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1/30RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITY

ABSTRACTIndia 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 (especially those who supply human capital) and the wider

population? What can be done to build bridges of understanding and mutuality with various

categories of stakeholders? How does one demonstrate a mindset which emphasizes interest in other

beyond the realm of self-interest?

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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 STUDYIndia 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 STUDYThe 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).

METHODOLOGYThe 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.

According to the section 135, Schedule VII of Companies Act-2013 initiatives of CSR.

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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

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

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

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predominantly focused - as well as past financial performance - on quality of management as an

indicator of likely future performance.

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 doingwhether 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 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.

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

losing the purpose of undertaking that activity.

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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 don t care about CSR.

However, all companies can be considered to be an upward learning curve with respect to

CSR and it is expected that the situation will improve.

CSR AWARDS

1. Trophy for its work done under the National AIDS Control Program phase-III from

Population Foundation of India (Hazira Manufacturing Division Reliance Community Care

Centre)

2. The Golden Peacock Award - 2012 for Corporate Social Responsibility by Institute of

Directors (IOD)

3. (Vadodara Manufacturing Division)

4.

Red Cross Gold Medal for the Reliance Dhirubhai Ambani Protsahan Educational

initiative from Governor of Andhra Pradesh for FY 2011-12

5. Golden Peacock National Training Award2012 (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.

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CSR&G Committee recommended the policy to RIL's Board of Directors and the Board of

Directors have approved this policy.

The Board level Committee to meet at least twice a year to review the implementation of

CSR projects/ programs and give suitable direction

BUDGET

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

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

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

CSR Expenditure

3.24%of profit after tax

Spent on Corporate

SocialResponsibility

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Modes through which programs/projects undertaken (through in-house team/own

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

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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RIL HAS IDENTIFIED 6 FOCUS AREAS:

Creating sustainable livelihood solutions,

addressing poverty, hunger and malnutrition

Health

Affordable solutions for healthcare through

i m p r o v e d a c c e s s , a w a r e n e s s a n d

health seeking behaviour

EducationAccess to quality education, training and

skill enhancement

EnvironmentEnvironmental sustainability, ecological

balance, conservation of natural resources

Arts, Heritage and CultureProtection and promotion of Indias art,

culture and heritage

Disaster Response Managing and responding to disaster

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SECONDARY DATA ANALYSIS

COMPANYS DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT

PROJECTSDuring 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 12-13 11-12 10-11 09-10 08-09 07-08 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 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)

6,645 39,813 38,785 39,811 41,178 33,041 25,374 28,935 20,525 14,982 14,261

Depreciation and

Amortisation

1,467 8,789 9,465 11,394 13,608 10,497 5,195 4,847 4,815 3,401 3,724

Exceptional Items - - - - - - (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 9,069 7,572

Equity Dividend %* 95 90 85 80 70 130 130 110 100 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

Equity Share Suspense

Account

- - - - - - 69 - 60 - -

Equity Share Warrants - - - - - - - 1,682 - - -

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 84,889 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 23,853 23,519 23,166 22,661 23,365 24,679 25,487 24,696 12,540 12,113

Contribution to National

Exchequer

5,236 31,374 28,950 28,197 28,719 17,972 11,574 13,696 15,344 15,950 13,972

CSR expenditure:

(` in crore) FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11

Education 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

Environment (Greening activities) 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

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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

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

marginal farmers by ensuring livelihoods and supporting them in their journey out of poverty.

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

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aims at contributing towards conservation of nature and promoting sustainable farming practices.

Launched in 2010, the RF BIJ programme has come a long way and has its presence in 19 agro

ecological zones spread over 11 states in the country.

Working on the three core pillars of direct action, participatory approach and sustainable

development, RF BIJ reaches out to the most deserving communities characterised by low rainfall,

rainfed agriculture, large tracts of cultivable wastelands and high poverty index. Today more than

460 Village Farmer Associations (VFAs) are being actively involved in the process of bringing

about a change in the lives of nearly 40,700 farming households through its initiatives. Close

to 15,600 hectares of land have been redeveloped under the Dharti farm initiative this year taking

the cumulative land development since inception of the programme to over 31,000 hectares.

Another significant intervention under the RF BIJ initiative, Reliance Nutrition Garden has

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 thecommunity 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 better living, through initiatives such as:

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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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

Assessment (TBHRA).

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

Response Services) offers 24x7 assistance in case of any medical, accident, fire and security

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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

Girlsand 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

shows, poster exhibition, Sunday clinic for HIV/ AIDS awareness, pulse polio vaccination, multi-

diagnostic camps and blood donation camps are carried out regularly.

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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

enhancement for improving the quality of living and livelihood. Initiatives are aimed at:

Promoting primary and secondary education

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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 schoolchildrenof 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

programme believes in the cause to uplift a child through equal education opportunities.In the past

four years, this programme has been able to impact the lives of over 27,000 underprivileged

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GirlsPrimary School at Moti Khavdi

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.

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 a 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 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 than10,000 young scholars and their families so far. RF organised the Dhirubhai Ambani scholarship

award ceremony at Mumbai to award the scholarships to selected students in January 2014.

SPORTS FOR DEVELOPMENT

Recognizing the value of sports towards education, fitness and well being of students, RF

launched the Jr. NBA programme in partnership with the National Basketball Association (NBA).

