ABSTRACT

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 ideas of philanthropy, charity, 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

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bridges of understanding and mutuality with various categories of stakeholders?

(especially those who supply human capital) and the wider population? What can be done to build

How does one demonstrate a mindset which emphasizes interest in other beyond the realm of selfinterest? 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.

SIGNIFICANCE OF THE STUDY

India is the 2nd highest populous country in the world. Most of the population is living in the villages.
India has achieved 65 % literacy rate only. Majority of the rural people are illiterates, not accessible
to good health facilities and nutritious food. 20 percent of the rural people are in the poverty line. The
business houses are earning profits by rendering their services to customers in society. The
government alone cant uplift the downtrodden people.
The corporate houses and non-governmental organizations have to come forward to eradicate various
social evils and play vital role in society development their activities such as providing quality
education, extending healthcare facilities, nutritious food, creating awareness on environment safety
,drinking water facilities, sponsoring the sports events, participating in natural disaster management
programmes,ethical values promotion, enriching the Indian culture ,etc.The corporate houses have to
come forward to do their part towards development of the society. This contribution will be helpful to
the organizations to enhance their brand awareness and reputation in the market. The society
development should be treated as an integral part of the organizations strategy. CSR strategies
promote the corporate sustainable development as well as society as at large. Therefore community
development is a responsibility of the government, non-governmental organizations and business
organizations as well.

OBJECTIVES OF THE STUDY

The study is intended to achieve the following objectives:

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.

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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.

CSR PHILOSOPHY OF RIL

Social welfare and community development is at the core of Reliances Corporate Social
Responsibility (CSR) philosophy and continues to be a top priority for the Company. It revolves
around the Companys deeply-held belief in the principle of symbiotic relationship with the local
communities, recognizing 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.
The key philosophy of all CSR initiatives of RIL is guided by three core commitments of SIS:
a) S- SCALE

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b) I- IMPACT

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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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usually focus on workplace conditions, benefits, living wages, and training.

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

Communities: Engaging the surrounding communities is an important part of not just creating
good human capital that can serve the business, but also securing a reputation that can further
establish the business.

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.

MEANING AND DEFINITION

CSR is about how companies manage the business processes to produce an overall positive
impact on society.
Take the following illustration:

Companies need to answer to two aspects of their operations.

1. The quality of their management - both in terms of people and processes (the inner circle).
2. The nature and quantity of their impact on society in the various areas.
Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the
outer circle - what the company has actually done, good or bad, in terms of its products and services,
in terms of its impact on the environment and on local communities, or in how it treats and develops
its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused

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performance.

- as well as past financial performance - on quality of management as an indicator of likely future

CSR POLICY AS PER INDIAN COMPANIES ACT 2013

On 8th August 2013 the proposed new Companies Bill, 2012 was passed by Rajya Sabha. This bill
will soon replace the Companies Act, 1956, which has governed Indian business for over 50 years.
The new Companys Act -2013will come into effect at a future date not yet determined. The Act
contains an important clause (Clause 135) that mandates CSR regulations for Indian companies. It has
many merits for one thing; it simplifies many issues and aims at greater transparency and ease of doing
business in India. It has also introduced class action lawsuits, which will protect small holders, a
remarkable move.
As per companies act 2013, CSR is mandatory 2 percent spend for companies with profits over 50
million Rupees ($816, 000) in the last three years. While this mandatory spend may seem like an
excellent move and a great business opportunity, especially for smaller consultancies and reveals that
which is simply not true. Only companies of a certain size are included in Clause 135.The rules define
the companies affected as those having net worth of Rs 500 crore or more; or annual turnover of Rs
1000 crore or more; or annual net profit of Rs 5 crore or more (net profit before tax, not include profits
arising from branches outside India).

CSR needs not be altruistic to be effective

According to India's Corporate Affairs Minister Sachin Pilot, "CSR should be viewed as something
that you are doing whether through cash or kind, or man-hours, or anything else to bring smiles to
the people's faces and not for your EBITDA (Earnings before Interest, Taxes, Depreciation and
Amortization)."
While inspiring, Pilot's declaration pivots CSR from being a call of business to something undefined
and unrelated something more. But CSR need not be altruistic to be effective. Companies like Pepsi
Co and Coca- Cola invest in projects like water treatment facilities and a zero waste footprint for their
products because it helps them reduce their resource use, which in turn helps them become sustainable
and achieve higher profits. General Motors and saves itself millions of dollars because it is good
business and impacts its bottom line while pushing innovation, better technology and building

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accountability.

