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India has a long tradition in the field of corporate social responsibility and industrial welfare has
been put to practice since late 1800s. Historically, the philanthropy of business people in India has
resembled western philanthropy in being rooted in religious belief. Business practices in the 1900s
that could be termed socially responsible took different forms: philanthropic donations to charity,
service to the community, enhancing employee welfare and promoting religious conduct. The
concept of CSR has evolved from being regarded as detrimental to a companys profitability, to
being considered as somehow benefiting the company as a whole, at least in the long run.
This report tries to analyze the CSR initiatives of Reliance Foundation in India, and focuses on the
finding & reviewing the impact of its CSR initiatives.
INTRODUCTION
Corporate social responsibility (CSR) is on the rise all over the world, and India is no exception. The
history of corporate paternalism has played an important part in shaping community expectations
and CSR practices in India. Civil society, consumers and other actors have increased the pressure on
companies to adhere to social and environmental standards, and this new civil regulatory
environment has had impacts on business in India.
In the words of Prof.N.R.Sheth, A corporate enterprise has been recognized as a "person" in law. It
should also be recognized as a person in society. A corporate takes birth and grows in response to
needs and labours of various stakeholders- entrepreneurs, managers, workers, local community,
larger society, buyers, suppliers and of course, the state. Healthy survival and development depend
on adequate nurturing by all these stakeholders. The concept of social responsibility should therefore
include the whole spectrum of stakeholders. Responsibility should be clearly perceived and
projected as responsibility and therefore be kept away from
generosity and the like. A corporate, as a citizen, should understand that its own well-being is
inextricably linked with the well-being of all stakeholders. Its financial management as well as
human resources should notionally cover all stakeholders. One practical way of defining social
responsibility is to allocate resources for material and human investment beyond legal obligations.
How far and how should one contribute to the short-and long-term welfare of employees, clients,
suppliers, people in the vicinity (especially those who supply human capital) and the wider
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categories of stakeholders? How does one demonstrate a mindset which emphasizes interest in other
population? What can be done to build bridges of understanding and mutuality with various
Indian corporate sector is spending 0.2 percent of their profits towards CSR activities only. Indian
government has mandated CSR activities for corporate firms which are earning profits as per
companys act-2013. The study of CSR activities RIL is very important as the firms is competing to
emerge as leader in CSR India.
The main purpose of the study is to analyze the corporate social responsibility (CSR)
activities carried out by Indian private (RIL).
METHODOLOGY
The study is based on the secondary data collected from the annual reports of Reliance Industries
Limited (RIL) 2009-10 to 2012-13. The study adopts descriptive and analytical research design.
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According to the section 135, Schedule VII of Companies Act-2013 initiatives of CSR.
PROFILE OF RIL
Reliance Industries Ltd is an India-based company. The company is India's largest private sector
company on all major financial parameters. They are the first private sector company from India to
feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 117th amongst the
world's Top 200 companies in terms of profits. The company operates world-class manufacturing
facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar,
Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.
The company operates in three business segments: petrochemicals, refining, and oil and gas. The
petrochemicals segment includes production and marketing operations of petrochemical products.
The refining segment includes production and marketing operations of the petroleum products.
The oil and gas segment includes exploration, development and production of crude oil and natural
gas. The other segment of the company includes textile, retail business and special economic zone
(SEZ) development. In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was
started as a small textile manufacturer unit. In May 8, 1973 RIL was incorporated and conformed
their name as RIL in the year 1985. Over the years, the company has transformed their business
from manufacturing of textiles products into a petrochemical major.
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b) I- IMPACT
c) S- SUSTAINABILITY
LITERATURE REVIEW
WHAT IS CORPORATE SOCIAL RESPONSIBILITY?
Corporate social responsibility (CSR) is a form of business
self-regulation to incorporate social and environmental
concerns. It represents a business model that adheres to
laws, ethical standards, and international norms.
As part of the business model, businesses have to take into
account the impact of their activities on the environment,
employees, communities, stakeholders, and other members
of the public. In short, CSR represents the deliberate
inclusion of the publics interest in a business decision making to ensure a triple bottom line that
considers the planet, people, and profits.
