Social Responsibilities of Business

You know that business is an economic activity, which is carried out on a regular basis to earn profit. However, you must have seen businessmen spending moneyOn different aspects, which is not going to give them any profit straightway?

For example You must have seen businessmen maintaining and developing gardens and parks onStreets and squares in cities. Some businessmen engage themselves in research forimproving the quality of products; some provide housing, transport, education andHealth care to their employees and their families. In some places businessmen providefree medical facility to poor patients. Sometimes they also sponsor games and sports atnational as well as international level.

Did we ever wonder why they do so?

Let us learn more about why businessmen engage themselves in such activities.

Objectives

Our objective is to explain these relevant points

! Explain the concept of social responsibility of business;! Appreciate the importance of social responsibility;! Recognize the responsibility of business towards different interest groups;! Explain the concept of social values and business ethics;! Identify the causes of environmental pollution; and! Describe the role of business in preventing and controlling environmental pollution.

What is Social Responsibility?

In your daily life, you perform a number of activities. For exampleListening to your parents,Showing respect to eldersObeying traffic rules on road etc.Keeping the road clean by not throwing garbage on it,

Why do we perform all these activities?Because we have certain duties towards society

As we know, every business operates within a society. It uses the resources of the societyand depends on the society for its functioning. This creates an obligation on the part of business to look after the welfare of society. So all the activities of the business shouldbe such that they will not harm, rather they will protect and contribute to the interests ofthe society. Social responsibility of business refers to all such duties and obligations ofbusiness directed towards the welfare of society. These duties can be a part of the routinefunctions of carrying on business activity or they may be an additional function of carryingout welfare activity.

For exampleA rug-manufacturing firm undertakes extensive research and thus, produces drugs which are qualitatively superior. It also provides scholarships or fellowships to the family members ofits employees for studying abroad. We find, in both the cases, the drug-manufacturing firm is carrying out its social responsibility. In case of the former, it is a part of its routine businessfunction while in the latter case it is a welfare function.

Concept of Social Responsibility

We all know that people engage in business to earn profit. However, profit making is not thesole function of business. It performs a number of social functions, as it is a part of the society.It takes care of those who are instrumental in securing its existence and survival like- the owners, investors, employees, consumers and government in particular and the society and communityin general. So, every business must contribute in some way or the other for their benefit.

For example,

Every business must ensure a satisfactory rate of return to investors;Provide good salarySecurity and proper working condition to its employees,Make available quality products at reasonable price to its consumers,Maintain the environment properly etc.

However, while doing so two things need to be noted to view it as social responsibility ofbusiness. First, any such activity is not charity. It means that if any business donates someamount of money to any hospital or temple or school and college etc., it is not to be consideredas discharge of social responsibility because charity does not imply fulfilling responsibility.

Secondly, any such activity should not be such that it is good for somebody and bad forOthers. Suppose a businessman makes a lot of money by smuggling or by cheating customers,and then runs a hospital to treat poor patients at low prices his actions cannot be sociallyjustified. Social responsibility implies that a businessman should not do anything harmful tothe society in course of his business activities.The obligation of any business to protect and serve public interest is known asSocial Responsibilities of Business

Thus, the concept of social responsibility discourages businessmen from adopting unfair means like

Black-marketing,Hoarding,Adulteration,Tax evasion and cheating customers etc to earn profit.

Instead, it encourages them to earn profit through judicious managementof the business, by providing better working and living conditions to its employees, providingbetter products, after sales-service, etc. to its customers and simultaneously to controlpollution and conserve natural resources.

Why should business be socially responsible?

Social responsibility is a voluntary effort on the part of business to take various steps toSatisfy the expectation of the different interest groups.As you have already learnt, the interest groups may be owners, investors, employees, consumers, government and society or community. But the question arises, why the business should come forward and be responsible towards these interest groups.

Let us consider the following points:

Public Image –The activities of business towards the welfare of the society earn goodwilland reputation for the business. The earnings of business also depend upon the publicimage of its activities. People prefer to buy products of a company that engages itselfin various social welfare programmes. Again, good public image also attracts honestand competent employees to work with such employers.

Government Regulation – To avoid government regulations businessmen shoulddischarge their duties voluntarily. For example, if any business firm pollutes theenvironment it will naturally come under strict government regulation, which mayultimately force the firm to close down its business. Instead, the business firm shouldengage itself in maintaining a pollution free environment.

Survival and Growth-Every business is a part of the society. So for its survival andgrowth, support from the society is very much essential. Business utilizes the availableresources like power, water, land, roads, etc. of the society. So it should be theresponsibility of every business to spend a part of its profit for the welfare of thesociety.

Employee satisfaction – Besides getting good salary and working in a healthy atmosphere,employees also expect other facilities like proper accommodation, transportation,education and training. The employers should try to fulfill all the expectation of theemployees because employee satisfaction is directly related to productivity and it isalso required for the long-term prosperity of the organisation. For example, if businessspends money on training of the employees, it will have more efficient people to workand thus, earn more profit.

Consumer Awareness – Now-a-days consumers have become very conscious abouttheir rights. They protest against the supply of inferior and harmful products by formingdifferent groups. This has made it obligatory for the business to protect the interest ofthe consumers by providing quality products at the most competitive price.

