Reliance Industries Limited

and CSR activities

mohammad usman majedyar
STUDENT ID: B0203DODO0811
LECTURER: DAVID MWAURA
COURSE MODULE: BA3 (BUSINESS MANAGEMENT STUDIES

SCHOOL OF BUSINESS AND LAW

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
company’s 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
The aim of this report is to apply sufficient knowledge’s for the
importance of (CSR) and its contribution to strategic corporations,
critically review the (CSR) functions of businesses as well as
delivering efficient information regarding the (CSR) activities of
Reliance Industries Ltd.
To demonstrate the above objectives it is essential to explain what is
meant by CSR? What are the objectives of CSR? And furthermore
brief description of Reliance Industries Ltd profile.
In recent years, there has been greater attention to the concept of
Corporate Social Responsibility. The term is described as the
businesses responsibility towards their stakeholders’ legal, ethical,
social and environmental expectations. Different scholars have
defined (CSR) in various ways. First effort for defining (CSR) was
made by Bowie (1953) who was observed as the father of academic
debate for Corporate Social Responsibility (Carroll 1979, p.479).
Bowie stated, that it is the businesses obligation to manage business
process for the betterment of a society and enhancement of its value.
Moreover, World Business Council for Sustainable Development
(WBCSD) illustrated CSR as the commitment of business while
behaving ethically and cooperating to the economic development by
strengthening the quality life of workforce, families and local
communities. Furthermore, Davis and Blomstorm elaborate the term
CSR as an activity in order to improve the quality life of a society as
well as developing the status of the organization by expanding its
interest. However, Carroll defined (CSR) “Social responsibility of
business encompasses the economic, legal, ethical and discretionary
expectations that society has of organizations at a given point in
time” (Carroll, 1979, p.500). Relatively, Carroll illustrated the
pyramid of CSR by differentiating the four concept of social
responsibility: economic, legal, ethical and philanthropic obligations.
To sum up CSR can be defined, managing the business processes
with being responsiveness to the economic, legal, ethical and
environmental expectations of stakeholders so that to produce a
positive impact to the society.
Consequently, as far as the report do concerns to the CSR activities
of Reliance Industries Ltd, it is important to take a look after the
mentioned company’s profile.
The largest private sector of India, The Reliance Group founded by
Dhirubhai H. Ambani (1932-2002) with operating in energy and
material businesses value chain. The flagship company, Reliance
Industries Ltd, owes an excess of Group annual revenues of US $ 66
billion and is apart of Fortune Global 500 Company.
Starting with textiles in late seventies, Reliance expanded their
business by pursuing the backward vertical integration strategy
while producing fiber intermediates, plastics, polyester,
petrochemical as well as petroleum refining and oil and gas
exploration and production. Reliance company proud itself for being
the largest polyester yarn and fiber producer among the top five
producers in the world.
IMPORTANCE OF CORPORATE SOCIAL
RESPONSIBLITIES:
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 owe following
features:
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
(http://www.scribd.com/doc/3934672/Importance-of-CSR-to-Business).

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 for
profitability.
Relatively, CSR has a risk of compelling chief executives to be
sociopolitical players. As the government shrinks and loses its
power, the business chief executives remains with huge power in
which the businesses might acquit the power for their self-
regulation profitability of the business. Companies, such as, Glencore
company, whose enjoying an immense portion of political power in
some Africa’s nation, is conducting the child labor 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 is also criticized in some arenas as the source of gaining access
to the market while using it as a factor of price. Furthermore, some
industries conducts the CSR program for not considering the
government’s strong laws and regulations, as far as their CSR project
implementation are concerned with profit maximization. Therefore,
mentioned CSR project implementation may lead the NGO’S for
protesting and boycotting in which firms may endure a huge
expenditure on such projects. However, CSR approach compels
companies who cannot cover their costs, to impose high prices to the
society while catering their products with high prices.
In a sequence, critiques have been arisen against CSR policy of
companies for its none existence of accountability and corporate
accountability, where lack of transparency, a sophisticated analysis of
the political economic dimensions of corporate power and immense
inequities of power exists (Ray Broomhill, corporate social
responsibility: key issues and debates, 2007).
 To sum up, according to Rhys Jenkins (2005) the UK political
economist, many CSR projects of high profiled companies has ample
the scope of tax avoidance, transfer pricing and the misusing of market
power which contradicts to the legitimacy of CSR. Relatively, some
reforms of corporate policies has been exploited by the act of CSR in
which consequently brought vast disparities to the society such as
destructing the labor conditions associated with outsourcing and labor
market liberalization, increases in the level of pollution, and the
promotion of macro economic policies through the acquitting of
corporate lobbying which has a negative impact on society and
environment (Ray Broomhill, corporate social responsibility: key issues
and debates, 2007).

