PROJECT REPORT

ON

CORPORATE SOCIAL
RESPONSIBILITY ACTIVITY
AT RELIANCE INDUSTRIES LTD

Submitted in partial fulfillment of requirements for

The award of the degree of Masters in Business Management

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…………………………………

MBA

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 DECLARATION

I hereby declare, to the best of my knowledge and belief, that this project report titled,

“Study of CSR Activity at Reliance Industries Ltd” submitted by me to the department

of Master Business Administration, ..............................is a bonafide work undertaken by me it

is not submitted to any other University or Institution for the award of any degree diploma /

certificate or published any time before.

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 ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report so

easy to understand for a person who is willing to get knowledge about the

“Study of CSR Activity at Reliance Industries Ltd” I am deeply indebted

to my lecturers & my faculties who gave me opportunity of making project report.

I am also thankful to my Project supervisor Mr..................for their kind support

& suggestion for making project report.

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 CERTIFICATE

This is to certify that the project entitled “Study of CSR Activity at Reliance Industries Ltd”
has been submitted by Mr.xxxxxxxxxxx (Roll No-xxxxxxxxxxxxxxx) in partial fulfillment
of the requirements for the award of Bachelor of Business Administration from .................................
................The result embodied in the project has not been submitted to any other university or
Institution for the award of any Degree or Diploma.

Internal guide Head of Department

ABSTRACT

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.
 CHAPTER 1

INTRODUCTION

CORPORATE SOCIAL RESPONSIBILITY

CSR as a concept

Corporate social responsibility (CSR) describes an approach by which an organisation:

 Recognises that its activities have a wider impact on the society in which it operates
and that developments in society in turn impact on its ability to pursue its business
successfully;

 Actively manages the economic, social, environmental and human rights impact of
its activities across the world.

 Seeks to achieve these benefits by working closely with other groups and
organisations – local communities, civil society, other businesses and home and
host governments.

Definitions of CSR
“Social responsibility refers to the obligations (of businessmen) to pursue those policies to
make those decisions or to follow those lines of action which are desirable in terms of the
objectives and values of our society.”

Howard R. Bowen
“In the real sense, the assumption of social responsibilities implies recognition and
understanding of the aspirations of the society and determination to contribute to its
achievement.”

George A. Steiner

“Social responsibility requires managers to consider whether their action is likely to

promote the public good, to advance the basic beliefs of our society, to contribute to its
stability, strength and harmony.”

Peter F. Drucker

“Social responsibility of business implies that the businessmen’s decisions and actions are
taken for reasons at least partially beyond the firm’s direct economic or technical interest.”

Keith Davis

“Corporate Social responsibility is about how companies manage the business processes to
produce an overall positive impact on society.”

Mallen Baker

Mallen Baker has explained his definition with the help of the following figure:
 Figure 1.1

The above figure says that 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).
2. The nature of and quantity of their 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.
f

Nature of CSR

The following points explain the nature of social responsibilities of business:

 The concept of social responsibility is based on the premise that a business firm is
more than an economic institution. It is an organ of society and its activities
exercise significant influence on the public. Therefore, business should work
beyond the narrow goal of profit making.

 Social responsibility does not mean mere philanthropy where the consumer is
robbed to pay the owner. A business can be socially responsible without charity.

 In the long run, social responsibility is consistent with profit motive. By fulfilling its
social obligations, business creates an environment which is conducive to its
success.

 Social responsibility is a personal obligation. A business firm can discharge its

social responsibility only through the persons who manage and control it.

 Social responsibility is a reciprocal relationship. Just as business owes responsibility

to society, society also is responsible to business.

 Social responsibility is a continuing obligation. A business firm remains responsible

to the society throughout his life.

 The concept of social responsibility implies that business has responsibility towards
society which extends beyond economic and legal obligations.