Responsibility towards Different Interest Groups

After getting some idea about the concept and importance of social responsibility of businessLet us look into the various responsibilities that a business has towards different groups withwhom it interacts. The business generally interacts with owners, investors, employees,Suppliers, customers, competitors, government and society. They are called as interest groupsBecause by each and every activity of business, the interest of these groups is affecteddirectly or indirectly.

Responsibility towards owners Owners are the persons who own the business. They contribute capital and bear the business risks. The primary responsibilities of business towards its owners are to:

a. Run the business efficiently. b. Proper utilization of capital and other resources. c. Growth and appreciation of capital. d. Regular and fair return on capital invested.

ii. Responsibility towards investors Investors are those who provide finance by way of investment in debentures, bonds, deposits etc. Banks, financial institutions, and investing public are all included in this category. The responsibilities of business towards its investors are:

a. Ensuring safety of their investment, b. Regular payment of interest, c. Timely repayment of principal amount.

iii. Responsibility towards employees Business needs employees or workers to work for it. These employees put their best effort for the benefit of the business. So it is the prime responsibility of every business to take care of the interest of their employees. If the employees are satisfied and efficient, then the only business can be successful. The responsibilities of business towards its employees include:

a. Timely and regular payment of wages and salaries. b. Proper working conditions and welfare amenities. c. Opportunity for better career prospects. d. Job security as well as social security like facilities of provident fund, group insurance, pension, retirement benefits, etc. e. Better living conditions like housing, transport, canteen, crèches etc f. Timely training and development.

iv. Responsibility towards suppliers Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders. Certain suppliers, called distributors, supply finished products to the consumers. The responsibilities of business towards these suppliers are: a. Giving regular orders for purchase of goods. b. Dealing on fair terms and conditions. c. Availing reasonable credit period. d. Timely payment of dues.

v. Responsibility towards customers No business can survive without the support of customers. As a part of the responsibility of business towards them the business should provide the following facilities: a. Products and services must be able to take care of the needs of the customers. b. Products and services must be qualitative c.There must be regularity in supply of goods and services Business Studies d. Price of the goods and services should be reasonable and affordable. e. All the advantages and disadvantages of the product as well as procedure to use the products must be informed do the customers. f. There must be proper after-sales service. g. Grievances of the consumers, if any, must be settled quickly. h. Unfair means like under weighing the product, adulteration, etc. must be avoided.

vi. Responsibility towards competitors Competitors are the other businessmen or organizations involved in a similar type Business Existence of competition helps the business in becoming more dynamic and innovative so as to make itself better than its competitors. It also sometimes encourages the business to Indulge in negative activities like resorting to unfair trade practices. The responsibilities of Businesses towards its competitors are i. Not to offer exceptionally high sales commission to distributors, agents etc. ii. Not to offer to customers heavy discounts and /or free products in every sale. iii. Not to defame competitors through false or ambiguous advertisements.

vii. Responsibility towards government Business activities are governed by the rules and regulations framed by the government. The various responsibilities of business towards government are: a. Setting up units as per guidelines of government b. Payment of fees, duties and taxes regularly as well as honestly. c. Not to indulge in monopolistic and restrictive trade practices. d. Conforming to pollution control norms set up by government. h. Not to indulge in corruption through bribing and other unlawful activities.

viii. Responsibility towards society A society consists of individuals, groups, organizations, families etc. They all are members of the society. They interact with each other and are also dependent on each other in almost all activities. There exists a relationship among them, which may be direct or indirect business, Being a part of the society, also maintains its relationship with all other members of the society. Thus, it has certain responsibilities towards society, which may be as follows: a. to help the weaker and backward sections of the society b. to preserve and promote social and cultural values c. to generate employment d. to protect the environment e. to conserve natural resources and wildlife f. to promote sports and culture

g. to provide assistance in the field of developmental research on education, medical

