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A COMPREHENSIVE STUDY ON CSR AT
FOR THE PARTIAL FULFILLMENT OF MPMIR DEGREE-BHU [2008-2010] UNDER THE GUIDENCE OF PROF. R.C.MISHRA
SANJAY KUMAR BHARTI ROLL NO.-23
BANARAS HINDU UNIVERSITY
This project report is made for the partial fulfillment of the course MPMIR under the topic “COMPREHENSIVE STUDY OF CORPORATE SOCIAL RESPONSIBILITY” in Bharat Heavy Electricals Ltd. The project was assigned to me by PROF.R.C.MISHRA and Mr. Sanjay Sah who was my guide during my Winter project at BHEL. This project has been very inspiring and educative for me in gaining insight of corporate social responsibility program of BHEL, which is essential for development of human resource in an organization. The report contains the company profile of BHEL. The origin of BHEL can be traced back to 1956, when the GOI set up Heavy Electricals (HEIL) in technical collaboration with AEI, UK (now Alstom). HEIL started manufacturing electric equipments at its plant in Bhopal. Later in 1959, the Government set up a new company Bharat Heavy Electricals Ltd (BHEL) with the objective of creating indigenous manufacturing base for power plant equipments. The report is based on a survey trough a structured questionnaire among the people of nearby village to BHEL. The result is drawn on the basis of analysis of the data which was gathered from thirty people of Ganeshpur village. The report also contains the literature of corporate social responsibility and at last it contains the bibliography.
SANJAY KR.BHARTI MPMIR-BHU
This report is prepared based on different observations made by me during my training period in Bharat Heavy Electricals Ltd HERP Varanasi. Special thanks to Mr. Sanjay Sinha for helping me during my training. His helpful, caring attitude will always be remembered. I also express my thanks to all staff members of HR department for devoting their precious time and helping me to complete my project report and my training. Above all I am thankful to Prof. I.L. Singh(HOD, Deptt. of Psychology BHU), Prof. A.K. Srivastava (Course-Coordinator, MPMIR,BHU)and Prof. A.P. Singh(Chairman, MPMIR,BHU) without whose encouragement, morale support and cooperation the project report was not possible. Finally I am grateful to MANTOR Prof. R.C.MISHRA for being so helping and caring and without whose help and support this report was not possible. This summer training was an enriching experience for me.
SANJAY KR. BHARTI MPMIR, BHU
C. UTTAR PRADESH DATEPLACE R. .CERTIFICATE OF APPROVAL I hereby approve this project Report Entitled A COMPREHENSIVE STUDY ON CSR AT BHEL submitted by SANJAY KUMAR BHARTI In partial fulfillment of the requirement for the award of Masters of Personnel Management and Industrial Relation From Banaras Hindu University Varanasi.MISHRA 4 Prof.
NEED OF STUDY 5. CONCLUSION 14. METHODOLOGY OF STUDY 10. SUGGESTION 15. CSR SCHEME OF BHEL 9. REVIEW OF LITERATURE What is CSR? Origin of CSR What business area does CSR covers CSR & corporate brands Importance of CSR Why CSR is relevant today 4. RESULT 13. OBJECTIVE OF STUDY 6. INTRODUCTORY STATEMENT Preface Acknowledgement 2. DATA TABULATION AND ANALYSIS 11. CSR ACTIVITIE OF BHEL 8. ABOUT THE ORGANIZATION Company profile BHEL HERP Varanasi 3. QUESTONNAIRE 12. BIBLIOGRAPHY 5 .CONTENT 1. SCOPE OF STUDY 7.
over 100 project sites. four Power Sector regional centers. Renewable Energy. BHEL was established more than 50 years ago. enables the Company to promptly serve its customers and provide them with suitable products. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. Transportation. ushering in the indigenous Heavy Electrical Equipment industry in India . engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world. BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. BHEL has 14 manufacturing plants and number of service centers spread all over the country and abroad. The corporate office of BHEL is located in New Delhi. today.ABOUT THE ORGANISATION BHARAT HEAVY ELECTRICALS LTD Bharat Heavy Electriclas Limited (BHEL) is one of the largest engineering and manufacturing enterprises in India and is ranked among the leading Power Plant Manufacturers in the world. Environmental Management Systems (ISO 14001) 6 . BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz. etc.. eight service centers and 18 regional offices. together with technologies developed in its own R&D centers. Power Generation & Transmission. Telecommunication.a dream that has been more than realized with a well-recognized track record of performance. systems and services efficiently and at competitive prices. Industry. The wide network of BHEL's 14 manufacturing divisions. BHEL has acquired certifications to Quality Management Systems (ISO 9001). The high level of quality & reliability of its products is due to the emphasis on design.
