AMITY BUSINESS SCHOOL

AMITY UNIVERSITY NOIDA, UTTAR PRADESH

ORGANIZATIONAL BEHAVIOUR

SUBMITTED BY
SHIVAM (36)
VAIBHAV (37)
MAYANK (38)
Kumar SAMRIDDH (39)
ADITYA (40)
SUBMITTED TO ROHIT KUMAR SINGH (41)
RISHABH RAJORA (42)
MR. HARGOVIND KAKKAR
 Introduction

The concept of CSR originated in the 1950‘s in the USA but it became prevalent in early
1970s. At that time US had lots of social problems like poverty, unemployment and pollution.
Consequently a huge fall in the prices of Dollar was witnessed. Corporate Social
Responsibility became a matter of utmost importance for diverse groups demanding change
in the business. During the 1980‘s to 2000, corporations recognized and started accepting a
responsibility towards society. Corporate social responsibility (CSR) focuses on the wealth
creation for the optimal benefit of all stakeholders – including shareholders, employees,
customers, environment and society. The term stakeholder means all those on whom an
organization's performance and activities have some impact either directly or indirectly. This
term was used to describe corporate owners beyond shareholders as a result of a book titled
Strategic management: a stakeholder approach by R. Edward Freeman in the year 1984.

According to Bowen, ―CSR refers to the obligations of businessmen to pursue those

policies to make those decisions or to follow those lines of relations which are desirable in
terms of the objectives and values of our society. Frederick (1960) stated Social responsibility
means that businessmen should oversee the operation of an economic system that fulfills the
expectations of the people. Davis (1960) argued that social responsibility is a nebulous idea
but should be seen in a managerial context. He asserted that some socially responsible
business decisions can be justified by a long, complicated process of reasoning as having a
good chance of bringing long-run economic gain to the firm, thus paying it back for its
socially responsible outlook. An ideal CSR has both ethical and philosophical dimensions,
particularly in India where there exists a wide gap between sections of people in terms of
income and standards as well as socio-economic status (Bajpai, 2001). Goyder(2003) argues:
―Industry in the 20th century can no longer be regarded as a private arrangement for
enriching shareholders. It has become a joint enterprise in which workers, management,
consumers, the locality, govt. and trade union officials all play a part. If the system which we
know by the name private enterprise is to continue, some way must be found to embrace
many interests whom we go to make up industry in a common purpose.‖ ). 6 CSR implies
some sort of commitment, through corporate policies and action. This operational view of
CSR is reflected in a firm‘s social performance, which can be assessed by how a firm
manages its societal relationships, its social impact and the outcomes of its CSR policies and
actions (Wood, 1991).

1.2 Purpose

To understand the concept and scope of corporate social responsibility and getting an
insight in CSR
1.3 Objectives of the study
To understand the concept of CSR
To find out the scope of CSR

Concentric Circle & CSR

In 1971, the Committee for Economic Development issued a report throwing light on
different dimensions of responsibilities to be fulfilled by the corporate. The responsibilities of
corporations are described consisting of three concentric circles.

(a)Inner Circle: Clear cut, basic responsibilities for the efficient execution of the economic
function, products, jobs and economic growth.

(b) Intermediate Circle: Encompasses responsibility to exercise this economic function

with a sensitive awareness of changing social values and priorities.

Eg. With respect to environmental conservation, hiring and relations with employees,
expectation of customers for information, safety factors, etc.

(c) The Outer Circle: Newly emerging and still amorphous responsibilities that business
should assume to become more broadly involved in actively improving the social
environment.

Classification of Social Responsibility

Responsibility towards itself

It is the responsibility of each corporate entity run business and to work towards growth,
expansion and stability and thus earn profits. If the corporation is to achieve social and
economic ends, organizational efficiency should be boosted up.