4.6 Social Values and Business EthicsEvery society generally views certain activities, conduct and behaviour of its members to beundesirable or harmful to others. Similarly, desirable acts and conduct of people are recognisedand appreciated in society. Social values refer to the general recognition in society aboutwhich acts are good and desirable on the part of people and which acts are not. In relationto business, social values of business may indicate:a. the characteristics of good business;b. objectives which are desirable for business to follow; andc. the manner in which business activities should be conducted in the interest ofsociety.For example, we consider it bad, if any business indulges itself in selling adulterated goodsor charging higher price or polluting the environment. Thus, social values of the businessform the base for social responsibilities.Business Studies44Ethics refers to conduct and activities of people based on moral principles. Honesty,truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical.Business can also be guided by certain moral principles say, running the business withoutadopting unfair practices, being honest and truthful about quality of goods, charging fairprices, abiding to laws, paying taxes, duties and fees to the government honestly. The basicquestion underlying business ethics is whether business should aim at earning profit by anymeans? Obviously, not. Thus, businessmen should charge only fair price for the goods andservices supplied, never sell adulterated products as pure. Indeed business ethics suggestcertain principles to conduct business so as to be morally justified. Just like social values,business ethics also play a major role while fulfulling social responsibilities.4.7 Environmental Pollution and Role of BusinessTo preserve the society it is important to protect the environment. And, therefore, everybusiness must take measures to protect the environment rather than damaging it. In thissection let us learn more about different types of environmental pollution and role of business.Nature has given us air, land including mountains, hills, forests etc. and water in the form ofrivers, lakes, sea etc., which create an environment in which we live. Our health and wellbeing largely depend on the quality of such environment. However, it is observed that thequality of this environment is deteriorating day by day. We are getting neither pure water todrink nor clean air to breathe. We are having untimely rains, storms, cyclones, floods, extendedsummer, etc. We are also suffering from various diseases because of such lower quality ofenvironment. When the quality of environment deteriorates, it is said that the environment isgetting polluted. Thus, environmental pollution refers to contamination of environment byvarious substances that have adverse effects on living and non-living matters.Environmental pollution is of three types:i) Air pollution,ii) Water pollution, andiii) Land Pollution.Let us have a brief discussion about these three types of pollution.i. Air PollutionAs we know the air we breathe contains several gases, dust particles etc. Our body mechanismhelps us in filtering the unwanted ones and retaining those required for our survival. However,if there is an imbalance in the proportion of gases and dust particles in air, beyond a certainpoint, our body mechanism fails to filter them and we face problem. This is also true in careof other natural things like forests, river etc. Thus, air pollution refers to the presence of anyunwanted gases, dust particles etc. in the air, that can cause damage to people as well asnature.

Causes of Air PollutionLet us know how air gets polluted. Some of the common causes of air pollution arei.Emission of fumes from vehicles.Pollution simply meanspresence of any unwantedsubstance thatcreates inconveniencein the natural behaviourof living and non-livingmatter.Social Responsibilities of Business45ii. Emission of smoke dust and chemicals from manufacturing plants.iii. Emission of gases and dust arising from atomic plantsiv. Emission of smoke from oil refineries, burning of trees and plants in forests,buring of coal, etc.Impact of Air PollutionAir pollution has a lot of impact on our surroundings and on us. Some of them are-! Presence of gases in air, which are not required by human beings, animals and birds,creates serious health problems. It can create diseases like asthma, cough and cold,blindness, hearing loss, skin disease etc. It also causes genetic disorders. In the longrun and in extreme cases it can also be fatal.! Air Pollution creates smog in the winter, which is caused by smoke and dust whenthey mix with fog. It reduces natural visibility and irritates the eyes and respiratorytract.! Ozone layer is a protective layer of gases around our earth, which protects us fromharmful ultraviolet rays that come from the sun. It gets depleted because of air pollutionand thereby causes gene mutation, genetic defects and skin cancer.! The temperature of the earth increases due to air pollution. This is because whateverheat our earth receives from the sun is not radiated to the atmosphere due to theexcessive presence of gases like carbon dioxide, methane, nitrous oxide, etc.! Air pollution causes acid rain which means excessive presence of various poisonousgases like sulphur dioxide, nitrogen oxide etc. in the rainwater. This causes lot ofdamage to vegetation, trees and marine life, buildings and monuments etc.Environment is also polluted through excessive noise, known as Noise Pollution. Noisesimply means an unwanted sound that causes irritation. It is caused by modern machinesand gadgets such as rail engines, loud speakers, generators, aeroplanes, vehicles,machineries, telephones, televisions etc. It initially distorts communication process, butprolonged exposure to noise pollution can cause loss of hearing, headache, irritation, highblood pressure, neurological or psychological disorders, etc.b. Water PollutionHave you seen river Yamuna near Delhi? Are you aware about the clean Ganga project?These two questions almost immediately remind us about the extent to which the water ofour rivers has been polluted. Water pollution refers to contamination of water due to presenceof unwanted and harmful substances thus, making water unfit for use.Causes of Water PollutionThe various reasons of water pollution arei.Drainage of human excreta into rivers, canals etc.ii. Improper sanitation and sewage system.iii. Dumping of wastes and effluents by various industrial units into the rivers andcanals.iv. Drainage of toxic substances like chemicals and fertilizers used in cultivation, intostreams and rivers.Business Studies46

v. Dumping of garbage, dead bodies and almost every thing used in rituals to thenearby water source by households.Effects of Water PollutionThe effects of water pollution are:a. It can create health hazards among human beings, animals and birds. Diseaseslike typhoid, jaundice, cholera, gastroentytis etc. are common.b. It can endanger lives of various aquatic species.c. It can lead to scarcity of drinking water as the water of rivers and canals as wellas underground water get polluted.c. Land PollutionLand Pollution refers to dumping of useless, unwanted as well as hazardous substances onthe land that degrades the quality of soil we use. Our land gets polluted because of thehuman carelessness towards the soil.