4. Cement plants. Supplied over one million Valves to Power Plants and other Industries. Captive and Industrial users.25.including Transmission. a positive work culture and participative style of management – all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity.600 employees. The greatest strength of BHEL is its highly skilled and committed 42. BHEL's operations are organized around three business sectors. 3. Refineries. Fertilizer. Telecommunication & Renewable Energy . 2. Steel. quality and responsiveness. Continuous training and retraining. Industry . Every employee is given an equal opportunity to develop himself and grow in his career.and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.000 Motors with Drive Control System to Power projects. namely Power.for Utilities. Petrochemicals. 5. committed to enhancing stakeholder value.000 km Railway network.000 MW of power generation . 7 .and Overseas Business. career planning. Installed equipment for over 90.000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Transportation. Supplied over 2. BHEL's vision is to become a world-class engineering enterprise. This enables BHEL to have a strong customer orientation. BHEL has :1. Supplied Traction electrics and AC/DC locos to power over 12. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player. etc. Aluminum. Supplied over 25. to be sensitive to his needs and respond quickly to the changes in the market.
8 . Industry. Transportation.BHEL is India’s largest engineering and manufacturing enterprise in the energy sector manufacturing over 180 products under 30 major groups for the core sectors . Renewable Energy. etc. Oil Exploration.Power Generation and Transmission.
Starting a manufacturer of O&M spares for the boiler and boiler auxiliaries. Lord Buddha’s first preaching center and many religion / cultural centers.803. 11 Kms from main railway station and 15 Kms from Varanasi Airport. Accordingly.P. Now HERP manufactures turbine spares. situated near the holy Ganga. the idea of establishing repair shop in the vicinity of power station was mooted objective.BHARAT HEAVY ELECTRICALS LIMITED HERP VARANASI About BHEL: HERP Varanasi (Heavy Equipment Repair Plant) Varanasi is endowed with five universities. The unit has a plan to add Constant load hanger. HERP is also situated at the center of the largest power belt of northern region. Heavy Equipment Repair Plant. HERP is located at Shivpur. tools & tackles complete spares of bowl mill XRP 623. Varanasi 10 . the foundation equipment repair plant sprawling in 29.883 & 1003. Shri Narayan Dutt Tiwari within a short span of 21 month much before the schedule. Since than rebabbiting of different type of bearing including an unconventional synchronous condenser has been carried out to the entire satisfaction of the customers. repair activities got a real break in 1990 when rebabbiting of TG set bearing was taken up in the plant.8 acre area at Varanasi was laid on 20th September 1984 by Chief Minister of U. with Lord Kashi Vishwanath Temple at the heart of it. This power belt supplies 10650 MW of power to the country. Variable load hanger & condensate polishing unit in near future. In the line with BHEL’s of providing constant service at their doorsteps. two repair plants at Bombay & Varanasi came into existence.
Since then. Parichha and helped them to achieve maximum availability of their units. HERP Varanasi has taken up various critical jobs from near by power plants via: NTPC Tanda. Starting as a manufacturer of O&M spares for boiler auxiliaries. ESP. Hydro Turbine Bearings.Heavy Equipment Repair Plant. Oil Filter Assembly & Speed Changer Assembly of Governing System. engineers & specialist catering the requirements of various power plants of their mill and turbine O&M spares. HERP has contributed a lot in refurbishing of various units of NTPC after taking it over from SEB’s and is a major player in Govt of India PIE program. 11 . HERP was established in the vicinity of power stations. Air Preheated & R. repair activities took off on firm footing in 1990 when rebabbiting of TG set bearings was taken up. rebabbiting of different kinds of bearings including import substitution (NCL Bearings) as well as bearings of unconventional synchronous condenser have been carried out to the entire satisfaction of the customers. 803HP. Anpara. Feeder etc.C. component machining like Guide Vanes. Fuel Piping. Guide Tools & Tackles of Steam Turbines Limiter Assembly. production activities were started in the plant from 1st April'1986. Unchahar. Having achieved break-even point in the second year of its existence itself. Varanasi has highly skilled & dedicated technicians. The foundation stone of HERP sprawling in 29. 883. thus laid at Varanasi. HERP progressed by leaps & bounds.8 acres area at Varanasi was laid on 26th September 1984. 1003 spares Turbine fasteners Repair/Rebabbiting of TG bearings Rotor machining Spares for Boiler Auxiliaries like Coal Burners. Range Of Products/Services Provided By Herp: Bowl Mill XRP/XRS 623. 783. Historical Profile In line with BHEL's objective of providing consistent service at doorstep. Within a short span of 21 months. 703HP. UPRVUNL Obra. 803.
