This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
All organizations have an impact on society and the environment through their operations, products or services, and their interactions with key stakeholders group including employees, customers, suppliers, investors and the local community. There is no single, commonly accepted definition of the notion of Corporate Social Responsibility, and the concept is often used interchangeably with other terms including corporate governance, corporate citizenship, corporate accountability, business ethics, corporate responsibility and sustainability. Moreover, definition varies in different cultural and national settings. The legally defined mandate of today's corporation is to pursue relentlessly and without exception, its own self-interest, regardless of the often harmful consequences it might cause to others. From the 1950's till date, the concept of CSR has gained considerable acceptance and the meaning has been broadened to include additional components. Corporate Social Responsibility in a globalized industrial world is about making the business investment and the community promise sustainable for the company and for the communities we operate in, its people and environment. It demands responsible governance based on principles of leadership, integrity, respect, commitment and relationships. Philopher Ayn Rand contends that our one and only social responsibility is to ourselves, but this concern does not act as a barrier to helping others.
The moral purpose of one's life is the achievement of happiness. This does not mean that he is indifferent to all men, whose life is of no value to him, and that he has no reason to help others in an emergency, but it does not mean also that he does not submit his life to the welfare of others, that he does not sacrifice himself to their needs, that the relief of his suffering is not his primary concern, that any help he gives is an act of generosity, not of moral duty.
Business and CSR: (Literature)
The beginning of the debate on CSR is marked by a landmark study commissioned by the Federal Council of Churches of Christ in America, entitled "The Social Responsibility of Business man" (1953) and authored by Howard Bowen. Yet, two years earlier, in May 1951, Frank Abrams, a top executive with Standard Oil, published a remarkable piece of reflection on "Management's Responsibilities in Complex World" in the 'Harvard Business Review,' a title that seems even more topical today than almost sixty years ago. Abrams urged his fellow managers, i.e., businessmen, to think of themselves as professionals with an explicit sense of duty not just to shareholders, employees, and customers, but also to the public in general: "management must understand that the general public - man and women everywhere - have a very deep interest in, and are affected by, what is going on". He thus introduces an early stakeholder's perspective. Bowen's study, in contrast, is concerned with detailing the specific social responsibilities of businessmen. He argues that businessmen must assume " a large measure of responsibilities if the economic system of free enterprise is to continue and prosper", appealing to enlightened self interest. And although Bowen addresses questions such as "What constitute good citizenship for a business enterprise? How does a moral enterprise behave? Or what kind of business decisions promote the end of modern society and what kinds detract?" his and Abrams' early contributions focus on the responsibilities of individuals within an enterprise or corporation. Thus, in hindsight the beginning of CSR is in fact marked by a discussion on individual responsibilities of managers vis-à-vis their constituencies and society in general. Put differently, CSR is more like "SR" - social responsibility - and inextricably bound up with the responsibilities of executives.
It was not until the 1960s, however, that academia took serious notice of the emerging interest in CSR and the level of analysis still continues to be focused predominantly on the individual manager, or businessman for that matter. It is Milton Friedman's piece on CSR (1970), which first appeared in the "New York Times Magazine" that arguably had the most sustainable impact. Friedman famously claimed "that the social responsibility of business is to increase its profits"(and nothing else). He argues that business and corporations have in fact no responsibilities, in contrast to a corporate executive (i.e., the individuals). As a business person and "an agent serving the interest of his principal" the executive has direct responsibility to the principal, namely "to conduct business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical customs.
But the 1970s are also marked by serious attempts to define CSR more broadly. The Committee for Economic Development (1971) e.g., came up with a multilevel perspective: the inner circle consisting of a corporation's basic economic responsibilities, the middle level of "current social and environmental concern" and the outer circle of "emerging responsibilities". Moreover, CSR is defined as "enlightened self interest" (steiner, 1971), as what goes beyond obeying the law in terms of "what every good citizen doesâ€¦â€¦" (Davis, 1973), that is we find reference to "good corporate citizenship." Eels and Walton (1974) define it as "concern with the needs and goals of society", but we also find multiple references to the "legal responsibility" of a corporation, to "being ethical", doing charitable action, or ensuring legitimacy. One of the founding definitions of the modern concept of CSR is much-cited four-part model of CSR by Carroll (Carroll, 1979). According to this model, the corporations have four types of responsibilities: first, the economic responsibility to be profitable; and second, the legal responsibility to abide by the laws of the respective society. These two parts are the mandatory part of business responsibility. The third responsibility is ethical and obliges corporations to do what is right, just and fair even when business is compelled to do so by the legal framework. Rather than being mandatory, the issues linked to the ethical responsibilities should lead to voluntary action by corporations, but are as Carroll puts it, "expected" from business. The fourth area of responsibility is labeled philanthropic and describes those activities "desired" by society, such as contributing resources to various kinds of social, educational, recreational or cultural purposes.