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What CSR is, and should do?

The Indian business scenario is not without its merits and CSR has an enormous role to play as long
as it has guidelines to help in its progression. These guidelines need to play up Indias strengths like
innovation. Jugaad has always been a way of life in India now if we can take this intrinsic concept
and mix it with some systems thinking to streamline evolution, Indian Inc. will have a global playing
field.
Besides, CSR should encourage cross-pollination of ideas, systems thinking and holistic problem
solving. It should support transparency, innovation, and stakeholder engagement and consumer
empowerment, all in order to make businesses do better by creating products and services that put
human and environmental health at the forefront. Confusing these goals with mere policy will result
in a stagnation of CSR. Sadly, this is what the mandatory spend encourages.
Corporate Social responsibility in India

Most companies are not doing any CSR

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.

the purpose of undertaking that activity.

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

Most companies spread their CSR funds thinly across many activities, thus somewhere losing
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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.

RIL, Tatas most admired cos for CSR activities

Corporate behemoth Reliance Industries and two Tata Group firms -- Tata Motors and Tata Steel -have emerged as the country's most admired companies for their corporate social responsibility
initiatives, says a survey.
According to a survey by global consultancy firm The Nielsen, RIL is on top followed by Tata Motors
and Tata Steel as the most admired companies by stakeholders for their CSR initiatives.

The business benefits of corporate social responsibility

Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving
responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits.
Building a reputation as a responsible business sets you apart. Companies often favour suppliers who
demonstrate responsible policies, as this can have a positive impact on how they are perceived by

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customers.

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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)

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE

(CSR & G Committee)

RIL's Board of Directors have formed a CSR&G Committee. This committee, along with the
CSR team, to be responsible for the decision making with respect to RIL CSR policy.

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

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projects/ programs and give suitable direction

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BUDGET

The Board of RIL to ensure that minimum of 2% of average net profit of the last

3 years is spent on CSR initiatives undertaken by RIL

All expenditure towards the programs to be diligently documented

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 %

of profit after tax

Spent on Corporate
Social Responsibility

1.

Paid up capital (INR): 3,232 crore

2.

Total turnover (INR): 4,01,302 crore

3.

Total profit after taxes (INR): 21,984 crore

4.

Total spending on Corporate Social Responsibility (CSR) as

percentage of profit after tax (%): 3.24%

RILs CSR policy demonstrates its efforts towards social and economic
development. RILs community development initiatives focus on education, healthcare, skill
enhancement, infrastructure development, promoting sportsmanship, women empowerment, among
others.
Following are some of the initiatives RIL has undertaken during FY 2013-14:

Ensuring well-being of local communities

Building capabilities for employment generation

Empowering women

Creating access to health care

Conserving environment

Modes

through

which

programs/projects

undertaken

(through

in-house

team/own

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11

foundation/external NGO/government structures/ any other organization)

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

RELIANCE FOUNDATION A comprehensive approach towards community development RIL

implements a number of its community development initiatives 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 synergetic approach
towards community development.
Reliance Foundation BIJ- Bharat India Jodo

Information services

Health Programmes

Reliance Foundation Drishti

The Dhirubhai Ambani Scholarship Programme

Sports for Development Arts, Culture & Heritage Disaster Response

Environmental Sustainability

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

RIL HAS IDENTIFIED 6 FOCUS AREAS:

Creating sustainable livelihood solutions,

addressing poverty, hunger and malnutrition

Education

Access to quality education, training and

skill enhancement

Environment

Environmental sustainability, ecological

balance, conservation of natural resources

Arts, Heritage and Culture

Protection and promotion of Indias art,

culture and heritage

Disaster Response

Managing and responding to disaster

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13

Health

Affordable solutions for healthcare through

improved access, awareness and
health seeking behaviour

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

SECONDARY DATA ANALYSIS

COMPANYS DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT
PROJECTS
During FY 2013-14, RIL spent ` 711.72 crore on community development initiatives. CSR
expenditure incurred by RIL is on various projects pertaining to education, healthcare,
livelihood support, rural development, heritage conservation, environment, safety etc.

