2015

CSR Activities of Reliance

Amrutha Alisary (01)

Kritika (14)
Mitisha Gaur (16)
DFT 6th Sem

Executive Summary
Flagrantly, nowadays CSR approach has been immensely exploited by the organizations and
non-governmental organizations in a negative manner since the global markets are
becoming competitive. The term corporate social responsibility has become a trend of
symbols to explicit the companys corporation as being socially responsible, however
intrinsic intention has been self-regulation and private interest of the company. Hence, the
reliance industry limited has taken the corporate social responsibility as their mainstream of
profit maximization in terms of being socially responsible to educational, environmental,
health care, and agricultural perspectives

Introduction
Reliance Power Ltd, along with its subsidiary companies, which have been set up as special
purpose vehicles (SPVs), (herein after collectively referred to as R Power) is Indias largest,
integrated coal resources and power Generation Company in the private sector. Its
generation project portfolio includes projects based on conventional (coal-based, gas-based,
large hydro) and renewable energy (solar and wind) technologies. Most projects and
operating plants are located in remote / rural areas, where basic infrastructure is
inadequate and socio-economic profile is relatively weaker. Our mission is to contribute
towards improving the quality of life of the communities living in these areas. We believe
that our success in executing and operating large-scale mining /generation projects is
critically dependent on following a participatory development-oriented approach that
strengthens our bond with the local population. R Power has undertaken /shall continue to
undertake appropriate Corporate Social Responsibility (CSR) measures having direct,
measurable and positive economic, social, and environmental impact on the community
with particular emphasis on the local area and areas around where it operates.
IMPORTANCE OF CORPORATE SOCIALRESPONSIBLITIES:
Conduction of Corporate Social Responsibility strategy has became vital trend for the
companies in a current highly competitive global market. Inherently, the CSR strategy has
remained the pillar of the sustainability of a business as far as the consumers and markets
taste and preference changes are concerned. Moreover, the CSR-Asia has described CSR
as the business operations incorporation in environmental and social perspectives with the
interaction of their stakeholders. Hence, CSR approach owes followingfeatures: Firstly, it
observes for the increasing of the shareholders profit in order to preserve the long-term
viability of the business. Secondly, environmental and social improvisation has been the
core objective of the CSR approach. Thirdly, the CSR concept is not a crowding out effect for
the business, but it is about the way that business is operated. In this sequence, CSR

concept is concerned with the long-term sustainability of the business while maximizing the
shareholders interest and plays an active role in the development of community

CRITICAL REVIEW OF (CORPORATE SOCIAL RESPONSIBILITY:

Inherently, above discourse explicit that mainstream of CSR does concerns with social, legal,
and economical expectations of stakeholders. Therefore, CSR is flagrantly accountable for
capitalist apparatus that business solely considers their own private benefits of raising their
shareholders profit. For instance, on the one hand, Coca Cola company do informs African
nations of HIV in order to vest a vast reputation to its company, qua profit is considered as
core objective of business. On the other hand, it is a shame that they do not implement a
program for telling the world regarding tooth decay as such program would affect their
brand name reputation. Subsequently, in a survey of 1100 chief executives, 62% of those
chief executives have underpinned the CSR concept as vital forprofitability.Relatively; CSR
has a risk of compelling chief executives to besociopolitical players. As the government
shrinks and loses its power, the business chief executives remain with huge power in which
the businesses might acquit the power for their self-regulation profitability of the business.
Companies, such as, Glencorecompany, whose enjoying an immense portion of political
power income Africas nation,Is conducting the child labour extra-legal function for the
purpose of cost reduction. Relatively, CSR has been criticized by excluding the local
communities from policy-making decisions while working on Corporate Social Responsibility
strategy. Moreover, many contradictions exists in CSR approach, such as lack of financial
incentives, lack of legal literacy, etc. those disincentives the poorer group to use laws for
their protection of their civil rights.

CSR Policy
Guiding Principles: Reliance Power in its continuous efforts to positively impact the society,
especially the areas around its sites and offices, has formulated policies for social
development that are based on the following guiding principles:
1) Honour the spirit of law and be a responsible corporate citizen.
2) Pursue growths through harmony with the community via innovative management
techniques.
3) Adopt an approach that aims at achieving a greater balance between social development
and economic development.
4) Respect culture and customs of every project / plant location.
5) Work towards elimination of all barriers for the social inclusion of disadvantaged groups such as the poor, socially backward, differently baled and others.
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6) Develop practices aimed at inclusive growth.