Hyderabad. PQC & PEC is also having meetings as per schedule for review as per agenda keeping in view. Unit level TQ council is committed towards improvement on regular basis in line with the organizational goals. NTPCs.Customers HERP's customers are various SEBs viz. today. PSEB. Bharat Heavy Electricals Limited (BHEL) is. MSEB. To recognize employees’ participation & valued suggestions HERP has always been recognizing their good efforts. UPRVUNL. a name to reckon with in the industrial world. Partners Our partners & suppliers include our sister units viz. TNEB. ISO 14001 & OHSAS 18001 and targeted TQM score during 03-04. open and consistent work culture for making continuous improvement. Jhansi as well as various ancillaries developed by various units of BHEL. RVUNL. and OPPs & Private Power Plants. Total Quality Focus HERP has achieved certification of ISO 9001. CSEB. Haridwar. Mission and Values. Bhopal. An ISO 9000 certification has given the company international recognition for its commitment towards quality. 12 . Business Policy "In line with Company's Vision. . Felicitation letters are distributed on 15thAugust & 26th January regularly. Tiruchy. BSEB. we dedicate ourselves to sustained growth with increasing Positive Economic Value Addition and Customer focused business leadership in the Power & Industry Sector" One of the major strengths of HERP Varanasi is its free. Established in the late 50’s. MPEB. the interests of our Stakeholders. APGENCO. With an export presence in more than 60 countries. The other apex level committee like HMC. BHEL is truly India’s industrial ambassador to the world.
PRODUCT RANGE This list is intended as a general guide and does not represent all of BHEL's products and systems. THERMAL POWER PLANTS GAS BASED POWER PLANTS HYDRO POWER PLANTS DG POWER PLANTS INDUSTRIAL SETS BOILERS BOILER AUXILIARIES HEAT EXCHANGERS AND PRESSURE VESSELS PUMPS POWER STATION CONTROL EQUIPMENT SWITCHGEARS BUS DUCTS TRANSFORMERS INSULATORS CAPACITORS ENERGY METERS High-tension ceramic insulators 13 .
employee relations. suppliers. 14 . CSR involves a business identifying its stakeholder groups and incorporating their needs and values within the strategic and day-to-day decision-making process. which defines the number of stakeholders to which the organization has a ‘responsibility. ethical. brand development. partner selection. 2002 The social responsibility of business encompasses the economic.REVIEW OF LITERATURE What is CSR? The entirety of CSR can be discerned from the three words contained within its title phrase: ‘corporate. Archie B.’ ‘social. Carroll.’ and ‘responsibility. hiring practices and. CSR covers the responsibilities corporations (or other for-profit organizations) have to the societies within which they are based and operate. More specifically. however. ultimately. as well as the extent they attempt to protect the environment.’ Therefore. and discretionary expectations that society has of organizations at a given point in time. 1979 CSR is about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society. customers and the communities in which they operate. Other definitions of CSR: The notion of companies looking beyond profits to their role in society is generally termed corporate social responsibility (CSR). this could include how organizations interact with their employees. Therefore. It goes beyond the occasional community service action. as CSR is a corporate philosophy that drives strategic decision-making. compliance with legal requirements and overall respect for the communities in which they operate. legal. in broad terms. It refers to a company linking itself with ethical values. transparency. a business’ ‘society’ within which it operates. In particular. South China Morning Post.’ may be broad or narrow depending on the industry in which the firm operates and its perspective.
CSR is recognition of that inter-dependence and a means of delivering on that obligation. such as Engels and Morris. as well as socialists. nor be outlawed or excommunicated. They need the infrastructure that society provides. to the mutual benefit of businesses and the societies within which they are based: 15 . UK. a way of proposing policy ideas on how those obligations can be met. and the communities within which they are based.). 2002 CSR is a means of analyzing the inter-dependent relationships that exist between businesses and economic systems. Concerns about the excesses of the East India Company were commonly expressed in the seventeenth century. as well as a tool by which the benefits to a business for meeting those obligations can be identified. In terms of activism aimed at companies perceived as acting against the general interest: England in the 1790s over slave-harvested sugar. not to mention its consumer base. Businesses rely on the society within which they operate and could not exist or prosper in isolation.” Arguments underpinning CSR Arguments offered in favor of CSR can be broadly split into two camps— moral and economic. all groups in society should strive to add value and make life better. The origin of CSR The history of CSR is almost as long as that of companies. English Jurist Edward Coke complained that corporations “cannot commit treason. experimented with socially responsible and values-based forms of business.In 1612. And Victorian philanthropy could be said to be responsible for considerable portions of the urban landscape of older town centres today. Quakers. CSR is a means of discussing the extent of any obligations a business has to its immediate society. such as Barclays and Cadbury. A moral argument for CSR While recognizing that profits are necessary for any business entity to exist. 1. There has been a tradition of benevolent capitalism in the UK for over 150 years. its source of employees.The Institute of Directors. for they have no souls.(It succeeded in forcing the importer to switch to free-labor sources.
