Executive Summary

The project enables me to know various aspects of Corporate Social Responsibilities and its importance and steps taken by Bharat Petroleum towards social activities. BPCL is a Model Corporate Entity with Social Responsibility and also builds a powerful partnership with society for Sustainable Development. As a corporate responsibility, today 37 villages across India have been adopted by BPCL. This includes making substantial investments for nearly a decade and a half in them to make them fully self reliant, providing them fresh drinking water, sanitation facilities, medical facilities, enhancing their income standards by imparting vocational training and agricultural innovations. However, BPCL also firmly believes that the only vehicle for raising the villagers from their present state is by educating the young and the old, a focus on providing grants for opening schools and opening adult literacy camps as well. A Herculean task indeed, which BPCL recognized and thus even sought assistance from NGO's working around these centers in fulfilling its dream, which to many of BPCL employee's still remains incomplete, on account of the large magnitude of work necessary in completion. Although the subject Corporate Social Responsibility in its present form and content has gained popular attention only in recent years, its origin can be traced back to the evolution of the concept of welfare state.

INTRODUCTION
Although the subject Corporate Social Responsibility in its present form and content has gained popular attention only in recent years, its origin can be traced back to the evolution of the concept of a welfare state As the pace of industrialization quickened employers became more and more concerned with the loss of productivity efficiency due to avoidable sickness or accidents or stoppage of work due to bad personal relationships. This gave rise to the idea of a welfare state, which was further strengthened by the growth of democracy and of respect to human dignity during the last 150 years. The frame work of a welfare state and with it the concept of social responsibility have thus come to stay in many countries of the world .The changing image of business in the recent years has lent further support to the idea of social responsibility. Some public opinion polls in the 1960s and 1970s States have left businessman disenchanted. These polls have revealed that the businessman is viewed as an individual who does not cares for others, who ignored social problems, who preys upon the population, who exploits labour, and who is a selfish money grabber. On the other hand, until these opinions were unveiled, the businessman in America believed that others viewed him as he viewed himself, as a practical, down-to-earth, hardworking, broadminded, progressive, interesting and a competitive free enterprise. He believed that the society looked up at him as a self sacrificing community leader, pillar of society, generous to a fault, great supporter of education, patron of the arts, in short, the salt of the earth. Indeed, the businessman in the pre-poll days thought of himself as a happy mix of Plato, Gandhi, and Churchill.

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, another member 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. 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 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 3. workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance Other definitions The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts, used the following definition. "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as "CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" From Ghana, through to "CSR is about business giving back to society" from the Phillipines. On the other hand, the European Commission hedges its bets with two definitions wrapped into one: "A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis"

Need for Corporate Social Responsibility There are many situations where social responsibility of a business becomes necessary. Few of these situations which show the need for Corporate Social Responsibility are discussed below. 1. A societal approach to business is the contemporary business philosophy, which demands business organizations to be responsive to the social problems. 2. As a result of globalization of business, global companies and MNCs operate in a big way in their host countries. In order to establish a good corporate image, they include social responsibility as a corporate objective. Indigenous companies are forced to follow suit for maintaining their corporate identity. 3. In the terms and conditions of collaborations agreements, very often, social welfare terms are included which necessitates the collaborating company to take up social responsibility of business. 4. On the basis of legal provisions, companies have to concentrate on social problems. For example an industrial organization in India must obtain certification from Pollution Control Board. 5. Corporate donations of social welfare projects of approved NGOs are exempted from income tax in India. 6. An organizations commitment to social responsibility creates a good corporate image, and there by a better business environment. 7. Social responsibility of business enables the organization to improve its product positioning and thereby improve its market share. 8. Very often situations demand due to natural calamities, accidents and so on .For example, gas leak at the Union Carbide plant in Bhopal, wherein the company had to monetarily compensate through medical treatment