Responsibility towards Employees

Employees are the most important part of an organization. Following are some of the
responsibilities which a business entity has towards its employees-

Timely payment

Hygienic environment

Good and impartial behavior

Health care through yoga

 Recreational activities

Encouraging them to take part in managerial decisions

Responsibility towards shareholders

It is the responsibility of corporate entity to safeguard the shareholders‘ investment and

make efforts to provide a reasonable return on their investment.

Responsibility towards state

Out of the profit available, the state is entitled to a certain share as per the income tax
laws. Utmost transparency has to be exerted regarding the profit &loss account and the
balance sheet.

Responsibility towards consumers

The Company should maintain high quality standards at reasonable prices. It should not
resort to malpractices such as hoarding and black-marketing.

Responsibility towards environment

It is the responsibility of the organization to contribute to the protection of environment.

It should produce eco -friendly products. Moreover, industrial waste management must be
taken care of.

HIERARCHY OF RESPONSIBILITIES OF BUSINESS

Economic: The firm being an economic entity, its primary responsibility is to satisfy
economic needs of the society and generation of surplus for rewarding the investors and
further expansion and diversification.

Legal: The laws of the land and international laws of trade and commerce has to be
followed and complied with.

Ethical: Ethical responsibilities are norms which the society expects the business to
observe like not resorting to hoarding and other malpractices.
 Discretionary: Discretionary responsibilities refer to the voluntary contribution of the
business to the social cause like involvement in community development or other social
projects pertaining to health and awareness of the masses.

(b) Halal’s model

Halal‘s return on resource model of corporate performance recognizes the fact that the
corporate social responsiveness is a quite difficult task as no corporate posture is value free.
A firm can only attempt to form a workable coaliation among groups having diverse interests,
engaged in creating value for distribution among members of coalition. The social issues may
become conflicting beyond a certain level of economic activity. The coordination between
economic and ethical decisions is necessary so that the future of the firm and shareholders
may be safeguarded.

(c)Ackerman’s model
This model defines CSR in three different phases

First phase - Top management recognizes social problem

Second phase – The company appoints staff specialists to look into the issue and find
measures to tackle it Third phase - Implementation of the strategy derived by the
specialists

Corporate Social Responsibility as a Strategy

CSR needs a proper and step by step implementation. Andrew (1980) has developed an
approach to the question of strategic choice. His four key questions suggest the approach that
companies may follow in determining their level of CSR activity.

Those four questions are following:

a. Determining Organizational Competencies: what can we do?

b. Looking at Industry threats and opportunities: what might we do?

c. Examining the values of key implementers: what do we want to do?

d. Determining the social responsibility: what ought we to be doing?

By finding out answers to these questions managerial decisions can be molded towards
serving a strategic need. This means CSR in practical terms is an ongoing process, constantly
monitoring the environment and inter and intra firm relationships. Burke Lee and Jeanne M.
Logsdon (1996) suggest that there are five dimensions of corporate strategy that are critical to
the success of CSR process in terms of value creation by the firm. They are:
a. Centrality - CSR initiative activities should be close to the firm's mission and objectives.

b. Specificity- Strategic CSR initiatives should specifically benefit the firm. The firm should
be able to capture the benefits of CSR initiatives.

c. Proactivity- CSR initiatives should focus on the dynamics of stakeholder expectations i.e.
to capture the changes in socio-environmental , political and technological factors.

d. Voluntarism- CSR decisions should be discretionary and thus they should be taken up by
the firm voluntarily.

e. Visibility- Strategic CSR initiative should build firm‘s image and add up to the goodwill
by creating positive media attention. It can also mitigate negative image of the firm.

The linkage between strategy and CSR is quite noticeable. As strategy implies choice
there exists many opportunities to not only generate multiple options but also the choice
between different modes of action, in a manner to attain corporate objectives more
effectively. The question of trade-off rests between a body corporate defining a path of action
that is governed by the need and desire for profits and social responsibility as well. A
managerial decision- making grid can be thought of to help corporate generate multiple
options.