have an obligation to contribute as well as draw from the community. At a minimum. To mistake the means for the end is to be turned in on oneself. businesses also draw their most important resource. Any business will be more successful if it employs a well-educated workforce that can attend good hospitals if they become sick. to the people they employ. In advanced economies. the police. its employees. and who have grown up in a positive environment. It is recognition on the part of the business that ‘for profit’ entities do not exist in a vacuum. without whom no business could survive. without exception. and profit would be the means to that larger end. would we invent it?” “Only if it could do something better or more useful than anyone else” would have to be the answer. CSR advocates point out that no organization exists in isolation. That “something” becomes the real justification for the business. largely from the local community. Charles Handy makes a convincing and logical argument for the purpose of a business laying beyond the goals of maximizing profit and satisfying shareholders above all other stakeholders in an organization The purpose of a business is not to make a profit. etc) as well as more intangible benefits. such as a safe or clean environment. beyond their traditional bottom-line and narrow shareholder concerns. This is not to mention consumers. also often members of the local community. 16 . It is to make a profit so that the business can do something more or better. Advocates of CSR believe that. and that a large part of any success they enjoy is as much due to the context in which they operate as factors internal to the company alone. on which they rely so heavily. the goal of any economic system should be to further the general social welfare. practical elements such as the roads. It is salutary to ask about any organization. They believe that businesses. which Saint Augustine called one of the greatest sin. But. businesses operating in a community benefit from the infrastructure of that community (tangible. “If it did not exist. and their customers. society expects businesses to have an obligation to the society in which they are located. in most cases. in general. It is a moral issue. firefighters. the purpose of business should extend beyond the maximization of efficiency and profit. Increasingly. other transport infrastructure.CSR broadly represents the relationship between a company and the wider community within which the company operates.
CSR is a much more holistic approach to business. They believe the actions corporations take today to incorporate CSR throughout the organization represent a real point of differentiation and competitive market advantage on which future success can hinge: CSR is an argument of economic self-interest for a business. Whether as an employer. buyer. individuals and corporations face in the day-to-day management of operations within any specific industry. In today’s brand-driven markets. producer. 17 . or investment. the attractiveness and success of a company today is directly linked to the strength of its brand. Everything an organization does in some way interacts with one or more of its stakeholder groups. An economic argument for CSR An economic argument in favor of CSR can also be made. and companies today need to build a watertight brand with respect to all stakeholders. CSR affects all aspects of all operations within a corporation because of the need to consider the needs of all constituent groups. rather than represent something unconnected to an organization’s core business. at a time when these parameters can change rapidly. which is designed to enhance corporate success because of its relevance. Proponents of this argument believe that CSR represents an holistic approach to business. an effective CSR policy will infuse all aspects of operations. It is important to stress that the study of CSR focuses largely on the margins of a business’ discretionary actions and obligations. CSR is a means of matching corporate operations with stakeholder values and demands. What business areas does CSR cover? CSR covers all aspects of an organization’s operations. Each area builds on all the others to create a composite of the corporation (its brand) in the eyes of all stakeholder groups. This is rather than any legal or regulatory obligations.2. CSR covers all aspects of a business’ day-to-day operations. It is an argument of economic self-interest— that there are very real economic benefits to businesses pursuing a CSR strategy—and is designed to persuade those business managers who are not persuaded by the moral case. Therefore. supplier. One example is a company’s customers: CSR adds value because it allows companies to better reflect the values of this important constituent base that the company aims to serve.
A good example of an issue that falls into this category is the trend today of companies attempting to avoid paying corporation tax. but has risen in importance in the U. U.S. issues connected to the perception of the company. companies and individuals each paid about half the federal income tax collected.S. executive compensation. have become particularly sensitive and important for companies to get right. companies avoided paying tax on nearly $300 billion in income in 1998. even though company headquarters and the majority of workers are based in the U.3%.’ All contain. The issues of accurate financial statements. • Patriotism An issue such as ‘patriotism’ is by definition subjective. now the companies pay 13. following the September 11. in some form or another. in the eyes of one or more of its stakeholder groups: • Corporate governance Transparency is the key to encouraging trust in the managers selected to run a company on behalf of the shareholders.10 • Fair trade Companies in particular industries have felt pressured to pay a ‘fair’ price for the goods they purchase. and therefore its brand. In 1940.S: According to a recent Harvard University study. some even going to the lengths of incorporating off-shore (particularly Bermuda). 2001 terrorist attacks.’ from the issue of ‘fair trade’ to ‘diversity in the workplace.7% and individuals 86. and independent oversight. over and above the market-driven 18 . It is also vital to maintaining confidence within other stakeholder groups and the general public.Example of CSR issues Examples of issues within the economic sphere that contain a CSR component range from ‘corporate governance’ to ‘patriotism.
