Professional Documents
Culture Documents
Corporate Social
Responsibility of NTPC
Submitted By:
Neha Sharma
Table of Content
S.No. Particulars
1. Introduction
Ash Utilization
A forestation
NTPC'S Approach
Forest Bank
Environmental Management
Global Compact
The Ten Principles of Global Compact
Participation by NTPC
Tsunami
4. Research Methodology
5. Result
6. Conclusion
NTPC’s share on 31 Mar 2006 in the total installed capacity of the country was 19.51%
and it contributed 27.68% of the total power generation of the country during 2005-06.
NTPC has set new benchmarks for the power industry both in the area of power plant
construction and operations. It is providing power at the cheapest average tariff in the
country. With its experience and expertise in the power sector, NTPC is extending
consultancy services to various organizations in the power business.
A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been
established in NTPC with the assistance of United States Agency for International
Development. (USAID). Cenpeep is efficiency oriented, eco-friendly and eco-nurturing
initiative - a symbol of NTPC's concern towards environmental protection and continued
commitment to sustainable power development in India.
As a responsible corporate citizen, NTPC is making constant efforts to improve the socio-
economic status of the people affected by its projects. Through its Rehabilitation and
Resettlement programs, the company endeavors to improve the overall socio-economic
status of Project Affected Persons.
NTPC was among the first Public Sector Enterprises to enter into a Memorandum of
Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under
the 'Excellent category' (the best category) every year since the MOU system became
operative.
Recognizing its excellent performance and vast potential, Government of the India has
identified NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential global
giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize
it’s vision of being “one of the world’s largest and best power utilities, powering India’s
growth”.
2. Corporate Social Responsibility: What does it mean?
"More and more companies are accepting corporate citizenship as a new strategic and
managerial purpose requiring their attention. Once seen as a purely charitable activity--a
source of general goodwill, with no bottom-line consequence--citizenship is moving from
the margins of concern to the center at leading companies."
Today, there are many references to corporate social responsibility (CSR), sometimes
referred to as corporate citizenship, in our workplaces, in the media, in the government,
in our communities. While there is no agreed-upon definition, the World Business
Council for Sustainable Development defines CSR as the business commitment and
contribution to the quality of life of employees, their families and the local community
and society overall to support sustainable economic development. Simply put, the
business case for CSR--establishing a positive company reputation and brand in the
public eye through good work that yields a competitive edge while at the same time
contributing to others--demands that organizations shift from solely focusing on making a
profit to including financial, environmental and social responsibility in their core business
strategies. Despite what the phrase corporate social responsibility suggests, the concept is
not restricted to corporations but rather is intended for most types of organizations, such
as associations, labor unions, organizations that serve the community for scientific,
educational, artistic, public health or charitable purposes, and governmental agencies.
• Operational efficiency- CSR can improve the bottom line by using materials
efficiently and minimizing waste.
Every business has an impact on the communities in which it operates, and the business
depends on a basic set of social conditions--an educated workforce, available natural
resources, health care, good government--in order to operate and compete. Communities
also depend on business. The economic and social welfare of the population is dependent
on having companies that can sustain the local economy. Every company draws on
different resources and produces different effects in different locations.CSR practices and
philanthropy must address these specific interactions between a business and the social
conditions in which it operates
• Generic social issues- which neither significantly affect nor are significantly
affected by the business.
• Competitive context- those aspects of the social environment that constrain the
productivity of the business in its operating location. Schools, for example, may
affect the competitiveness of companies that depend on a local workforce, even if
the companies' activities do not have a direct impact on the schools.
It should be noted that the definition of CSR used within business can vary from the strict
'stakeholder impacts' definition and will often include charitable efforts and volunteering.
The business case for CSR within a company will likely rest on one or more of these
arguments:
Human Resources
Risk Management
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.
Brand Differentiation
In crowded marketplaces companies strive for 'X Factors' which can separate them from
the competition in the minds of consumers. 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.
License to operate
Diverting Attention
Major corporations which have existing reputational problems due to their core business
activities may engage in high-profile CSR programmes to draw attention away from their
perceived negative impacts. Thus British American Tobacco (BAT) will take part in
health initatives and the petroleum giant BP has installed very visible wind-turbines on
the roofs of some petrol stations in the UK.
3. NTPC: The Social Commitment
3.1 Resettlement and Rehabilitation
NTPC believes in growth with a human face, and pursuing people-centered development.
