A STUDY ON CORPORATE GOERNANCE

(CSR IN ONGC)

INTRODUCTION

1947 1960
During pre-independence, the Assam Oil Company in the North-Eastern and Attock Oil company in NorthWestern part of undivided India were the only oil companies producing oil in the country. The major part of Indian
sedimentary basins was deemed to be unfit for development of oil and gas
resources.
After independence, the Government realized the importance of oil and gas
for rapid industrial development and its strategic role in defence.
Consequently, while framing the Industrial Policy Statement of 1948, the
development of the hydrocarbon industry in the country was considered to
be of utmost necessity.
Until 1955, private oil companies mainly carried out exploration of
hydrocarbon resources of India. Assam Oil Company was producing oil at
Digboi, Assam (discovered in 1889) and the Oil India Ltd. (a 50% joint
venture between Government of India and Burmah Oil Company) was engaged in developing two fields
Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between
Government of India and Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast
sedimentary tract in other parts of India and adjoining offshore remained largely unexplored.
In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the
country as part of Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up
in 1955 under the then Ministry of Natural Resources and Scientific Research. The department was constituted
with a nucleus of geoscientists from the Geological survey of India.

CONTENTS
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TOPICS
Meaning and Development
Corporate Philanthropy and CSR
Social compliance, social accountability and CSR
Benefits of CSR
Developing CSR policies
Challenges of CSR and its solution
Drivers
How to develop and implement CSR initiatives
Human resource and community relations
CSR: companies in news
CSR: Indian scenario
TATA steel
TATA consultancy services
TATA chemicals
TATA motors
Case study: CSR in ONGC
Conclusion

MEANING:
Corporate Social Responsibility is defined as operating a business that meets or exceeds
the ethical, legal, commercial and public expectations that society has of business.
Corporate social responsibility (CSR, also called corporate responsibility, corporate
citizenship, responsible business and corporate social opportunity) is a concept whereby
organizations consider the interests of society by taking responsibility for the impact of their
activities on customers, suppliers, employees, shareholders, communities and other
stakeholders, as well as the environment. This obligation is seen to extend beyond the
statutory obligation to comply with legislation and sees organizations voluntarily taking
further steps to improve the quality of life for employees and their families as well as for the
local community and society at large.
DEVELOPMENT:
Business ethics is a form of the art of applied ethics that examines ethical principles and
moral or ethical problems that can arise in a business environment.
In the increasingly conscience-focused marketplaces of the 21st century, the demand for more
ethical business processes and actions (known as ethicism) is increasing. Simultaneously,
pressure is applied on industry to improve business ethics through new public initiatives and
laws (e.g. higher UK road tax for higher-emission vehicles).

Business ethics can be both a normative and a descriptive discipline. As a corporate practice
and a career specialization, the field is primarily normative. In academia, descriptive
approaches are also taken. The range and quantity of business ethical issues reflects the
degree to which business is perceived to be at odds with non-economic social values.
Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s,
both within major corporations and within academia. For example, today most major
corporate websites lay emphasis on commitment to promoting non-economic social values
under a variety of headings (e.g. ethics codes, social responsibility charters).
CORPORATE PHILANTHROPY & CORPORATE SOCIAL RESPONSIBILITY:
CORPORATE PHILANTHROPY

Those activities that companies voluntarily undertake to have a positive impact on

society, including cash contributions, contributions of products and services,
volunteerism, and other business transactions to advance a cause, issue or nonprofit
organization.

Donating money and other corporate resources to social causes.

Corporate philanthropy refers to the practice of companies of all sizes and sectors
making charitable contributions to address a variety of social, economic and other
issues as part of their overall corporate citizenship strategy.

Corporate philanthropy is a key component of a corporations broader social

responsibility and includes cash gifts, product donations and employee volunteerism.
It serves as a major link between the corporation and its communities.

CORPORATE SOCIAL RESPONSIBILITY:

Obeying the letter and spirit of the law; mitigating or remedying operational harm;
and sustainable development of natural resources.

Achieving commercial success in ways that honor ethical values and respect people,
communities, and the natural environment.

Addressing the legal, ethical, commercial and other expectations society has for
business, and making decisions that fairly balance the claims of all key stakeholders

Companies that consciously integrate strategies that seek to maximize the creation of
environmental and social value within their core business models, operations and
supply chains.

SOCIAL COMPLIANCE , SOCIAL ACCOUNTABILITY &CORPORATE SOCIAL

RESPONIBILITY:
The idea of responsible business behaviour is far from new. But since the 1990s, increasing
concern over the impacts of economic globalisation has led to new demands for corporations
to play a central role in efforts to eliminate poverty, achieve equitable and accountable
systems of governance and ensure environmental security. In essence, the approach is to view
business as part of society and to find ways to maximise the positive benefits that business
endeavour can bring to human and environmental well-being whilst minimising the harmful
impacts of irresponsible business. The agenda that has resulted from these concerns has
variously been called corporate citizenship, corporate social responsibility (CSR),
corporate accountability or simply corporate responsibility.

