Corporate Social Responsibility of NTPC

Corporate Social Responsibility of NTPC
Vaibhav Prakash
Roll 1403001022
Index
1 INTRODUCTION ABOUT NTPC ........................................................................................................... 3
An organization ................................................................................................................................................3
2.0 CORPORATE SOCIAL RESPONSIBILITY: WHAT DOES IT MEAN? .......................................... 5
2.1 HOW CSR HELP THE COMPNIES ....................................................................................................................5
2.2 THE BUSINESS CASE FOR CSR ........................................................................................................................6
3 .NTPC: THE SOCIAL COMMITMENT ................................................................................................................ 8
3.1 RESETTLEMENT AND REHABILITATION.........................................................................................................8
3.2 ASH UTILIZATION .........................................................................................................................................9
3.3 A FORESTATION ...........................................................................................................................................10
3.3.1 NTPC'S APPROACH .................................................................................................................................10
3.3.2 FOREST BANK............................................................................................................................................11
3.4 ENVIRONMENTAL MANAGEMENT ..............................................................................................................11
3.4.1 ENVIRONMENT MANAGEMENT SYSTEM / ISO-14001 ............................................................................12
3.4.2 ENVIRONMENT POLICY ............................................................................................................................12
3.4.3 RESOURCE CONSERVATION......................................................................................................................12
3.4.4 POLLUTION CONTROL SYSTEMS ...............................................................................................................13
3.4.5 MONITORING OF ENVIRONMENTAL PARAMETERS..................................................................................13
3.4.6 ASH WATER RECYCLING SYSTEM ............................................................................................................13
3.4.7 ADVANCED / ECO-FRIENDLY TECHNOLOGIES ........................................................................................13
3.5 GLOBAL COMPACT ......................................................................................................................................14
3.5.1 THE TEN PRINCIPLES OF GLOBAL COMPACT...........................................................................................14
3.5.2 PARTICIPATION BY NTPC ........................................................................................................................15
3.5.3 TSUNAMI ...................................................................................................................................................16
3.6 COMMUNITY DEVELOPMENT ......................................................................................................................16
4.0 RESEARCH METHODOLOGY ...................................................................................................................... 17
5.0 RESULT ..................................................................................................................................................... 18
6.0 CONCLUSION ............................................................................................................................................ 19
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Vaibhav Prakash ; Roll 1403001022
1 Introduction about NTPC

An organization
Oriented at growth
Looking ahead, aiming
High, with clarity of
Vision and mission.
Lighting one- fourth
Of the nation.
NTPC, Indias
Largest and premier
Power Company, playing
Its leadership role.
With its ambitious
growth strategy and
successful corporate
plan, pursuing the path
Of excellence.
Making the best use
Of available resources
And thereby powering
Indias growth.
NTPC Limited is the largest thermal power generating company of India. A public sector company, it
was incorporated in the year 1975 to accelerate power development in the country as a wholly owned
company of the Government of India. At present, Government of India holds 89.5% of the total equity
shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others.
Within a span of 30 years, NTPC has emerged as a truly national power company, with power
generating facilities in all the major regions of the country. Based on 1998 data, carried out by Data
monitor UK, NTPC is the 6th largest in terms of thermal power generation and the second most
efficient in terms of capacity utilization amongst the thermal utilities in the world.
NTPC's core business is engineering, construction and operation of power generating plants and also
providing consultancy to power utilities in India and abroad. As on date the installed capacity of NTPC
is 24,249 MW through its 13 coal based (19,980 MW), 7 gas based (3,955 MW) and 3 Joint Venture
Projects (314 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL).
This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and
Bhilai (74 MW). NTPC is also managing Badarpur thermal power station (705 MW) of Government of
India.
NTPCs share on 31 Mar 2006 in the total installed capacity of the country was 19.51% and it
contributed 27.68% of the total power generation of the country during 2005-06. NTPC has set new
benchmarks for the power industry both in the area of power plant construction and operations. It is
providing power at the cheapest average tariff in the country. With its experience and expertise in the
power sector, NTPC is extending consultancy services to various organizations in the power business.
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NTPC is committed to the environment, generating power at minimal environmental cost and
preserving the ecology in the vicinity of the plants. NTPC has undertaken massive a forestation in the
vicinity of its plants. Plantations have increased forest area and reduced barren land. The massive a
forestation by NTPC in and around its Ramagundam Power station (2100 MW) have contributed
reducing the temperature in the areas by about 3c. NTPC has also taken proactive steps for ash
utilization. In 1991, it set up Ash Utilization Division to manage efficient use of the ash produced at its
coal stations. This quality of ash produced is ideal for use in cement, concrete, cellular concrete,
building
material.
A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in
NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep
is efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards
environmental protection and continued commitment to sustainable power development in India.
As a responsible corporate citizen, NTPC is making constant efforts to improve the socioeconomic status of the people affected by its projects. Through its Rehabilitation and
Resettlement programs, the company endeavors to improve the overall socio-economic status
of Project Affected Persons.
NTPC was among the first Public Sector Enterprises to enter into a Memorandum of
Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the
'Excellent category' (the best category) every year since the MOU system became operative.
Recognizing its excellent performance and vast potential, Government of the India has
identified NTPC as one of the jewels of Public Sector Navratnas- a potential global giant.
Inspired by its glorious past and vibrant present, NTPC is well on its way to realize its vision
of being one of the worlds largest and best power utilities, powering Indias growth.
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2.0 Corporate Social Responsibility: What does it mean?