NTPC is a socially committed organization and a socially responsible corporate citizen. It
attaches great importance to discharging its overall social responsibilities to the
community and the society at large where its projects and stations are located. In this
regard Resettlement and Rehabilitation (R&R) program becomes an area of sharp focus,
a program that addresses people affected directly or indirectly in the wake of the projects
undertaken by NTPC.
The R&R policy aims at improving the overall economic status of Project Affected
Persons (PAPs). This is achieved by providing opportunities in the fields of sustainable
income, health, education, sanitation, communication and other such areas. Community
development activities are carried out in a transparent and participative manner. Each
program is based on the specific local requirement and guided by the extensive Socio
Economic Surveys (SES). This helps meet the objective of ensuring that the Project
Affected Persons (PAPs) improve or at least regain their previous standard of living.
Efforts are made to adopt a holistic approach to community development.
The PAPs are systematically categorized on an individual basis, thereby bringing into its
fold homestead oustees, agricultural land owners, agricultural and non agricultural
laborers, tribals, occupiers cultivating forest land etc. The Resettlement and
Rehabilitation program is meticulously worked out for each PAP. The R&R policy
options and entitlements include:
Resettlement
Rehabilitation
The quality of ash produced conforms to the requirements of 3812. The fly ash generated
at NTPC stations is ideal for use in cement, concrete, concrete products, cellular concrete,
lightweight aggregates, bricks/blocks/tiles etc. This is attributed to its very low loss on
ignition value. To facilitate availability of dry ash to end-users all new units of NTPC are
provided with the facility of dry ash collection system. Partial dry ash collection systems
have also been set up at the existing stations where these facilities did not exist earlier.
Augmentation of these systems to 100% capacity is presently in progress.
The various channels of ash utilization currently include use by a number of Cement,
Asbestos-Cement products & Concrete manufacturing Industries, Land Development,
Roads & Embankments, Ash Dyke Raising, and Building Products. Area wise break-up
of utilization for the year 2004-05 is as under:
Area of Utilization Quantity (in Million Tons)
Land Development 4.55
Roads/Embankments 0.6
Ash Dyke Raising 2.34
Bricks 0.2
Others 0.46
Total 12.74
NTPC has adopted user friendly policy guidelines on ash utilization. These include
actions identified for:
In order to motivate entrepreneurs to come forward with ash utilization schemes, NTPC
offers several facilities and incentives. These include free issue of all types of ash viz.
Dry Fly Ash / Pond Ash / Bottom Ash & infrastructure facilities, wherever feasible.
Necessary help and assistance is also offered to facilitate procurement of land, supply of
electricity etc. from Govt. Authorities.
3.3 A forestation
The a forestation activities of the industrial region not only serve as foreground and
background landscape features but also contribute to the overall improvement in the
environment. The crucial need for conservation and restoration of the degraded
ecosystem and preservation of genetic resources of the country led to the enactment of
the "Wild Life Protection Act" (1974) and "Forest Act" (1980) in addition to legal Acts of
Air, Water and Environment.
The appropriate a forestation program for plant, township, green-belt and other sites are
designed according to the geographical features. The species are selected on the basis of
their adaptability and grouped with local representatives. The growth characteristics,
flowering pattern and canopy (spreading nature) are evaluated in their distribution over
these sites of a forestation. These considerations not only contribute to the aesthetics but
also go a long way in serving as "Sinks" for the pollutant emissions of the power plant..
At times, they combat pollution from other industries in the surrounding area.
Saving the existing trees, planting right at the beginning of construction phase,
preservation of trees and advice from State Forest Departments and Agriculture
Universities are a few general guidelines followed by NTPC in the a forestation program
at their projects. The site specific a forestation details conform to the natural climatic
conditions and adaptability of species. The species are grouped into a heterogeneous
combination to impart a natural and healthy assemblage.
The arrangement of species in the green belt / buffer zone conforms to hexagonal pattern
to facilitate maximum density of species. In addition, the growth pattern and canopy are
evaluated in their actual locations of the hexagonal pattern which help uniform canopy
spreading. The tree planting, garden and park development in and around the township
adds to the general aesthetics. Plant species of medicinal value are cultivated separately
in isolated patch and information made available to residents for use appropriately.