but a minimum of $1. There are plenty of examples of both good and bad practice: CSR & corporate brands Brands today are one of the key focal points of corporate success.not the market price of 24 to 50 cents per pound. Mexico. New Mexico. Already in California. This is particularly the case in many food industries. the majority of residents are nonwhite.S. One sub-area of the issue of ‘diversity’ involves the equal treatment of men and women. In 2002.population—a 58 percent increase from 1990.S. with suppliers at small farmer cooperatives in Peru. where world market prices may well have decreased over time.41 for organically grown. is changing rapidly. and Sumatra. Crucial is how a brand is perceived by all stakeholders. Roughly a quarter of its coffee purchases are farm direct. As black.. making up 13 percent of the overall U. Green Mountain pays Fair Trade prices for coffee beans -. Literally. All aspects of a company’s operations today feed into helping build the corporate brand. CSR (the extent to which an organization’s decisions reflect the values and needs of consumers and other stakeholders) can creep into every decision that a company makes. which is directly reflected in sales and revenue.price. Hawaii and the District of Columbia. whites are steadily heading toward minority status.S. • Diversity The 2000 Census data has revealed that the ethnic make-up of the U. directly to the producer. Green Mountain also has a “farm direct” program that cuts out middlemen to deliver higher prices to farmers. and Pacific Islander populations also experience strong growth rates. which prevent companies from marketing products effectively to significant segments within the market: Latinos are now the largest minority in the U. Asian. Organizations need to adapt their traditional structures and mind-sets. That’s also true in 48 of the nation’s 100 largest cities. Three benefits in particular indicate the positive value for a company in striving to remain in tune with the community within which it is based by implementing a strong CSR policy: • Positive marketing/brand-building – BP 19 . while costs have either remained the same or increased: Today. Companies try to establish popular brands in consumer minds because it increases leverage.26 per pound for conventional coffee and $1. these Fair Trade purchases represented 8 percent of sales.
and ‘insure’ itself against any repeat of the consumer boycotts it faced in the mid1990s. As one of the first corporations to have a Vice-President for Corporate Responsibility and to publish an annual CSR Report. • • • wherever possible. 20 . consumer boycotts. and activistled litigation because of its decision to fight the environmental movement. In acting in the way it did . and its failure to recognize the wider importance of CSR as a corporate strategy. has effectively repositioned itself as the most environmentally sound and socially responsible of the extraction companies. The company stands in stark contrast today with Exxon Mobil that faces on-going NGO (NonGovernmental Organization) attacks. enabling it to remain a strong revenue earner for the company to this day Given the large amount of time. J&J went far and above what had previously been expected of corporations in such situations. with a $200 million re-branding exercise. the company has done a lot to mitigate public opinion. establish its brand as representative of a much more committed corporate citizen. Why is CSR important? CSR is an important business strategy because. employees want to work for companies they respect.BP. a good CSR policy is an effective means of protecting that investment and maximizing its impact. instigating a $100 million re-call of 31 million bottles of the drug following a suspected poisoning/product tampering incident. • Brand insurance – NIKE NIKE has emerged as one of the most progressive global corporations in terms of CSR because it has learned from its past mistakes and attacks by NGOs. • Crisis management – Johnson & Johnson Johnson & Johnson’s transparent handling of the crisis facing its Tylenol brand in 1982 is widely heralded as the model case in the area of crisis management. consumers want to buy products from companies they trust. suppliers want to form business partnerships with companies they can rely on. J&J saved the Tylenol brand. money and effort companies invest in their brands.
Increasingly. need to live the ideals they convey to their consumers: The 21st century will be the century of the social sector organization. in particular. and reduced public confidence in the ability of regulatory • Increasing affluence 21 . and incorporate a wider spectrum of opinions and values within the decision-making process and objectives of the organization. This is simply the new reality of business—one that we should and must embrace. who benefit most when the needs of these other stakeholder groups are being met: • The winning companies of this century will be those who prove with their actions that they can be profitable and increase social value— companies that both do well and do good. The more economy. partners and employees are going to vote with their feet—rewarding those companies that fuel social change through business. want to work together with companies seeking feasible solutions and innovations in areas of common concern. money. CSR is increasingly crucial to maintaining success in business—by providing a corporate strategy around which the company can rally.• And NGOs. Why is CSR relevant today? CSR as a strategy is becoming increasingly important for businesses today because of three identifiable trends: • Changing social expectations Consumers and society in general expect more from the companies whose products they buy. increasingly. but also by giving meaning and direction to dayto-day operations. the more community will matter. which reduced public trust of corporations. The businesses most likely to succeed in the globalizing world will be those best able to combine the often conflicting interests of its multiple stakeholders. Satisfying each of these stakeholder groups allows companies to maximize their commitment to another important stakeholder group—their investors. customers. Lifestyle brand firms. shareowners. This sense has increased in the light of recent corporate scandals. and information become global.