As we all know, Corporate Social Responsibility (CSR) is an expression used to describe

what some see as a companys obligation to be sensitive to the needs of all to take account
not only of the financial/economic dimension in decision-making, but also the social and
environmental consequences.
1.SUSTAINABLE DEVELOPMENT:
ONE of the most significant developments in the field of CSR over the past few years has
been the growth in public expectations that the companies not only make commitments to its
stakeholders in its business operations. The principle is closely linked with the imperative of
ensuring that these operations are sustainable, that is, that CSR is recognised as not only
necessary but also develop systems to manage implementation and systematically assess and
report on progress relative to those commitments. Corporate accountability encompasses the
systems a company establishes to develop policies, indicators, targets and processes to
manage the full range of activities. The scope of operations for which companies are expected
to be accountable has increased dramatically in recent years to include not only companys
own performance but also that of the business partners and other actors throughout the
companys value chain. The mechanisms a company uses to demonstrate accountability are
varied and inevitably need to change and grow as a company evolves; at the same time
effective systems for increasing accountability generally allow the company to be inclusive,
responsive and engaged with its stakeholders.
2.CORPORATE ACCOUNTABILITY:
Accountability in its basic sense implies render-ing of accounts and, by extension, indicate
answer-ability to an external agency or group and, further, implies ensuring propriety, legality
and safeguarding public interest in satisfaction of the expectations of the external agency or
group. Social Accountability suggests accountability to the people; this is a core value in a
democratic set-up. In a decentralised democracy the basic objec-tive is power to the people.
Corporate accountability today spans emerging CSR issues like business ethics, diversity,
marketplace behaviour, governance, human rights and labour rights as well as more
traditional areas of financial and environmental performance. Therefore, an increasing
number of companies are reporting publicly on their social, environmental and ethical
performance, both as a communication to stakeholders and as a management tool. However,
as this practice has only become more widespread since the mid-1990s, there are as yet no
standard formats to address the type of information companies choose to report, or how that
information is collected, analysed and presented.
Effective and accountable management systems help companies shape cultures that support
and reward CSR performance at all levels. As part of this effort, many companies are working
to increase accountability for CSR performance at the Board level. This can lead to changes
in who serves on the Board, how Directors handle social and environmental issues, and how
the Board manages itself, and fulfils its responsibilities to investors and other stakeholders.
Companies are also seeking to build accountability for CSR performance at the senior
management level, in some cases by creating a dedicated position responsible for broad
oversight of a companys CSR activities. Finally, many companies are working to integrate
accountability for CSR performance into actions ranging from long-term planning to
everyday decision-making, including rethinking processes for designing products and
services and changing practices used to hire, retain, reward, and promote employees.
At the same time, many stakeholders are becoming increasingly sophisticated in the type and
quality of information they are demanding from companies. In an effort to meet these
demandsas well as to strengthen the credibility of their social and environmental reports
some companies are choosing to have their reports externally verified. In doing so, the

companies recognise that verification by a third party can add value to the overall social and
environmental reporting process by enhancing relationships with stakeholders, improving
business performance and decision-making, aligning practice with organisational values, and
strengthening reputation risk management.
3.CSR AND GOOD GOVERNANCE:
One of the most significant issues within the CSR agenda concerns the dynamic relationship
between CSR and good public governance. The limits both to corporate accountability
through law and to voluntary CSR-related actions by businesses lie with the public good
governance agenda. Legislation to deal with worst case instances of irresponsible behaviour
and to set a minimum floor for business conduct will not work in the absence of effective
drivers for business implementation and enforcement, whether they are market-based, or a
result of enforcement through the state..
The need is to implement social, ethical and environmental policy (commonly known as
codes of conduct) through the development of objectives, programmes and mechanisms for
monitoring social compliance performance.
One very important aspect of ensuring social accountability is establishing social compliance
through continuous audit and monitoring. The demand for increased corporate accountability
today comes from all sectors. Thus social accountability ensures transparency, reduces
leakages, forces proper spending of funds, generates trust and peace, and creates demand led
improvement in services. In a sense, it is a continuing audit and a constant check on
malfeasance.

BENEFITS OF CSR:
The scale and nature of the benefits of CSR for an organization can vary depending on the
nature of the enterprise, and are difficult to quantify, though there is a large body of literature
exhorting business to adopt measures beyond financial ones found a correlation between
social/environmental performance and financial performance. However, businesses may not
be looking at short-run financial returns when developing their CSR strategy.
The definition of CSR used within an organization can vary from the strict "stakeholder
impacts" definition used by many CSR advocates and will often include charitable efforts and
volunteering. CSR may be based within the human resources, business development or public
relations departments of an organisation, of may be given a separate unit reporting to the
CEO or in some cases directly to the board. Some companies may implement CSR-type
values without a clearly defined team or programme.
1.HUMAN RESOURCES:
A CSR programme can be seen as an aid to recruitment and retention particularly within the
competitive graduate student market. Potential recruits often ask about a firm's CSR policy
during an interview, and having a comprehensive policy can give an advantage. CSR can also
help to improve the perception of a company among its staff, particularly when staff can
become involved through payroll giving, fundraising activities or community volunteering.
2.RISK MANGEMENT:
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. 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.
3.BRAND DIFFERENTIATION:
In crowded marketplaces, companies strive for a unique selling proposition which can
separate them from the competition in the minds of consumers. CSR can play a role in
building customer loyalty based on distinctive ethical values. Several major brands, such as
The Co-operative Group and The Body Shop are built on ethical values. Business service
organisations can benefit too from building a reputation for integrity and best practice.
4.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 issues such as health and 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.