Causes of Land PollutionThe main causes of land pollution are:(i) Excessive use of fertilizers, chemicals and pesticides in cultivation.(ii) Disposal of solid waste of industries, mines and quarries.(iii) Disposal of solid waste from construction of roads, buildings etc.Social Responsibilities of Business47(v) Effluents of some plants like paper, sugar etc. which are not absorbed by soil.(vi) Excessive use of plastic bags, which are non-biodegradable.(vii) Dumping of non-composable wastes from households, hotels and hospitals as well asfrom industries. These may include combustible items like plastic, cloth, wood etc.,and non-combustible items like metal, glass, ceramics, cement etc.Effects of Land PollutionLand Pollution has the following harmful effectsa.Reduces the quantum of cultivable land area.b. Causes health hazards as it contaminates the sources of food.c. Causes damage to the landscape.d. Leads to water and air pollution.4.8 Role of Business in Environmental PollutionFrom the above discussion on environmental pollution, one thing can clearly be seen that, itis business that mainly contributes to all sorts of pollution -air, noise, water and land.Business causes pollution in the following ways:- Emission of gas and smoke from manufacturing plants;- Use of machines, vehicles etc. contributing to noise pollution;- Deforestation due to acquisition of forest lands for setting up plants;- Growth of urbanization and industrialization;- Disposal of wastes and effluents into rivers and canals;- Disposal of solid wastes in the open space;- Mining and quarrying activities; and- Increasing use of transport.Government has taken a major step in protecting the environment by passing the EnvironmentProtection Act, 1986 in addition to having Water (Prevention and Control of Pollution) Act,1974, Air (Prevention and Control of Pollution) Act, 1981 and several other Acts. Businesscan equally be instrumental in fighting pollution and protecting the environment. Businesscan have three types of role - preventive, curative and awareness.i. Preventive RoleIt means business should take all steps so that no further damage is done to the environment.For this, business must follow the regulations laid down by government to control pollution.For example, more and more environmental friendly products can be produced, filters canbe used in chimneys; silencers can be fitted in generators; instead of dumping industrialwastes into river and land it can be treated properly for further productive use etc.

Businessmen should come forward to play a major role in preventing further damage doneto the environment by human beings. Sulabh International is the leading example of how toprovide proper sanitation facilities to the public.Business Studies48ii. Curative RoleIt means business should rectify whatever damage has been done to the environment. Inaddition, if it is not possible to prevent pollution then simultaneous curative measures can betaken. For example, planting of trees (afforestation programmes) can substantially reduceair pollution near the industrial area.iii. Awareness RoleIt means making people (both the employees as well as the general public) aware about thecauses and consequences of environmental pollution so that they voluntarily try to protectrather than damage the environment. For example, business can undertake public awarenessprogrammes. Now-a-days, we find that some business houses have taken the responsibilitiesto develop and maintain parks and gardens in cities and towns, which shows that they carefor the environment..

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Reliance Industries Ltd.

Sales (2007-2008) = Rs. 1,40,000 corers (rounded off) Net profit after tax = Rs. 19500 corers (rounded off) CSR Budget = Not Available 

Karmayog 2008 CSR Rating: 2/5

CSR activities: Our Commitments :

Growth is care for the environment

Reliance believes that a clean environment in and around the workplace fosters health and prosperity for the individual, the group and the larger community to which they belong. Environmental protection is an integral part of the planning, design, construction, operation and maintenance of all our projects.

Growth is thinking beyond business

As corporate citizens, we invest in social infrastructure, believing strongly that our business strength fuels our social contributions. To this end, Reliance encourages, funds and develops numerous education, health,

human capital and infrastructure initiatives. These initiatives are undertaken through partnerships with non-governmental organizations, corporates and trusts.

Social Responsibility & Community Development :

Social welfare and community development is at the core of Reliance’s Corporate Social Responsibility (CSR) philosophy and continues to be a top priority for the Company. It revolves around the Company’s 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.

Reliance’s contributions to the community are in the area of health, education, infrastructure development (drinking water, improving village infrastructure, construction of schools etc.), environment (effluent treatment, tree plantation, treatment of hazardous waste), relief and assistance in the event of a natural disaster, and miscellaneous activities such as contribution to other social development organizations etc. The Company’s CSR teams at all manufacturing divisions interact with the neighbouring community on regular basis. The Company takes pride in the fact that its CSR representatives are known by their first names in the regions that it operates.

Education‘Teach them young’ is the very motto of Reliance as the Company believes that the quality of inputs received by an individual at an early age contributes to his or her growth as a capable human being. To ensure high quality of teaching, Reliance has made significant efforts towards value enhancement of teachers through professional and institutionalized training. Dahej Manufacturing Division conducted educational and excursion tours of students and teachers from the primary schools of neighbouring villages, and also organized ‘Balmela’ and Science and Mathematics Fair.

To provide training in the field of effective techniques and modern methods of teaching to high school teachers in the Hazira area, the Company organized training of teachers in various subjects.

Reliance has launched the “Sky is the limit” programme at Hazira, to address the problem of school drop-outs in the local community.

The Company also provides opportunities to engineering and management institute students to undergo in-plant training/projects as part of their academic curriculum, thus enabling them to appreciate application of theoretical knowledge and get an exposure to the industrial practices.Efforts were made to enhance employability/skill development of local youths. This was done by giving opportunities to them to work in the Company’s operating plants, which in turn improve their job prospects.

Executive Development Programs for officers of neighbouring industries were organized in coordination with PRIA (Patalganga Rasayani Industries Association).