It was in the 1980s that the discussion on CSR became at once more diverse and more theoretical: scholars inquired about corporate responsibility in more general, i.e., ethical terms and attempted to define the moral status of the corporation. The discussion around corporate moral agency (Donaldson, 1982; French, 1984; Velasquez, 1983) marked in some way the emergence of business ethics as an academic discipline. It become clear that corporations can indeed be considered moral agents, because they have specific intention and decision structures and thus the capacity to engage in moral decision making, to control their policies, rules, and actions and even to respond to ethical criticism, e.g., by external stake holders (Donaldson, 1982; French, 1995). Consequently, at the same time 'stakeholder's theory' was developed and put forward (Freeman, 1984). Moreover, Europe enters into the discussion - a discussion that is propelled by "dark cases" like Bhopal (Union Carbide) and Exxon Valdez; the European Business Ethics Network (EBEN) is founded in 1987 and, last but not certainly the least, this journal, the Journal of Business Ethics, begins its influential work.
After the 1990s brings further specialization and first business ethics theories: global warming and environmental concerns, shift attention to issues of sustainable development and beyond mere social towards "triple bottom line" - performance (Elkington, 1998); the speed and scope of market globalization lead to increasing concerns about 'global business ethics' (De George, 1993; Donaldson, 1989; Maak and Lunau, 1998). Moreover, Donaldson and Dunfee put forward an "Interrative Social Contract Theory" (ISCT, 1994; 1999), Ulrich (1997/2008) an "Integrative Business Ethics", Bowie (1998) "A Kantian Perspective" on business ethics, and the late Bob Solomon an Aristotelian, i.e., "Virtue Ethics Perspective" (1993, 1999).
Frederick (1998) divided the first fifty or so years of CSR into four phases: CSR-1 (1960s - 1970s) as "doing the right things"; CSR -2 (1980s), according to Frederick, is marked by more responsive corporate behavior toward social responsibilities, i.e., "corporate social responsiveness"; the CSR-3 (1990s) is marked by compliance and Frederick imagines that CSR- 4 (Since then) will bring more on cosmological and spiritual aspects. It remains to be seen whether or not CSR will indeed become more holistic in nature. As it stands, it is a stretched out construct - maybe not a "tortured" one, but certainly hard to pinpoint. It took Archie Carroll (1999) almost thirty pages to revisit 50 years of CSR and provide an evolutionary perspective of a "definitional construct."
The "strategic corporate responsibility" (Maak, 2008) connotes the increasingly instrumental use of CSR as a strategic positioning device in the post-Enron environment. In order to succeed in an environment of contested values (Diermeier, 2006) CSR is "used" for reputational gains; CSR strategy in and of corporations is seen as a means to gain competitive advantage on "the market for virtue" (Vogel, 2006). Not surprisingly, the number of CSR reports has risen exponentially in recent years, demonstrating just how responsible corporations behave and that they should be trusted as good citizens around the world. Yet, the way CSR has been transformed into "strategic Corporate Responsibility" since the beginning of the millennium leaves the door wide open for moral hypocrisy (Bastenson et al., 2006), i.e., it may motivate corporations to appear moral without bearing the costs and consequences of actually being moral.
CSR as "strategic corporate responsibility" ranges from risk and reputation management (Fombrum, 1996; Jackson, 2004) and measures to enhance client focus and benefits (Kotler and Lee, 2005) to initiatives in which " social and business benefits are large and distinctive" (Porter and Kramer, 2006). Consequently, Burke and Logsdon (1996) define CSR as strategic "when it yields substantial business-related benefits to the firm." Moreover, Porter and Kramer (2006) as leading proponents of instrumental theory argue that "the essential test that should guide CSR is not whether a cause is worthy but whether it presents an opportunity to create shared value". Consequently, corporations should engage in "truly strategic CSR"; "it's about choosing a unique position - doing things differently from competitorsâ€¦" (2006). In other words, CSR is no longer considered a social or even a moral obligation of a corporation to society at large, but a mere market opportunity to achieve competitive advantage.