"More and more companies are accepting corporate citizenship as a new strategic and managerial
purpose requiring their attention. Once seen as a purely charitable activity--a source of general
goodwill, with no bottom-line consequence--citizenship is moving from the margins of concern to the
center at leading companies."
Today, there are many references to corporate social responsibility (CSR), sometimes referred to as
corporate citizenship, in our workplaces, in the media, in the government, in our communities. While
there is no agreed-upon definition, the World Business Council for Sustainable Development defines
CSR as the business commitment and contribution to the quality of life of employees, their families
and the local community and society overall to support sustainable economic development. Simply put,
the business case for CSR--establishing a positive company reputation and brand in the public eye
through good work that yields a competitive edge while at the same time contributing to others-demands that organizations shift from solely focusing on making a profit to including financial,
environmental and social responsibility in their core business strategies. Despite what the phrase
corporate social responsibility suggests, the concept is not restricted to corporations but rather is
intended for most types of organizations, such as associations, labor unions, organizations that serve
the community for scientific, educational, artistic, public health or charitable purposes, and
governmental agencies.
2.1 How CSR help the compnies

Globalization, the explosion of information technology, advances in the biological sciences, and the
growth of democracy and diversity can be considered among the positive developments in our world
today. On the other hand, poverty, environmental crises such as global warming, epidemics such as
AIDS, and terrorism are also part of today's world. What do these positive and negative aspects have
in common? They reflect the breathtaking increase in global interdependence, to the extent that
borders don't count for much anymore and local communities are increasingly affected by things that
happen a long way from home. Corporate social responsibility (CSR) has been proposed as a way to
respond to some of these issues, both locally and globally. According to "Integrating Responsibility,"
most companies that have initiated CSR programs have done so in response to one problem or
another; for example, in the thermal power station, it was environmental issues. CSR programs have
also surfaced in the sourcing departments of companies facing supply chain issues.
CSR is built on four key points:
Reputation- Building trust in a company is a long, uphill battle, but losing it can have dramatic
effects on share prices and customer loyalty.
Retention and recruitment- Employees want to work for responsible companies that care
about their employees and contribute to society.
Operational efficiency- CSR can improve the bottom line by using materials efficiently and
minimizing waste.
Increased sales- Cause-related marketing, ethical and environmentally conscious labels, and
new product innovation can influence the top line.
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Every business has an impact on the communities in which it operates, and the business depends on
a basic set of social conditions--an educated workforce, available natural resources, health care, good
government--in order to operate and compete. Communities also depend on business. The economic
and social welfare of the population is dependent on having companies that can sustain the local
economy. Every company draws on different resources and produces different effects in different
locations.CSR practices and philanthropy must address these specific interactions between a
business and the social conditions in which it operates
Generic social issues- which neither significantly affect nor are significantly affected by the
business.
Value chain impact- the consequences of a company's operating activities, good or bad.
Competitive context- those aspects of the social environment that constrain the productivity
of the business in its operating location. Schools, for example, may affect the competitiveness
of companies that depend on a local workforce, even if the companies' activities do not have a
direct impact on the schools.
To be an effective and socially responsible business, companies need to move beyond generalized
concepts of good citizenship.
2.2 The business case for CSR
The benefits of CSR to businesses vary depending on the nature of the enterprise, and are typically
very difficult to quantify. A major meta-analysis has been conducted seeking to draw a correlation
between social/environmental performance and financial performance.
It should be noted that the definition of CSR used within business can vary from the strict 'stakeholder
impacts' definition and will often include charitable efforts and volunteering.
The business case for CSR within a company will likely rest on one or more of these arguments:
Human Resources
Corporate Social Responsibility can be an important aid to recruitment and retention, particularly within
the competitive graduate market. Potential recruits are increasingly likely to ask about a firm's CSR
policy during an interview and having a comprehensive policy can give an advantage. CSR can also
help to build a 'feel good' atmosphere among existing staff, particularly when they can become
involved through payroll giving, fundraising activities or community volunteering.
Risk Management
Managing risk is a central part of many corporate strategies. Reputations that take decades to build up
can be ruined in hours through incidents such as corruption scandals or environmental accidents.
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These events can also draw unwanted attention from regulators, courts, governments and media.
Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.
Brand Differentiation
In crowded marketplaces companies strive for 'X Factors' which can separate them from the
competition in the minds of consumers. Several major brands, such as The Co-operative Group and
The Body Shop are built on ethical values. Business service organizations can benefit too from
building a reputation for integrity and best practice.
License to operate
Corporations are keen to avoid interference in their business through taxation or regulations. By taking
substantive voluntary steps they can persuade governments and the wider public that they are taking
current issues like health, safety, diversity or the environment seriously and so avoid intervention. This
also applies to firms seeking to justify eye-catching profits and high levels of boardroom pay. Those
operating away from their home country can make sure they stay welcome by being good corporate
citizens with respect to labour standards and impacts on the environment.
Diverting Attention
Major corporations which have existing reputational problems due to their core business activities may
engage in high-profile CSR programmes to draw attention away from their perceived negative impacts.
Thus British American Tobacco (BAT) will take part in health initiatives and the petroleum giant BP has
installed very visible wind-turbines on the roofs of some petrol stations in the UK.
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3 .NTPC: The Social Commitment