7) Thrust on Environment Protection.

Applicability: This CSR Policy is applicable to R Power and all its subsidiaries, which are
mandated with the CSR expenditure obligations as per Sec. 135 of the Companies Act, 2013
read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended
from time to time.
Focus Areas: R Power CSR areas targets inclusive growth of all stakeholders under eight
categories, mentioned under Sch. VII of The Companies Act, 2013.
These primarily fall under drinking water, sanitation, education, healthcare, social
development, livelihood opportunities and environment protection. These are:
1.
2.
3.
4.
5.
6.
7.
8.

Rural Development Projects

Healthcare including sanitation and drinking water
Education & Vocational Skills (incl. Educational Infrastructure)
Gender Equality & Women Empowerment (Incl. Old age homes)
Environmental Sustainability
Heritage Protections (Incl. Art and Culture)
Training for Promotion of Sports Talent
Other items as may be prescribed from time to time under Sch. VII of The
Companies Act, 2013.

Governance Structure
A three-tier governance structure is responsible for implementing CSR activities at R Power
and its subsidiaries. These include the CSR Committee of the Board, Corporate CSR Team,
and Operational CSR Teams located at respective project/plant site.

Fig.1 Structure of CSR

Roles and Responsibilities
CSR Committee shall consist of three or more directors of which at least one shall be an
independent director. CSR committee shall be responsible for:
a)
b)
c)
d)
e)

Formulation of CSR Policy.

Regular monitoring of implementation of CSR policy.
Identify key initiatives pursuant to the CSR policy.
Recommend to the Board CSR expenditure to be incurred.
Recommend to the Board, modifications to CSR policy as and when required.

Dedicated CSR team shall be constituted at Corporate Office for implementing the CSR
Policy. Corporate CSR Team, located at Mumbai, shall be responsible for
Implementation of CSR Policy.
a) Identify Key Result Areas (KRAs) and Key Performance Indicators (KPIs) to be tracked
at corporate level and Operational (plant/project location) level.
b) Develop Annual Operating Plan (AOP) and targets against each of the identified KPIs
at Corporate and Operational level. (To be developed on a bottom-up basis).
c) Secure necessary approvals for CSR AOP Facilitating allocation of funds along with
relevant SPVs/Operations Team.
d) Monitoring of CSR projects on a quarterly basis to establish effectiveness of CSR
efforts and report the same to the CSR Committee.
e) Compilation of Information & Preparation of annual reports on CSR activities and.
presenting the same to the CSR Committee.
f) Organize Training programmes for CSR staff. any other activity necessary to ensure
achievement of Rowers CSR mission
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Operational CSR Team located at respective plant / project locations is responsible for:
a) Provide Inputs for the CSR Policy Design.
b) Bottom-up preparation of CSR AOPs and identification of annual targets against
KPIs. I
c) mplementation of CSR Action Plans.
d) Conduct Needs Assessment Survey.
e) Own the CSR Programmes implemented and monitor effectiveness of CSR initiative
delivery.
f) Monthly reporting on progress of CSR interventions.
g) Any other activity necessary to ensure achievement of Rowers CSR mission.
To maintain continuity of community related interventions / programmes initiated during
the project development stage, team members engaged in such activities would be drawn in
as CSR team members at the project execution / operation stage, wherever possible and
augmented if necessary.
Depending on interventions / programmes, external experts shall be engaged on a contract
basis for development of baseline data, planning, implementation, monitoring effectiveness
of CSR initiatives, etc.