A study by Professor Stephen Erfle and Michel Frantantuono found that firms that were ranked highest in terms of their records on a variety of social issues had greater financial performance because such practices are capable of enhancing brand value of positive publicity. Zairi (2000) proposes that given the proven impact of social responsibility on business performance and corporate image, CSR should be included in business excellence models. By extrapolation, it can be argued that if CSR impacts on factors including company reputation and corporate image, that it shares characteristics with, and therefore can be regarded implicity as, an integral component of at least some models of corporate identity.
Objectives of the Study:
The paper examines the various social initiatives taken by Oil and Gas PSUs in India and their impact at large.
The study is based on both primary and secondary. Primary data were collected through personal interaction with the concerned officials. Secondary data were collected from company's annual report, different magazines and websites. Some reputed journals in the field of business, corporate responsibility and ethics were also consulted. The study is based on the data ranging the year from 2007 to 2009 only.
Oil PSUs and Government:
The Government of India is also taking measures and setting guide lines for the public sector undertakings for discharging their social commitments. Public sector oil companies like ONGC, Indian Oil, Gail India, BPCL, HPCL and Oil India will spend at least 2% of their net profits for 2008-09 on social development projects this year as the government has set a floor for their social spending, as the petroleum secretary RS Pandey said on 17th April, 2009. After steel public sector units (PSUs), the government has set a mandatory target on social welfare activities for oil PSUs. The move could also be extended to public sector companies in other sectors.
AS part of the President, Dr A.P.J. Abdul Kalam's Vision 2020, ONGC will launch its Corporate Social Responsibility (CSR) project on providing urban amenities in rural areas (PURA) on April 18, 2005. The project will start with a seed money of Rs 10 crore. Same project has started by other PSUs in the field of Oil and Natural Gas and in some other sectors also.
Oil and Natural Gas Corporation: ONGC works with a well laid out, clearly defined corporate citizenship policy. It promotes education, healthcare and entrepreneurship in the community and supports water management and disaster relief in the country. The corporate citizenship of the ONGC is to promote community projects selected on the basis of well-defined focus area parameters, i.e., shared contribution by corporation and community, sustainable impact of the projects selected on the basis of well-being of the community, process credibility to enhance corporate image, creating enduring values, satisfaction and recognition and support national cause in the focus areas. The corporation allocates funds (earlier, prior to 2008) equivalent to 0.75% of the net profits towards socioeconomic development programmes every year. Now it is increased to one percent of the net profit from 2009-10 onwards.
ONGC has initiated a project christened "PURA - providing Urban Amenities in Rural Area', which envisage bridging the rural-urban gap through achieving a balanced socioeconomic development involving identification of rural clusters with growth potential. 'providing Urban Amenities in Rural Areas' was the vision of Dr. A P J Abdul Kalam former President of India, which involves four types of connectivity: (i) Physical-road, transportation and power; (ii) Electronic reliable telecom, internet and IT services (iii) Knowledge-good education and training Institutions; and (iv)Economic-enable farmers to get the best price for their product.
The ONGC PURA initiative plans to set up PURA in Tripura, Assam, Nagaland, Andra Pradesh, Maharashtra and Gujarat as these state where ONGC carries out operational activities. The First ONGC PURA has been set up in the state of Tripura in North East India. ONGC has set up a foundation named as ONGC PURA trust with corpus amount of 10 crore in partnership with NGOs, The Energy Research Institute (TERI), NABARD, private sector and professionals. Initially panchayats were being equipped with facilities of learning computer and internet, running generators during power cuts as well as community centers and public libraries. The scope of activities under the ONGC PURA scheme is to initiate, promote, sponsor, manage, construct and assist in any programme to provide amenities to the rural areas in the following areas:
Schools, colleges, educational and technical and scientific institute etc.
ONGC has disbursed aid/relief to rural public, hospitals, clinics, dispensaries, crèches etc.
ONGC provide fund for Agriculture, horticulture, diary farming, and animal husbandry.
It helps small and marginal farmers to improve farming methods, breeding of plants, and animal etc.
It is providing fund and counseling for family welfare, health care and community development program.
ONGC helps to promote cottage industries and venture for production, manufacture, and sales and distribution of products.
ONGC is actively working for slum eradication, improving hygiene and living standards through fresh supply, electricity and gas utilities.
ONGC is involved in all types of development program including building road, providing water facilities & empowers weaker section of the society.
Gas Authority of India: GAIL, believes that corporate responsibilities go beyond the financial to non-financial areas such as community development and nation building. Conducting business responsibly is central to organizations philosophy. Community improvement, undertaken in consultation with local groups (Gram Panchayats, Revenue Offices, Collectors, State or District authorities, school teachers and principals), is an integral part of all corporate activities. As a national company, GAIL given CSR its due importance with the creation of a portfolio dedicated to funding and helping various social causes and has been working towards strengthening the relationship between the Government and citizens. GAIL also supports solutions for rural development and for reducing socio-economic disparities.