FINANCIAL HIGHLIGHTS
$ Mn

2013-14

06-07

05-06 04-05

Revenue From Operations

66,979

4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

12-13

11-12

10-11

09-10

08-09

07-08

89,124 73,164

Total Income

68,470

4,10,238 3,79,117 3,45,984 2,61,703 2,02,860 1,48,388 1,44,898 1,18,832

89,807 74,614

Earnings Before Depreciation,

Finance Cost and Tax Expenses
(EBDIT)
Depreciation and
Amortisation
Exceptional Items

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

Profit For the Year

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

Equity Share Capital

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

Equity Share Suspense

Account
Equity Share Warrants
Reserves and Surplus

32,353

1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411 39,010

Net Worth

32,892

1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804 40,403

Gross Fixed Assets

44,109

2,64,281 2,32,270 2,05,493 2,21,252 2,28,004 2,18,673 1,27,235 1,07,061

91,928 59,955

Net Fixed Assets

25,223

1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387

71,189

62,675 35,082

Total Assets

61,351

3,67,583 3,18,511 2,95,140 2,84,719 2,51,006 2,45,706 1,49,792 1,17,353

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

Environment (Greening activities)

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FY 2013-14

(` in crore)

14

CSR expenditure:

A total of 1.36 million man- hours of training was imparted to workforce

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
3,552 HIV/AIDS patients were provided free consultation, counselling, investigation and treatment
at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali
Over 12,800 free corneal transplants across India till date (Reliance Drishti)
Steps undertaken to ensure that community development initiatives are successfully adopted
by the community

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:

Supporting Farm and non-farm livelihoods

Improving water conservation and rain-water harvesting

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.

Improving food security and enhancing nutrition

Developing Community infrastructure

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. While

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the programme aims at de risking farming and making the community self-sufficient, it also aims at

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With the aim of bridging the rural-urban divide, the rural transformation initiative RF BIJ supports

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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 positively
influenced the nutritional intake
RIL ensures its presence is established right from the commencement of the initiatives. RIL
collaborates with communities from need identification stage to project implementation. The
Company involves the community in decision-making process, right from the problem identification
stage till implementation. The extensive engagement with the community establishes joint ownership
of projects. All concerns are amicably addressed and the initiatives are adopted since they are
designed as per the identified and prioritised needs of the communities, implemented with the active
participation of the communities and progress is jointly evaluated with the community
representatives.

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, enabling a

Primary, secondary and tertiary care facilities

Conducting need based health camps and providing consultation, medicines etc.

Working on maternal and child health

Behavioral change for improved mother and child health

Improving healthcare delivery through innovative outreach programmes

Working for the visually impaired

Working in the areas of Communicable and non-communicable diseases

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better living, through initiatives such as:

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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
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A very unique and significant initiative, REFERS (Reliance Employee & Family Emergency

17

Assessment (TBHRA).

exigencies.RILs Community Medical Centres established near most of its manufacturing

divisions, provide comprehensive healthcare services to local villagers.
A joint initiative of RIL and National Association of Blind, Project Drishti, has undertaken over
12,800 free corneal graft surgeries till date across the country.
RILs initiative to combat TB and HIV/AIDS is a unique public- private partnership programme
between the Government, NGOs and the Company. It creates awareness and provides care, support
and treatment (including free-of-cost treatment) to the poor.
The Hazira Manufacturing Divisions HIV/AIDS Centre is one of the largest Anti-Retroviral
Treatment Centre (ART Centre) in India. It is a fully functional 32-bed hospital for HIV/AIDS
patients. ART Centre facilities are replicated as per the successful Hazira model in Jamnagar,
Patalganga and Lodhivali.
COMMUNITY HEALTHCARE
Health Care initiatives
To inculcate the awareness of public health and sanitation among villagers, scientific disposal of
waste and a total sanitation drive in association with Sulabh International is regularly carried out at
Moti Khavdi, Meghpar, Padana and Nani Khavdi villages. A daily
door-to-door collection of garbage, sweeping of village roads and
disposal of waste collected at designated places outside village
continued during the year.The Community Medical Centre at Moti
Khavdi with an average of 400 OPD patients per day caters to
the village
Girls and fluting population mainly consisting of migrant labour staying in nearby villages. The Centre
provides free-of-cost, round-the-clock comprehensive health services to about 45 villages/hamlets. The
intervention impacts health and hygiene needs of 1.5 million people. It also extends emergency life- saving
services to accident victims on the Jamnagar-Dwarka highway. The Centre provides ARV treatment for
AIDS patients free-of-cost since October 2007. This is the fi centre of its kind by a private sector company
in this region.
Doctors and nurses from the Centre visit 6 neighbouring villages twice a week. Free check-up and
treatments are done and free medicines are provided to around 150 to 180 patients per trip.Audio-visual