grassroots campaigns. Like quality. yet how easy it can be to lose brand dominance. CSR creeps into all aspects of operations. this changing relationship between consumer and company. CSR is particularly important within a globalizing world because of the way brands are built—on perceptions. how difficult it is to build brand strength.e. These three trends combine with the growing importance of brands and brand value to corporate success (particularly lifestyle brands) to produce a shift in the relationship between corporation and consumer. From the corporate point of view. it is something that you know when you see it. therefore. CSR is a means of matching corporate operations with stakeholder values and demands. A society in need of work and inward investment is less likely to enforce strict regulations and penalize organizations that might take their business and money elsewhere. Affluent consumers can afford to pick and choose the products they buy. In addition. a product boycott). the market parameters within which companies must operate are increasingly being shaped by bottom-up. CSR can therefore best be described as a total approach to business. ideals and concepts that usually appeal to higher values. in particular. the Internet fuels communication among like-minded groups and consumers —empowering them to spread their message. • Globalization The growing influence of the media sees any ‘mistakes’ by companies brought immediately to the attention of the public. also something that a company should try and get right in implementation. The result of this mix is that consumers today are better informed and feel more empowered to put their beliefs into action. in general. NGOs and consumer activists are feeding. while giving them the means to co-ordinate collective action (i. It is something that businesses today should be genuinely and wholeheartedly committed to.This is true within developed nations. at a time when these values and demands are constantly evolving. but also in comparison to developing nations. CSR is. The dangers of ignoring CSR are too dangerous when it is remembered how important brands are to overall company value. Implementing CSR: Key steps 22 . and between corporation and all stakeholder groups. and often driving.
It is the purpose of this study to identify a best practice to develop these organizational skills based on a policy analysis. The implementation of process structures is proposed as a best practice. CSR is good business sense. while protecting the huge investments corporations make today in their brands. 1979) CSR is nearly businesses and other organization going beyond the legally recognized obligation to deal with the impact they enjoy on the environment and society. Carroll. and a total approach to doing business. CSR asks companies to ensure their business operations are clean and equitable. customers and the communities within which they operate. The goal is to maximize true value and benefit for an organization. in a globalizing world where companies are increasingly relying on brand strength (particularly global lifestyle brands) to add value and product differentiation. and where NGO-driven consumer activism is increasing. A new organizational skill set is needed that enables corporations to position themselves as corporate citizens. this could include how organization interact near their force. and a 10-step approach for implementation is outlined. and contribute positively to the society in which they are based. (Archie B. corporations find themselves in the middle of society. as okay as the extent they attempt to protect the environment 23 . Also. they leave themselves open to too much danger from a potential consumer backlash. suppliers. Texas A&M University In a globalize world of retreating nation states and governments. Otherwise. implications for the field of human resource development and future research are discussed when considering issues of corporate responsibility and citizenship. In singular.CSR is about common sense policies that represent a means of integrating a complete ‘social perspective’ into all aspects of operations.
Even in ordinary times it was businessman who looked after the welfare of the destitute. Thus business depends on society for existence. So to accept corporate social responsibility is no more than dedicating ourselves to the cherished values of our ancestors in the field of business. sustenance & encouragement. &skills. whenever there was a famine. money. the pathshalas and so on. In the oldest days. Every decision the businessman takes and every action he contemplates have social implications. the goshalas. Social Responsibility is understood as the obligation of decision makers to take action which protect and improve the welfare of society as a whole along with their own interest.Business depends on the society for the needed input like man. Social Responsibility of the business is not new to our country. Business also depends on society for market where products may be sold to buyer. • • • • 24 . wells and ponds wherever water was difficult to get. the leading businessman of the area would literally throw open their godowns and their treasures to provide food and other assistance to needy.NEED OF STUDY • .
SCOPE OF STUDY The scope of study covers mainly the following: • • • The study covers all stakeholders of BHEL HERP VNS. The study covers community/society/villagers near BHEL HERP VNS. SECONDARY OBJECTIVES: • • • To measure the perceive benefits of CSR activities of BHEL. 25 . To measure the actual benefits of CSR activities of BHEL • To measure the overall rating of BHEL HERP VNS as a socially responsible organization. To measure the felt benefits of CSR activities of BHEL. The study covers sample of villagers from the village of Ganeshpur and the people of Banvasi Chatravas.OBJECTIVE OF STUDY PRIMARY OBJECTIVE: • To know overall understanding by people about CSR activities of BHEL.
and to providing safe and healthy environment to all its employees. free medical camps/charitable dispensaries. Safety & Environmental Policy has been formulated and implemented through management systems. Ergonomics and in organization of OHS to multitude of industries for different sectors in India. Employment for handicapped.CSR ACTIVITIES OF BHEL BHEL has joined the ‘Global Compact’ of United Nations and has committed itself to support it and the set of core values enshrined in its ten principles. plantation of millions of trees. BHEL shares the growing concern on issues related to Environment and Occupational Health & Safety (OHS). Widow resettlement. Employment for Ex-serviceman. For fulfilling these obligations. The ‘Global Compact’ is a partnership between the United Nations. Today it offers a wide range of occupational health care as well as expertise in work Environment monitoring. BHEL has set up a Pollution Control Research Institute (PCRI). schools for the underprivileged and handicapped children. pollution checking camps. BHEL also has a Model Centre for Occupational Health Services at Trichy. international labor and NGOs. the business community. Few ILO sponsored candidates from African countries have undergone training at this Model centre. disaster/natural calamity aid. and is committed to protecting Environment in and around its own establishment. a Health. energy saving and conservation of natural resources through environmental management. In recognition of this. which is a pioneer in this field in India. Under UNDP programme for specialized services in the area of Environment. It provides a forum for them to work together and improve corporate practices through co-operation rather than confrontation. BHEL has been awarded the ISO 14001 Environmental Management Systems Certification and OHSAS 18001 Occupational Health & Safety Management Systems Certification from M/s Det Norske Veritas (DNV). ban on child labor. Toxicology. irrigation using treated sewage. BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages. BHEL is a member of CoRE (Corporate Roundtable on Development of 26 .