DEVELOPING CSR POLICIES:

Firms that acknowledge the influence of stakeholders on their business can provide effective
and successful CSR programmes which can deliver real value in the form of reputation,
customer attraction, employee loyalty and investment opportunities. Moving from theory to
practice and putting corporate responsibility into action can be achieved in a number of ways
including:

Incorporating a clear CSR policy into mission, vision and values statement

Adopting a meaningful code of ethics that is implemented consistently

Publishing formal social and environmental reports and audits

Community Investment Programmes

Providing products and services

Employee volunteering schemes

Public education and awareness programs

Mentoring programs

Corporate community partnerships

Supporting good causes in marketing campaigns

Supporting and contributing to community forums

CHALLENGES OF CSR AND ITS SOLUTION:

1.CHALLENGES IN CSR AND SOCIAL ACCOUNTABILITY:
The business case for CSR is not necessarily a simple one. Among the challenges is the fact
that the social and/or environmental impact differs across industries, complicated by the fact
that the term CSR has different meanings to different industry sectors in different parts of the
globe. Also, some may question if the message CEOs communicate about CSR is an addon
or part of company core business activitiesor is it merely an insincere effort to boost public
relations? In some organisations, CSR is still considered to mean compliance and
philanthropy, although some large companies are now placing CSR in a more strategic
framework.
Further, there is the question of how to measure CSR. One of the largest obstacles is lack of a
rigorous, credible business case backed up by performance indicators and metrics that can be
quantified and benchmarked. Further, investment in CSR is not yet being taken seriously by
some organisations.
Not all organisations may have the resources (for example, funds, time, staff) to funnel into
CSR initiatives. However, CSR programmes may not be expensive or require a significant
time commitment. Organisations that are interested in CSR may choose to start with small
projects that showcase their commitment to their workforce and the community. Social Work
professionals with their professional knowledge and expertise can help address this challenge
by considering different options and developing creative approaches to CSR to in the
company.
Thus, it is at this point that the HR leadership, as the eyes and ears of the organisation, is key
to the CSR equation. Social Work professionals as HR leaders have the expertise to manage
programmes, policies and practices, to engage the organisation and its stakeholders (for
example, owners, employees, management, customers, creditors, the government and other
public organisations) in the value of CSR by focusing on communications, employee
relations, health, safety and community relations to provide their organisations with a
competitive advantage.Besides, the greatest challenge to CSR and accountability are in three
areas.
FIRST, the companies have to decide to look at CSR and accountability as a core part of
their business. Many more companies are looking at the world that way today than they were
ten years ago, but it probably still is a minority opinion and so part of the challenge is simply
about the political will on the part of companies to look at their impact through the prism of
sustainability.
SECONDLY, there are two communities out there that exert immense influence on business
across all sectors: consumers and financial institutions. Financial institutions have actually

started to move significantly over the last couple of yearsa very important development
because its remaking the way markets work.
The THIRD actor is the government.Whether its through global trade agreements and the
WTO or whether its their own enforcement of laws or smart regulation that looks at
creating incentives to engage the business community as a partner, the government remains
an incredibly significant actor and can be a net negative, net positive, or neutral in terms of
influencing the kinds of decisions that businesses make.
2.CHALLENGES TO SOCIAL COMPLIANCE:
Though many multinational retailers can now boast of a Code of Conduct, only a few have
been able to roll out a full scale and independent monitoring programme. The issues involve
from finding resources to conflicts with short-term business objectives. On the other hand,
most suppliers consider compliance programmes a new burden resulting in poor and
untrustworthy partnership with their buyers when it comes to implementing the code of
conduct.
External challenges include cultural diversity, understanding the local law and at times
finding the local law, finding local language and dialect skills, finding local audit and
monitoring professionals who are well conversant with the local issues, involving workers,
local communities, NGOs and other stakeholders.

DRIVERS:
1.CONCERN FOR PROFIT:
Corporations like all other social institutions are an integral part of society and must depend
on it for their existence, continuity, and growth. As organizations usually behave in response
to market forces, they initiate certain socially responsible activities that may have a direct
impact on their economic performance .Although these activities are social in nature and aim
for community welfare and societal development somewhere they have a hidden concern for
profits. Here the management cares only about its companys gains, profitability and
organizational success at any price. Their main strategy to have these activities is to exploit
opportunities for corporate gain. These activities have a direct economic benefit that is clearly
visible. Activities that are undertaken to improve the image or reputation of an organization
can be included in this category. As the criteria for legitimacy for such activities is economic
in nature the cost that is incurred in implementing these activities is treated as an investment.
This is the also termed as the required behaviour of any organization. Such activities are
undertaken after a detailed planning and doing a thorough cost benefit analysis. These
activities generally become an investment that helps the organization in improving long-term
economic performance. Organizations following these activities are called as Economic
Citizens.
2.CONCERN FOR LAW:
Organizations prefers to conduct its operations within the legal framework imposed by social
system within which it operates. Those activities that are driven in response to legal
constraints fall under this category. Responsible behaviour that is driven by legal concern
aims either at compliance with the existing laws or to avoid any litigation. As the criteria for
legitimacy here is legal in nature it implies that bringing corporate behaviour to a level where
it is congruent with the prevailing legal framework. These activities intend not to violate laws
and equate social responsibility with fulfilling minimum legal requirements. This is the