Corporate Social Responsibility becomes strategic when it fetches substantial economic

benefits to the firm, in particular, supporting the core business activities and thereby
contributing to the accomplishment of its mission in the optimal manner enriching the firm
and the society as well.
 Tata Group & CSR

Introduction
Tata Power is committed to ensuring the social wellbeing of the communities in the
vicinity of its business operations through Corporate Social Responsibility initiatives
(CSR) in alignment with Tata Group Focus Initiatives. Ranging from steel, automobiles and
software to consumer goods and power the Tata Group operates more than 80 companies. It
has around 200,000 employees across India and thus has the pride to be nation‘s largest
private employer. Mr. Ratan N. Tata has led the eminent Tata Group successfully. He was
trained as an architect at New York's Cornell University but he chose to enter the family
business .He assumed the Chairmanship of the Group in 1991. Named Business Man of the
Year for Asia by Forbes in 2004, Mr. Ratan Tata serves on the board of the Ford Foundation
and the program board of the Bill & Melinda Gates Foundation's India AIDS initiative. Tata
Group chairman Ratan Naval Tata has stepped down to pass on the entire responsibility.
Under Tata, the group went through major organisational phases — rationalisation,
globalisation, and now innovation.

6.2 Recognition of CSR

―In a free enterprise, the community is not just another stakeholder in business but is
in fact the very purpose of its existence."

- Jamsetji Nusserwanji , Tata Founder, Tata Group.

"Corporate Social Responsibility should be in the DNA of every organization. Our processes
should be aligned so as to benefit the society. If society prospers, so shall the organization..."

- Manoj Chakravarti, G M - Corporate Affair & Corporate Head - Social Responsibility,

Titan Industries Limited in 2004.

Corporate Social Responsibility has always been taken care of by the Tata group. The
founder Mr. Jamshedji Tata used to grant scholarships for further studies abroad in 1892 . He
also supported Gandhiji‘s campaign for racial equality in South Africa . Tata group has given
country its fi₹t science center and atomic research center . "The wealth gathered by Jamsetji
Tata and his sons in half a century of industrial pioneering formed but a minute fraction of
the amount by which they enriched the nation. Jamshed Irani, Director, Tata Sons Ltd, says,
"The Tata credo is that 'give back to the people what you have earned from them'. So from
the very inception, Jamshetji Tata and his family have been following this principle." (a
statement on the Tata group's website www.tata.com) .
 In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced
that in future TISCO would not deal with companies, which do not conform to the company's
Corporate Social Responsibility (CSR) standards. Speaking at the annual general meeting of
the Madras Chamber of Commerce and Industry, He stated, "We will not either buy from or
sell to companies that do not measure up to Tata Steel's social responsibility standards."

Introducing Changes in the Company’s Article and Rules for Sustaining CSR
Clause No. 10 of Tata Group

―A Tata Company shall be committed to be a good corporate citizen not only in

compliance with all relevant laws and regulations but also by actively assisting in the
improvement of the quality of life of the people in the communities in which it operates with
the objective of making them self reliant. Such social responsibility would comprise, to
initiate and support community initiatives in the field of community health and family
welfare, water management, vocational training, education and literacy and encourage
application of modern scientific and managerial techniques and expertise. This will be
reviewed periodically in consonance with national and regional priorities. The company
would also not treat these activities as optional ones but would strive to incorporate them as
integral part of its business plan. The company would also encourage volunteering amongst
its employees and help them to work in the communities. Tata companies are encouraged to
develop social accounting systems and to carry out social audit of their operations.‖

Amendments were made to the Articles of Association of the major Tata group
companies in the 1970s. Newly included was an article stating that the "company shall be
mindful of its social and moral responsibilities to consume₹, employees, shareholder, society
and the local community. To institutionalize the CSR charter, a clause on this was put into the
group's 'Code of Conduct.' This clause states that group companies had to actively assist in
improving quality of life in the communities in which they operated. All the group companies
were signatories to this code. CSR was included as one of the key business processes in
TISCO. It was one of the eight key business processes identified by TISCO's management
and considered critical to the success of the company.