A comprehensive, school based youth basketball programme in India, it is working towards

promoting health, fitness and an active lifestyle through basketball and teaches the values of the

game such as teamwork, sacrifice, discipline, dedication and sportsmanship. Launched in the cities

of Mumbai and Kochi, it has already reached 228 schools, 260 coaches and nearly 140,000

students.The programme aims at reaching one million youth in three years. It will also train 2,000

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

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 Uttarakhand.

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ENVIRONMENTTo 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 protection and awareness drives Green Cover in surrounding villages

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

S.No. Type of the CSR activity

1 Eradicating extreme hunger and poverty

2 Promotion of education

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Source:

Sec-135-

(Schedule

VII)

Companie

s Act 2013

3 Promoting gender equality and empowering women

4 Reducing child mortality and improving maternal health

5Combating human immunodeficiency virus, acquired immune deficiencysyndrome, malaria and other diseases

6 Ensuring environmental sustainability

7 Employment enhancing vocational skills

8 Social business projects

9

Contribution to the Prime Minister's National Relief Fund or any other fund setup by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the ScheduledCastes, the Scheduled Tribes, other backward classes, minorities and women.

10 Other activity not mentioned above

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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

S.No. Type of the CSRactivity

RIL CSR Score

2009-10 2010-11 2011-12 2012-13

1 Eradicating extreme hunger and poverty 10 10 10 10

2 Promotion ofeducation 10 10 10 10

3 Promoting gender equality and empowering women 10 10 10 10

4Reducing child mortality and improving maternalhealth

10 10 10 10

5Combating human immunodeficiency virus,acquired immune deficiency syndrome, malaria andother diseases

10 10 10 10

6 Ensuringenvironmental sustainability 10 10 10 10

7 Employmentenhancing vocationalskills 10 10 10 10

8 Social businessprojects 10 10 10 10

9

Contribution to the Prime Minister'sNational Relief

Fund or any other fund set up by the Central

Government or the State Governments for socio-

economic development and relief and funds for

the welfare of the Scheduled Castes, the Scheduled

Tribes, other backward classes, minorities and

women.

10 10 10 10

10 Other activity not mentioned above 0 0 0 0

90 90 90

Average CSR Score RIL Avg CSR score = 90

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RELIANCE FOUNDATION - CORPORATE SOCIAL RESPONSIBILITYPage27

CONCLUSION

Corporate Social Responsibility is essential in India as more than 65% of population is living

in rural areas. There are huge differences between urban and rural India in terms health care

facilities, education levels, infrastructure, housing, nutritious food, awareness on their rights

of protection, etc. In India, the concept of CSR is governed by clause 135 of the Companies

Act, 2013 encourages companies to spend at least 2% of their average net profit in the

previous three years on CSR activities. CSR is viewed as vital tool for improving their

competitive edge over their opponents. India is the first country in the world which made

CSR compulsory for business houses as per companies act -2013. The corporate sector in

India has to share responsibility with government for promoting the community

development.

Social welfare and community development is at the core of Reliance's CSR philosophy and this

continues to be a top priority. Reliance embraces responsibility for impact of its operations and

actions on all stakeholders including society and community at large. It revolves around our

deeply-held belief in the principle of symbiotic relationship with the local communities,

recognising that business ultimately has a purpose - to serve human needs. Close and continuous

interaction with the people and communities in and around the manufacturing divisions has been

the key focus while striving to bring around qualitative changes and supporting theunderprivileged.

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 operations.

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REFERENCES:

a)

Benn, Suzanne and Bolton, Dianne (Key concepts in corporate socialresponsibility, 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, 9 thSeptember 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).
http://www.ril.com/html/aboutus/social_resp_comm_dev.htmlhttp://www.ril.com/html/aboutus/social_resp_comm_dev.htmlhttp://www.ril.com/html/aboutus/aboutus.htmlhttp://www.ril.com/html/aboutus/aboutus.htmlhttp://www.ril.com/html/aboutus/aboutus.htmlhttp://www.ril.com/html/aboutus/social_resp_comm_dev.html

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TABLE OF CONTENTS

ABSTRACT ................................................................................................................................................ 1

INTRODUCTION ..................................................................................................................................... 1

SIGNIFICANCE OF THE STUDY ......................................................................................................... 2

OBJECTIVES OF THE STUDY .............................................................................................................. 2

METHODOLOGY .................................................................................................................................... 2

PROFILE OF RIL ....................................................................................................................................... 3

CSR PHILOSOPHY OF RIL .................................................................................................................... 3

LITERATURE REVIEW ........................................................................................................................... 4

WHAT IS CORPORATE SOCIAL RESPONSIBILITY? ................................................................... 4

MEANING AND DEFINITION ............................................................................................................. 5

CSR POLICY AS PER INDIAN COMPANIES ACT 2013.............................................................. 6

CSR AWARDS ........................................................................................................................................ 10

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE.................. 10

RELIANCE FOUNDATION .................................................................................................................. 12

RIL HAS IDENTIFIED 6 FOCUS AREAS:...................................................................................... 13

SECONDARY DATA ANALYSIS ........................................................................................................ 14

COMPANYS DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT PROJECTS14

FINANCIAL HIGHLIGHTS ................................................................................................................ 14

RURAL TRANSFORMATION 15

HEALTHCARE ......................................................................................................................................... 16

EDUCATION ........................................................................................................................................... 19

ENVIRONMENT .................................................................................................................................... 24

CONCLUSION ........................................................................................................................................ 27

REFERENCES: ......................................................................................................................................... 28

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