expected behaviour of any organization. And those organizations that do not abide with the
legal framework are termed as illegal organizations. Organizations following these activities
are called as Legal Citizens.
3.CONCERN FOR SOCIETY:
These activities have very limited relevance of legal and market forces and they are above
such criteria. Although these activities are not compulsory for any organization to undertake
but these are definitely appreciated by the stakeholders. Organizations or activities belonging
to this category are driven by a high concern for society. As these activities are not legally
forced they are in congruence with the prevailing social norms and values. Organizations
having these activities do recognize the importance of profitable operations but also takes
definite stand on issues of public concern. All ongoing community development programmes
that are voluntary in nature and are ultimately implemented to benefit the society at large
come under in this category. This is the desired behaviour of any organization.Organizations
having such activities are progressive; they are the leaders in the industry and are called as
Responsible Citizens.

HOW TO DEVELOP AND IMPLEMENT CSR INITIATIVES:

With company reputation, viability and sometimes survival at stake, one of the critical roles
of the HR leadership today is to spearhead the development and strategic implementation of
the CSR throughout the organisation and promote sound corporate citizenship. As HR
leaders, we can influence three primary standards of CSRethics, employment practices and
community involvementthat relate either directly or indirectly to employees, customers and
the local community, as outlined below. By considering these three CSR standards, HR
leaders can then identify the CSR stage of their organisation before making decisions to
develop and implement CSR initiatives.
ETHICS
Ethical standards and practices are developed and implemented in dealings with all company
stakeholders. Commitment to ethical behaviour is widely communicated in an explicit
statement and is rigorously upheld.
EMPLOYMENT PRACTICES
Human resource management practices promote personal and professional employee
development, diversity at all levels and empowerment. Employees are valued partners, with
the right to fair labour practices, competitive wages and benefits and a safe, harassment-free,
family-friendly work environment.
COMMUNITY INVOLVEMENT

The company fosters an open relationship that is sensitive to community culture and needs
and plays a proactive, cooperative and collaborative role to make the community a better
place to live and conduct business.

HUMAN RESOURCE AND COMMUNITY RELATIONS:

One of the most visible CSR initiatives is in community relations. Strong community
relations can have a positive impact on company reputation and brand. Through community
programmes that highlight the company doing good work, we can link critical issues
decreasing turnover, savings on cost per hire and attracting talented individualsto CSR and
the bottom line. There are many other possibilities that HR leaders could explore to match
both company and community needs (for example, cultural facilities for the community,
recreational facilities for employees and their families, an educational project to help prepare
tomorrows workforce)
. As HR leaders, a development professional can perform the following: .
Scan the environment to identify potential threats (for example, competition for talent
within the organisations industry sector).
Build personal and professional capability of the workforce (for example, expand
intellectual capital within the organisation and in collaboration with other organisations).
Include ethical concerns in staff performance measures. Support participative decisionmaking.
Ensure highest standards in workplace health and safety.
Encourage active engagement in community activities.
Moving Forward with CSRHR as a Change Agent
FOCUSING on company values, we as HR leaders can set the tone for an organisational
culture that is open to and understands CSR. HRs role as a change agentgrounded in
mutual respect and open and honest communicationis essential to educate management and
employees about including CSR when setting business goals and objectives. Three practical
steps to promote change regarding CSR are to:
1) establish a workable stakeholder consultation process;
2) use the process to understand the local culture (for example, internalthe workforceor
externalthe community) at all stages of implementing CSR;
3) create a sense of ownership between the staff who set up a project and those who
implement it.
Beyond including CSR in the HR management system, our role as a change agent continues
through keeping the CEO and other members of the senior management team informed of
human capital initiatives, the status of community relations, measurements of employment
activities and development of partnerships for CSR programmes, both inside and outside the
organisation.

CORPORATE SOCIAL RESPONSIBILITY -COMPANIES IN NEWS:

ENRON:
Following the company's collapse, Enron has become a by-word for corporate
irresponsibility. The financial misrepresentation that covered-up the giant black hole at the
heart of the company's finances have fuelled interest in how such corporations can be
identified and held to account. This is made all the more challenging on account of that fact
that - to some observers - Enron was doing the whole "social responsibility thing" with its
CSR reporting, environmental and community programmes.
ISSUES - The firm projected itself as a highly profitable, growing company - an image which
quickly turned out to be an elaborate mistruth. Enron's statements about profits were shown
to be untrue, with massive debts concealed so that they didn't show up in the company's
accounts.
CSR REPORTING - The Enron last social and environmental report was rather light on the
kind of measures that are increasingly being demanded. The company was gearing up to
address human rights and other issues. It did include a number of figures on environmental
performance, and on health and safety records.But there is a bigger challenge here. The move
towards more robust social and environmental reporting will not quickly get to the point
where its indicators pick up the deliberate actions at the top that typify this story. After all,
what social reporters are trying to do is identify the core reporting data which will give a real
picture of the health of the company - just like we already have in financial reporting. But
financial reporting was not sufficiently transparent and robust to pick up on the Enron
problem - how much more difficult for the hard-to-define measures of stakeholder
engagement and social performance?
The main message from this is that expectations of company reporting need to be kept
realistic. The CSR movement needs to be wary of promoting the achievements of companies
when all they are doing is going through the motions.
NIKE:
Nike has become one of those global companies targeted by a broad range of campaigning
NGOs and journalists as a symbolic representation of the business in society. In Nikes case,
the issues are those of human rights and conditions for workers in factories in developing
countries. In the face of constant accusations, Nike has developed a considered response,
supported by corporate website reporting. It now has a well developed focus for its corporate
responsibility on improving conditions in contracted factories, aiming for carbon neutrality,
and making sports available to young people across the world. The criticism continues,
however.
ISSUES - Nike has around 700 contract factories, within which around 20% of the workers
are creating Nike products. Conditions for these workers has been a source of heated debate,
with allegations made by campaigns of poor conditions, with commonplace harassment and
abuse.