CSR Initiatives of TATA Power

There are three levels of Monitoring and review undertaken for CSR initiatives:

Level 1: Local reviews; dissemination of MIS and exception reports by Execution teams and
by the Corporate Social Responsibility team respectively.

Level 2: Senior Leaders review on the progress, effectiveness; action plans and support
required.

Level 3: Board committee on CSR Review on quarterly basis.

There are two kinds of evaluation undertaken:-

• Internal Evaluation - CR Team using Community Engagement Index and other tools on
annual basis to assess the outcome.
• External Evaluation - It is also undertaken with reputed academic institutions/industry
association/consultant/market research agencies once in 3 years to assess the overall impact
on community.

Budget:
The budget would be based on at least 2% of average net profit of previous 3 years.

Geography

Tata Power is presently covering 328 neighbouring villages and 220 urban clusters and
habitations under CSR Initiatives. The focus of its CSR efforts is in the immediate vicinity of
its operations. The geographical focus (radius) for each project/ operating station is broadly in
the 5-10 km range based on factors such as population density, level of development, etc.
While CSR efforts in areas beyond its operations is feasible and will be undertaken in special
situations (such as in the case of natural disasters, etc.), the priority will be on maintaining a
geographical focus in the vicinity of operations. The rationale for defining the radius upto 10
kms is based on the key communities based in the neighbourhood of business entities and
operating sites which is mutually influential to both the communities and the business
locations and as identified during process of due diligence in case of green field or brown
field projects as per necessary regulatory requirement and impact by the business. In case of
key communities residing beyond immediate neighbour which may be impacted, they may
also be considered through a proper process of community identification.

The CSR initiatives are undertaken in the operating locations of the states namely, Gujarat,
Maharashtra, Jharkhand, Odisha, Rajasthan, Delhi, Karnataka, Tamil Nadu, Punjab, Andhra
Pradesh, Telangana, Uttar Pradesh, Bihar, West Bengal, Madhya Pradesh and Mumbai
License areas.
States indicated include Tata Power as well as subsidiaries and joint ventures which also
undertake CSR initiatives. The initiatives of the subsidiaries and joint ventures will be
aligned to the Tata Power CSR thrust areas.
Key Outcome Indicators for reflecting CSR initiatives:

Focus Ares Key Performance Indicators

Percentage increase in Academic Performance in English, Maths, Science

Education
Boy Girl Ratio, Enrolment , Dropout percentage

Percentage improvement in Household Level access to sanitation at village

Health and level
Sanitation
Percentage reduction in footfall/morbidity rate

Percentage increase in income level post training(youth/women)

Percentage trained youth placed

Livelihood and
Skill Building
Percentage increase in Agriculture yield/ income

Percentage increase in income level at Household level

Percentage coverage of households under safe drinking water at village level

Water
Percentage increase in ground water level and water availability round the
year(months)

No of beneficiaries covered under all Govt Schemes

Financial
Inclusivity
Financial Resources Claimed by Eligible Community under Govt Schemes
 Reliance Power Limited - CSR Policy

1. Introduction
1.1 Reliance Power Ltd, along with its subsidiary companies, which have been set up as special
purpose vehicles (SPVs), (herein after collectively referred to as “R Power”) is India’s largest,
integrated coal resources and power generation company in the private sector.

1.2 Its generation project portfolio includes projects based on conventional (coal-based, gas-based,
large hydro) and renewable energy (solar and wind) technologies.

1.3 Most projects and operating plants are located in remote / rural areas, where basic infrastructure is
inadequate and socio-economic profile is relatively weaker. Our mission is to contribute towards
improving the quality of life of the communities living in these areas. We believe that our success in
executing and operating large-scale mining /generation projects is critically dependent on following a
participatory development-oriented approach that strengthens our bond with the local population.