3.1 Resettlement and Rehabilitation
NTPC believes in growth with a human face, and pursuing people-centered development. NTPC is a
socially committed organization and a socially responsible corporate citizen. It attaches great
importance to discharging its overall social responsibilities to the community and the society at large
where its projects and stations are located. In this regard Resettlement and Rehabilitation (R&R)
program becomes an area of sharp focus, a program that addresses people affected directly or
indirectly in the wake of the projects undertaken by NTPC.
3.1.1 The Comprehensive Policy Framework

The R&R policy aims at improving the overall economic status of Project Affected Persons
(PAPs). This is achieved by providing opportunities in the fields of sustainable income,
health, education, sanitation, communication and other such areas. Community development
activities are carried out in a transparent and participative manner. Each program is based on
the specific local requirement and guided by the extensive Socio Economic Surveys (SES).
This helps meet the objective of ensuring that the Project Affected Persons (PAPs) improve or
at least regain their previous standard of living. Efforts are made to adopt a holistic approach
to community development.
Thrust is also given on participation and consultation of stakeholders and setting up of
institutional mechanisms like Public Information Centre (PIC), Village Development
Advisory Committee (VDAC) etc.
The PAPs are systematically categorized on an individual basis, thereby bringing into its fold
homestead ousters, agricultural land owners, agricultural and non agricultural laborers,
tribals, occupiers cultivating forest land etc. The Resettlement and Rehabilitation program is
meticulously worked out for each PAP. The R&R policy options and entitlements include:
Resettlement
Developed alternate free house plot in resettlement colony with necessary infrastructure
facilities or provisions for self resettlement.
Free transport arrangement for belongings and reusable material or suitable transport grant.
Infrastructure to be provided includes primary school, dispensary, panchayat ghar, drinking
water well/ hand pumps, WBM roads, drainage, Sulabh Sauchalaya etc.
Suitable Resettlement Grant etc.
Rehabilitation
Land for land on a willing buyer willing seller basis

Other rehabilitation options based on need and requirement
Capacity Addition Programmes
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Suitable Rehabilitation Grants, Subsistence Allowance etc.