In general, CSR involves some kind of standardized reporting that allows the business to collect
information on how it is making progress on various fronts. Businesses that engage in CSR typically
focus on some or all of the following:
Environment: This requires a look at the environmental impacts of products and services, as
well as what the business does outside the company to improve the environment.
Employees: Its important to ensure that all employees are cared for adequately. Businesses
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Regulations: Respecting regulations to the fullest and often exceeding them is part of being
socially responsible.
Crisis Preparedness: Being ready to address business crises and ensure safety for employees
and surrounding communities is critical. Having plans ready and tried are important in
ensuring minimal losses during times of crises.
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develops its workforce. Out of the various stakeholders, it is financial analysts who are
services, in terms of its impact on the environment and on local communities, or in how it treats and
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building accountability.
is good business and impacts its bottom line while pushing innovation, better technology and
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Many companies are only making token gestures towards CSR in tangential ways such as
donations to charitable trusts or NGOs, sponsorship of events, etc.
Most companies believe that charity and philanthropy equals to CSR; very few companies
are using their core competence to benefit the community.
Most companies use CSR as a marketing tool to further spread the word about their business.
For instance, donation of a token amount to some cause on purchase of a particular product.
The fact that companies are hiring advertising agencies for their CSR further highlights this.
Only Few Indian companies (from this study) publish a Corporate Sustainability Report to
measure and assess the impact of their business on the environment .
Very few companies openly state the processes followed by them, the damage caused by
these processes, and the steps taken to minimize this damage.
Very few companies state how much they spend on CSR. There is no mention of the amount
spent in any of their balance sheets or annual reports. Most companies just list and describe
their CSR activities and seem to be spending minimal amounts on CSR.
Very few companies are engaged in CSR activities in the local communities where they are
based.
Very few companies have a clearly defined CSR philosophy. Most implement their CSR in
an ad-hoc manner, unconnected with their business process.
Most companies spread their CSR funds thinly across many activities, thus somewhere
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Most companies appear reluctant to themselves fulfill their CSR unless it is mandatory by
law.
Generally speaking, most companies seem either unaware or dont care about CSR.
However, all companies can be considered to be an upward learning curve with respect to
CSR and it is expected that the situation will improve.
CSR AWARDS
1. Trophy for its work done under the National AIDS Control Program phase-III from
Population Foundation of India (Hazira Manufacturing Division Reliance Community Care
Centre)
2. The Golden Peacock Award - 2012 for Corporate Social Responsibility by Institute of
Directors (IOD)
3. (Vadodara Manufacturing Division)
4. Red Cross Gold Medal for the Reliance Dhirubhai Ambani Protsahan Educational
initiative from Governor of Andhra Pradesh for FY 2011-12
5. Golden Peacock National Training Award 2012 (Patalganga Manufacturing Division)
6. The National Award for Innovative Training Practices for security training practices by
Indian Society for Training and Development (Nagothane Manufacturing Division)
7. The Greentech Gold Award for HR Excellence (Dahej Manufacturing Division )
8. Oliver Kinrosss Asia Oil & Gas Award 2013 for Corporate Social Responsibility Company of the Year (RIL KG-D6)
9. Best ART (Anti-Retroviral Therapy) Centre Award 2013 by Gujarat State AIDS Control
Society (GSACS) on World AIDS Day (Hazira Manufacturing Division)
10. Award for leadership excellence in corporate social welfare/CSR byThe Greatest
Corporate Leaders of India initiative (Hazira Manufacturing Division)
11. Best corporate social responsibility practices and Best use of CSR practices in
manufacturing awards (Hazira Manufacturing Division)
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CSR team, to be responsible for the decision making with respect to RIL CSR policy.
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CSR&G Committee recommended the policy to RIL's Board of Directors and the Board of
Directors have approved this policy.
The Board level Committee to meet at least twice a year to review the implementation of
CSR projects/ programs and give suitable direction
BUDGET
The Board of RIL to ensure that minimum of 2% of average net profit of the last
In case at least 2% of average net profit of the last 3 years is not spent in a financial year,
reasons for the same to be specified in the CSR report
Any surplus generated out of the CSR activities not to be added to the normal business
profits of RIL.