The Company’s major manufacturing locations provide good quality education to the children of all employees and also cater to the needs of surrounding villages. Jamnaben Hirachand Ambani School, Kokilaben Dhirubhai Ambani Vidya Mandir, and Jamnaben Hirachand Ambani Saraswati Vidya Mandir are schools near the Company’s manufacturing locations at Patalganga, Hazira and Jamanagar respectively. A modern educational infrastructure coupled with extra-curricular activities and recreational facilities distinguish all these schools.

To encourage school children from neighbouring villages, Nagothane Manufacturing Division based CSR cell – MGCC Area Development Research Foundation (MADER) Trust took following initiatives:   Felicitated meritorious students from neighbouring villages and tribal hamlets. Each student received a set

of note books, stationary items and a school bag.   There are several Zilla Parishad schools located on the hilltop near Nagothane Manufacturing Division

where all the children who are attending school are tribal. With an objective to encourage the tribal students, Reliance also provided school uniforms.

Barabanki Manufacturing Division renovated a primary school in an adjoining village. Hoshiarpur Manufacturing Division provided free uniform (winter and summer), books, bags, shoes and stationery to the school-going children of neighbouring village.

Health

Health Awareness Programs, covering diverse topics such as noise pollution, hazards substance abuse, prevention of HIV/AIDS and First Aid were conducted for students of schools at the neighbouring towns and

villages of Patalganga. Barabanki Manufacturing Division provides medical service and awareness programs on health, hygiene, cleanliness and sanitation in neighboring villages.

Hoshiarpur Manufacturing Division too conducts monthly checkup camps at neighbouring villages. Free medicines and spectacles were also provided. Round the clock free ambulance service has been provided to roadside accident victims. Hazira Rehabilitation Centre for the Physically Challenged has been set up in partnership with Disabled Welfare Trust of India for capacity building of physically challenged children from the weaker sections of society.

Initiatives to Combat HIV / AIDS and TB

The Company provides Community Medical Centres near most of its manufacturing divisions. These centres cater to the Governmental health care programmes like maternal and child health, TB, malaria, HIV / AIDS etc., besides providing curative treatment. These Centres have been well received and go a long way in providing the medical relief for the community. The Company has implemented HIV / AIDS and DOTS programme at Hazira and Jamnagar, and is in the process of replicating the same at the other manufacturing divisions. This initiative is a publicprivate partnership between the Government, NGOs and Reliance. This comprehensive project extends from creating awareness to providing treatment, care and support. Reliance’s initiative to combat HIV / AIDS has been recognized by UNAID, World Bank and other national and international institutions.

Adoption of Public Health Centre (PHC)

Reliance has adopted a Primary Health Centre (PHC) from the State Government of Gujarat and converted it into a model primary health centre. The PHC located at Dahej in Bharuch District, Gujarat, has attained the status of the best PHC in the District in a short-span of 6 months and has established itself as a centre of excellence.

Highway Rescue Intervention

To provide emergency and trauma care to victims of highway accidents, Hazira has tied-up with an NGO to run the project on the State Highway in Gujarat starting from Sachin to Bharuch, and the State Highway via Hazira - Olpad - Hansot - Ankleshwar. The project will benefit thousands of commuters who use this highway on a daily basis.Traffic Police personnel are the first government agency to respond to an emergency involving a chemical tanker or a truck. With the increase in the number of accidents on roads and the unending addition of new chemicals, it is important that these personnel understand the hazards and the basic steps to be taken to safeguard themselves and the general public from the hazards of chemicals. The Company’s initiative of training traffic police personnel by its Kurkumbh Manufacturing Division in handling road transport emergencies involving chemicals will go a long way in serving the objective of community well-being.

Dhirubhai Ambani Hospital, Lodhivali

Reliance also operates the Dhirubhai Ambani Hospital, Lodhivali and renders quality medical services to the rural population and highway accident victims.

Moti Khavdi Medical Centre

As part of corporate social responsibility services, a community medical centre was established in Moti Khavdi, a village near Jamnagar Manufacturing Division, during the pre-commissioning stage of the refinery in November 1995. This Community Medical Centre provides comprehensive medical services free of cost and round the clock. About 1.2 lakh villagers of nearby areas like Moti Khavdi, Nani Khavdi, Padana, Meghpar, Gagva, Jogvad, Baid, Kanalus, Sikka, Sarmat, Navaniya, Mungani, Jakhar, Bara, Vasai and Amra benefit from the same.

Community Medical Services at SEZ, Jamnagar

A massive workforce from all parts of India are working at the mega construction activities in the SEZ at Jamnagar. The Company has given shelter in several colonies. Each labour colony has a separate medical centre. Each medical centre is manned round the clock by doctors, nurses and ambulances.

Thalassaemia detection camp and Parental counselling

The tribal areas in regions near Surat, Gujarat, are highly endemic to the prevalence of a thalassaemic trait, which is a genetic disorder. The Company launched a thalassaemia detection camp in association with the Indian Red Cross in the local high school. Children from the nearby school were tested for the disorder. The

opportunity was also used for detecting aneamia and sickle cell aneamia. A post-test counseling session was organized for the parents of these children.