Other innovative measures like incentivizing purchase of land by the landless etc.
Additional Economic Opportunities as per need and requirement
3.2 Ash Utilization
Ash utilization is one of the key concerns at NTPC. The Ash Utilization
Division, set up in 1991, strives to derive maximum usage from the vast
quantities of ash produced at its coal-based stations. The division proactively
formulates policy, plans and program for ash utilization. It further monitors
the progress in these areas and works at developing new fields of ash
utilization.
The quality of ash produced conforms to the requirements of 3812. The fly
ash generated at NTPC stations is ideal for use in cement, concrete, concrete
products, cellular concrete, lightweight aggregates, bricks/blocks/tiles etc.
This is attributed to its very low loss on ignition value. To facilitate
availability of dry ash to end-users all new units of NTPC are provided with
the facility of dry ash collection system. Partial dry ash collection systems
have also been set up at the existing stations where these facilities did not
exist earlier. Augmentation of these systems to 100% capacity is presently in
progress.
The various channels of ash utilization currently include use by a number of
Cement, Asbestos-Cement products & Concrete manufacturing Industries,
Land Development, Roads & Embankments, Ash Dyke Raising, and Building
Products. Area wise break-up of utilization for the year 2004-05 is as under:
Area of Utilization
Quantity (in Million Tons)
Land Development
4.55
Cement & Concrete
4.59
Roads/Embankments
0.6
Ash Dyke Raising
2.34
Bricks
0.2
Others
0.46
Total
12.74
NTPC has adopted user friendly policy guidelines on ash utilization. These include actions identified
for:
Page 9 of 19
Ash Collection & Storage System.

Facilities & Incentives to users.
Direct Department Activities.
Administrative & Financial aspects.
In order to motivate entrepreneurs to come forward with ash utilization schemes, NTPC offers several
facilities and incentives. These include free issue of all types of ash viz. Dry Fly Ash / Pond Ash /
Bottom Ash & infrastructure facilities, wherever feasible. Necessary help and assistance is also offered
to facilitate procurement of land, supply of electricity etc. from Govt. Authorities.
3.3 A forestation
The a forestation activities of the industrial region not only serve as foreground and
background landscape features but also contribute to the overall improvement in the
environment. The crucial need for conservation and restoration of the degraded ecosystem and
preservation of genetic resources of the country led to the enactment of the "Wild Life
Protection Act" (1974) and "Forest Act" (1980) in addition to legal Acts of Air, Water and
Environment.
Maintenance of ecological balance and pristine environment therefore, has been of utmost
importance at NTPC. Environment planning and preservation is an integral part of its project
activities. NTPC undertakes a forestation program covering vast tracts of land in and around
its projects in a concerted bid to counter growing ecological threat.
3.3.1 NTPC'S Approach
It has been possible to achieve a satisfactory combination of environmental quality and
techno-economics through determined efforts at NTPC for its projects. Continuous vigilance
is maintained to minimize pollution apart from other management program taking root
simultaneously with construction activities.
The appropriate a forestation program for plant, township, green-belt and other sites are
designed according to the geographical features. The species are selected on the basis of their
adaptability and grouped with local representatives. The growth characteristics, flowering
pattern and canopy (spreading nature) are evaluated in their distribution over these sites of a
forestation. These considerations not only contribute to the aesthetics but also go a long way
in serving as "Sinks" for the pollutant emissions of the power plant... At times, they combat
pollution from other industries in the surrounding area.
Saving the existing trees, planting right at the beginning of construction phase, preservation of
trees and advice from State Forest Departments and Agriculture Universities are a few general
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guidelines followed by NTPC in the a forestation program at their projects. The site specific a
forestation details conform to the natural climatic conditions and adaptability of species. The
species are grouped into a heterogeneous combination to impart a natural and healthy
assemblage.
The arrangement of species in the green belt / buffer zone conforms to hexagonal pattern to
facilitate maximum density of species. In addition, the growth pattern and canopy are
evaluated in their actual locations of the hexagonal pattern which help uniform canopy
spreading. The tree planting, garden and park development in and around the township adds
to the general aesthetics. Plant species of medicinal value are cultivated separately in isolated
patch and information made available to residents for use appropriately.
The nursery ensures good quality planting stock so vital in the success of planting program. In
order to reduce the transport cost and damage to the planting stock, nurseries have been
developed at the projects to meet the planting requirement.
NTPC has developed independent Horticulture Department at its projects headed by
experienced horticulture officers / supervisors.
3.3.2 Forest Bank
An innovative proposal to create "Forest Banks" in each state was wherein the Forest
Department of all States / Union Territories should identify land to initiate plantations under
various program of the state. Such areas would facilitate any power project of either the State
or Centre to draw necessary "Compensatory A forestation Area" against the existing balance
in the Forest Bank. This will ensure that projects need not wait for clearance for want of
identification of areas and State Government's concurrence for compensatory a forestation.
3.4 Environmental Management
Harmony between man and environment is the essence of healthy life and growth. Therefore,
maintenance of ecological balance and a pristine environment has been of utmost importance
to NTPC. Environment protection continues to be a key area of activity in NTPC along with
growth
in
generation
of
power.
Driven by its commitment for sustainable growth of power, NTPC has evolved a well defined
environment management policy for minimizing environmental impact arising out of setting
up
of
power
plants
and
preserving
the
natural
ecology.
In November 1995, NTPC became the first public utility to bring out a comprehensive
document entitled "NTPC Environment Policy and Environment Management System".
Amongst the guiding principles, adopted in the document, are the company's proactive
approach to environment, optimum utilization of equipment, adoption of latest technologies
and continual environment improvement. The policy also envisages efficient utilization of
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resources, thereby minimizing waste, maximizing ash utilization and providing green belt all
around the plant for maintaining ecological balance. NTPC's environment-friendly approach
to power has already begun to show results in conservation of natural resources such as water
and fuel (coal, oil & gas) as well as control of environmental pollution. NTPC has chalked out
a set of well-defined activities that are envisaged right from the project conceptualization
stage.
Performance enhancement and up gradation measures are undertaken by the organization
during the post operational stage of the stations. These activities have greatly helped to
minimize the impact on environment and preserve the ecology in and around its power
projects. These measures have been enumerated as follows.
3.4.1 Environment Management System / ISO-14001
NTPC has established Environmental Management System (EMS) as per ISO-14001 at its different
establishments. As a result of pursuing sound environment management practices, all NTPC power
stations (excluding Simhadri which was commissioned recently) as well as the Corporate Environment
Management.
3.4.2 Environment Policy