FINANCIAL DETAILS OF THE COMPANY
CSR Expenditure
3.24 %
4.
Empowering women
Conserving environment
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Following are some of the initiatives RIL has undertaken during FY 2013-14:
Modes
through
which
programs/projects
undertaken
(through
in-house
team/own
RELIANCE FOUNDATION
through
Reliance
Foundation (RF). RF has a comprehensive approach towards community development with focus
on five pillars of Rural Transformation, Education, Health, Urban Renewal and Arts, Culture and
Heritage. Through various initiatives under these core areas, the Foundation strives to bring a
Information services
Health Programmes
Environmental Sustainability
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12
Education
Environment
Disaster Response
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13
Health
FINANCIAL HIGHLIGHTS
06-07
05-06 04-05
66,979
$ Mn
2013-14
12-13
11-12
10-11
09-10
08-09
07-08
89,124 73,164
Total Income
68,470
89,807 74,614
6,645
39,813
38,785
39,811
41,178
33,041
25,374
28,935
20,525
14,982 14,261
1,467
8,789
9,465
11,394
13,608
10,497
5,195
4,847
4,815
3,401 3,724
(370)
4,733
3,669
21,984
21,003
20,040
20,286
16,236
15,309
19,458
11,943
95
90
85
80
70
130
130
110
Equity Dividend %*
9,069 7,572
100
75
Dividend Payout
466
2,793
2,643
2,531
2,385
2,084
1,897
1,631
1,440
1,393 1,045
539
3,232
3,229
3,271
3,273
3,270
1,574
1,454
1,393
1,393 1,393
69
60
1,682
32,353
78,313
62,514
48,411 39,010
Net Worth
32,892
81,449
63,967
49,804 40,403
44,109
91,928 59,955
25,223
71,189
62,675 35,082
TotalAssets
61,351
93,095 80,586
Market Capitalisation
50,139
3,00,405 2,49,802 2,44,757 3,42,984 3,51,320 2,39,721 3,29,179 1,98,905 1,10,958 76,079
Number of Employees
Contribution to National
Exchequer
5,236
84,889
23,853
23,519
23,166
22,661
23,365
24,679
25,487
24,696
12,540 12,113
31,374
28,950
28,197
28,719
17,972
11,574
13,696
15,344
15,950 13,972
FY 2012-13
FY 2011-12
FY 2010-11
80.76
66.71
75.06
91.01
Health
416.69
140.72
91.03
46.99
Rural Development
165.72
73.10
21.69
28.35
0.52
1.20
2.15
0.76
Others
48.03
69.27
61.34
34.23
TOTAL
711.72
351.00
251.27
201.34
Education
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FY 2013-14
(` in crore)
14
CSR expenditure:
RURAL TRANSFORMATION
To work towards bridging the developmental gap between rural 'Bharat' and urban India by
improving livelihood, addressing poverty, hunger and malnutrition. Key initiatives include:
Developing community based initiatives like VFAs and producer companies towards
building capacity of the community and ensuring sustainability.
Using technology towards delivering need based information for improving quality of life.
Billionaire Mukesh Ambani- run Reliance Foundation has undertaken a CSR initiative on rural
transformation, which covers 24 of the poorest pockets across 10 states, engaging 20,000 farming
households from 250 villages. For the initial phase, 24 pockets across Gujarat, Rajasthan, Madhya
Pradesh, Chhattisgarh, Odisha, Jharkhand, Maharashtra, Andhra Pradesh, Karnataka and Tamil
Nadu were selected.
Reliance Rural Development Trust (RRDT)
RRDT during the year worked in 266 villages, constructing 173 Anganawadi buildings, 88 concrete
roads and other rural facilities.
RELIANCE FOUNDATION BIJ- BHARAT INDIA JODO
marginal farmers by ensuring livelihoods and supporting them in their journey out of poverty.
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While the programme aims at de risking farming and making the community self-sufficient, it also
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With the aim of bridging the rural-urban divide, the rural transformation initiative RF BIJ supports
aims at contributing towards conservation of nature and promoting sustainable farming practices.