Project “Cancer-Aid” for Cancer patients

In partnership with the Lions Cancer Detection centre, the Company provides monetary assistance for purchase of medicines to cancer patients.

Mobile Dispensaries

Reliance also operates free medical diagnostic and therapeutic services at neighbouring villages of several of its manufacturing locations.

Blood Donation Drives

The Company’s employees organize and participate in blood donation campaigns every year across its manufacturing divisions and offices.

Public Health Care

Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC) Dhirubhai Ambani Foundation (DAF), with financial and technical services support from the Reliance Group, joined in 1997 the Management of HNHRC, a charitable hospital offering tertiary health care facilities to all strata of society and providing free and subsidized services to the poor and indigent patients availing of various diagnostic and treatment facilities.Thousands of patients have received treatment indoors in the various wards and specialized care areas and at OPD services at P.T. Clinic, the popular Diagnostic Centre of the Hospital. The Hospital continues its age-old tradition of rendering free service to all in the casualty ward. More than 4,000 surgeries were performed during the year, of which a major portion was special and supramajor surgeries.

The Hospital carried out several Cadaver Transplants in the recent past. Further, the eye Donation drive initiated by the hospital witnessed an increased response. Some of the important outreach programmes conducted during the year included a Senior Citizen Health Screening Program in association with Rotary Club, and a medical back-up for the Special Olympics event organized by the Lions Club - International. Twice a month, the hospital continues to conduct free health check-up for senior citizens and physically challenged in Mumbai. These programmes have gone a long way in educating the community on prevention of diseases, and promoting a healthy lifestyle.

The hospital is in the process of building a multi-storied ultra modern tertiary care hospital with state-of-art facilities and infrastructure embracing the entire spectrum of health care services. Several new facilities would be added, and many of the existing facilities would be significantly upgraded in areas like Neurology and Neurosurgery, Urosurgery, Cardiology and Cardiac Surgery, Cardiovascular Surgery and Cosmetology. A chain of blood banks would be established at various centres under a new initiative by the DAF. Educational and research activities at the hospital shall receive significant boost by way of advanced facilities and better funding. The project, when completed, would be a landmark healthcare facility in this city. Sir Hurkisondas Nurrotumdas Medical Research Society (HNMRS) DAF, through the Reliance Group, supports the scientific research activities of HNMRS. The Society has been carrying out scientific research activities since 1974 -75 and has completed more than 130 research projects.

The scientists from HNRMS have presented over 180 papers at various national and international conferences. More than 130 papers have been published in peer reviewed scientific journals, about half of them being highly rated as prestigious international journals. Topics of national health priority constitute a major share of the research projects undertaken.

The researchers are motivated to expand their research avenues to carry out epidemiological studies and community-based surveys. As part of such studies, children from nearby schools and susceptible population from neighbourhood communities are regularly screened by medical / paramedical professionals. Those in need of medical care are offered special attention and treatment at the institution free of cost.

Drishti

Project Drishti, a nation-wide corneal grafting drive to bring light into the lives of visually challenged from the underprivileged segment of society has restored the gift of sight to over 5,500 Indians. A unique joint initiative of Reliance Industries Limited and National Association of Blind (NAB), Project Drishti has undertaken over

5,500 keroptoplasty surgeries in less than 4 years since it was started - all free of cost. It is now the largest corneal grafting surgery project enabled by a single corporate entity in India.

Drishti Painting CompetitionAs a part of corporate initiative to propagate awareness of Project Drishti, Drishti painting competition is organized for school children at several manufacturing divisions and offices of the Company.

Community DevelopmentJamnagar Manufacturing Division continues to extend a helping hand to surrounding villages and the community at large. Activities during the year focussed on improving village infrastructure, supply of drinking water, education support etc.

During the year, in a unique initiative to improve rural housekeeping and sanitation, a totally fresh approach was adopted to beautify Moti Khavdi; Reliance’s adopted village. Cleaning and sanitation drive at Moti Khavdi was taken up as an ongoing project.

Three MoUs were finalized with the State Government of Gujarat for development of Dwarka during the year. They are to (i) develop the temple square in front of the famous Dwarkadheesh temple (ii) construct ‘Sudama Setu’-a bridge to connect both the banks of Gomati river behind Dwarkadheesh’s temple and (iii) develop ‘Panch-kui’ area on the sea-shore where five wells, believed to be dug by Pandavas, still give fresh potable water right on the seashore.

To maintain and support village cows in surrounding villages, two more brand new cow-sheds for Kanalus and Kanachikari were constructed and handed over to the respective villages. These cows and cow-sheds (“Gaushala”) receive regular fodder supply from the Company’s Jamnagar Manufacturing Division.

Construction of a public lavatory, water tank and avedo (common drinking water facility for villagers) was done at Nani Khavdi during the year under report. Drinking water through water tankers was supplied during a crisis period in Sikka, Nani Khavdi, Meghpar and Padana. At Kanachikari, Drinking water pipelines were laid during the year.

A new primary school building at Navagam was constructed and repairing of some village schools was taken up. Participation and distribution of sweets in village schools during the Independence Day and the Republic Day; support to Government of Gujarat’s drive for girls’ education; distribution of gifts to girls of villages during Navratri festival; supporting Navratri celebrations in Jamnagar were some of the salient aspects of Jamnagar Manufacturing Division’s Community Welfare Cell as part of routine and regular activities.