GAIL has committed 1% of the company's net Profit after Tax (PAT) up to financial year (2008-09) to CSR programmes. These are spread across three levelsÂ National, Zonal and Work Centre. Whereas the National and Zonal programmes are executed by the Corporate or Zonal Offices, the Work Centre programmes are carried out at the Work Centre itself, and are allocated 75% of the overall CSR budget. GAILs social welfare programmes come under the Special Component Plan (SCP) and Tribal Sub Plan (TCP) of the Government of India.
GAIL is one of the few companies that have fulfilled the reservation target for employment to Scheduled Castes / Scheduled Tribes and physically challenged persons. The major areas that GAIL works in deal with raising awareness levels and enacting efficient measures to help empower India's physically challenged people.
GAIL evaluates their performance by the triple bottom line - social, environmental, and financial success. Thus, they catalyse initiatives aimed at sustainable development even as they continue to grow and reward investors' the community. Today, sustainability is a buzzword with every corporate contributing to some cause or the other. But for sustenance, the transparency of the project and the genuineness of the executors are equally important, which is taken care by the GAIL authority.
Few of the GAILs activity in different field's are explained below:
GAIL HEALTHCARE / MEDICAL SERVICES to SOCIETY
GAIL facilitated Cataract surgeries with IOL implant 1000 cases by PGI - Chandigarh , in Vizag, Mumbai,Vadodara and Jaipur
GAIL provided Hearing Aid to poor people in Chennai Zonal Office.
GAIL providing health facility known as mobile outreach programme through Mobile Health van for the nearby villages for providing medicines and check up through GIDF - Pata & Vijaipur
It is providing fund for construction of hospital buildings, dispensary, special wards etc.
GAIL Supported Construction of trauma ward in govt. hospital, Nasirabad.
GAIL has distributed medical equipments, ECG Machines, furniture's & fixtures to the different hospitals in India.
It has provided service cum passenger lift in the upcoming Eye Hospital of Shankar Foundation - VSPL, Vizag.
GAIL is one of the major contributors to the Leprosy Mission Trust India for re-constructive surgeries of leprosy patients.
GAIL supported Medical camp for tribals / poor villagers falling under Group Gram Panchayat, Khanav & Beloshi at Usar. And it has supported medical camp for pulse polio at Usar.
GAIL supported Medical camp towards specialized surgeries, family camp, and cancer detection.
GAIL makes ontribution to the Leprosy Mission Trust India for re-constructive surgeries of leprosy patients : Corporate Office
GAIL has Installation of solar street lights, in Abu Road, Channei. And constructed Rain water harvesting structures in Govt. schools in Delhi/NCR, Vijaipur, Jaipur. Also, contributed towards creating and maintaining green environment by way of Tree plantation in different parts of India.
GAIL is working for Eradication of Water borne diseases in Ujjain by providing seeds of Gambusia fish. GAIL Provided of 5 lac Lavivorous Gamusia Fish as assistance to Malaria Control Programme through District Admn. Jhabua. Also Contributed 8 seater Mahindra Jeep for Save the Tiger Project in Malenad-Mysore Tiger conservation area along with construction of Field Research Center at Melinahuluwathi, Bhadra Wild Reserve (implemented through Centre for Wildlife Studies, Bangalore) .
GAIL provides Support to the Mobile Veterinary Services units running in the wildlife sanctuaries and National Parks of Manas National Park , through Wildlife Trust of India .
Water shed management through adoption of mechanical and vegetative means to prevent soil erosion at Ambegaon in Pune district through World Vision - Mumbai Z.O.
GAIL given contribution to Center for Medicinal Plants Research (CMPR), Aryavaidyasala, Kottakal, Kerala for conservation and promotion of herbal plants having medicinal value
GAIL is providing fund for Maintenance ofÂ Existing Traffic Island at Fatehgunj circle, existing Saplings with Tree-Guards from Fatehgunj circle to United circle, existing Green-Belt andÂ Bus SheltersÂ in front of Airport andÂ in front of Makarpura Bus Depot, VadodaraÂ Â
GAIL is proving fund for Beautification / development / maintenance of the area in the Dibrugarh Airport premises.
Gail has contributed for the following projects:
Contribution of funds for construction of bridge across the major drain between Ponnamanda-Chinnadam village of Razole Mandal at Rajahmundry.