Launched in 2010, the RF BIJ programme has come a long way and has its presence in 19 agro
ecological zones spread over 11 states in the country.
Working on the three core pillars of direct action, participatory approach
and
sustainable
development, RF BIJ reaches out to the most deserving communities characterised by low rainfall,
rainfed agriculture, large tracts of cultivable wastelands and high poverty index. Today more than
460 Village Farmer Associations (VFAs) are being actively involved in the process of bringing
about a change in the lives of nearly 40,700 farming households through its initiatives. Close
to 15,600 hectares of land have been redeveloped under the Dharti farm initiative this year taking
the cumulative land development since inception of the programme to over 31,000 hectares.
Another significant intervention under the RF BIJ initiative, Reliance Nutrition Garden
has
HEALTHCARE
To address issues around affordability and accessibility of quality healthcare and bring
about improvement in awareness and health seeking behavior in various parts of India,
Conducting need based health camps and providing consultation, medicines etc.
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Using technology for training, competency evaluation and clinical decision support for
medical professionals with a view to improve quality of healthcare
HEALTH PROGRAMMES
TheHealth for all initiative focuses on the provision of good quality primary care through its
mobile and static medical units and caters to the needs of the lower income group families in the
area. It also aims at establishing an effective referral system to streamline the flow of patients to the
higher centres of care. More than 350,000 individuals have enrolled for the services and nearly
52,600 patients have benefitted from the services within one and half years of initiating the
programme. Similar mobile medical units are operating in Uttarakhand and Madhya Pradesh.
More than 14,300 patients from nearly 150 villages in Madhya Pradesh and Uttarakhand
have benefitted from the services of the mobile medical units in this year.
RELIANCE FOUNDATION DRISHTI
The Drishti programme aims at improving the lives of visually impaired. Implemented in
association with the National Association for the Blind, the programme has transformed the lives of
1200 cataract affected individuals through successful corneal transplants this year (12,839
cataract surgeries since inception). Other initiatives like the Braille newspaper and calendar and
campaigns to promote eye donation are also integral aspects of the Drishti programme.
RIL started the Change Agents for Safety Health and Environment (CASHe) programme a
decade ago. Over the years, the CASHe programme has
evolved into a movement encompassing the entire enterprise
with thousands of improvement projects. The programme
has been instrumental in creating a culture of implementing
health, safety and environment projects on a priority basis.
This programme has helped to improve the Companys
performance on the occupational health and safety front. It
has been recognised in various international forums like the International Occupational Health
Congresses held in Italy, South Africa and Mexico.
During the year, RIL has also implemented a unique programme called Task Based Health Risk
Response Services) offers 24x7 assistance in case of any medical, accident, fire and security
RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY
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A very unique and significant initiative, REFERS (Reliance Employee & Family Emergency
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Assessment (TBHRA).
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diagnostic camps and blood donation camps are carried out regularly.
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shows, poster exhibition, Sunday clinic for HIV/ AIDS awareness, pulse polio vaccination, multi -
are
functioning
since
Clinic
at
Gadimoga
and
the
Satellite Clinic
at
EDUCATION
enhancement for improving the quality of living and livelihood. Initiatives are aimed at:
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Enabling higher education through merit cum means scholarships, including for differently
abled across the country.
Using sports as a tool for development of students in both urban and rural settings
To build a rich pool of human resources for India, RIL has developed its own network of 12
schools in and around the manufacturing units of the company at Jamnagar Surat, Vadodara,
Patalganga, Nagothane and Nagpur benefitting more than 15,000 students. These schools promote
the education among the children of the underprivileged communities. The J .H. Ambani School
at Patalganga provided education to many underprivileged children from nearby villages in
Lodhivali during the current year.
To attract children to attend school and foster a love for knowledge among them, several
initiatives were taken during the year. These included construction of a school building at Meghpar
village in Jamnagar; construction of exclusive girls' school at Motikhavdi ; distribution of school
benches at Nagothane ; providing school kits at Jamnagar; distributing school bags to children at
Nagpur and Silvassa and providing notebooks and uniforms to schoolchildren of Gadimoga and
Bhaira vapalem Panchayat. Also, financial support was extended to Bruhad Gujarat Sanskrit
Parishad' for imparting knowledge on Sanskrit, Karmakand and Astrology.