1.4 R Power has undertaken /shall continue to undertake appropriate Corporate Social Responsibility
(CSR) measures having direct, measurable and positive economic, social, and environmental impact
on the community with particular emphasis on the local area and areas around where it operates.

2. CSR Policy
2.1 Guiding Principles: Reliance Power in its continuous efforts to positively impact the society,
especially the areas around its sites and offices, has formulated policies for social development that
are based on the following guiding principles:

1 Honour the spirit of law and be a responsible corporate citizen.

2 Pursue growth through harmony with the community via innovative management techniques.
3 Adopt an approach that aims at achieving a greater balance between social development and
economic development.
4 Respect culture and customs of every project / plant location.
5 Work towards elimination of all barriers for the social inclusion of disadvantaged groups - such as
the poor, socially backward, differently abled and others.
6 Develop practices aimed at inclusive growth.
7 Thrust on Environment Protection.

2.2 Applicability:

This CSR Policy is applicable to R Power and all its subsidiaries, which are mandated with the CSR
expenditure obligations as per Sec. 135 of the Companies Act, 2013 read with the Companies
(Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.

2.3 Focus Areas:

R Power CSR areas targets inclusive growth of all stakeholders under eight categories, mentioned
under Sch. VII of The Companies Act, 2013.

These primarily fall under drinking water, sanitation, education, healthcare, social development,
livelihood opportunities and environment protection. These are:

1 Rural Development Projects

2 Healthcare including sanitation and drinking water
3 Education & Vocational Skills (incl. Educational Infrastructure)
4 Gender Equality & Women Empowerment (Incl. Old age homes)
5 Environmental Sustainability
6 Heritage Protection (Incl. Art and Culture)
7 Training for Promotion of Sports Talent
8 Other items as may be prescribed from time to time under Sch. VII of The Companies Act, 2013.

3. Governance Structure
3.1 A three-tier governance structure is responsible for implementing CSR activities at R Power and
its subsidiaries. These include the CSR Committee of the Board, Corporate CSR Team, and
Operational CSR Teams located at respective project/plant site.

3.2 Roles and Responsibilities

3.2.1 CSR Committee shall consist of three or more directors of which at least one shall be an
independent director. CSR committee shall be responsible for:

a) Formulation of CSR Policy.

b) Regular monitoring of implementation of CSR policy.
c) Identify key initiatives pursuant to the CSR policy.
d) Recommend to the Board CSR expenditure to be incurred.
E) Recommend to the Board, modifications to CSR policy as and when required.

3.2.2 Dedicated CSR team shall be constituted at Corporate Office for implementing the CSR Policy.
Corporate CSR Team, located at Mumbai, shall be responsible for

a) Implementation of CSR Policy.

b) Identify Key Result Areas (KRAs) and Key Performance Indicators (KPIs) to be tracked at
Corporate level and Operational (plant/project location) level.
c) Develop Annual Operating Plan (AOP) and targets against each of the identified KPIs at Corporate
and Operational level. (to be developed on a bottom-up basis).
d) Secure necessary approvals for CSR AOP
e) Facilitating allocation of funds along with relevant SPVs/Operations Team.
f) Monitoring of CSR projects on a quarterly basis to establish effectiveness of CSR efforts and report
the same to the CSR Committee.
g) Compilation of Information & Preparation of annual reports on CSR activities and. presenting the
same to the CSR Committee.
h) Organize Training programmes for CSR staff. i) Any other activity necessary to ensure
achievement of RPower’s CSR mission

3.2.3 Operational CSR Team located at respective plant / project locations is responsible for:

a) Provide Inputs for the CSR Policy Design.

b) Bottom-up preparation of CSR AOPs and identification of annual targets against KPIs.
c) Implementation of CSR Action Plans.
d) Conduct Needs Assessment Survey.
e) Own the CSR Programmes implemented and monitor effectiveness of CSR initiative delivery. f)
Monthly reporting on progress of CSR interventions.
g) Any other activity necessary to ensure achievement of RPower’s CSR mission

3.2.4 To maintain continuity of community related interventions / programmes initiated during the
project development stage, team members engaged in such activities would be drawn in as CSR team
members at the project execution / operation stage, wherever possible and augmented if necessary.