In a major initiative to celebrate Navratri, the world’s longest dance festival on a large scale; Jamnagar manufacturing division took a lead to form Gujarat Industries Navratri Festival. A gala festival was organized and celebrated at state capital Gandhinagar’s helipad ground for nine days jointly with leading industries of Gujarat. The event brought to fore the role of industries, handicrafts, art and culture etc in the development of Gujarat as a vibrant state. The event evoked tremendous response and applause from every quarter of the society at large.

Reliance Rural Development Trust (RRDT)The work to improve the rural infrastructure under the Government of Gujarat’s rural development plans was continued with full energy by RRDT. During the year under report, the RRDT created 760 facilities in the rural areas at a cost of Rs. 24.07 crore. The facilities included 247 concrete roads, 465 anganwadis, 38 drinking water facilities, 1 panchayat office, 2 community halls, 5 check-dams and 2 other amenities in the rural areas of the State of Gujarat. RRDT has turned out to be an exemplary corporate NGO steadily and silently implementing government’s developmental plans for rural areas of Gujarat. It is a unique synergy between a corporate giant like Reliance Industries Limited and the Government of Gujarat, formed to carry out rural development projects in private public partnership.

Dahej Manufacturing Division has been playing a pivotal role in the development of the society. Social initiatives undertaken by Dahej Manufacturing Division are concentrated towards promotion of education, health awareness and medical facilities, infrastructure development and supply of safe drinking to the villages.

Some of the initiatives undertaken by the Company’s E&P Division near KG-D6 include 1) gainful employment for local communities, 2) vocational training for the youth, 3) employment for members of Gadimoga panchayat, 4) financial assistance for community activities, 5) sponsoring of cultural and sports events, 6) financial relief to affected communities, 7) compensation to local fishermen, 8) academic and financial assistance and educational support through distribution of books, 9) improvement of village school infrastructure and 10) medical help to local communities.

After successfully implementing zero garbage concept at Nagothane Manufacturing Division, the Company’s CSR cell took the initiative to propagate the concept of solid waste (dry and wet waste) management in the neighbouring villages so as to help villagers in keeping their village environment neat, clean and garbage-free.

Reliance has also solved the long-standing drinking water problem of villages near its Manufacturing Divisions located at Naroda and Nagpur. Further, Reliance has created public bathing facilities and toilets for truckers and residents of villages for improving hygiene near its Allahabad Manufacturing Division.

Empowerment of Women and YouthReliance has conducted many training programmes, which would help the rural women and youth to be self sustaining and generate income for themselves and support their families.

The training programmes conducted at Vadodara for the rural women and youth of surrounding villages of Vadodara Manufacturing Division during the current year are: 1) Women Empowerment, 2) Dress making & Designing, 3) Beauty Culture & Healthcare, 4) Hospital attendant (Helpers for Hospital & Nursing Homes), 5) Plumbing & Hand Pump repairing training, 6) Computer Hardware, 7) Motor Vehicle Driving, 8) Mobile Repairing and 9) Doormat making. Several persons participated and benefited from the above training programmes.

Nagothane Manufacturing Division based CSR cell-MADER Trust is supporting several Self-Help groups in income generating activities such: Hatsadi tandul (brown rice cultivation), phenoyl making, agarbati-making, candle-making, papad-making and supplying it to industrial canteens and also hand-carry-bag making. Hoshiarpur Manufacturing Division conducts free stitching courses for the women of nearby villages.

Skill Up-gradationReliance runs special training programs to equip the young people of neighboring villages with life and work skills necessary for sustaining livelihood. Nagothane Manufacturing Division conducted training in fashion designing courses for the ladies to upgrade the skills of those women who are already trained in basic tailoring. This division also conducted computer education courses and nursing assistant training courses. The trainees also received hands on training at the local hospitals and primary health centres at Nagothane. The Company also trains the youth in vehicle driving courses and also helps them in getting a driver’s license so that they can earn a livelihood by starting their own business as motor drivers.

The Company’s Polymer business division organised technical training programmes at 50 Industrial Training Institutes (ITIs) all over India to enhance skills of artisans for new and advanced technique of plumbing with PPR pipes. The Company also offers plumbing kits, free of cost, to various plumbers as well as to ITIs to promote this new energy efficient application in the building industry. PPR pipes are faster to install than metal pipes. This results in improving daily productivity of plumbers thereby increasing in their earnings. This initiative covered many plumbers across the country.

Eco-friendly InitiativesIn addition to the above initiatives, the Company also focusses on the development of the eco-system and improvement of the green belt across its manufacturing and E&P sites.

Transforming lives at the bottom of the PyramidReliance constantly aims at creating and living up to rising expectations among its valued stakeholders. The Company cares for providing clean and green environment on a sustainable basis. It recycles used bottles to produce value added products. When most of the environmental concerns are subsidised, Reliance has found a solution for being environmental friendly on a sustainable basis. In the case of recycling bottles, Reliance is indirectly providing livelihood to around 200,000 individuals. This business has transformed lives of those at the bottom of the pyramid.

