Oil & Natural Gas Corporation Limited (ONGC)

Business Ethics, Corporate Governance and CSR OF

Vision and Mission

ONGCs vision and mission reflect ONGCs commitment to Millennium Development Goals by focusing on health, safety and environment and to enrich the quality of community life. ONGC is aligned to imbibe high standards of business ethics and organizational values, foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for ONGCians and strive for value addition for all its stakeholders.

ONGC believes in action and strives to deliver the desired results of Global Compact.

ABOUT THE COMPANY

Keshava Deva Malaviya- realized the importance of an indigenous petroleum industry in India and laid the foundation of ONGC in august 1956. The scientists and the engineers of ONGC, fuelled by his pioneering spirit, have made ONGC the Numero Uno Exploration and Production Company of Asia today. The corporate history of ONGC began in 1956, with the mandate for exploration and production (E&P) of hydrocarbons in India. Over the past 45 years, ONGC has discovered nearly six billion tones of Oil and Gas reserves in India.
The Corporation is now implementing a Strategic Plan to double the reserve-base in the next 20 years.

Simultaneously, major investments are being undertaken to improve recovery from the producing fields, and to bring additional reservoirs into accelerated production. A major campaign for deep-water exploration has been initiated. Its competitive strength lies in Strong intellectual property base, information, knowledge, and skilled and experienced human resource base. ONGC is one of the pioneers of offshore and onshore drilling in India and is now looking forward towards expansion in deepwater exploration and drilling and other allied areas of service sector. ONGC Videsh is the international arm of ONGC. ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.

Corporate Governance
Our Corporate Governance is driven by adherence to honest, ethical and professional conduct by all ONGCians. The management and employees are committed to the core values of transparency, integrity and accountability." ONGC is committed to provide the best standards of Corporate Governance to all the stake-holders. This enables customers and all stakeholders to be partners in the companys growth and prosperity. ONGC views Corporate Governance in its widest sense as a trusteeship, a philosophy to be pursued, a value to be imbibed and an ideology to be ingrained into the corporate culture. Companys philosophy on Corporate governance is led by strong emphasis on human values, individual dignity and adherence to honest, ethical and professional conduct. Its revolves around values based on transparency, integrity, professionalism and accountability. It is a way of life rather than a mere legal compulsion.

The Corporate Governance process in ONGC is focused on the key business objectives: 1. Creating Value, 2. Strengthening Oil Security, 3. Maximizing Return to Investors, 4. Ensuring best feasible HSE practices, and 5. Blending prudence of a State Enterprise with agility of a Trans-national The management must have the operational freedom to pursue the Business Goals within a definitive framework of accountability. The practice of Corporate Governance, therefore, is based on these principles: 1. Independent verification of financial reporting and reserves accounting, 2. Protection of shareholders rights and proactive investor relations, and 3.Transparent and timely disclosure of all material aspects of the Companys operations and performance.

The premise of Corporate Governance framework in ONGC is based on the following key drivers:
Adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders including customers, employees and society at large. A sound system of internal control to mitigate the risks. Compliance of law, rules & regulations in true letter and spirit. Independent verification of the Companys financial reporting. Strategic supervision by the Board of Directors of appropriate composition, size, varied experience and commitment to discharge their responsibilities. Timely and balanced disclosure of all material information to all the stakeholders. Clearly defined standards against which performance of responsibilities can be measured. A clear delineation of shareholders rights. Accuracy and transparency in disclosures regarding operations, performance, risk and financial position. Based on the aforesaid objectives and in compliance with the disclosure requirements of Clause 49 of the Listing Agreement executed with the stock exchanges as well as the Guidelines on Corporate Governance for Public Sector Enterprises, issued by the Department of Public Enterprises(DPE).

Whistle blower policy

The ground for implementing whistle blower policy another major voluntary initiative to promote transparency and ethics in personal conduct and decision process. Whistle Blower Policy is one of the non-mandatory requirements under Clause 49 of the Listing Agreement with the Stock Exchanges, which very few companies have embraced so far. In its objective of further empowering its employees and bringing more transparency and ethics in operational practices, ONGC, being a responsible corporate citizen, has voluntarily adopted this policy. Within the framework of this policy, while ONGC has provided ample opportunities to encourage the employees to become whistle blowers (employees who voluntarily and confidentially want to bring the unethical practices, actual or suspected fraudulent transactions in the organization to the notice of the competent authority for the greater interest of the organization and the nation), it has also ensured a very robust mechanism within the same framework to protect them (whistle blowers) from any kind of harm.