3.2.5 Depending on interventions / programmes, external experts shall be engaged on a contract basis
for development of baseline data, planning, implementation, monitoring effectiveness of CSR
initiatives, etc.

3.2.6 Voluntary participation by employees of R Power, who are not members of either CSR
Corporate Team or CSR Operational Teams at project /plant sites, and family members of such
employees, shall be encouraged in the implementation of CSR activities.
What are we intending to achieve
At Reliance, we firmly believe in our commitment to all our stakeholders. We are aware of our
commitment to local communities for ensuring sustainable development. Therefore, we lay high
emphasis on understanding the requirements of the local community and embark on initiatives,
expending considerable resources, which create long-term societal benefits.

We take utmost care in the selection of community interventions we initiate. Our prime endeavor is to
remain focused on creating long-term wealth creation for all local community members irrespective of
their gender, ethnic and religious backgrounds.

Being a conglomerate with diverse business interests, across various segments of economy, we are in
a position to integrate our services, let that be communication, financial services, entertainment and
others. We explore to amalgamate potential benefits one segment of the business may offer to the
others so that a holistic solution addressing the needs and concerns of local community is found.

Our Guiding Principles

We strive to impact local community in a positive and vibrant manner. Our social development
policies are based on the following guiding principles:

1. Honor spirit of law and be a responsible corporate citizen.

2. Pursue growth through harmony with global community via innovative management.
3. Adopt an approach aiming to achieve greater balance between social & economic
development.
4. Respect culture and customs of every project / plant location.
5. Work towards elimination of societal barriers such as poverty, social class, disability and
others.
6. Develop practices aimed at inclusive growth.
7. Foster a corporate culture that enhances both individual creativity and value of teamwork.
8. Aim to provide clean electricity and thrust on Energy Conservation and Environment
Protection.

Our greatest strength is that we look at our community interventions as part of our business, not post-
profit philanthropy.

Our Focus Areas

Based on the annual plans approved, we participate in multiple community interventions. Although,
our community interventions depend on the requirements of local community, our thrust is towards
education, healthcare, sanitation, sustainable livelihoods, community infrastructure development, etc.

Implementing Partners
We partner with government bodies, district authorities, non-governmental organizations, village
panchayats, and women self-help groups and end beneficiaries, who are mostly villagers in
neighbourhood areas. For some specific interventions, we partner with external agencies which have
domain expertise in respective fields transforming the landscapes.
Some of our Involvements:
Education

 Construction & renovation of school buildings.

 Formal and non-formal education.
 Child labour schools.
 Girl child education.
 Digital literacy through computer education.
 Remedial centres.
 Merit-cum-means scholarships to students.
 Free supply of note books and text books.

Healthcare

 Free medical camps (general and multi-specialty with specialist doctors).

 Mobile clinics with doctors and paramedical staff.
 Free ambulance services.
 Awareness programmes for women and adolescent girls.
 Blood donation camps.

Sanitation

 Construction of household toilets.

 Construction of toilets for children in the schools.
 Awareness campaigns.

Sustainable Livelihood

 Women empowerment.
 Women and Farmer Self Help Groups for Micro-enterprise development.
 Skill development and Vocational training.
  Integrated livestock & agriculture development.
 Introduction of high yield agricultural crops.
 Vermi-composting.
 Micro-irrigation.
 Renewable Micro off-grids.

Community Infrastructure Development

 Safe drinking water to communities.

 Water storage structures.
 Construction of community centres.
 Construction of Roads.
Environmental initiatives
Reliance Power strives to preserve and uphold natural resources and reduce the environmental impact
of its products and services throughout their lifecycle in order to be a responsible corporate citizen

The guiding principle for our environmental initiatives is the 5Rs: Reduce, Reuse, Recycle, Renew
and Respect.