CRITICS OPINION - Critics have suggested that Nike should publicise all of its factories,
and allow independent inspection to verify conditions there. Any auditing carried out by Nike
should be made public. A lot of focus is given to wage rates paid by the companys suppliers.
By and large, audits have found that wage rates are above the national legal minimum, but
critics contend that this does not actually constitute a fair living wage

CSR : THE INDIAN SCENARIO:

With the retreat of the state in economic activity in India, the imperative for business to take
up wider social responsibilities is growing. At all levels, there is a felt need for companies to
graduate to strategic interventions in CSR, which at present in many cases remain ad hoc. A
sense of strategic direction is a vital component in an effective approach to corporate
responsibility. Yet, for all these signs of progress, CSR in India has yet to realise its full
potential. Individual and collaborative initiatives continue to be dominated by self-assertion
rather than accountability. There is certainly no lack of CSR programmes and projects in
India: what is absent, however, are clear metrics for evaluating their actual impact in
improving social conditions.Many Indian business houses, private sector and public sector
companies have undertaken major initiatives till date and have adopted several modes of
practice related to CSR in India. Several innovative measures have also been adopted by
companies towards the institutionalisation of CSR that includes CSR initiatives by Lupin,
Cipla, Ranbaxy, NIIT, TCS, BPCL, and Ion Exchange.
For long-established industrial dynasties, such as the Birlas and the Tatas, concepts of nationbuilding and trusteeship have been alive in their operations long before CSR become a
popular cause. Alongside these are the leading Indian companies with strong international
shareholdings, such as Hero Honda, HLL (Hindustan Lever Ltd), ITC, and Maruti Udyog,
where local dynamics fuse with the business standards of the parent or partner. Another
tradition emerges from the public sector enterprises, such as BHEL (Bharat Heavy Electricals
Ltd), HDFC (Housing Development Finance Corporation), NTPC (National Thermal Power
Corporation), and ONGC (Oil and Natural Gas Corporation), where social obligations remain
an integral part of their business despite the march of privatisation. And then there is the new
generation of enterprises that has surged on the back of knowledge based globalisation, such
as Dr Reddys, Infosys, Ranbaxy, and Wipro, where less emphasis is on minimising negative
impacts and more on maximising the positive spill-over effects of corporate development.

CSR OF TATA:
Tata Group is a pioneer in promoting CSR in India. The Tata Group is a giant family
of businesses that dominates Indian markets. And Tata Steel is one of twenty-eight
major corporations within the Tata Group. Founded in 1907, it is the largest private
sector steel company in India, with a capacity of 3.5 million tones per annum crude
steel production. Operations are spread across the country, with steel manufacturing
and mining activities situated in the states of Jharkhand and Orissa at eight
locations. The company employs approximately 48,000 people as at April 2002.

Tata Steels CSR activities started as early as its inception. Initially, these activities
were only philanthropic in nature and the company believed more in giving back to
the society.
CSR activities are now ranging from community development, improving health care,
reducing poverty, occupational health and safety risk control and protecting the
environment that means covering almost all the stakeholders.
The ideals and philosophy of the TATA Group originated from the founding father,
Jamshedji Nusserwanji Tata (1839-1904). In 1895 he explained:
We do not claim to be more unselfish, more generous or more philanthropic than
others, but we think we started on sound and straightforward business principles
considering the interests of the shareholders, our own and health and welfare of our
employeesthe sure foundation of prosperity.
These sound and straightforward principles carried through the generations of
Tatas still has influence on the prevailing businesses and practices. With such a
strong tradition of corporate responsibility, it is no surprise that very recently Ratan
Tata has been honoured with Carnegie Medal of Philanthrophy in Pittsburgh on
Wednesday October 22, 2007
1.TATA STEEL:
SHARING WEALTH TO DIMINISH DISPARITIES
With the understanding that the hunger for employment can never be satisfied despite its best
efforts, the Company took an enlightened decision to address the needs of those who
migrated to its vicinity in search for employment. It first stimulated entrepreneurship and
economic development in the Steel City and then reached out to the rural poor, empowering
them with the means to create better livelihoods within their own villages.Tata Steel is Indias
acknowledged Corporate Social Responsibility leader and is recognised as a most humane
organisation. Every lesson learned, every piece of knowledge gathered, the Company offers
to all those who wish to work alongside it to "improve the quality of life of the communities
it serves."
EDUCATION
Tata Steel has influenced the integration of tribals in the economy in a less obvious and
immediate way by propping up the education of tribal children and youth of various ages and
at various stages of their academic career.The TCS bears the entire expense of two tribal
students who secure admissions for management education at the Tata Institute of Social
Sciences. An unusual project called Sahyog, implemented in five schools, helps tribal
students to develop self-esteem and plan their future.The Xavier Institute for Tribal Education
near Jamshedpur has also been supported by Tata Steel.
TRIBAL CULTURE
Efforts to support tribals may well leave them at the doorstep of development without a sense
of belongings and their cultural heritage. This Centre showcases the tribal legacy of four
major and five minor tribes of Jharkhand and Orissa and evokes a lot of interest amidst
scholars, researchers and even laypersons. TCC not only documents relevant research but
also enables the continuation of the tradition by sharing it with the youth and nontribals.Additionally, a Santhali Language Laboratory has also been initiated in the Centre
since 2002-03.