Meaning of Philanthropy

Philanthropy is the act of donating money, goods, time or effort to support a charitable
cause, usually over an extended period of time and with a defined objective. In a more
general sense, philanthropy may encompass any altruistic activity intended to promote
good or improve human quality of life. Someone who is known for practicing philanthropy
may be called a philanthropist.
The purpose of philanthropy is also debated. Some equate philanthropy with
benevolence and charity for the poor. Others hold that philanthropy can be any
altruistic act that fulfills a social need that is not served, is under-served, or is
perceived as unserved or under-served by the market.

Social responsibility does not mean mere philanthropy where Peter (the customer) is
robbed to pay Paul(the owner).Philanthropy covers the charitable activities done by a
business for the society whereas CSR covers the responsible activities taken up by a
business towards the various interest groups such as consumers, employees,
shareholders, creditors, suppliers, competitors, environment, government and the
community. A business does not need to do philanthropy for practicing CSR. A
business can be socially responsible without charity.

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.

SIGNIFICANCE OF THE 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.

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 have to
come forward to do their part towards development of the society. This 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 well as society as at large. Therefore community
development is a responsibility of the government, non-governmental organizations and business
organizations as well.

OBJECTIVES OF THE STUDY

The study is intended to achieve the following objectives:

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

METHODOLOGY

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.

CHAPTER 2

PROFILE OF RIL

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 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.

CSR PHILOSOPHY OF RIL

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 commitments of SIS:

a) S- SCALE

b) I- IMPACT

S- SUSTAINABILITY

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WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

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, living wages, and training.

 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.

MEANING AND DEFINITION

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).

2. The nature and quantity of their 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.
 CSR POLICY AS PER INDIAN COMPANIES ACT 2013

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 – 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

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 companies are not doing any CSR

• Many companies are only making token gestures towards CSR in tangential ways such as
donations to charitable trusts or NGOs, sponsorship of events, etc.
• Most companies believe that charity and philanthropy equals to CSR; very few companies are
using their core competence to benefit the community.
• Most companies use CSR as a marketing tool to further spread the word about their 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 Indian companies (from this study) publish a Corporate Sustainability Report to
measure and assess the impact of their business on the environment .
• Very few companies openly state the processes followed by them, the damage caused by these
processes, and the steps taken to minimize this damage.
• Very few companies state how much they spend on CSR. There is no mention of the 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 companies are engaged in CSR activities in the local communities where they are
based.
• Very few companies have a clearly defined CSR philosophy. Most implement their CSR in an
ad-hoc manner, unconnected with their business process.
• Most companies spread their CSR funds thinly across many activities, thus somewhere losing
the purpose of undertaking that activity.

• Most companies appear reluctant to themselves fulfill their CSR unless it is mandatory by law.

• Generally speaking, most companies seem either unaware or don’t care about CSR. However,
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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.
•

CSR AWARDS
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 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 Division)
11. ‘Best corporate social responsibility practices’ and ‘Best use of CSR practices in
manufacturing’ awards (Hazira Manufacturing Division)

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE

(CSR & G Committee)

• RIL's Board of Directors have formed a CSR&G Committee. This committee, along with the
CSR team, to be responsible for the decision making with respect to RIL CSR policy.
• CSR&G Committee recommended the policy to RIL's Board of Directors and the Board of
Directors have approved this policy.
• The Board level Committee to meet at least twice a year to review the implementation of CSR
projects/ programs and give suitable direction
BUDGET
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• The Board of RIL to ensure that minimum of 2% of average net profit of the last
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 • 3 years is spent on CSR initiatives undertaken by RIL

• All expenditure towards the programs to be diligently documented

• In case at least 2% of average net profit of the last 3 years is not spent in a financial year,
reasons for the same to be specified in the CSR report
• Any surplus generated out of the CSR activities not to be added to the normal business profits
FINANCIAL DETAILS OF THE COMPANY

CSR Expenditure

3.24 %
of profit after tax
Spent on Corporate
Social Responsibility

Paid up capital (INR): 3,232 crore

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

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

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 during FY 2013-14:
 • Ensuring well-being of local communities

• Building capabilities for employment generation

• Empowering women

• Creating access to health care

• Conserving environment

Modes through which programs/projects undertaken (through in-house team/own

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

RELIANCE FOUNDATION – A comprehensive approach towards community development RIL

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

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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.