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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-

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PRIMARY HEALTH CENTRE OPERATIONS

A total of 22,250 patients (male 9,844, female 12,406) from Gadimoga and Bhairavapalem
Panchayats were treated during the year at static clinic Gadimoga and satellite clinic
Bhairavapalem.
One male doctor, one lady doctor and two pharmacists are available between 9 AM to 5.30 PM on all
working days at the Gadimoga Static Clinic. The doctors extend their services to the Bhairavapalem village
community twice a week, The Static Clinic at Gadimoga and the Satellite Clinic at Bhairavapalem
are functioning since

2005 and 2006 respectively, to cater the health needs of fishermen community

with a budget outlay of about 0.24 crore annually.

DHIRUBHAI AMBANI HOSPITAL

During the year, the Dhirubhai Ambani Hospital at Lodhivali, Maharashtra engaged significantly to
improve the quality of life in surrounding communities. Medical diagnostic camps were arranged in nearby
areas for providing medical consultation, diagnosis and medicines to the needy. During FY 2013-14, 13
medical camps were conducted.In addition, during the year, the following initiatives were taken for
providing healthcare facilities to the local
Medical care was provided to 54 road accident trauma patients free-of-cost or at highly subsidised
rates
An Orthopedic camp for Osteoporosis patients was conducted at Dhirubhai Ambani Hospital at
Lodhivali, where 70 persons were attended.
3,552 HIV/AIDs patients were provided free consultation, counselling, investigation and treatment till
31st March 2014 at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali.

LIVELIHOOD SUPPORT PROGRAMMES

RIL has always been at the forefront in implementing initiatives especially for the welfare of rural
women and youth of surrounding villages through various self-help groups (SHG). Continuing with
the services and keeping up the tradition, Hazira, Vadodra, Nagothane, Gadimoga and many other
manufacturing divisions offer training programmes through various SHGs help the rural women and
youth to be "self sustaining" and generating income for themselves and supporting their families

EDUCATION

To work on several educational initiatives to provide quality education, training, skill

Promoting primary and secondary education

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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

Promoting higher education including setting up and supporting universities

Skill development and vocational training

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

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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.

Girls Primary School at Moti Khavdi

Furniture and computers were provided to Moti

Khavdi Boys Primary School. Ten computers
were donated to the primary school at Kanalus
village.In Ranchi and other places of Jharkhand,
school benches were provided to various schools
according to requirements.

Financial assistance to Bhil Community in Tripura and Assam for educational needs of
underprivileged children was given.
Sanskar Shibir
Sanskar shibir is a regular activity of CSR team of Nagothane Manufacturing Division. Sanskar
Shibir

is

concept of enjoyable learning for school students. It is also a demonstration of

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 the

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high moral values and cultural values towards the right ways of leading life.

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THE DHIRUBHAI AMBANI SCHOLARSHIP SCHEME

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

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coaches and physical education instructors across India to sustain this effort over a longer period.

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RF is also implementing a programme in 30 villages of Agar, Madhya Pradesh with the aim
of empowering children and communities through the medium of sports. The programme is working
towards creating an enabling environment for improved educational status, gender inclusiveness and
improved health outcomes through the active participation of children, parents, larger community
and the local governance system.
ARTS, CULTURE & HERITAGE
To work towards preserving the rich heritage, arts and culture of India for its future generation and
make conscious efforts to ensure its continuity and enhance avenues for livelihoods of traditional
artisans and craftsmen. Key initiatives include:
Working towards protecting and promoting India's art, culture and heritage through various
promotional and developmental projects and programmes. Support and promotion of artists and
craftsman Promotion and preservation of traditional art and handicraft Documenting India's rich
heritage for the benefit of future generations.
Reliance Foundation focuses on preserving the rich heritage, arts and culture of India for its future
generations and has made conscious efforts to contribute towards preserving the same. RF continued
to support specific programmes to promote Indian art.
DISASTER RESPONSE
Reliance Foundation has a capacity to respond to disasters in a timely manner and engage directly
with the affected communities busing its experience of working closely with the communities. When
Uttarakhand was affected by massive floods in June 2013, RF was one of the first organisations to
lend a supporting hand. RF relief efforts reached the unreached that were cut off post the disaster. RF
supported the rescue and relief operations by ensuring supply of relief material and prompt medical
support. RF deployed a team of 20 doctors and 50 development professionals to reach out to more
than 100 villages in Uttarakhand in the period following the disaster. RF constructed 50 family
shelters, distributed more than 5,500 relief kits and conducted medical camps that benefitted
more than 8000 patients in the months following the calamity. RF is committed to continue the
efforts in Uttarakhand and has deployed two full time teams to streamline its efforts at Rudraprayag
and Uttarkashi. RF is also committed to reconstruct some of the affected schools and houses in

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Uttarakhand.