Construction of the link road at Agra and link road from Pedapalla to Gummileru at Rajahmundry.
Construction of boundary wall of Shivlakha Village Primary School.
Construction of CC road measuring 1500 Meters & 3.25 Meters width, 4" height in Village Bhesan. Post Bhesan, Taluka - Chourasiya. Dist. Surat
Approach Road for newly constructed College Building by GAIL at Tarana
Beautification of access road in Maligaon, Guwahati by Corporate Office
Grant for part construction of Physically Handicapped Institute at Surat.
Carpeting / Bitumen of Road measuring 2.5 Kilo Meter in Village Ichchapur, Taluka. Chourasiya., Dist. Surat.
Repairing of road / lying of drinking water pipeline (2 K.M.) in Village Ethan, Taluka Loped, Dist. Surat.
Repair of bridge over Kalisindh river at Khera.
GAIL constructed Tin Shed (size 11 mtr. x 7 mtr.) for assembly of students for prayer, in Vadodara. And Provided Furniture, Fixtures,Beds,Cots etc to Madras Institute to Habilitate Retarded Afflicted (MITHRA), Chennai
GAIL provided Facelift of hospital at Phaphund village, Dibyapur. And Generator Set to SOS Children's Village
GAIL provided fund for renovation and deepening of well in Harizan Basti. Contributed fund for integrated development of one selected village, Lakwa, Sibsagar, Assam. Also working for development of cluster in villages through promotion of SHG, Lakwa, Sibsagar, Assam.
GAIL provided iron cots, trunk boxes, fans, cooking vessels, lighting facility, bed sheets, books storage water tanks, school bags to the children home, Rajahmundhry. And Provided fund for construction of market shed, Rajahmundry. Also funding for free Mega Veterinary camps, Rajahmundry
GAIL has constructed Regional Cultural Centre, in Mumbai
GAIL Provided medical equipments like Reverse Osmosis,Tubings, Dialyses, Dialysis Solution, Femur Catheter and A.C. Machine to Civil Hospital, Alibag
GAIL provided fund for energisation of 77 tube wells on hill top of V.Thimmapuram, Anuru, Kondapalli, Surampalem,Â and Ramesampeta villages of East Godavari district.
LITERACY ENHANCEMENT / EMPOWERMENT
GAIL is working for empowerment through self-employment and Distributed of sewing machines in Agra, Abu Road, Chennai, NCR, Rajahmundry & Usar. Gail is empowering poor people through Fishery, Poultry, Dairy & Mushroom Farming, Tailoring, Candle Making etc. of economically deprived community in Delhi.
GAIL is helping for Self Income generation through stitching and tailoring for women PAPs in Pata . And providing fund for Carpet weaving programme for PAP women in Pata. Also providing vocational training in Carpentry, Electrician Trades for families of PAPs in Pata
GAIL is providing Vocational / Industrial Training for meritorious youth of Assam. And working for rehabilitation of war widows through vocational training in Ajmer. Also providing screw pine craft training to destitute women in Kerala.
GAIL is providing Talking Computer, Computerised Mini Braille Press, Computerised Braille Transcription to Visually Challenged Children of Helen Killer Memorial Association for the Blind and Govt. Residential School in Vizag.
GAIL is providing financial assistance to Hearing Impaired children of Jyoti Badhir Vidyalaya, Kanpur by providing 32 seater bus for transportation of children, Group Hearing Aids for children at class rooms and Loop Induction Units for children of primary sections in Lucknow. And provided motorized Tri-wheelers to physically challenged persons in Mumbai.
Indian Oil Corporation: At the Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success since its inception. As a constructive partner in the communities in which it operates, it has been taking concrete action to realise its social responsibility objectives, thereby building value for its shareholders and customers. In the past four decades, IndianOil has touched the lives of millions by supporting innumerable social, cultural, educational and environmental initiative, with focus on partnering communities in health, family welfare, education, environment protection, provision of clean drinking water, sanitation and empowerment of women and other marginalised groups. The Indian Oil is also investing in innovative technologies and solutions for sustainable energy flow and economic growth. As a responsible corporate citizen, IndianOil has been making substantive contributions to national causes, social welfare and community development programmes throughout the country, particularly in improving the quality of life of the people in the vicinity of its major units and installations. Currently, the organisation has the avowed policy of setting aside up to 0.75% of its net profits of the previous year towards contributions and community development activities taken up in a planned manner based on the needs of the local communities. A quarter of the funds allocated for community development are spent under the Special Component Plan (SCP) and Tribal Sub-Plan (TSP) for improving the quality of life of the people of SCs and STs.4
The Indian Oil offers the Annual Scheme of 450 scholarship to bright students, selected on 'merit-cum-means' basis, giving special encouragement to girl students, physically challenged students, and student from Jammu and Kashmir and North eastern states, 50% of scholarships are reserved for the SC, ST and OBC candidate. Scholarship is available for the student pursuing Higher Secondary (Standard xi), ITI, Engineering, MBBS, MBA and other similar courses.