• Reliance Foundation BIJ- Bharat India Jodo

• Information services

• Health Programmes

• Reliance Foundation Drishti

• The Dhirubhai Ambani Scholarship Programme

• Sports for Development Arts, Culture & Heritage Disaster Response

• Environmental Sustainability
SECONDARY DATA ANALYSIS

COMPANY’S DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT

PROJECTS
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.

FINANCIAL HIGHLIGHTS
$ 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
Earnings Before Depreciation, 6,645 39,813 38,785 39,811 41,178 33,041 25,374 28,935 20,525 14,982 14,261
Finance CostandTaxExpenses
(EBDIT)
Depreciationand 1,467 8,789 9,465 11,394 13,608 10,497 5,195 4,847 4,815 3,401 3,724
Amortisation
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 9,069 7,572
Equity Dividend %* 95 90 85 80 70 130 130 110 100 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
EquityShare Suspense - - - - - - 69 - 60 - -
Account
Equity Share Warrants - - - - - - - 1,682 - - -
ReservesandSurplus 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 84,889 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 Capitalisation 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
NumberofEmployees 23,853 23,519 23,166 22,661 23,365 24,679 25,487 24,696 12,540 12,113
Contribution to National 5,236 31,374 28,950 28,197 28,719 17,972 11,574 13,696 15,344 15,950 13,972
Exchequer
 CSRexpenditure:

(` in crore) FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11

Education 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

Environment (Greening activities) 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

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

RURAL TRANSFORMATION

• To work towards bridging the developmental gap between rural 'Bharat' and urban India by
improving livelihood, addressing poverty, hunger and malnutrition. Key initiatives include:
• Supporting Farm and non-farm livelihoods

• Improving water conservation and rain-water harvesting

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• Developing community based initiatives like VFAs and producer companies towards building
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capacity of the community and ensuring sustainability.

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

• Improving food security and enhancing nutrition

• Developing Community infrastructure

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
contributing towards conservation of nature and promoting sustainable farming practices.
Launched in 2010, the RF BIJ programme has come a long way and has its presence in 19 agro
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
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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.

HEALTHCARE

• To address issues around affordability and accessibility of quality healthcare and bring about
improvement in awareness and health seeking behavior in various parts of India, enabling a
better living, through initiatives such as:
• Primary, secondary and tertiary care facilities

• Conducting need based health camps and providing consultation, medicines etc.

• Working on maternal and child health

• Behavioral change for improved mother and child health

• Improving healthcare delivery through innovative outreach programmes

• Working for the visually impaired

• Working in the areas of Communicable and non-communicable diseases

• Using technology for training, competency evaluation and clinical decision 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
17

centres of care. More than 350,000 individuals have enrolled for the services and nearly 52,600
Page

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 Pradesh. 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 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 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 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
 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 is a unique public- private partnership

programme between the Government, 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 Centre is one of the largest 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 free-of-cost, round-the-clock comprehensive health services to about
45 villages/hamlets. 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, multi- diagnostic camps and blood donation camps are
carried out regularly.

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. Medical 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 healthcare facilities to
the local

• Medical care was provided to 54 road accident trauma patients free-of-cost or at

highly subsidised rates
• An Orthopedic camp for Osteoporosis patients was conducted at Dhirubhai Ambani
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

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

• Enabling higher education through merit cum means scholarships, including

for differently abled across the country.
 • Using sports as a tool for development of students in both urban and rural
settings

• Promoting higher education including setting up and supporting universities

• Skill development and vocational training

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 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 knowledge among them,
several initiatives were taken during the year. These included construction of a
school building at Meghpar village in Jamnagar; construction of exclusive 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, financial support was extended 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 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

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 vicinity 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.
1
 Girls’ Primary School at Moti Khavdi

Furniture and computer

provided to Moti Khavdi Boys’
Girls’ Prim

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 to requirements.

Financial assistance to Bhil Community in Tripura and Assam for educational

needs of underprivileged children was given.
mary School at Moti Khavdi

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 the high moral values and cultural values towards the right ways of
leading life.
 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 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.

