medicine, novel therapeutics, biofuels,
plant biotechnology, and industrial biotechnology sectors of the medical business industry.[51]
[52]
Employees
As on 31 March 2018, the company had 29,533 permanent employees of which 1,521 were
women and 70 were employees with disabilities. It also had 158,196 temporary employees on
the same date which makes a total of 187,729 employees.[37] As per its Sustainability Report for
2011–12, the attrition rate was 7.5%. But currently, the same attrition rate has gone up to 23.4%
in March 2015 as per latest report released by the organization.[70]
In its 39th Annual General Meeting, its chairman informed the shareholders of the investment
plans of the company of about ₹1,500 billion (US$21 billion) in the next three years. This would
be accompanied by increasing the staff strength in Retail division from existing strength of
35,000 to 120,000 in next 3 years and increasing employees in Telecom division from existing
3,000 to 10,000 in 12 months.[71]
Rural Transformation
Healthcare
Education
Environment
Protection of National Heritage, Art and Culture
Disaster Response
For more information please refer our CSR policy Click here CSR
policy
Rural Transformation
Healthcare
Education
Environment
Protection of National Heritage, Art and Culture
Disaster Response
For more information please refer our CSR policy Click here CSR
policy
RURAL TRANSFORMATION
Livelihoods
The Foundation works on enhancing opportunities and
disseminating information relevant to improving livelihood options
among rural communities. It deploys locally-relevant solutions to
promote agriculture, marine fisheries and other farm and non-
farm based activities.
Water Security
The Foundation’s engagement with farmers is spread across
multiple agro-ecological sub regions with issues of poor soil
quality, dependence on rain, low productivity and poor
accessibility to services. Together with farmers, the Foundation
has developed water harvesting structures that are critical
sources of irrigation for these communities living in dry and rain-
fed areas, and created capacities to harvest and store 203 lakh
cubic metres of rain water in the last one year (447 lakh cubic
metres since inception).
HEALTHCARE
The general wards of the hospital will have the same level of
treatment for the citizens at the bottom of the pyramid. The
hospital has adopted water recycling and rainwater harvesting
making it the greenest healthcare facility in India of its size.
The 82 bed hospital, with its various specialised units such as ICU,
NICU, maternity, surgical, medical and orthopaedic services,
offers comprehensive care to its patients. Availability of pathology
laboratory and radiological services including CT scan and
Ultrasound complement the diagnostic services.
Apart from a dedicated team of full time specialists and generalist
doctors, a team of specialist doctors are on visiting role to care for
complex patient needs.
Health Camps
The Foundation organises multi diagnostic health camps that not
only provide services for chronic and other diseases, but also help
raise awareness among the population. 70 health camps
providing specialised care for diabetes, hypertension, cardiac
ailments, bone and mineral density, ophthalmology among
others, were organised during the year.
Reliance Foundation Drishti
The Foundation’s Drishti programme is engaged in improving the
vision of visually impaired from underprivileged segments of
society. Over 14,000 corneal transplants have been done of which
1,200 were done this year. An international braille newspaper is
published every fortnight which reaches thousands of visually
impaired readers across India and 17 other countries.
Technology in Healthcare
The Foundation and the University of Chicago have entered into
an innovative collaboration that will use technology for training,
competency evaluation and clinical decision support. The
collaboration is aimed at improving clinical diagnosis and
supporting doctors in real-time and evidence-based clinical
decision making.
EDUCATION
Over the years, the school has achieved the highest standards of
excellence on all performance parameters. It has evolved as one
of the most admired schools in India and the world. In 2014,
Education World ranked DAIS as the No. 1 International School in
India across all categories for the 2nd consecutive year. The
school was ranked No. 1 on crucial parameters of ‘academic
reputation’, ‘competence of faculty’, and ‘teacher welfare and
development’. The Hindustan Times - C Fore Top Schools Survey
has ranked DAIS the best school in Mumbai in 2012, 2013 and
2014. The school has received highest ratings for ‘teachers’ and
‘academic rigour’.