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ENVIRONMENT
To enable enhanced livelihood and quality of life, promote environment sustainability through
various initiatives for:

Ecological sustainability

Promoting biodiversity

Conservation of natural resources

Maintaining quality of soil, air and water

Promoting renewable energy

Developing gardens and river fronts

Protection of national heritage, art and culture

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: Environment

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protection and awareness drives Green Cover in surrounding villages

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CSR activities as per Sec-135(Schedule, VII) of CSR activities

S.No.

Type of the CSR activity

Eradicating extreme hunger and poverty

Promotion of education

Promoting gender equality and empowering women

Reducing child mortality and improving maternal health

Combating human immunodeficiency virus, acquired immune deficiency

syndrome, malaria and other diseases

Ensuring environmental sustainability

Employment enhancing vocational skills

Social business projects

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

Other activity not mentioned above

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Source: Sec-135- (Schedule VII) Companies 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.

CSR SCORES OF RIL

RIL CSR Score
Type of the

CSR activity

2009-10

2010-11 2011-12

2012-13

Eradicating extreme hunger and poverty

10

10

10

10

Promotion of education

10

10

10

10

Promoting gender equality and empowering women

10

10

10

10

Reducing child mortality and improving maternal

health

10

10

10

10

Combating human immunodeficiency virus, acquired

immune deficiency syndrome, malaria and other
diseases

10

10

10

10

Ensuring environmental sustainability

10

10

10

10

Employment enhancing vocational skills

10

10

10

10

Social business projects

10

10

10

10

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, m i n o r i t i e s and
women.

10

10

10

10

10

Other

activity

not mentioned above

90

90

90
RIL Avg CSR score = 90

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Average CSR Score

26

S.No.

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THE BENEFITS OF CSR:

A good reputation makes it easier to recruit employees.

Employees may stay longer, reducing the costs and disruption of recruitment and
retraining.

Employees are better motivated and more productive.

CSR helps ensure you comply with regulatory requirements.

Activities such as involvement with the local community are ideal opportunities to generate
positive press coverage.

Good relationships with local authorities make doing business easier. Understanding the
wider impact of your business can help you develop new products and services.

CSR can make you more competitive and reduces the risk of sudden damage to your
reputation (and sales). Investors recognize this and are more willing to finance you.

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

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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around qualitative changes and supporting the underprivileged.

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communities in and around the manufacturing divisions has been the key focus while striving to bring

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 its

RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

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operations.

REFERENCES:

a) Benn, Suzanne and Bolton, Dianne (Key concepts in corporate social

responsibility, 2011).

b) Broomhill, Ray (Corporate Social Responsibility: Key Issues and Debates,

2007)

c) El Ghoul, Sadok, Guedhami, Omerane, C.Y. Kwok, Chuck, R.Mishra, Dev

( Banking of Journal and Finance, 9th September 2011, p.g. 2388-2406).
Volume 35.

d) Lober, Heike (corporate management, corporate social responsibility and

customers, 2014).

e) Ril.com (N.D.) Social Responsibility and Community Development (Online).

Available from: http://www.ril.com/html/aboutus/social_resp_comm_dev.html
(access on 10th Dec 2014).

f) Ril.com
(N.D.)
Reliance
Group
(Online).
Available
from:
http://www.ril.com/html/aboutus/aboutus.html (access on 10th Dec 2014).
g) ANAUAL REPORTS OF RELIANCE INDUSTRIES LIMITED
a) 2005-2006
b) 2006-2007

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c) 2007-2008

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 .......................................................................................................................................... 9
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
PROJECTS ................................................................................................................................................ 14
FINANCIAL HIGHLIGHTS ................................................................................................................ 14
RURAL TRANSFORMATION

15

HEALTHCARE ......................................................................................................................................... 16
EDUCATION ........................................................................................................................................... 19
ENVIRONMENT .................................................................................................................................... 24
CONCLUSION........................................................................................................................................ 27

ge
Pa

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REFERENCES: ......................................................................................................................................... 29