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). A comprehensive, school based
youth basketball 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.

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, gender 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 to contribute towards
preserving the 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 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.

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

• Ecological sustainability

• Promoting biodiversity

• Conservation of natural resources

• Maintaining quality of soil, air and water

• Promoting renewable energy

• Developing gardens and river fronts

• Protection of national heritage, art and culture

 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

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
25
Page
 4 Reducing child mortality and improving maternal health
Combating human immunodeficiency virus, acquired immune deficiency
5
syndrome, malaria and other diseases
6 Ensuring environmental sustainability
7 Employment enhancing vocational skills
8 Social business projects

Contribution to the Prime Minister's National Relief Fund or any other fund set
up by the Central Government or the State Governments for socio-
9
economic 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

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
26
Page
RIL programmes towards CSR.

CSR
SCOR
ES 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

Reducing child mortality and improving maternal

4 10 10 10 10
health

Combating human immunodeficiency virus, acquired

5 immune deficiency syndrome, malaria and other 10 10 10 10
diseases

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

Contribution to the Prime Minister's National Relief

Fund or any other fund set up by the Central
Government or the State Governments for socio-
9 economic development and relief and funds for the 10 10 10 10
welfare of the Scheduled Castes, the Scheduled
Tribes, other backward classes, minorities and
women.
 10 Other activity not mentioned above 0 0 0 0
90 90 90
Average CSR Score RIL Avg CSR score = 90

THE BENEFITS OF CSR:

 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 press coverage.

 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.
 CHAPTER 3

Literature Review

A comparative study conducted by Khan and Atkinson(1987) on the managerial attitudes to

social responsibility in India and Britain shows that most of the Indian executives
agreed CSR as relevant to business and felt that business has responsibilities not only to the
shareholders and employees but also to customers, suppliers, society and to the state.

In a study made by Caroll (1998) on top 500 largest Indian companies found that around 49%
companies were reporting on CSR. Most of the companies report on donations, renovating
schools in villages, mid day meals etc. well defined expenditure on CSR has been shown by very
few companies. The study also revealed that only 25% companies CSR activities were for
employees and the rest were focusing on vicinity and society at large. Many companies are only
making token gestures towards CSR in tangential ways such as donations to
charitable trusts or NGOs, sponsorship of events, etc. believing that charity and philanthropy
equals to CSR.

A survey conducted by TERI-Europe and ORG-MARG (2001) in several cities in India found
that more than 60% of the people felt that the companies should be held responsible for bringing
down the gap between rich and poor, reducing human rights abuses, solving social problems and
increasing economic stabilities.

Conway (2003) in his study on iron ore mining industry in Goa shows that many large mining
companies have their own initiatives towards environmental and social development.
However, a structured CSR policy and planning is missing especially among the small and
medium players in the industry

In 2003, James Shyne conducted a study entitled CSR, public policy and the Oil Industry in
Angola on ten major oil companies currently operating in Angola. The study presents a baseline
discussion of public sector roles in strengthening CSR. It prompted a detailed analysis of CSR
investment in terms of business value and impact upon intended beneficiaries. The
study also describes the current role of the public sector in inpromoting the CSR activities and
identifying potential public section roles that would assist, broaden and deepen corporate
efforts. It was found that the representatives of ten oil companies are broadly familiar with
current issues in the field of CSR and moreover they tend both to recognize and embrace the
ethical and practical imperative for their companies to operate in a safe, socially responsible and
environmentally sustainable

Chamhuri Siwar and Siti Haslina Md.Harizan (2004) in their study on CSR practices
amongst business organizations in Malaysia aimed to analysed the extent of CSR practices
among different types of organizations and industries in Malaysia in terms of environmental and
social dimensions. A total of 500 companies were selected based on the quota
sampling that comprises 25 Govt. linked corporation, 50 multinational corporation, 50
corporation, 50 other Malaysian corporations and 375 small and medium sized enterprises. The
study revealed that multinational companies bring benefits to in driving corporate social
responsibility among the corporate. The study exposed that the drivers of CSR are related with
business and society. The study further discovered other country’ssituation and how their
government entered into business for driving CSR.