The Environment Policy of the Corporate Environment Management and Ash Utilization
Division as adopted in March, 2003 under the Environment Management System is stated
below.
Continual improvement of environmental performance of all NTPC power stations in

pursuance of our vision of powering Indias growth.
Continually monitor all the stations for pollution prevention and environmental protection.
Conservation of natural resources including land by utilizing more and more cash generated
by thermal power stations of NTPC.
Assist stations for compliance with relevant environmental legislations and regulations.
To promote environmental awareness amongst the employees of NTPC.
To create awareness of Ash Utilization and its environmental benefits among the Engineers,
Builders, Architects, Potential Entrepreneurs, NTPC personnel and public at large.
3.4.3 Resource Conservation

With better awareness and appreciation towards ecology and environment, thermal power
utilities have been continually looking for innovative and cost effective solutions to conserve
natural resources and reduce wastes. Some of the measures include:
Reduction in land requirements for main plant and ash disposal areas in newer units.
Capacity addition in old plants, within existing land.
Reduction in water requirement for main plant and ash disposal areas through recycle and
reuse of water.
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Reduction in fuel requirement through more efficient combustion and adoption of state-of-theart technologies such as super critical boilers.
3.4.4 Pollution Control Systems

While deciding the appropriate technology for its projects, NTPC integrates many environmental
provisions into the plant design. In order to keep emission, effluents and ambient air quality well within
acceptable limits, NTPC has provided the best available equipments, devices and systems such as
high efficiency Electrostatic Precipitators (ESPs), Tall Stacks and Low NOx Burners for control of stack
emissions, Dust Extraction and Dust Suppression Systems for control of fugitive dust, Effluent
Treatment Plants, Neutralization Pits and Ash Ponds for control of the effluent quality, Ash Water Recirculation System and Cooling Towers for control of the effluent quality as well as conservation of
water and Sewage Treatment Plant (STP) for treatment of the domestic sewage from its plant and
township areas.
3.4.5 Monitoring of Environmental Parameters