INCOME GENERATION FOR TRIBALS

In order to help tribals address their basic needs in a self-reliant and sustainable way, Tata
Steel has long been involved with increasing the agricultural productivity for them in the
rural areas through assured irrigation.Tata Steel, holding the belief that the tribals know best
for themselves, has assisted in the formation of many Self Help Groups (SHGs).These SHGs
enable the tribals to arrange for credit and engage in micro-enterprises like making Dokra
items, carpet weaving, terracotta, paper bag making, mat making, food processing, poultry,
mushroom farming, piggery, pisciculture and floriculture. Tata Steel provides these groups
with training, networking and assistance in marketing.
HEALTH CARE
Among the most active sponsors of the Lifeline Express a hospital on wheels- Tata Steel
has endeavored to take medical care far beyond those connected with its operations. This
unique train travels at the behest of its sponsors to those parts of rural India, left untouched by
modern medicine. At Jamshedpur, the Company runs a 850-bed general hospital with a
specialised Burn Centre, Dispensaries and Super Dispensaries to reach out to its employees as
well as a large number of citizens across the steel cityThrough the efforts of the Tata Steel
Rural Development Society (TSRDS) and the Tata Steel Family Initiatives Foundation
(TSFIF), the Company covers the rural and peri-urban population through basic health care
amenities..

2.TATA CONSULTANCY SERVICES:

ENVIRONMENT POLICY
TCS commitment to environment stems from the TATA Group's abiding concern for
environment and society. TCS is in the Information Technology (IT) consulting business,
which by its nature of operation has low impact on the environment. The main objectives of
the policy are:
1. Respect health, safety, and environment issues of employees, clients, vendors and
local
community
2. Optimise energy and power consumption, and the use of consumables and hardware
recycling
or
reuse
.
3. Increase environment awareness in employees, and motivate them to participate in
and promote organization endeavours to protect the environment.
4. Integrate environment conservation, health and safety measures in the design of new
facilities.
5. Monitor policy implementation, and report performance to stake holders periodically.
MANAGEMENT

TCS management will define health, safety and environment goals and objectives, identify
roles and responsibilities for policy implementation, measure performance, and allocate
necessary resources. It will integrate resource planning with health, safety and environment
concerns
WORK PLACE
TCS managers will review the work environment and suggest improvements in line with this
policy. The policy will also initiate energy conservation, waste recycling, and paper
reduction, in priority areas. The measures and initiatives emerging as a result of this policy
will be documented as processes.

3.TATA CHEMICALS:
TATA CHEMICALS SOCIETY FOR RURAL DEVELOPMENT
Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980
to promote its social uplift projects for communities in and around Mithapur (in the state of
Gujarat in western India), Babrala (in the state of Madhya Pradesh in northern India) and
Haldia (in the state of West Bengalin eastern India).
Through TCSRD, Tata Chemicals works to improve the quality of life of the people and
communities around its operations, and to support sustainable development, a theme that is
central to the company's corporate philosophy.
The initiatives that TCSRD is involved in include:

Agricultural development

Education

Women's programmes

Animal husbandry

Rural energy

Watershed development

Relief work

TATA STEEL RURAL DEVELOPMENT SOCIETY

Established in 1979, the Tata Steel Rural Development Society (TSRDS) is involved in
various social development programmes aimed at helping the rural communities living
around Tata Steel's operational units.
TSRDS covered 32 villages around Jamshedpur (in the state of Jharkhand in eastern India) in
its first year of operation. Today, the Society has seven separate units, six in Tata Steel's
operational areas, and covers 600 villages in the states of Jharkhand and Orissa (also in
eastern India). TSRDS is actively involved in the spheres of livelihood generation, health and
hygiene, and people empowerment.
4.TATA MOTORS:
TECHNICAL AND VOCATIONAL TRAINING FOR YOUTH MEMBERS
179 youth members having the minimum qualification of SSC passed were given four
months intensive training in technical skills like electrician, fitter, turner and welder at Ram