Packaging solution to farmers (Leno bags)Reliance organised extensive awareness programmes on improved packaging solutions for potato and other vegetables for farmers all over India. This included demonstration on use of Leno bags, which are more durable, functionally more efficient and cheaper than traditional materials. This programme helped the farmers reduce the cost of packaging of potato. These bags also helped farmers to reduce wastage while keeping in cold storage. The Company’s efforts helped the farmers to improve their earnings. The programme covered more than 10,000 farmers across India.

Polyethylene (PE) Biogas Domes for Renewable Energy SourceBiogas technology for rural development has been a focus area for Government of India. Ministry of New and Renewable Energy (MNRE) promotes family-type biogas plants under the National Project on Biogas Development (NPBD). The project was launched in 1981-82 with the objective of producing clean and alternate renewable energy for cooking and lighting, enriched organic manure for agricultural usage, improving sanitation and hygiene and reducing drudgery of women. The two cubic metre “Deenabhandu”

model is the most popular family type fixed dome biogas plant developed with conventional brick and cement. Many of these plants get defunct due to dome cracks leading to gas leakages. The Company has developed a 100 per cent leak-proof Rotomolded PE Dome, which gives end-users a unique combination of properties like good strength, stiffness, light weight, seamless construction, ease of installation and very little maintenance. The PE-based dome has been developed by Reliance and has been approved by the Ministry of New and Renewable Energy, Government of India.

Sports for the Physically ChallengedReliance has joined hands with the organising team of Special Olympics Gujarat (Bharat) for the physically challenged children of Gujarat. Several hundred children participated in the events that were organised at the Reliance Sports Complex, Vadodara.

Real Indian HeroesOn the occasion of Shri Dhirubhai Ambani’s 75th birthday, 60 years of Indian Independence and 30 years of Reliance, the Company took up a unique initiative to salute the Real Indian Heroes of Independent India. Partnering with the TV Channel, CNN-IBN, a series of programmes to felicitate the unsung heroes of India was launched. CNN-IBN identified 24 Real Heroes, which included six each from the four zones of India. In recognition for their outstanding contribution to society, Reliance felicitated each of these 24 Real Heroes to further encourage their contributions.

Dhirubhai Ambani Foundation (DAF)Dhirubhai Ambani Foundation (DAF) was established in 1995 by Shri Dhirubhai Ambani, the Patron Trustee of the Foundation. A public charitable trust registered under the Bombay Public Trusts Act, 1950, DAF has for its objectives a broad spectrum of worthy causes ranging from health and environment, to promotion of social and economic welfare, and rural development. However, its main thrust has been on education and public healthcare.

DAF systematically pursues philanthropic activities to promote national welfare and social good. Reliance lends valuable support to DAF in terms of financial contribution and wherever necessary, infrastructural support. Reliance also draws on the DAF expertise in evolving and coordinating the Corporate Social Responsibility Initiatives and other group companies also help DAF initiatives wherever possible. Thus, DAF initiatives reinforce Reliance’s commitment to social responsibility.

Education: Rewards and ScholarshipsDAF SSC Merit Reward and Undergraduate Scholarship Schemes: The Foundation’s much acclaimed SSC Merit Reward and Undergraduate Scholarship Schemes continued to encourage and assist meritorious students at the district level to pursue higher education in different vocations to enhance the Human Resource potential of the country. Now in their twelvth year, both the schemes are currently applicable in the states of Maharashtra, Gujarat, Goa and the Union Territory of Daman, Diu and Dadra Nagar Haveli. The first three in overall merit and one physically challenged student securing the highest marks in each of the 64 districts at the annual SSC and HSC examinations of the respective state Boards, as well as the first ten CBSE students from Maharashtra and Gujarat and 2 from Goa, in the merit list of CBSE New Delhi, are eligible for the Rewards and Scholarships.

Reaching out to other states:To offer equal opportunities to the physically challenged meritorious students from the rest of the country, the Foundation has extended the Rewards and Scholarship Schemes to the first five physically challenged students from all the States and Union Territories of India that provide the list of such meritorious students. Accordingly, in 2007-08, physically challenged meritorious students from Rajasthan received SSC Merit Rewards and Undergraduate Scholarships at a function held in Jaipur, whereas at a function held in Hyderabad, 20 Physically Challenged meritorious students from the state of Andhra Pradesh received the Rewards and Undergraduate Scholarships for the years 2006-07 and 2007-08.

Reliance Kargil scholarships schemeChildren of martyrs / disabled soldiers of the Kargil war received financial support under this Scheme for their education from Std. V to XII. The unique feature of the Scheme is that the corpus was created with contributions from Reliance Group employees, with the Management responding by making equal contribution.

“Dhiruhbai Ambani Scholars’ scheme” for Meritorious Children of Reliance ShareholdersThe Scheme was announced in 2003 as a one-time measure to commemorate the silver jubilee of the company’s listing on the Bombay Stock Exchange. In the first year, 900 meritorious children of the shareholders received the scholarships. Of these, in 2007 - 08 which is the 4th year of the Scheme, a total of 101 scholars continued to receive the scholarship for their education, leading to Degree / Diploma course, the rest having completed their education.