Arora and Puranik (2004) reviewed contemporary CSR trends in India concluding that the
corporate sector in India. He concluded that the corporate sector in India has benefitted
immensely from liberation and privatization process, its transition from philanthropic mindsets to
CSR has been lagging behind its impressive financial growth.
D.Y. Chacharkar and A. V. Shukla (2004) in their paper entitled“A study of Corporate Social
Responsiveness” tried to highlight theoretically the benefit of CSR through “iceberg
effect” diagram. The results showed that just like iceberg, except the recognition and
appreciation, the larger part of CSR initiatives for the company are invisible in the form of
publicity, image building, expansion of customer base and profit.

R.S. Raman (2006), in a study on “Corporate Social Reporting in India-a view from the top”,
used content analysis technique to examine the chairman’s message section in the Annual
Reports of the top 50 companies in India to identify the extent
and nature of social reporting. The study concluded that the Indian companies placed emphasis
on product improvement and development of human resources.

Buchholtz (2006), in his study on CSR, Corporate Social and Financial Performance: an
empirical study on a Japanese Company examined the relationship between corporate social
performance (CSP) and corporate financial performance (CFP) through a quantitative analysis.
The study was conducted on 295 companies which is one-tenth of the listed companies in
Japan. The result showed a significant relationship among CSP,Equity Capital Ratio and the
number of employees. The study on CSR in management research by Andy Lockell,

Jereany Moon and Wayne Visser (2006) tried to investigate the status of CSR research within
the management literature. The study particularly examines the focus and nature
of knowledge, the changing salience of this knowledge. The study present empirical evidence
based on publication and citation analysis of research published from 1992-2002.
The findings showed that the most popular issues investigated have been environmental and
ethics (for CSR research published in management journals).

Samuel Odowu and Papasoplomou Loanna (2007) conducted a study on twenty companies in
U.K. They promulgated that the U.K companies has now become ethical in the
content of social responsibility as companies disclose its CSR with a view of public benefits,
government request and issue information to stakeholders because the companies is of the
view that stakeholders of twenty first century are better educated than the past.

Vasanthi Srinivasan (2010) in his study on CSR and Ethics in Medium, Small and Micro
Enterprise in India attempts to draw from the existing body of knowledge from both the
academic and popular literature in India to identify the CSR practices
and develop a research agenda for responsible business practices in the small-medium enterprise
in India. The findings highlighted that most of the studies done in the Indian context
have largely been qualitative and exploratory in nature. The study also revealed that since small-
medium enterprises contribute significantly to the economy and are geographically
spread in a country like India, adoption of CSR and ethicalpractices is crucial to a balanced
development. There is a rarity of academic research in this area and therefore the researcher
opines that a study of the intra-country similarities and differences in adoption of CSR practices
in small-medium enterprises could be a valuable exercise for policy makers.

Shashank Shah and Sudhir Bhaskar (2010) made a case study of Bharat Petroleum
Corporation Ltd. (an Indian Public Sector Organization). They found that there is a broad
relationship between the organization and the society. The organization
used the resources of the society like human, material etc and in reverse they provide services to
the society. The study also revealed that BPCL has taken a lot of initiatives in
order to serve the society.

Debabrata Chatterjee (2010) in his research paper entitled

“Corporate Governance and CSR: The case of three Indian companies” tried to analyse the
corporate governance practices of three prominent Indian firms viz; ITC Ltd., Infosys
Technologies Ltd., and Reliance Industries Ltd. The study was made
taking four parameters i.e., Approach to Corporate Governance, Governance Structure and
Practices, Board Committees and CSR activities.
Sanjay Pradhan and Akhilesh Ranjan (2010) concludes that social responsibility is regarded
as an important business of Indian companies irrespective of size, sector, and
business goal. The study shows that all surveyed companies present themselves as having CSR
policy and practices. Most of the companies which design and implement CSR initiatives
in the vicinity of their works cover entire community. A wide range of CSR initiatives ranging
from income generation activities for livelihood, health check-up camps, mobile health
services, education, adult literacy, agricultural development, provision of drinking water,
management and development of natural resources, infrastructure facilities being carried out by
these companies.