RELIANCE DHIRUBHAI AMBANI PROTSAHAM SCHEME
A flagship CSR initiative in its own right, Reliance Dhirubhai Ambani Protsaham Scheme,
financially supports poor and meritorious students (Class X pass-outs) from the East Godavari
district. Recipient students get admissions in corporate junior (intermediate) colleges of their
choice. A total of 178 meritorious students were selected for the academic year 2013-14 and
received support of ` 1 crore.With this years admissions, the total number of students supported
under the scheme reached 1,326. Since 2010- 11, RIL has been providing financial aid to the
deserving candidates (among Protsaham recipients) for pursuing their higher studies in engineering
and medical streams.
MUMBAI INDIANS EDUCATION FOR ALL INITIATIVE
Smt. Nita M. Ambani an educationist who pioneered the concept of Education for All
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four years, this programme has been able to impact the lives of over 27,000 underprivileged
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programme believes in the cause to uplift a child through equal education opportunities.In the past
children. Apart from monetary support, it has built awareness amongst various groups so that the
movement can expand and impact more children.
GIRLS EDUCATION INITIATIVE
RIL Jamnagar supported the Government of Gujarats drive to promote girls education.
Approximately 1,600 school kits were distributed in the villages to encourage enrollment of girls in
schools. More than 1,500 kits are distributed in 42 villages of Jamnagar and Lalpur talukas every
year since 2006. This has resulted in a remarkable rise in enrollment of girls in the first standard.
Construction of girls primary school at the Moti Khavdi village in the vicinity of Jamnagar
Complex was undertaken during the year at the behest of villagers. A two-story building with the
necessary facilities has been constructed. The school building is earthquake resistant, and has the
provision for vertical extension.
is
interactive teaching method for school teachers. Sanskar, synonymous with excellence in education
equips its pupil with all the requisite skills to be tomorrows leaders with a critical and global
outlook.
Objective of the project is to motivate school children for improved life skills and also encourage
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the high moral values and cultural values towards the right ways of leading life.
Good education, without doubt, is one of the main cornerstones for building a successful and
prosperous society. The merit cum means scholarship by RF ensures that students get an
opportunity to follow their dreams without worrying about the financial implications of pursuing
higher education. The scholarship programme supports the top scoring Higher Secondary students
from financially weak backgrounds and physically challenged students from across all states and
union territories of India to pursue education at college level. A total of 393 scholarships have
been awarded this year of which nearly 50% were awarded to girls and 111 to students from
physically challenged category. The programme has positively influenced the lives of more than
10,000 young scholars and their families so far. RF organised the Dhirubhai Ambani scholarship
award ceremony at Mumbai to award the scholarships to selected students in January 2014.
SPORTS FOR DEVELOPMENT
Recognizing the value of sports towards education, fitness and well being of students, RF
launched the Jr. NBA programme in partnership with the National Basketball Association (NBA).
A comprehensive, school based youth basketball programme in India, it is working towards
promoting health, fitness and an active lifestyle through basketball and teaches the values of the
game such as teamwork, sacrifice, discipline, dedication and sportsmanship. Launched in the cities
of Mumbai and Kochi, it has already reached 228 schools, 260 coaches and nearly 140,000
students. The programme aims at reaching one million youth in three years. It will also train 2,000
coaches and physical education instructors across India to sustain this effort over a longer
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period.
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houses in Uttarakhand.
ENVIRONMENT
To enable enhanced livelihood and quality of life, promote environment sustainability through
various initiatives for:
Ecological sustainability
Promoting biodiversity
RIL, in its journey towards environmental excellence, continues to achieve new milestones. Its
efforts are directed to achieve environmental performance beyond compliance through adoption of
global best practices.
During the year under review, several initiatives were taken at manufacturing sites to improve the
environmental performance and reduce the environmental footprint. Some of them are:
Promotion of education
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S.No.