Representative activities supported by Oil Corporation during the year 2007-08 in all over india, few of them are mentioned below:
â€¢ IOC has made Contribution to India Vision Foundation's Weaving Behind Bars programme initiated by Dr. Kiran Bedi for rehabilitation of women inmates of Tihar Jail, New Delhi. And contribution to Udayan Care, Delhi towards a shelter home for girls at Sant Nagar, Delhi, named as Indian Oil Udayan Ghar.
â€¢ It has made contribution to the Governments of Assam and Bihar towards flood relief measures.
â€¢ Sponsored 1,000 operations for polio patients at Narayana Sewa Sansthan (Trust),
Udaipur. And sponsored education of 275 underprivileged girl students of Government schools in Andhra Pradesh through Nanhi Kali initiative of KC Mahindra Education Trust and Naandi Foundation.
â€¢ IOC has given financial assistance to Vision Research Foundation (Sankara Nethralaya, Chennai) for construction of one whole floor of the research institute at Chennai. And given vehicle for Can Support Centre, Faridabad, for home-based palliative care programme for the people with cancer and other lifelimiting conditions in Delhi National Capital Region (NCR). Also funded Mobile science laboratory for Vivekananda Kendra Vidyalaya Trust, Arunachal Pradesh
â€¢ IOC has given fund for two eye screening and cataract operation camps, at Paradeep and Haldia, through Anugraha Drishtidaan, New Delhi, and organized 24 health check-up camps covering about 8700 people were conducted by Guwahati and Digboi refineries.
â€¢ IOC has contributed towards vocational training classes on cell-phone repair and computer hardware maintenance for youth in Assam.
â€¢ IOC has donated 17 delivery vehicles for ISKCON Akshaya Patra Food Relief Foundation for distribution of mid-day meals to the students of Government schools in Delhi NCR and
Mathura, and donated 12 ambulances/mobile health clinics in various parts of the country for use of patients in remote areas.
Oil India Ltd: "OIL is a Responsible Corporate Citizen deeply committed to socio-economic development in its areas of operations." To promote the awareness and practice of Good Corporate Citizenship by business is becoming an integral part of societal process where people have access to resources to make informed choices and decisions towards a more humane and compassionate society. Since its inception OIL has always given top priority towards the all-round development of the people residing in and around the Company's area of operation. OIL management understands that there is a need to strike a balance between the overall objectives of achieving corporate excellence and the corporate responsibility towards the community. It is this twin objective of business and social commitment that has prompted OIL to embark upon massive programmes of educational, health and infrastructural development endeavors; and this is an attempt to invest technology with a human face.
OIL conducted a social survey through Dibrugarh University in the year 1983 (in its operational areas in the North-East) to evolve a CSR Strategy. Based on the recommendation of the survey, the a scheme entitled Social Welfare Programme (SWP) in 1984 and later on another scheme called Areas Development Scheme (ADS) in 1996 were introduced by the Company. The SWP policy places OIL's commitment of protecting the environment, upliftment of education, Health and socio-economic Development a topmost priority. All-round development of education, rural infrastructure, primary health care, environment protection, promotion of sports/sportsperson (especially rural sports), assistance to youth and women organizations in carrying out community development activities are some of the key areas covered under SWP. Area Development Scheme (ADS) was introduced in 1996 with the objective of supporting the various socio-cultural activities in the operational areas. The Scheme covers the construction of roads, setting up of educational institutions and primary health centres in the North East Region and other operational areas of the company. Based on the recommendations of the Social Survey, OIL has till date constructed over 100 bridges/1400 Kms of roads (PWD/Village roads) and provided financial assistance to most of the educational institutions in and around OIL's operational areas in Assam.