RELIANCE INDUTRIES LIMITED CSR ACTIVITIES:

Reliance industries have performed major social responsibilities towards the betterment of
the community. The company has valuable contribution in terms of health, education,
environment, corporation in natural disasters, and infrastructure development. Following
are vast disclosure regarding CSR activities of Reliance Industries Limited

Education:
Reliance Industries has constructed nine schools with improving the13, 251 students
education level across the India. Furthermore, the company conducts the Kenya Kelvin
program,
Which plays a vital role to the contribution of supporting Indian Governments projects
towards education of girls across all over the India?
Relatively, RIL are implementing (Jakarta Project) for those students who are suffering
mentally from social and economical backwards and support them to obstacle with dyslexia.
Under the Jakarta Project, 35 trainees are spending 8800 hours in order to arise
the tolerance of underprivileged children to tackle with dyslexia. Consequently, the
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company owes partnership with UNESCO and BBC for the awareness of dyslexia to other
village student

Fig 2. Children welfare

Community Health Care:
Reliance Industries has brought pivotal improvisation to the Community Medical Centres for
providing ample health care services to the neighbouring villages. For instance, the Reliance
Company is acquitting drastic project, which is cooperated with the Association of Blind and
made contribution to 9000 free corneal grafted surgeries for those blinded folks who are
suffering from being underprivileged. Moreover, one of the manufacturing divisions of
Reliance Company (Hahira Manufacturing divisions) has commenced an Anti-Retroviral
Treatment Centre in the country and specifically for the cleaners and drivers of all product
transport vehicles. The program mainstream is for HIV / AIDS awareness.

Fig.3 Mission Rahat

Sir H.N. Reliance Foundation Hospital and Research Centre inaugurated in Mumbai by PM
Shri Narendra Modi
On the evening of Saturday 25th October 2014, Hon. Prime Minister Shri Narendra Modi
inaugurated Sir H.N. Reliance Foundation Hospital and Research Centre. The Prime Minister
talked about the importance of good health and said that the Government and the people have
to work together for creating a healthy India. He congratulated Reliance Foundation & Smt. Nita
Ambani for their efforts towards this initiative. Speaking at the inauguration, he said, "Just as
this 90 year old hospital has undergone kayakalp (renewal), India too, can undergo a kayakalp,
in the health sector"

Fig 4. Event for Sir H.N Reliance Hospital

Located in the heart of South Mumbai, the hospital in its 90th year, has been completely rebuilt
by Reliance Foundation, led by its Chairperson, Smt. Nita Ambani into a most-modern 19-storey
tower and two heritage wings. Founded in 1925 as Mumbai's first general hospital, it has a rich
heritage. The hospital celebrated its silver jubilee with Sardar Vallabhbhai Patel as its chief guest
and the Golden Jubilee celebrations were graced by Jayaprakash Narayan. During preindependence period, it treated many freedom fighters, including the Father of Nation,
Mahatma Gandhi.
The hospital has collaboration with John Hopkins, MD Anderson Cancer Centre, Massachusetts
General Hospital and University of Southern California. This hospital has state-of-the-art
operation theaters equipped with robotic surgery and on-line video conferencing enabling live
consultations with specialists across the world, a hybrid cath-lab- India's first for emergency
heart operations, state of the art diagnostics facility with Asia's first new generation CT scan.
The hospital is equipped with high-end Obstetrics & Gynecology services and Neonatal Intensive
Care Unit (NICU) and a learning centre, adapting the Millennium Development Goals of the
United Nations.
The general wards of the hospital will have the same level of treatment for the citizens at the
bottom of the pyramid. The hospital has adopted water recycling and rainwater harvesting
making it the greenest healthcare facility in India of its size.

Environment Initiatives for the Community:

The Reliance Industry initiated a zero garbage campaign to develop the disposal of solid
wastage concept in its surroundings and residential area. The aim of the campaign is to
provide a cleanliness drive in order to sustain a diseaseThe industry is acquitting a social and economical security program for woman rag pickers
with assistance of an NGO. The core objective of the project is to reduce the plastic litter for
preserving its commitments of being responsible care. Relatively, the company has
stretched a 900-meter road through the usage of 5% plastic waste in order to deduct the
construction cost and as well as to improve the roads construction quality and life.

RELIANCE RURAL DEVELOPMENT TRUSTS:

Reliance Rural Development Trust (RRDT) has initiated a rural infrastructure development
program by undertaking 797 projects in 760 villages of 24 different zone of GUJARAT states.
The project is consisted of 58 Concrete Cement Roads, 61 underground, and 06Check Dams.
Subsequently, all the check dams are constructed with accordance to the 8.7 mufti water
storage capacity and 1065 Hectors of the land would have access to the Check Dams water.