A broad based Environment Monitoring Program has been formulated and implemented in
NTPC. All pollutants discharged from the power plant through stack emission, ash pond
effluent, main plant effluent, domestic effluent and Condenser Cooling Water (CCW) effluent
are monitored at the stipulated frequency at the source itself and at the points of discharge. In
addition to the above, ambient air, surface water and ground water quality in and around
NTPC plants are regularly monitored to assess any adverse impacts as a result of operation of
the power plant.
3.4.6 Ash Water Recycling System
NTPC is aiming at adopting the concept of "Near Zero Effluent Discharge" for once - through
ash disposal system wherein huge quantity of water is used for disposal of ash to the ash
ponds. This has been further necessitated in view of ever increasing scarcity of water, as also,
fast deterioration in water quality of our rivers and other water sources due to discharges from
polluting industries. For conservation of water, Ash Water Recycling System has been
envisaged for the ash ponds in all new projects and in a number of its operating stations.
NTPC has drawn a program for changing ash disposal systems at its existing power plants
from once-through system to recycling system where clear effluent from ash pond is recycled
and only little quantity of blow down is required to be discharged after treatment. The ash
water recycling system has already been installed and is in operation at a number of Stations
such as Ramagundam, Talcher Kaniha, Talcher Thermal, Kahalgaon, Korba and Vindhyachal.
The scheme has helped stations to save huge quantity of fresh water required as make-up
water for disposal of ash.
3.4.7 Advanced / Eco-friendly Technologies
NTPC has gained expertise in operation and management of 200 MW and 500MW Units
installed at different Stations all over the country and is looking ahead for higher capacity
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Unit sizes with super critical steam parameters for higher efficiencies and for associated
environmental gains. At Sipat (Chhattisgarh), higher capacity Units of size of 660 MW and
advanced Steam Generators employing super critical steam parameters have already been
envisaged as a green field project.
Higher efficiency Combined Cycle Gas Power Plants are already under operation at all gasbased power projects in NTPC. Advanced clean coal technologies such as Integrated
Gasification Combined Cycle (IGCC) have higher efficiencies of the order of 45% as
compared to about 38% for conventional plants. NTPC has initiated a techno-economic study
under USDOE / USAID for setting up a commercial scale demonstration power plant by
using IGCC technology. These plants can use low grade coals and have higher efficiency as
compared to conventional plants.
3.5 Global Compact
Globalization has brought significant advantages to countries and business around the world
but the benefits have spread unequally both within and among countries.
While the rules favoring global market expansion have grown more robust, the rules intended
to promote equally valid social objectives viz. in the areas of human rights, labor standards
and environment lag behind and in some cases actually have become weaker.
In order to promote Corporate Social Responsibility and citizenship in the new global
marketplace, UN Secretary General, Mr. Kofi Annan first proposed the Global Compact at
Davos in Jan'99. It was thus created to help organizations redefine their strategies and course
of actions so that all people can share the benefits of globalization, not just a fortunate few.
The Global Compacts operational phase was launched at UN Headquarters in New York on
26 July 2000. and has since then focused its efforts on achieving practical results and
fostering the engagement of business leaders in the direction.
Through the power of collective action, the Global Compact seeks to promote responsible
corporate citizenship so that business can be part of the solution to the challenges of
globalization. In this way, the private sector in partnership with other social actors can
help realize the Secretary-Generals vision: a more sustainable and inclusive global economy.
3.5.1 The Ten Principles of Global Compact

The Global Compact's ten principles in the areas of human rights, labour, the environment and
anti-corruption enjoy universal consensus
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Human Rights
Principle 1 : Business should support and respect the protection of internationally proclaimed
human rights; and
Principle 2: Make sure that they are not complicit in human rights abuses.
Labor
Principle 3 : Business should uphold the freedom of association and the effective recognition
of the right to collective bargaining;
Principle 4 : The elimination of all forms of forced and compulsory labor;
Principle 5 : The effective abolition of child labor; and
Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7 : Business should support a precautionary approach to environmental challenges;

Principle 8 : Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Business should work against corruption in all its forms, including extortion and
bribery.
3.5.2 Participation by NTPC