The nursery ensures good quality planting stock so vital in the success of planting
program. In order to reduce the transport cost and damage to the planting stock, nurseries
have been developed at the projects to meet the planting requirement.
An innovative proposal to create "Forest Banks" in each state was wherein the Forest
Department of all States / Union Territories should identify land to initiate plantations
under various program of the state. Such areas would facilitate any power project of
either the State or Centre to draw necessary "Compensatory A forestation Area" against
the existing balance in the Forest Bank. This will ensure that projects need not wait for
clearance for want of identification of areas and State Government's concurrence for
compensatory a forestation.
Driven by its commitment for sustainable growth of power, NTPC has evolved a well
defined environment management policy for minimizing environmental impact arising
out of setting up of power plants and preserving the natural ecology.
In November 1995, NTPC became the first public utility to bring out a comprehensive
document entitled "NTPC Environment Policy and Environment Management System".
Amongst the guiding principles, adopted in the document, are the company's proactive
approach to environment, optimum utilization of equipment, adoption of latest
technologies and continual environment improvement. The policy also envisages efficient
utilization of resources, thereby minimizing waste, maximizing ash utilization and
providing green belt all around the plant for maintaining ecological balance. NTPC's
environment-friendly approach to power has already begun to show results in
conservation of natural resources such as water and fuel (coal, oil & gas) as well as
control of environmental pollution. NTPC has chalked out a set of well-defined activities
that are envisaged right from the project conceptualization stage.
The Environment Policy of the Corporate Environment Management and Ash Utilization
Division as adopted in March, 2003 under the Environment Management System is stated
below.
With better awareness and appreciation towards ecology and environment, thermal power
utilities have been continually looking for innovative and cost effective solutions to
conserve natural resources and reduce wastes. Some of the measures include:
• Reduction in land requirements for main plant and ash disposal areas in newer
units.
• Capacity addition in old plants, within existing land.
• Reduction in water requirement for main plant and ash disposal areas through
recycle and reuse of water.
• Reduction in fuel requirement through more efficient combustion and adoption of
state-of-the-art technologies such as super critical boilers.
While deciding the appropriate technology for its projects, NTPC integrates many
environmental provisions into the plant design. In order to keep emission, effluents and
ambient air quality well within acceptable limits, NTPC has provided the best available
equipments, devices and systems such as high efficiency Electrostatic Precipitators
(ESPs), Tall Stacks and Low NOx Burners for control of stack emissions, Dust
Extraction and Dust Suppression Systems for control of fugitive dust, Effluent Treatment
Plants, Neutralization Pits and Ash Ponds for control of the effluent quality, Ash Water
Re-circulation System and Cooling Towers for control of the effluent quality as well as
conservation of water and Sewage Treatment Plant (STP) for treatment of the domestic
sewage from its plant and township areas.
A broad based Environment Monitoring Program has been formulated and implemented
in NTPC. All pollutants discharged from the power plant through stack emission, ash
pond effluent, main plant effluent, domestic effluent and Condenser Cooling Water
(CCW) effluent are monitored at the stipulated frequency at the source itself and at the
points of discharge. In addition to the above, ambient air, surface water and ground water
quality in and around NTPC plants are regularly monitored to assess any adverse impacts
as a result of operation of the power plant.
NTPC has gained expertise in operation and management of 200 MW and 500MW Units
installed at different Stations all over the country and is looking ahead for higher capacity
Unit sizes with super critical steam parameters for higher efficiencies and for associated
environmental gains. At Sipat (Chattisgarh), higher capacity Units of size of 660 MW
and advanced Steam Generators employing super critical steam parameters have already
been envisaged as a green field project.
Higher efficiency Combined Cycle Gas Power Plants are already under operation at all
gas-based power projects in NTPC. Advanced clean coal technologies such as Integrated
Gasification Combined Cycle (IGCC) have higher efficiencies of the order of 45% as
compared to about 38% for conventional plants. NTPC has initiated a techno-economic
study under USDOE / USAID for setting up a commercial scale demonstration power
plant by using IGCC technology. These plants can use low grade coals and have higher
efficiency as compared to conventional plants.
While the rules favoring global market expansion have grown more robust, the rules
intended to promote equally valid social objectives viz. in the areas of human rights,
labor standards and environment lag behind and in some cases actually have become
weaker.