The imperative is to use natural resources efficiently to leave a minimal carbon footprint and impact
on biodiversity. Reliance Power strives to develop and promote processes and newer technologies to
make all our products and services environmentally responsible. Employees, the supply chain and
other stakeholders are sensitized through personal interactions and other channels of effective
communication. Initiatives can be measured through resource savings in all cases. The company aims
to engage with government and non-government agencies to promote conservation.

Environmental initiatives for Reliance Power townships

Strategies are in place for sustainable township development in various sites of Reliance Power by
designing structures with minimum disturbance to the topography and ecology. The various steps
towards building an eco-friendly composition are:

 In the township phase I of all sites, the construction, hostel and housing blocks modified to
accommodate and preserve existing big trees.
 Rainwater harvesting has been made mandatory for all sites.
 Solar heating for public buildings
 Use of energy efficient building material
 Minimum day lighting arrangements for over 75% of the area
 Energy efficient electric fixtures within minimum 3 star BEE rating
 Water efficient plumbing fixtures
 Use of lead free paints
 Treatment of sewage water and reuse for landscape and irrigation purposes

Use of Green Technology

Reliance Power believes in using the best technology for all its businesses to lessen the environmental
impact. The company would be using super-critical technology and ultra super-critical technology that
enables better combustion of coal and thereby reducing the emission levels apart from the Flue Gas-
De-sulphurisation plant that reduces sulphur dioxide emissions in flue gas. For some sites of Reliance
Power, we would be using imported coal with low ash content. Moreover to limit ground level
concentration of pollutants, the chimneys are being made taller at all our plant sites.

Apart from using major breakthrough technologies and initiatives, Reliance Power has been very keen
on ensuring optimum utilization of the resources.

Of the 4000 acres of the land available with the company towards building of the power plant, we are
striving to build our plants within minimum possible use of land using compact designs and creating
more capacity within the existing sites. The rest of the land resource is utilized for strengthening the
green belt around the plants. We therefore ensure that we are ‘building a power plant in a
forest’. Water being another of the precious natural resource, Reliance Power endeavors that in all
our plant sites the design and the technology will use only minimum required amount of water and
further employ 100 per cent recycling too.
The company is also involved in implementing green steps like the fly-ash collected from the plants
which is further recycled for use by using it in manufacture of concrete bricks. Events and days of
ecological importance are celebrated to raise awareness for conservation of natural resource.
Environmental sanitation with special emphasis on solid waste management, waste segregation and
vermin-composting is practiced at site locations.

Corporate Social Responsibility (CSR) In National Thermal Power Corporation (NTPC)

Limited

Abstract: Corporate Social Responsibility is also called as corporate conscience, corporate citizenship
or sustainable responsible business/ Responsible Business. CSR is a form of corporate self-regulation
integrated into a business model. The term Corporate Social Responsibility became popular in the
1960s and has remained a term used indiscriminately by many to cover legal and moral responsibility
more narrowly construed. CSR is becoming an increasingly important activity to businesses nationally
and internationally. As globalisation accelerates and large corporations serve as global providers,
these corporations have progressively recognised the benefits of providing CSR programs in their
various locations. CSR activities are now being undertaken throughout the globe. Under the new
Companies Act, 2013, passed by Parliament in August 2013, profitable companies will have to spend
at least 2 per cent of their average net profit over the preceding three years on CSR activities. This
paper focuses on the conceptualization of CSR, trends & identification of various areas of CSR
activities of NTPC.

NATIONAL THERMAL POWER CORPORATION (NTPC) LIMITED

NTPC is an Indian Public Sector Undertaking, engaged in the business of generation of

electricity and allied activities. It is a company incorporated under the Companies Act 1956
and is promoted by the Government of India. The headquarters of the company is situated
at New Delhi. NTPC's core business is generation and sale of electricity to state-owned
power distribution companies and State Electricity Boards in India. The company also
undertakes consultancy and turnkey project contracts that involve engineering, project
management, construction management and operation and management of power plants.