OIL's Mobile Dispensary services: The mobile hospital services of OIL have always been one of the most significant community welfare projects of the Company. Today, the team of doctors and paramedical staff of OIL hospital cater to the basic medical needs of the villages in and around OIL's operational areas. In the recently carried out social audit of OIL's community welfare initiatives, the Company's Mobile Hospital services were ranked very highly by all the respondents. Based on this feedback, the Company decided to increase the number of visit as well as extend the services to new areas. From the earlier 16 - 20 visits per month, the mobile services make 40-50 visits per month. The Company has signed a MoU with St Luke's Hospital, which will extend the services to villages in Tinsukia District while the Company's own team would cater to villages in Dibrugarh District.
Education: Since inception, OIL has been providing financial assistance to all-round development of education from primary to higher education. As on date, the Company has provided financial assistance towards construction of school building, libraries, auditoriums, teachers' common room etc in over 350 institutions in the Company operational areas in Upper Assam. The Company also provides Merit Scholarships to students who excel in their 10th and 12th Board exams from schools in and around OIL's operational areas in Upper Assam. In its commitment to the all-round development of higher education, OIL has sponsored two prestigious Chairs (KD Malaviya Chair in Geosciences at Dibrugarh University & Sankardeva Chair in Literature at Guwahati University). Recently, the Company has extended onetime financial assistance of Rs 3.68 Crore to Business and Centre of Management Studies, Dibrugarh University and Rs 1.5 Crore to Assam Engineering
General Nursing Midwifery (GNM) training in OIL Hospital, Duliajan: The nursing school in OIL Hospital Duliajan conducts 3 years General Nursing Midwifery (GNM) training course which is recognized by the Directorate of Medical Education, Government of Assam. The annual intake is 20 (Twenty) candidates, out of which two seats each are reserved one each for SC and ST, and four for OBC candidates. Stipend is paid to the students in addition to limited hostel accommodation, uniform, and protective clothing.
Financial Assistance to Socio- Cultural/Sports/YouthOorganizations /Mahila Samities: The Company has supported the youth and women organizations in a big way. The support is mainly in terms of financial assistance towards enabling the different organizations in carrying out their developmental activities. OIL places a heavy accent on sports. Besides sponsoring national ranking tournaments every year, the Company recruits promising young players and gives them every opportunity to advance their sports careers. OIL has taken up schemes of holding exhaustive football camps with trained coaches to provide professional training in the rural areas of Upper Assam. OIL is also promoting rural sports by developing several village playgrounds and organizing different games in the oilfield
The New CSR Initiative: In order to address the problem of growing unemployment and poverty, OIL has undertaken a long-term project named Rupantar (transformation) of investing in projects, which can help the unemployed youths to find alternate sources of employment. Oil India Limited signed a MoU with the State Institute of Rural Development (SIRD), Assam at the Company's field headquarters in Duliajan on 8th September, 2003. The guiding provisions of the MoU are a long term vision to generate sustainable self employment avenues for the educated unemployed youths in and around the Company's operational areas in upper Assam. The project aims to create self employment avenues and promote entrepreneurship in the region and generate sustainable sources of livelihood. In order to help the large number of unemployed youth and strengthen the rural economy, the focus is on development of agro-based industries, diversification in handloom products with special focus on eri and muga (world famous golden silk of Assam) poultry farming, pig breeding, duck rearing, fishery, sericulture, organic farming etc. Till date over 2000 SHGs have already been formed and a large number of these SHGs have received loans from banks.
The agro-based industries are not only helping in ensuring the economic independence of the people residing in and around OIL's operational areas but at the same time result in wealth creation and self-employment to a large section of the people of Upper Assam. Oil India christened this new project as "Rupantar" (an Assamese word meaning Transformation) - which is providing the rural poor and the unemployed an opportunity to become self-employed.
Agriculture Development Programme: Oil India Rural Development Society (OIRDS) under the aegis of OIL adopts villages under registered Pathar Parichalona Samity (PPS), provides assistance and technical guidance to farmers in nearby villages of OIL's operational areas for agricultural development. Extensive in-field training on modern methods of cultivation both in Kharif & Rabi, farming equipment, high-yielding seeds, organic fertilizers etc. are introduced and distributed to farmers of the region. Introduced in the year 1991, 31 villages has been adopted by this scheme till date.
Handicraft Training & Production Centre (HTPC): Established in 1984, OIL's Handicraft Training and Production Centre, located at Duliajan, imparts training to women on Handicraft, Weaving, Embroidery and Tailoring on monthly stipendiary for a 9 months period. Till date, over 500 women have been trained, most of whom have set-up their own small production units.
OIL is replacing the telecommunication system of 1157 Km crude oil trunk pipeline which supplies crude oil to the four refineries in India's north eastern region with optical fibre cable (OFC). The additional capacity (bandwidth) that will be available in the OFC System, would act as an infrastructure provider for value added services in telecommunication business. OIL has committed to provide the spare bandwidth to Government of Assam's ASWAN (Assam State Wide Area Network) project which aims to connect all the district headquarters of the state.