Krishna Shilpa Mandir. 18 other youth members who were ITI passed underwent a
reorientation programme for six months at our manufacturing unit at Jamshedpur
TOWARDS COMMUNITY DEVELOPMENT - MMV TRADE COURSE AT
SAKWAR
The chief CSR project in Thane is the Motor Mechanic Trade Course (MMV) at Sakwar.
The MMV Trade course is carried out in association with the Ramakrishna Mission, Mumbai.
The students selected for the MMV Trade Course are tribal youth members who have passed
at least Class VIII and are eager to learn the trade
INDUSTRY PARTNERSHIPS
While grappling with the issue of withstanding the threat of reservations being introduced in
the private sector, the company commits itself to better the present status of the SC/ST
populations by taking measures to improve their educational status, enhance employability
and create entrepreneurs through mentoring and promoting leadership amongst the SC/ST
community.
AID TO NGOs
The Donations Committee reviewed several applications from NGOs and institutions and
after determining their need and merit, approved donations. A sum of Rs. 1.17 million was
disbursed in the last year towards donation of Tata vehicles to organisations (list attached as
Annexure I) working in the field of health, education and road safety. Donations in kind to
the organisations help the company to forge relationships with the social sector by playing an
important role in sustaining the work of such organization.
CASE STUDY: CSR in ONGC
A partial list of CSR Success Stories of ONGC
Sahara-A helping hand to the destitutes
Background
Shraddha Rehabilitation Foundation, is an NGO dealing with the problem of the mentally ill
Road side destitutes. Shraddha is a humane experiment, perhaps the only one of its kind in
India, providing treatment, custodial care and rehabilitation to a neglected group of mentallyill roadside destitute and reuniting them with their lost families. It is a combination approach
that marries medication, innovative psychosocial intervention and occupational engagement.
ONGC.s Support
ONGC has supported this project by providing 100 beds to the mentally ill road-side
destitutes so as to provide some comfort to these destitutes along with a Diesel Generator
for use during power cuts.
Beneficiaries
At present there are about 60-65 destitutes in the rehabilitation centre, it is understood that
in the city of Mumbai there are around 500 such road-side destitutes aimlessly roaming in
the metropolis of Mumbai. Such a project can help the society and the nation at large.
Swalvavlamban: Reach where needed
Background of the Project
The ONGC Cauvery Asset, Karaikal in Southern part of India organized Artificial Limb
Camp in the year 2006 in association with Rotary Club, Karaikal.
.
Beneficiaries

The Camp provided 175 calipers/Jaipur foot to 115 nos. of needy and downtrodden
people in and around Karaikal, who could not afford to spend money for the same. The
Asset organized another Camp with the association of Rotary Club wherein 167
calipers/Jaipur foot and crutches were provided to 97 nos. of persons from 12 to 17th
February 2008.
Support from ONGC
During last two years, the Rotary Club has carried out project named Rotaplast for
corrective surgery for cleft lip palates. More than 100 patients per year are getting
benefits. Medical professionals and paramedical staff from United States and other
countries attend the project. ONGC has supported this initiative during last year, ONGC
Mahila Samiti, the Wives Association of ONGC employees, in association with Rotary Club
of Karaikal conducted free Hearing Aid Camp in the premises of ONGC. Hundreds of
patients benefitted out of this camp.

Mobile Blood Donation Van

Support from ONGC have been sought for a fully equipped mobile blood donation
van with the purpose of the blood bank reaching the donors rather than donors coming
the them.
Rotary Club in Delhi has set up a state-of-the-art voluntary blood bank at a cost of
Rs. 6.0 crores to provide safe blood to the needy people at a meager processing charge.
The blood bank is housed in a five story centrally air conditioned building providing nearly
55000 units of blood every year. The Rotary Club earlier had a mobile van for blood
donation and has been utilizing the existing van extensively by organizing a number of
blood donation camps. Till date more than 320 blood donation camps in and around
Delhi have been organised. The present vehicle, which was acquired six years ago has
been rendered unserviceable, hence, the request for a new vehicle has been received
by ONGC.
As ONGC focuses on healthcare under its CSR, it has been supporting a number of
hospitals, mobile vans, primary health centres and medical camps. ONGC decided to
collaborate with Rotary, which is a reputed organization and they are rendering yeomen
services to the marginalized by providing the blood to the poor and needy at a meager
processing charge. Hence, ONGC felt it appropriate to provide this equipped vehicle for
helping them to collect blood from various donees by reaching them directly at their
place of their stay.
ONGC PURA Trust
Background for undertaking the project- ONGC, being a pro-active national
oil company is aware of the social obligations and commitment to safety,
health and environment to enrich quality of community life. ONGC.s made
an effort to integrate its CSR which aims towards vocational education,
hygiene and development of self-employment mechanism through PURA. A
multi agency initiative comprising of the non-Government organization,
banks and the industry was formed under ONGC PURA Trust.
Objective of the project: Providing urban amenities in rural areas (PURA) is
the vision of His Excellency, the then President of India, which he outlined his
speech to the Parliament on the eve of Budget Session on 17th February, 2003.
PURA envisages bridging the rural . urban gap and achieving a balance