The company has also ventured into oil and gas exploration and coal mining activities.
It is the largest power company in India with an electric power generating capacity of
53,651 MW. Although the company has approx. 16% of the total national capacity it
contributes to over 25% of total power generation due to its focus on operating its power
plants at higher efficiency levels (approx. 80.2% against the national PLF rate of
64.5%).NTPC currently produces 25 billion units of electricity per month.

It was founded by Government of India in 1975, which now holds 64.74% of its equity
shares on 30.06.2016 (after divestment of its stake in 2004, 2010, 2013, 2014, 2016, &
2017). In May 2010, NTPC was conferred Maharatna status by the Union Government of
India, one of the only four companies to be awarded this status. It is ranked 400th in the
Forbes Global 2000 for 2016.

VISION OF NTPC

“To be the World’s Leading Power Company, Energizing India’s Growth.”

MISSION OF NTPC

Provide Reliable Power and Related Solutions in an Economical, Efficient and

Environment Friendly Manner, Driven by Innovation and Agility.

. CSR COVERAGE

The activities are taken up at three levels:

Station level: Neighbourhood villages through Need Assessment and

consultation with local community and other stakeholders

Regional/National level: For addressing socio-economic issues at national level

and overall development of States in which NTPC operates to improve visibility
and impact

Other Strategically important activities and new initiatives: Activities of

strategically important nature in relation to Business Goals and new Corporate
driven initiatives.

ALLOCATION & EXPENDITURE ON CSR BY NTPC

Expenditure (Rs.
Sl. No. Year Allocation (Rs. Cr) Cr)
1 2007-08 14.01 15.53
2 2008-09 17.94 13.43
3 2009-10 16.75 20.47
4 2010-11 72.34 72.21
5 2011-12 45.51 49.44
6 2012-13 * 56.37 79.42
7 2013-14 * 126.12 128.35
8 2014-15 * 283.48 205.18
9 2015-16* 349.65 491.8
10 2016-17* 227.85 277.81
11 2017-18* 220.75 241.54
 * Including CSR & Sustainable Development Activities

Expenditure on CSR by NTPC

FINDING: Table shows the 10 years expenditure and allocation amount by NTPC
on CSR related activity in which the allocation amount for CSR was Rs. 14.01 cr. &
expenditure was Rs. 15.53 cr in 2007-08. In the next year is allocated Rs. 17.94 cr.
amount of which only Rs.13.43 cr. was expended for CSR activity.

In the year 2015-16 the expenditure amount was Rs.491.8 cr. which was the highest
expenditure of the company on CSR during last 7 years and the allocation amount this
year only 349.56 cr. and finally in the year 2017-18 expenditure reduce to 241.54 cr.

Overall trend of the expenditure & allocation of the amount is increasing from the year
2008-09 to 2017-18.

Table

CSR Expenditure during the specified period 2017-18 in Lakh

Education 6835.98
Health 2384.75
Sanitation 1450.68
SVA 33982.26
Water 2815.61
Infrastructure 8603.28
Roads 5828.65
Vocational 1897.30
Training
Women 305.54
Empow erm e
nt
Sports 554.02
 Culture 470.91
Physically 655.74
Challenged
Others 3876.53

Focus Area Wise CSR Expenditure during the specified period 2017-18 in Lakh

FINDING: This table shows the area wise expenditure on CSR activity by the company
during 2017-18. The company has expenditure highest amount on SVA activities followed
by infrastructure, education, road & health. The amount invested on SVA activity is Rs.
33982.26 lakh were as on infrastructure, education, road & health the company invested
Rs. 8603.28 Lakh, Rs. 6835.98 Lakh, Rs. 5828.65 Lakh & Rs. 2384.75 Lakh respectively.