In order to promote Corporate Social Responsibility and citizenship in the new global
marketplace, UN Secretary General, Mr. Kofi Annan first proposed the Global Compact
at Davos in Jan'99. It was thus created to help organizations redefine their strategies and
course of actions so that all people can share the benefits of globalization, not just a
fortunate few.
The Global Compact’s operational phase was launched at UN Headquarters in New York
on 26 July 2000. and has since then focused its efforts on achieving practical results and
fostering the engagement of business leaders in the direction.
Through the power of collective action, the Global Compact seeks to promote responsible
corporate citizenship so that business can be part of the solution to the challenges of
globalization. In this way, the private sector – in partnership with other social actors –
can help realize the Secretary-General’s vision: a more sustainable and inclusive global
economy.
The Global Compact's ten principles in the areas of human rights, labour, the
environment and anti-corruption enjoy universal consensus
Human Rights
Labor
• Principle 3 : Business should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
• Principle 4 : The elimination of all forms of forced and compulsory labor;
• Principle 5 : The effective abolition of child labor; and
• Principle 6 : The elimination of discrimination in respect of employment and
occupation.
Environment
Anti-Corruption
• Principle 10 : Business should work against corruption in all its forms, including
extortion and bribery.
3.5.2 Participation by NTPC
Due to keenness of UN that this movement takes root in India, some business leaders
took the initiative and organized a meeting of select business leaders in Mumbai in Dec'
2000. NTPC as a prominent business and community leader in the power sector was also
invited to the meeting and thus engage/associate itself with Global Compact.
Following this meeting which was attended by CMD NTPC, NTPC agreed to be
associated with the Global Compact. In his letter in May 2001 CMD addressed to Mr.
Kofi Annan, Secretary General, UN formally expressed its support for the Global
Compact and its commitment to take action in this regard.
NTPC expresses its continued support for the Global Compact and its commitment
to take action in this regard. The principles of GC are regularly communicated to
all employees through in-house magazines, internal training program and posters.
NTPC along with major corporate in India took the lead and founded Global Compact
Society of India in the year 2003. Further, NTPC as founder member of Global Compact
Society took the lead for organizing the 1st national convention on “Excellence in
Corporate Citizenship and Global Compact” on 27th July 2004 at New Delhi.
3.5.3 Tsunami
The employee of NTPC with support of company volunteered to contribute a total sum of
approximately Rs.15.2 million from their salary, in addition to NTPC contribution of
Rs.880 million to Prime Minister Relief Fund as immediate relief measures. The team of
52 NTPC employee provided medical treatment and relief material to the affected
persons. This team treated 7838 patients and provided food to 18398 villagers and
children till alternate arrangements were made by local authorities.
NTPC team assisted for restoration of power supply in 53 relief camps, rectification of 2
nos. control panel, inspection and suggesting rectification for 33 KV transmission
systems, installing small DG set, and repairing a number of DG sets of various capacities.
“To contribute to
4. Research Methodology
4.1 Research Plan
a) Research Type: Descriptive research.
b) Research Method: Extensive literature study
c) Research Design: Descriptive- exploratory
Result
Every country should embrace the remarkable concept of individuals and businesses
forming a partnership to support social causes. In the context of India, such a partnership
has enormous potential for strengthening society. Corporate social responsibility and
volunteerism have no boundaries and are not constrained by race, colour, or religion.
Sadly, concern for the community is often mistaken for socialism. On the contrary,
capitalism thrives only when every citizen is an asset in economic activity and has
opportunities to succeed. Corporate social responsibility is a culture and unwritten
contract with the community. This invisible culture can shape brighter futures for nations.
Some would argue that it is self-evidently “good” that businesses should seek to
minimize any negative social and environmental impact resulting from their economic
activity. It can also be beneficial for a company’s reputation to publicize (for example)
any environmentally beneficial business activities. A company which develops new
engine technology to reduce fuel consumption will (if it chooses) be able to promote its
CSR credentials as well as increase profits. Some commentators are cynical about
corporations’ commitment to CSR and Sustainable Development and say that the idea of
an “Ethical company” is an oxymoron.
However, the challenges in India are enormous. Social responsibility should not be
limited to large successful corporations; there should be greater participation from most
small, medium, and large businesses. The goodwill firms can generate from acts of social
responsibility may, in fact, be worth far more to the businesses than the amounts they
give. Corporations collectively can make India a better place for every citizen.