Contribution to the Prime Minister's National Relief Fund or any other fund set
up by the Central Government or the State Governments for socioeconomic development and relief and funds for the welfare of the Scheduled
Castes, the Scheduled Tribes, other backward classes, minorities and women.
10
Source:
Sec-135(Schedule
VII)
Companie
s Act 2013
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A score of 10 was awarded if an activity was initiated which is mentioned above otherwise a score of 0
was awarded. A firm can score a maximum of 100 points and a minimum of 0. The scope of the study is
confined to CSR activities under taken by RIL programmes towards CSR.
2009-10
2010-11 2011-12
2012-13
10
10
10
10
Promotion of education
10
10
10
10
10
10
10
10
10
10
10
10
Combating human
immunodeficiency
virus,
acquired immune deficiency syndrome, malaria and
other diseases
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Other
activity
9 90
0
90
90
RIL Avg CSR score = 90
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Type of the
Page
S.No.
CONCLUSION
Corporate Social Responsibility is essential in India as more than 65% of population is living
in rural areas. There are huge differences between urban and rural India in terms health care
facilities, education levels, infrastructure, housing, nutritious food, awareness on their rights
of protection, etc. In India, the concept of CSR is governed by clause 135 of the Companies
Act, 2013 encourages companies to spend at least 2% of their average net profit in the
previous three years on CSR activities. CSR is viewed as vital tool for improving their
competitive edge over their opponents. India is the first country in the world which made
CSR compulsory for business houses as per companies act -2013. The corporate sector in
India has to share responsibility with government for promoting the community
development.
Social welfare and community development is at the core of Reliance's CSR philosophy and this
continues to be a top priority. Reliance embraces responsibility for impact of its operations and
actions on all stakeholders including society and community at large. It revolves around our
deeply-held belief in the principle of symbiotic relationship with the local communities,
recognising that business ultimately has a purpose - to serve human needs. Close and continuous
interaction with the people and communities in and around the manufacturing divisions has been
the key focus while striving to bring around qualitative changes and supporting the
underprivileged.
Reliance Industries Limited process the environment initiatives, education programs, health
care programs, rural development program, etc. at their own working community for
enhancing the quality life of the companys employees and maximizing the shareholders
profit. Although, CSR approach owes indispensible positive impacts to the society.
Reliance also supports and partners with several NGOs in community development and
health initiatives. Besides focusing primarily on the welfare of economically and socially
deprived sections of society, Reliance also aims at developing techno-economically viable
and environment-friendly products and services for the benefit of millions of its consumers,
while at the same time ensuring the highest standards of safety and environment protection in
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its operations.
REFERENCES:
a) Benn, Suzanne and Bolton, Dianne (Key concepts in corporate social
responsibility, 2011).
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TABLE OF CONTENTS
ABSTRACT ................................................................................................................................................ 1
INTRODUCTION ..................................................................................................................................... 1
SIGNIFICANCE OF THE STUDY ......................................................................................................... 2
OBJECTIVES OF THE STUDY .............................................................................................................. 2
METHODOLOGY .................................................................................................................................... 2
PROFILE OF RIL ....................................................................................................................................... 3
CSR PHILOSOPHY OF RIL .................................................................................................................... 3
LITERATURE REVIEW ........................................................................................................................... 4
WHAT IS CORPORATE SOCIAL RESPONSIBILITY? ................................................................... 4
MEANING AND DEFINITION............................................................................................................. 5
CSR POLICY AS PER INDIAN COMPANIES ACT 2013 .............................................................. 6
CSR AWARDS ........................................................................................................................................ 10
CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE .................. 10
RELIANCE FOUNDATION.................................................................................................................. 12
RIL HAS IDENTIFIED 6 FOCUS AREAS:...................................................................................... 13
SECONDARY DATA ANALYSIS ........................................................................................................ 14
COMPANYS DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT PROJECTS14
FINANCIAL HIGHLIGHTS ................................................................................................................ 14
RURAL TRANSFORMATION
15
HEALTHCARE ......................................................................................................................................... 16
EDUCATION ........................................................................................................................................... 19
ENVIRONMENT .................................................................................................................................... 24
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REFERENCES:......................................................................................................................................... 28
29
CONCLUSION ........................................................................................................................................ 27
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