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Livelihood Support Program:

Reliance Industry has undertaken the self-help group (SHG) program for women and youth
generation of the surrounding Villages in order to enhance their quality life while being
self sustaining to support to their families. The program has facilitated The women by
providing various courses such as dress making and designing, beauty culture, health care,
nursing and hospital attendant. However, the program implements pump and hand pump
repairing, mobile repairing, computer hardware repairing, vehicle motor driving, and etc.
Courses
Improving Quality of Agriculture Produce:
Reliance Industry Limited has also participated in assistance of farming in terms of advanced
technologies, storage, handling and distribution of products. For instance, the company
vested Leno bags, which are made out of polypropylene and such bags are effective for
reducing the handling losses of fruits and vegetables. Explicitly the company enforced the
formers for the usage of advanced techniques (plastic) as it increases the productivity,
contributes to the reduction of losses and in enhancement earnings and distributed
promotional materials.

RELIANCE INDUSTRIES CSR CONTRIBUTIONTO ITS STRATEGIC MANAGEMENT):

In a current competitive global environment, corporations does exist vastly where social
responsibilities are concern. Therefore, to make more flagrant the contribution of corporate
social responsibility with corporate strategy, it is essential to explicit what corporate or
strategic management is? And what is mean by social responsibility?
Essentially, strategic managements core objective is to accomplish goals through standard
decision-making that concerns with determining objectives, policies and plans (Andrew,
1987). According to Andrews (1987), strategies main observations are regarding
the implementation of companies and businesses goals, their economic and non-economic
corporations and nature, and the relationship between the stakeholders, he furthermore
stated that corporate strategies are a complex concept as the top managements decisions
reflects an impact to the stakeholders who are independent with the company. However,
undoubtedly the strategic management decisions cover both the social as well as economic
aspects. According to Porter and Kramer (2006), there is strong correlation between
corporation and society. This is due to the fact of direct influence of companys activities to
the communities of their work and the strategic management department executives
should have strictly consider the societys needs and decisions with accordance to their
expectations. Hence, Reliance Company has processed various CSR activities in order to
make ease to their decision-making trends towards policies and plans in order to accomplish
the organizations goal.
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Conclusion:
To sum up, virtually the corporate social responsibility concept considers the ethical, social,
and environmental aspects of the stakeholders. Relatively, the organizations exploit the
corporate social responsibility as maximizing their shareholders profit through satisfying the
stakeholders mentioned expectations. Many organizations make the CSR approach as their
mainstream trend and apparatus for gaining reputation and catering a better working
environment for their employers in order to enhance the quality status of their organization
as well as acquitting the organizations prime goal. For instance, 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 companys employees and maximizing the shareholders profit. Although,
CSRapproach owes indispensible positive impacts to the society, the concept has extralegal
and negative disparity to the community. As far as the core objective of the organization
concerns with maximizing their profits, organizations misuse the CSR approach frothier own
private interest in terms of power (in case government shrinks the company remains with
mass power), cost (in order to recover the CSR projects cost the company rises the products
cost for the consumers), accountability, and etc.

Recommendation
Since many companies are interlinked with extralegal activities while implementing the CSR
activities due to owing immense power after the government in some Asian and African
countries and goes to disparity of their trends and code of ethics such as exploiting the child
labour method, they are recommended to follow the code of ethics they have established as
it might affect to the quality and status of the organization through the media
revealer.Furthermore, companies are required to motivate their CSR projects employees via
catering training facilities, bonuses, developed salary system in order to enhance their
productivity, thus, to reduce their total cost of the CSR project as higher cost for CSR project
remains the company with higher prices of the products to the customers. Therefore
customer tends to change their preferences to other market

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REFERENCES:

Benn, Suzanne and Bolton, Dianne (Key concepts in corporate social responsibility,
2011).
Broomhall, Ray (Corporate Social Responsibility: Key Issues and Debates, 2007)
El Ghoul, Sudoku, Guedhami, Operand, C.Y. Kwok, Chuck,R.Mishra, Dev ( Banking of
Journal and Finance, 9th September2011, peg. 2388-2406). Volume 35.Lober, Heike
(corporate management, corporate social responsibility and customers, 2012)

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