Resource allocated by OIL from a relatively small budget of Rs 20 Lakhs in the early eighties, currently spends a minimum of .75% per annum of its net profit on CSR.
Conclusion: corporate Social Responsibility has become an increasingly significant phenomenon in today's business environment. General understanding of Corporate Social Responsibility in India is only Philanthropic. Even the most highly educated people, working with large corporate houses are unaware about CSR beyond philanthropy, which is working as social capacity building and solving various problem of the society. However, on a large canvass, philanthropy is a very small part of the total concept of CSR not more than the tips of an iceberg. It has assumed a lot of importance not only among the corporates but also among the policy-makers because of the accruing long-term benefits to the society by providing entrepreneurial opportunity, and health care facilities, promoting education, agriculture and a variety of fields. It is but natural that corporates are responsible to the society for their activities and owe to the environment in which they operate.
Andrew Crane, Abagail McWilliams, Dirk Mattem Jeremy Moon Donalds Siegel, "The Oxford Handbook of Corporate Social Responsibility" (2008) Oxford University Press, New York
Sanjoy K. Agarwal, "Corporate Social Responsibility in India" (2008) Response Business Book from sage, Sage Publications, New Delhi
C. R. Sarkar, "Social Responsibility of Business Enterprises" (2005) New Century Publications, New Delhi
Netarine Carnelious, James Wallace, Rana Tassabelyi, "An analysis of corporate social responsibility, corporate identity and ethics teaching in business schools." Journal of Business Ethics (2007) 76: 117-135, www.springerlink.com
Thomas Maak, "Undivided Corporate Responsibility: Towards a Theory of Corporate Integraty" Journal of Business Ethics (2008) 82: 353 - 368, www.springerlink.com
Dirk Matten, Andrew Crane & Wendy Chapple, "Behind the Mask: Revealing the True Face of Corporate Citizenship" Journal of Business Ethics (2003) 45: 109 - 120 www.springerlink.com
Lilian Soares Outtes Wanderley, Rafael Lucian, Francisca Farache & Jose Milton de Sousa Filho, "CSR Information Disclosure on the Web: A context - Based Approach Analysing the Influence of Country of Origin and Industry Sector" Journal of Business Ethics (2008) 82: 369 - 378, www.springerlink.com
Manuel Castelo Branco & Lucia Lima Rodrigues, "Corporate Social Responsibility and Resource -Based Perspectives" Journal of Business Ethics (2006) 69: 111 - 132, www.springerlink.com
P. R. K. Raju & Antu Das, "Corporate Social Responsibility: A Strategic Approach" Personnel Today, Vol. - XXIX, No. 4: 19 - 24, www.springerlink.com
Nikolay A. Dentchev, "Corporate Social Performance as a Business Strategy" Journal of Business Ethics (2004) 55: 397 - 412, www.springerlink.com
Ron Bird, Anthony D. Hall, Francesco Momente & Francesco Reggiani, "What Corporate Social Responsibility Activities are Valued by the Market?" Journal of Business Ethics (2007) 76: 189 - 206, www.springerlink.com
Jamie Snider, Ronald Paul Hill & Diane Martine, "Corporate Social Responsibility in 21st Century: A View from the World's Successful Firms" Journal of Business Ethics (2003) 48: 175 - 187, www.springerlink.com
Tobias Gossling & Chris Vocht, "Social Role Conceptions and CSR Policy Success" Journal of Business Ethics (2007) 74: 363 - 372, www.springerlink.com
Peter A. Stanwick & sarah D. Stanwick, "The Relationship Between Corporate Social Performance, and Organizational Size, Financial Performance, and Environmental Performance: An Empirical Examination" Journal of Business Ethics (1998) 17: 195 - 204, www.springerlink.com
Caroline Gauthier, "Measuring Corporate Social and Environmental Performance: The Extended Life-Cycle Assessment" Journal of Business Ethics (2005) 59: 199 - 206, www.springerlink.com
The Economic Times, 29th May, Kolkata edition
Annual Report, Oil India Ltd, 2003 to 2008
Annual report, ONGC, 2004 to 2008
Annual Report, Indian Oil Corporation, 2004 to 2008
Annual report, Gas Authority of India, 2004 to 2008
http://www.gailonline.com/gailnewsite/aboutus/beyondbusiness.html - 5th July, 2009