socio-economic development. PURA involves identification of rural clusters

with growth potential and creating 4 types of connectivity for them
(i) Physical connectivity in the form road, transportation and power
connectivity
(ii) Electronic connectivity in the form of reliable telecom, internet
and IT services
(iii) Knowledge connectivity in the form of good educational and
training institutions
(iv) Economic connectivity to enable farmers and others to get the
best price for their produce.
Scope of the project: The PURA Enterprises will undertake management of
schools, health care units, vocational training centres, chilling plants, silos.
They will also be responsible for building a market, the banking system as well
as regional business or industrial units. PURA, as the then President envisioned
had to be a business proposition i.e. economically viable and self-sustaining
in the long run.
Details of selection of target population: PURA scheme aims to set-up 50000
PURA centres across 6 lacs villages that dot the Indian landscape.
Implementation of the project: ONGC launched PURA project on 18.04.2005
at Maichara of East Kalabaria Panchayat in Belonia Sub-Division of South
Tripura District. This project was formally launched in the august presence of
Hon.ble Chief Minister of Tripura, C&MD and Directors of ONGC. The Project
involved following 4 components:
a) Bijli Ghar Power Generation
b) Randhan Seva Community Kitchen
c) Gyan Kendra Library & Computer Centre
d) Samaj Shibir Community Hall
In the course of implementation including identification of location, ONGC
has provided 2 bunk houses for library and computer education, and 1 bunk
house for community kitchen, school uniform, books and sports materials for a
total expenditure of Rs.9,50,000/- approximately.
Long-term sustainability of the project: .PURA. Project has been
conceptualized to facilitate creation of self-help group in local and rural
populace, especially in poor and socially backward people dominated areas
with emphasis on improving health, education, drinking, water, vocational
training and market accessibility needs. This was conceptualized as an
integral component of ONGC.s Corporate Social Responsibility (CSR)
component. However, the second Phase of the above project which aimed
at utilizing idle gas to develop agro-based industries could not take off due
to coming up of a gas cracker plant at Tripura for tapping the idle-gas.
However, in view of our commitment towards PURA at Tripura, an NGO from
North-East has been associated to re-structure this project and make it
functional in keeping with the local needs and the environment by
associating the local population and authorities in this process.
Methodology used for monitoring progress on the project and feedback: A
preliminary assessment was got done by IISWBM for ONGC.s PURA Trust to
monitor progress and receive feedback of ONGC PURA Project. It was
suggested by them that local youth at Maichara require motivation /
sensitization to take various skill improvement programmes and set-up selfemployment

ventures specially in the field of latex / rubber industry, food

processing industry, handicraft, etc. A training in IT may also be provided to
them. In addition to that, critical problems viz. drinking water need to be
addressed on priority. Presently, ONGC has invited a North East based NGO
RGVN to study in detail the projects and initiatives that further be taken up to
enable ONGC to fulfill its commitment towards PURA at Tripura.
Expenditure incurred on the project: ONGC had formed PURA Trust with seed
capital of Rs.10 Crores. Apart from that, ONGC has spent approximately
Rs.10 lacs in the area of Maichara.
Learnings from the project: An initiative can achieve its desired result only if
it has entire support from the community. Only after the thorough need
exercise should a project be initiated in a community.
Educational Programme with Kashmiri Migrant Children
In Migrant Camps
Kashmiri migrants are living in different camps for the last 16 years in Jammu and
Udhampur in (J&K) and other parts of the country. They were forced to flee their ancestral
homes and hearths leaving behind everything because of the terrorism in Kashmiri valley. As
a result these are compelled to live in claustrophobic ambience of camps without being able
of enjoy the basic rights and carefree childhood. Some of these children havelost their parents
to the bullets of terrorists.
In this context an organization called Socio-Service Art Group approached ONGC
for conducting programmes on educational, developmental and rehabilitative nature for
the Kashmiri migrant children and youths. ONGC readily agreed to support the
programme to wipe off the socio-economic deprivation and vulnerability of these children
because of the tragic phenomenon known as .Migration..
It was proposed to hold 4 educational workshops in four different camps of 15 days
duration each benefiting around 800 Kashmiri migrant children and youth. The
programme included: educational dramatic/performing games; Interaction with
musicians; Drawing. Post the workshop it was found that the children were a lot less
stressful, showcase their talent and connected with their nostalgic moments.

CONCLUSION
Corporate Social Responsibility is one such niche area of Corporate Behaviour and
Governance that needs to get aggressively addressed and implemented tactfully in the
organizations. At the same time CSR is one such effective tool that synergizes the efforts of
Corporate and the social sector agencies towards sustainable growth and development of
societal objectives at large. India is a fast growing economy and is booming with national and
multinational firms. At the same time, the Indian land also faces social challenges like
poverty, population growth, corruption, illiteracy just to name a few. Therefore it is all the
more imperative for the Indian companies to be sensitized to CSR in the right perspective in
order to facilitate and create an enabling environment for equitable partnership between the
civil society and business.
The impact of CSR is under close scrutiny. There are three primary areas of concern:
1) product responsibility;
2) strategies for sustainability;
3) the quality of CSR management
Therefore, with the growing importance of human capital as a success factor for todays
organisations, the role of HR leadership will become ever more critical in leading and
educating organisations on the value of CSR and how best to carry out the strategic
implementation of CSR policies and programmes in India and abroad.

REFERENCES
WEBSITES
www.hindu.com
www.karmayog.com
www.globalissues.org
www.tata.com
www.ongcindia.com
BOOKS
1. Corporate Social Responsibility, Wikipedia, The Free Encyclopedia, July 30 (2006). 2.
Nancy R. Lockwood (2004 December), Corporate Social Responsibility: HRs Leadership
Role, SPHR.
3. Accountability and Business for Social Responsibility (with Brody Weiser Burns), (2003.
June), Business and economic development: The impact of corporate responsibility standards
and practices.

4. Burke, E. M. (1999), Corporate Community Relations: The Principle of the Neighbor of

Choice, Westport, CT: Quorum Books.

SUBMITTED BY :
YUGAL SINGHAL
MBA 3C SECTION-D
(AIBS)