ONGC is a benchmark in the area of ethics and transparency.

ONGC regularly hold workshops with there investors, vendors and customers to ensure a transparent relationship among all stakeholders. As per the recent promoting revenue transparency (PRT) 2011 report by Transparency International and Revenue Watch, ONGC occupies the top rank (jointly with two other companies) among 44 global oil and gas companies in the world as far as organizational disclosure practices are concerned.

Corporate Governance Recognized

In recognition of excellence in Corporate Governance, the following awards have been conferred on ONGC:
(i) ICSI National Award for Excellence in Corporate Governance-2003- by the Institute of Company Secretaries of India; (ii) 'SCOPE Meritorious Award for Corporate Governance 2006-07' by the Standing Conference on the Public Enterprises; (iii) Golden Peacock Award for Excellence in Corporate Governance by the Institute of Directors in the years 2002, 2005 and 2006; (iv) Golden Peacock Global Award for Corporate Governance by World Council for Corporate Governance, U.K. in the years 2005, 2007, 2008 and 2009; (v) ICSI National Award for Excellence in Corporate Governance-2010- by the Institute of Company Secretaries of India;

CSR at ONGC
The mission of ONGC stated that the company would have an "abiding commitment to health, safety, and environment to enrich quality of community life.And this mission was reflected in its CSR activities. CSR at ONGC began as a philanthropic activity where the company contributed to several socio-economic developmental programs like building schools and hospitals, developing agriculture and cottage industry, building infrastructure facilities, etc., around its areas of operation on an ad hoc basis.

The CSR initiative of ONGC during 2010-11 was marked by continued commitment to several large-scale key projects as well as initiation of several new projects identified under the 12 focus areas of ONGC Education including vocational courses, Health Care, Entrepreneurship (self-help and livelihood generation) schemes, Infrastructure support near their operational areas, environment protection, ecological conservation, protection of heritage sites, UNESCO heritage monuments etc., Promotion of artisans, craftsmen, musicians, artists etc. for preservation of heritage, art and culture, Women empowerment, girl child development, gender sensitive projects, promoting sports/sportspersons, Water management including ground water recharge and Initiatives for physically and mentally challenged.

Major CSR Projects launched during the year are as follows:

ONGC- GICIET-Computer Education Project with Bharatiya Vidya Bhavan: The initiative for unemployed youth in Uttarakhand, Assam, Andhra Pradesh, Pondicherry and Gujarat HEAT with Hemophilia Federation of India: transform lives of 1000 children with Hemophilia through education. 'Gram Sarv Utthan' with SEED (Society for Educational welfare and Economic Development): Community mobilization, in school intervention, adult education with special focus on female literacy. Construction of Halls and Kitchen with SVS (Shramik Vikas Sansthan): Financial assistance for construction of additional Hall, staff room & kitchen for the hostel for tribal children in Gujarat. Greening of Southern Ridge, Delhi: Greening an approx area of 1.5 sq. km institutional area near Southern Ridge

Work-Life Balance: ONGC continued in its endeavors to ensure work-life balance of its employees. The colonies at many work-centers were provided facilities like gymnasiums, music rooms, etc. Outbound programs with families were organized at various work-centers. Hindi dramas on the importance of 'Work-Life Balance' were staged to create awareness amongst the employees. In addition, cultural programs involving employees and their families were also conducted. Badhte Kadam: A massive pan-India disability awareness raising program throughout the country.

Mokshda Green Cremation System: Setting up of 30 energy efficient and environmental friendly green cremation system in association with local municipal bodies at work centers of ONGC. 'Ashadeep' Girl child education program: Aimed to ensure continued schooling of the girl students belonging to economically weaker sections of society, with observable improved learning levels of the support receiving students. Project Saraswati with NGRI: Exploring deep underground water resources in Rajasthan to provide new sources of ground water in the desert / drought prone areas with possible scope for long distance recharge.

Presented by : Rashmi Nihalani 74 Krutika Mohile 76