HERP is situated at the center of the largest power belt of northern region. India. Technology upgradation has been done to minimize environmental impact of fossil energy products. BHEL also provide lamp near the pond in Ganeshpur. Interfaces between companies such as BHEL. Towards meeting its Quality Policy. solar heating systems. solar photovoltaic systems. education. 1 embroidery machine and 1 interlock machine to the sewing centre through the Lokhit Samajik Sanstha. In the field of Non-conventional and Renewable Energy. by way of low-NOx oil/ gas burners. solar lanterns and battery powered road vehicles. which are certified to ISO 9001:2000 series of Standards by Internationally acclaimed certifying agency. quality assurance. GANESHPUR TARNA VARANASI which is a non-government organization is providing food. Along with the production and repairing of equipments BHEL always fulfill its social responsibilities. SEWA SAMARPAN SANSTHAN. BHEL helps in the development of the neighborhood areas. now called as CoRE-BCSD. BHEL is using the vehicle of Quality Management Systems. In order to channellies the creative energy of employees suggestion scheme and quality circle and productivity improvement project are in operation. In Ganeshpur village to make the women self-employed and selfdependent BHEL donate 6 sewing machines. HERP has been in adequate attention to all the facts of plant operation like computerization. BHEL’s commitment to environmental issues can be seen as an integral part of its core business. CoRE is now a partner organization to the WBCSD (World Business Council for Sustainable Development). TERI and the WBCSD would provide an important link to address issues of sustainable development at a global level and to learn and exchange experience of the participating companies. shelter which is primary need of the children who belong to schedule cast& schedule 27 .Strategies for Environment) launched by The Energy Research Institute (TERI). BVQI. BHEL HERP has done a lot for the nearby village Ganeshpur. CoRE is envisaged as a means to facilitate a proactive and catalytic role for industry in addressing the environmental problems plaguing India and helping the industry towards sustainability paradigm. It has signed a memorandum of understanding with WBCSD. BHEL has successfully launched products like wind electric generators. circulating fluidized bed combustion boilers etc. Through small in size. inventory control.
The cost of the equipment is 1.tribe and running an organization named as Banvasi Chatravaas. Under the program of community development BHEL HERP VNS organize first-aid for the people in Ganeshpur at the occasion of MAHASHIVRATRI.Rs. BHEL help to the organization and construct a computer class room in the premise of BANVASI CHATRAVAAS.25000/. BHEL provide physiotherapy equipments to the Kiran which is an organization of physically handicapped children for the resettlement of the children. 28 .
Employment for handicapped. It also facilitates the disabled person in improving the economic condition by giving employment opportunity. energy saving and conservation of natural resources through environmental management. The preferences are given to those persons who area) Physically challenged persons or b) Young and poor widows who are economically weak or c) Old people who are self-employed. SELF EMPLOYMENT GENERATION. free medical camps/charitable dispensaries. ban on child labor. Employment for Ex-serviceman. 2.The CSR policies of BHEL intend to undertake community development in the neighborhood area of operation station with particular focus on disabled persons. plantation of millions of trees.The CSR policies of BHEL HERP VARANASI intend to facilitate the unemployed people in and around the project. As per BHEL policies 0. TARGET AREAS The target areas of BHEL for CSR activities are1. disaster/natural calamity aid. 29 . It is for uplift the weaker areas and people. schools for the underprivileged and handicapped children. COMMUNITY DEVELOPMENT.BHEL SCHEME ON CSR BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages. pollution checking camps.The CSR policies of BHEL to make surrounding areas healthy area) Forestation b) Rain water harvesting c) Sanitary system 3. in self-employment through co-operative/selfhelp groups.1% of the profit of the company after PAT (Profit After Tax) expend on CSR activities. Widow resettlement. irrigation using treated sewage. ENVIRONMENT PROTECTION.
• Only 70-80% of the total cost of capital of any scheme/project submitted by any group will be supported by BHEL and rest of the investment will be beared by the group or institution itself. but preferably the involvement of local panchayat. OLD AGE HOME. EDUCATION.BHEL provide free medical camps and supply free medicines in the neighborhood areas time to time. In infrastructure development BHEL provide – a) Water system b) Sewage system or drain system c) Community toilet d) Construction of roads TARGETED GROUPS The targeted groups for CSR activities in BHEL are• The CSR activities operated through self helped groups or cooperatives or NGOs. 6. HEALTH MANAGEMENT AND MEDICAL AIDS. INFRASTRUCTURE DEVELOPMENT.The CSR policies of BHEL intend to facilitate education to the people of neighborhood areas under the following programa) Scholarship programs b) Provide help to the school of physically or mentally challenged persons c) Adult literacy 5.The CSR policies of BHEL intend to undertake infrastructure development of the surrounding areas.4.the CSR policies of BHEL intend to facilitate the old age home to the nearby areas. 7. Preferences are provided to those groups who provide participation of women. 30 .