Due to keenness of UN that this movement takes root in India, some business leaders took the
initiative and organized a meeting of select business leaders in Mumbai in Dec' 2000. NTPC
as a prominent business and community leader in the power sector was also invited to the
meeting and thus engage/associate itself with Global Compact.
Following this meeting which was attended by CMD NTPC, NTPC agreed to be associated
with the Global Compact. In his letter in May 2001 CMD addressed to Mr. Kofi Annan,
Secretary General, UN formally expressed its support for the Global Compact and its
commitment to take action in this regard.
NTPC expresses its continued support for the Global Compact and its commitment to
take action in this regard. The principles of GC are regularly communicated to all
employees through in-house magazines, internal training program and posters.
NTPC along with major corporate in India took the lead and founded Global Compact Society
of India in the year 2003. Further, NTPC as founder member of Global Compact Society took
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the lead for organizing the 1st national convention on Excellence in Corporate Citizenship
and Global Compact on 27th July 2004 at New Delhi.
3.5.3 Tsunami
The employee of NTPC with support of company volunteered to contribute a total sum of
approximately Rs.15.2 million from their salary, in addition to NTPC contribution of Rs.880
million to Prime Minister Relief Fund as immediate relief measures. The team of 52 NTPC
employee provided medical treatment and relief material to the affected persons. This team
treated 7838 patients and provided food to 18398 villagers and children till alternate
arrangements were made by local authorities.
NTPC team assisted for restoration of power supply in 53 relief camps, rectification of 2 nos.
control panel, inspection and suggesting rectification for 33 KV transmission systems,
installing small DG set, and repairing a number of DG sets of various capacities.
3.6 Community Development
NTPC has been a committed and socially responsible corporate citizen since its inception and
formulated specific guidelines for the welfare of Project Affected persons (PAPs) and
community development in the neighborhood villages around its power stations as early as
1980s. It is one of the first in the corporate sector to formulate comprehensive resettlement
and rehabilitation policy for addressing the issue of PAPs.
The concept of Corporate Social Responsibility is deeply ingrained in NTPC.s culture.
NTPCs mission in the area of CSR is to Be a socially responsible corporate entity with
thrust on environment protection, ash utilization, community development, and energy
conservation.
NTPCs approach towards CSR, further articulated in the corporate objectives on sustainable
power
development,
is
as
follows:
To contribute to
Sustainable power development by discharging corporate social responsibilities.

Lead the sector in the areas of resettlement and rehabilitation and environment
protection including effective ash-utilization, peripheral development and energy
conservation practices.
NTPCs fresh impetus on Community Development is reflected through formulation of CSRCD Policy, July 04, establishing NTPC foundation as a trust and initiating scheme for
economic self reliance of physically challenged persons (PCP).
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4.0 Research Methodology
4.1 Research Plan

a) Research Type:
b) Research Method:
c) Research Design:
Descriptive research.
Extensive literature study
Descriptive- exploratory
4.2 Sample Plan

a) Sample Design:
Non probability purposive sampling.
4.3 Data Collection: Secondary

a) Secondary data collection method:
b) Secondary data sources:
Desk research
Printed & Digital information
4.4 Methods of Research

a) Meeting with management personal and Executives
b) Literature and statistics from the Internet.
c) From books, magazines and newspaper.
Page 17 of 19
5.0 Result
Every country should embrace the remarkable concept of individuals and businesses forming a
partnership to support social causes. In the context of India, such a partnership has enormous
potential for strengthening society. Corporate social responsibility and volunteerism have no
boundaries and are not constrained by race, colour, or religion. Sadly, concern for the community is
often mistaken for socialism. On the contrary, capitalism thrives only when every citizen is an asset in
economic activity and has opportunities to succeed. Corporate social responsibility is a culture and
unwritten contract with the community. This invisible culture can shape brighter futures for nations.
Some would argue that it is self-evidently good that businesses should seek to minimize any
negative social and environmental impact resulting from their economic activity. It can also be
beneficial for a companys reputation to publicize (for example) any environmentally beneficial
business activities. A company which develops new engine technology to reduce fuel consumption will
(if it chooses) be able to promote its CSR credentials as well as increase profits. Some commentators
are cynical about corporations commitment to CSR and Sustainable Development and say that the
idea of an Ethical company is an oxymoron.
Page 18 of 19
6.0 Conclusion
Corporate social responsibility has much broader implications for the nation as a whole. It reduces
dependency on the government for social change. Most governmental program quickly becomes
embroiled in political manipulation, corruption, communal overtones, and bitter infighting. There is a
need for public-private partnership with well-defined controls and processes for the best use of
resources for social change. Social reforms driven by the community will bring people together, turn
the attention of the masses to tasks that benefit society, and reinforce peace and harmony.
However, the challenges in India are enormous. Social responsibility should not be limited to large
successful corporations; there should be greater participation from most small, medium, and large
businesses. The goodwill firms can generate from acts of social responsibility may, in fact, be worth far
more to the businesses than the amounts they give. Corporations collectively can make India a better
place for every citizen.
Page 19 of 19

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