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:

1. Education:
Reliance Industries has constructed nine schools with improving the
13,251 students education level across the India. Furthermore, the
company conducts “the Kanya Kelvani” 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’s
are implementing (Jagurti Project) for those students who are suffering
mentally from social and economical backwards and support them to
obstacle with dyslexia. Under the Jagurti Project, 35 trainees are
spending 8800 hours in order to arise the tolerance of underprivileged
children to tackle with dyslexia. Consequently, the company owes
partnership with UNESCO and BBC for the awareness of dyslexia to
 the other villages’ students.
(http://www.ril.com/html/aboutus/social_resp_comm_dev.html).

2. Community Health Care:

Reliance Industries has brought pivotal improvisation to the

Community Medical Centers for providing ample health care services
to the neighboring villages. For instance, the Reliance Company is
acquitting Drishti 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
(Hazira Manufacturing divisions) has commenced an Anti-Retroviral
Treatment Center in the country and specifically for the cleaners and
drivers of all product transport vehicles. The program mainstream is for
HIV / AIDS awareness.
(http://www.ril.com/html/aboutus/social_resp_comm_dev.html).

3. 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 disease-free environment for its employee’s residual sites.
The 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.
(http://www.ril.com/html/aboutus/social_resp_comm_dev.html).

4. RELIANCE RURAL DEVELOPMENT TRUST:

 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 06
Check Dams. Subsequently, all the check dams are constructed with
accordance to the 8.7 mcft water storage capacity and 1065 Hectors
of the land would have access to the Check Dams water.
(http://www.ril.com/html/aboutus/social_resp_comm_dev.html).

5. 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 implement pumping and hand
pump repairing, mobile repairing, computer hardware repairing,
vehicle motor driving, and etc. courses.
(http://www.ril.com/html/aboutus/social_resp_comm_dev.html).

6. 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 of
 earnings and distributed promotional materials
(http://www.ril.com/html/aboutus/social_resp_comm_dev.html).

RELIANCE INDUSTRIES CSR CONTRIBUTION

TO ITS STRATEGIC MANAGEMENT):
In a current competitive global environment, corporations does exist
vastly where social responsibilities are concerned (Halme, Roome, &
Dobers, 2009). Therefore, to make more flagrant the contribution of
corporate social responsibility with corporate strategy, it is essential to
explicit what is corporate or strategic management? 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 covers both the social as well as
economic aspects. According to Porter and Kramer (2006), there is a
strong correlation between corporation and society. This is due to the
fact of direct influence of company’s activities to the communities of
their work and the strategic management department executives should
have strictly consider the society’s 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 organization’s goal. For instance, the Reliance
Limited Industries is conducting educational programs, health care
services, agricultural development services to give a boost to their status
of their company as wells as implement environmental initiatives
community program while procuring a clean environment to their
working community for the purpose of being safe to provision an ease
way for acquitting policies and plans.
As a result, the strategic management executives undertake the corporate
social responsibilities as an intrinsic factor for the purpose of catering
sustainable profits to the stakeholders (BAR, Curitiba, v. 7, n. 3, art. 5,
pp. 294-309, July/Sept. 2010).

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 company’s
employees and maximizing the shareholders profit. Although, CSR
approach 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 for
their 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 their products
cost for the consumers), accountability, and etc.
Lastly, CSR concept can be observed as the utility apparatus for the
stakeholders, owing negative impacts with it.

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 labor 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.
REFERENCES:

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

social responsibility, 2011).

Broomhill, Ray (Corporate Social Responsibility: Key Issues and

Debates, 2007)

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.

Lober, Heike (corporate management, corporate social

responsibility and customers, 2012).

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 29th May 2012).

Ril.com (N.D.) Reliance Group (Online). Available from:

http://www.ril.com/html/aboutus/aboutus.html (access on
29th May 2012).

Scribd.com (N.D.) Importance of CSR to Business (Online).

Available from:
http://www.scribd.com/doc/3934672/Importance-of-CSR-to-
Business (access on 26th May 2012).