7. c) Good=3 d) Excellent=4. through a questionnaire named “BHEL HERP VNS KE BARE MEIN SAMAJIK BODH SARVEKSHAN”.9 Felt level of benefit is measured by the question numbers1.6.METHODOLOGY OF STUDY A survey is conducted among the people of village Ganeshpur. TOOLS FOR DATA COLLECTION A structured questionnaire of 11 items was used for the data collection.10 Overall rating of the organization by the all question.3. The survey questionnaire was administered on 30 villagers of the village near the BHEL.5. PROCEDURE 1. Division of question on basis of objectives • • • • Perceived level of benefit is measured by the question numbers4. Actual level of benefit is measured by the question numbers1.11. The rating was on five point basis: a) Poor =1.8.2. b) Average=2. A specific structured questionnaire was filled by the researcher with consultation of the respondent. Name of the questionnaire was “BHEL HERP VNS KE BARE MEIN SAMAJIK BODH SARVEKSHAN”. The respondent were well communicated 31 .
Official records of BHEL HERP VNS . who were having knowledge about BHEL HERP VNS. 32 . Only responses of those respondents were included for the purpose of data analysis and conclusion.the meaning of each question of the questionnaire named “BHEL HERP VNS KE BARE MEIN SAMAJIK BODH SARVEKSHAN”. SECONDARY DATA: the data collected from : Internet. 2. and its CSR activities. DATA SOURCES Data in the study is of two types: • • PRIMARY DATA: the data collected from the villagers through the questionnaire.
• Positive: a combined pool of good & excellent. 33 . For convenience four point scales was divided in two point scale. • Negative: a combined pool of poor &average.DATA TABULATION AND ANALYSIS Master table of frequency distribution was prepared and then divided into fractions according to objectives. Simple percentage frequency distribution pie-chart was drawn. and conclusions were drawn.
To measure the PERCEIVED BENEFIT of CSR Activities of BHEL. 80% RESULT: most of the respondents perceive that BHEL HERP VNS is socially responsible firm. 34 . About 15% responses were poor & 5% responses were average (in negative). 40% responses were very good & 20% responses were good. WHOLE SAMPLE NEGATIVE.RESULT 1. 20% POSITIVE. Were as in positive group 20% responses were excellent.
To measure the FELT BENEFIT of CSR Activities of BHEL.66% were good. 35 . WHOLE SAMPLE NEGATIVE 30% POSITIVE 70% RESULT: 70% of the respondents are feeling improvement in their living standard as a result of BHEL HERP’s CSR Activities.33% responses were excellent.8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % P STV OI I E N G TV EAI E 2. Only 30% of responses were negative. 18% were very good & 21.33% were poor & about 17% responses were average (in negative).were as in positive group 30. About 13.
WHOLE SAMPLE NEGATIVE 32% POSITIVE 68% RESULT.Most of the respondent accepts that their standard of living has been elevated due to CSR activities of BHEL HERP. 36 . To measure the actual benefit of CSR Activities of BHEL. 30% very good & 20% good) responses were obtained. 68% positive (18% excellent.80% 60% 40% 20% 0% POSITIVE NEGATIVE Series1 3. where as only 32% negative (12% poor& 20% average) responses were obtained.
To measure the overall rating of BHEL VNS as socially responsible organization. 37 .Majority of respondent view BHEL VNS as socially responsible firm.80% 60% 40% 20% 0% POSITIVE NEGATIVE 4. Total 98% respondent view that organization is a socially responsible. WHOLE SAMPLE NEGATIVE 2% POSITIVE 98% RESULT. only 2% says that it is not working for society.
Also the achievement should be measurable. SUGGESTIONS • • The CSR activities should have continuity. The scheme is beneficial to a large number of people. Level of perception is high in a nearby village. There have a high level of knowledge about BHEL HERP VNS’s CSR Activities. 38 .100% 80% 60% 40% 20% 0% POSITIVE NEGATIVE CONCLUSION The villagers have benefited through additional means of livelihood. in the society around it. Level of felt benefit is also high. The scheme is tangible too.
& Sundaram Adhikary M. BIBLIOGRAPHY BOOKS Francis C Aswathappa K Datt R. Google.org 39 .• • The activities of the organization to which BHEL provided help should be checked time to time by BHEL There is no information on the internet about CSR activities of BHEL. : : : : Business Environment Essentials of Business Environment Indian Economy Economics Environment of Business INTERNET Web-site of BHEL Ltd. Some information should give on the website of BHEL.com Wikipidea.
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