Reliance University
The Foundation is planning to setup a world class,
multidisciplinary University in Maharashtra soon. The University
will provide an enabling environment and cutting edge research
facilities.
Sanskar Shibir
Sanskar Shibir is a regular activity organised by RIL. 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 pupils with all the requisite skills to be tomorrow’s
leaders with a critical and global outlook.
EDUCATIONAL INFRASTRUCTURE
ENVIRONMENT
OTHER INITIATIVES
Safety Matters
Report said that Reliance Industries has transformed the lives of 2 Crore
people.
Most of the CSR activities of the Company are carried out under the aegis
of Reliance Foundation (RF), which in a span of seven years has emerged
as a leading corporate foundation addressing nation’s multiple
development challenges. The Foundation was established in 2010 under
the leadership of Smt. Nita M. Ambani.
Schedule VII of Section 135 of the Companies Act, 2013 lists out various
areas in which corporate entities are expected to deploy their CSR funds
and implement programmes for social development. Reliance has
strategically chosen the company’s CSR initiatives with a focus on
improving the quality of life.
The key philosophy of all the social development initiatives of RIL is based
on three core commitments of Scale, Impact and Sustainability.
Till March 2018, Reliance’s development initiatives have touched the lives
of 20 million people across India. The Company’s initiatives registered an
impressive reach across India as shown in the accompanying map.
Rural
transformation 195
Health 148
Education 373
Sports for
development 50
Disaster response 4
Urban renewal* –
Total 771
Of the total expenditure. Rs. 745 crore is from RIL and the rest is from the
Group Companies. Figures are rounded off as appropriate. *Urban renewal
– Rs. 34 lakh in FY 2017-18
In a statement here, RIL said that the award was a recognition, in particular, of the
work done by its CSR arm Reliance Foundation under Founder and Chairman Nita
Ambani.
"Reliance Foundation has touched the lives of over 15 million people across India
covering more than 13,500 villages and 74 urban locations," it said.
One of RIL's key initiatives recognised by the jury, chaired by Supreme Court former
Justice Arijit Pasayat, aims at impacting farmers' livelihoods through water and food
security interventions, it said.
CSR AWARDS
1. Trophy for its work done under the National AIDS Control Program phase-
III from Population Foundation of India (Hazira Manufacturing Division
Reliance Community Care Centre)
2. The Golden Peacock Award - 2012 for Corporate Social Responsibility by
Institute of Directors (IOD)
3. (Vadodara Manufacturing Division)
4. Red Cross Gold Medal for the “Reliance Dhirubhai Ambani Protsahan”
Educational initiative from Governor of Andhra Pradesh for FY 2011-12
5. Golden Peacock National Training Award – 2012 (Patalganga Manufacturing
Division)
6. The National Award for Innovative Training Practices for security training
practices by Indian Society for Training and Development (Nagothane
Manufacturing Division)
7. The Greentech Gold Award for HR Excellence (Dahej Manufacturing
Division )
8. Oliver Kinross’s Asia Oil & Gas Award 2013 for Corporate Social
Responsibility - Company of the Year (RIL KG-D6)
9. “Best ART (Anti-Retroviral Therapy) Centre Award 2013” by Gujarat State
AIDS Control Society (GSACS) on World AIDS Day (Hazira
Manufacturing Division)
10. Award for leadership excellence in corporate social welfare/CSR by“The
Greatest Corporate Leaders of India” initiative (Hazira Manufacturing
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Division)
11. ‘Best corporate social responsibility practices’ and ‘Best use of CSR
practices in manufacturing’ awards (Hazira Manufacturing Division)
The Company is always dedicated towards CSR activities and has spent more
than the prescribed CSR budget in last three financial years.
Year
Actual CSR
Prescribed CSR
2018-2019
849.32 Cr
811.16 Cr
2017-2018
745.04 Cr
703.08 Cr
2016-2017
659.20 Cr
620.41 Cr
THE BENEFITS OF CSR:
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
CONCLUSION