Prasenjit Maiti (2011) on his paper entitled “It is Politics or Profits or even Compassion?
Unraveling the Motivation for Corporate Citizenship” tried to analyse theoretically the motives
of corporate before their CSR initiatives. The study found that CSR is related to profits, power
plays, politico-legal equation, situation of market flux, responsible images, humane
concerns and other ethical dynamics.

Monika Hartman (2011) in her article “CSR in the food sector” analyzed the importance of
CSR in food sector particularly those companies which have high brand. The study
found that SME’s are less capable of discharging their obligation towards society. Further the
study revealed that food sector always tries to improve the controlling and discharging its
services towards consumers. It was also found that consumers show preference for those brands
or food sector that give importance to CSR activities.

Mallen Baker (2012) in his article on “Four emerging trendsin Corporate Responsibility” tried
to elucidate three basic things about the trends of CSR that have changed from
last so many years. Firstly, the relationship between business and society has changed. They
have come closer because of the social and environmental problem prevailing around the
world. Secondly, the strategy of the businessman to develop business also affected the society a
lot. Their new ideas, concept, developments also came with CSR management that reflects
in their product and services. Lastly, the changes of CSR are also affected by other parties like
outside agencies and the firm’s own goals that interfere the firm’s activity.

CONCLUSION

Corporate Social Responsibility is essential in India as more than 65% of

population is living in rural areas. There are huge differences between urban and
rural India in terms health care facilities, 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
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.

Reliance Industries Limited process the environment initiatives, education programs,

health care programs, rural development program, etc. at their own working
community for enhancing 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.
RECOMMENDATIONS AND LIMITATIONS

RECOMMENDATIONS

 CSR is a combined concept which covers social, ecological and economic

issues.

 Profit earning should not be the core purpose of businesses;

instead businesses must render services to the society.

 The traditional expectations are being replaced by new ones

and companies are expected to act responsibly, be accountable and
beneficial to the society.

 Practicing CSR is not wastage of money and resources but it

adds to the goodwill, prestige and credibility of a company.

 Potential employees of a country are not only influenced by the

salary but are also influenced by the CSR policies followed by a

company.

LIMITATIONS

Although the study and the subsequent statistical analysis were done
with careful proofing, yet there are always some limitations to any
research work done, and this one is no exception. Some of the
limitations of this work are as follows:

 The sample collected for primary research was a random one

which may include some non serious respondents ultimately
decreasing the true essence of the research.

 The sample size was limited to 80 people out of which 9

respondents declined to fill the questionnaire. A sample of over
100 would have given better and more dependable results.
  The questions included in the questionnaire were limited to
cover all the issues related to CSR. More questions would have
made the questionnaire boring and time consuming for the
respondents.

 Time constraint was a barrier in getting the most genuine

responses from the respondents.

REFERENCES:

a) Benn, Suzanne and Bolton, Dianne (Key concepts in corporate

social responsibility, 2011).

b) Broomhill, Ray (Corporate Social Responsibility: Key Issues

and Debates, 2007)

c) El Ghoul, Sadok, Guedhami, Omerane, C.Y. Kwok, Chuck,

R.Mishra, Dev ( Banking of Journal and Finance, 9th September
2011, p.g. 2388-2406). Volume 35.

d) Lober, Heike (corporate management, corporate social

responsibility and customers, 2014).

e) Ril.com (N.D.) Social Responsibility and Community

Development (Online). Available from:
 http://www.ril.com/html/aboutus/social_resp_comm_dev.html
(access on 10th Dec 2014).

f) Ril.com (N.D.) Reliance Group (Online).

Available from:
http://www.ril.com/html/aboutus/aboutus.html (access on 10th
Dec 2014).

g) ANAUAL REPORTS OF RELIANCE INDUSTRIES LIMITED

a) 2005-2006

b) 2006-2007