CSR in Todays World

CSR as a strategy is becoming increasingly important for businesses today because of three identifiable trends: Changing social expectations Consumers and society in general expect more from the companies whose products they buy. This sense has increased in the light of recent corporate scandals, which reduced public trust of corporations, and reduced public confidence in the ability of regulatory bodies and organizations to control corporate excess. Increasing affluence This is true within developed nations, but also in comparison to developing nations. Affluent consumers can afford to pick and choose the products they buy. A society in need of work and inward investment is less likely to enforce strict regulations and penalize organizations that might take their business and money elsewhere. Globalization The growing influence of the media sees any mistakes by companys brought immediately to the attention of the public. In addition, the Internet fuels communication among likeminded groups and consumersempowering them to spread their message, while giving them the means to co-ordinate collective action (i.e. a product boycott).These three trends combine with the growing importance of brands and brand value to corporate success (particularly lifestyle brands) to produce a shift in the relationship between corporation and consumer, in particular, and between corporation and all stakeholder groups, in general. The result of this mix is that consumers today are better informed and feel more empowered to put their beliefs into action. From the corporate point of view, the market parameters within which companies must operate are increasingly being shaped by bottom-up, grassroots campaigns. NGOs and consumer activists are feeding, and often driving, this changing relationship between consumer andcompany.CSR is particularly important within a globalizing world because of the way brands are builton perceptions, ideals and concepts that usually appeal to higher values. CSR is a means of matching corporate operations with stakeholder values and demands, at a time when these values and demands are constantly evolving.CSR can therefore best be described as a total approach to business. CSR creeps into all aspects of operations. Like quality, it is something that you know when you see it. It is something that businesses today should be genuinely and wholeheartedly committed to. The dangers of ignoring CSR are too dangerous when it is remembered how important brands are to overall company value; how difficult it is to build brand strength; yet how easy it can be to lose branddominance.CSR is, therefore, also something that a company should try and get right in implementation

I mp l e me n t i n g CS R
CSR is about common sense policies that represent a means of integrating a complete social perspective into all aspects of operations. The goal is to maximize true value and benefit for an organization, while protecting the huge investments corporations make today in their brands. CSR is good business sense, and a total approach to doing business, in a globalizing world where companies are increasingly relying on brand strength (particularly global lifestyle brands) to add value and product differentiation, and where NGO-driven consumer activism is increasing. Many believe the issue of how corporations integrate CSR into everyday operations and long-term strategic planning will define the business marketplace in the near future. It will become a key point of brand differentiation, both in terms of corporate entities and the products that carry their brands. Key steps on the road to integrating CSR within all aspects of operations include: Ensure the commitment of top management, and particularly the CEO, is communicated throughout the organization Appoint a CSR position at the strategic decision-making level to manage the development of policy and its implementation Develop relationships with all stakeholder groups and interests (particular relevant NGOs) Incorporate a Social or CSR Audit within the companys annual report Ensure the compensation system within the organization reinforces the CSR policies that have been created, rather than merely the bottom-line Any anonymous feedback/whistle-blower process, ideally overseen by an external ombudsperson, will allow the CSR Officer to operate more effectively Corporations today are best positioned when they reflect the values of the constantly shifting and sensitive market environment in which they operate. It is vital that they are capable of meeting the needs of an increasingly demanding and socially-aware consumer market, especially as brands move front and centre of a Firms total value. Global firms with global lifestyle brands have the most to lose if the public perception of the brand fails to live up to the image portrayed. Integrating a complete social perspective into all aspects of operations will maximize true value and benefit for an organization, while protecting the huge investments companies make in corporate brands.

Arguments of CSR
1. A moral argument for CSR While recognizing that profits are necessary for any business entity to exist, all groups in society should strive to add value and make life better. Businesses rely on the society within which they operate and could not exist or prosper in isolation. They need the infrastructure that society provides, its source of employees, not to mention its consumer base. CSR is recognition of that inter-dependence and means of delivering on that obligation, to the mutual benefit of businesses and the societies within which they are based: CSR broadly represents the relationship between a company and the wider community within which the company operates. It is recognition on the part of the business that for profit entities do not exist in a vacuum, and that a large part of any success they enjoy is as much due to the context in which they operate as factors internal to the company alone. Charles Handy makes a convincing and logical argument for the purpose of a business laying beyond the goals of maximizing profit and satisfying shareholders above all other stakeholders in an organization: The purpose of a business is not to make a profit, full stop. It is to make a profit so that the business can do something more or better. That something becomes the real justification for the business.It is a moral issue. Mistake the means for the end is to be turned in on oneself, which Saint Augustine called one of the greatest sins.It is salutary to ask about any organization, If it did not exist, would we invent it? Only if it could do something better or more useful than anyone else would have to be the answer, and profit would be the means to that larger end. Advocates of CSR believe that, in general, the goal of any economic system should be to further the general social welfare. In advanced economies, the purpose of business should extend beyond the maximization of efficiency and profit. Increasingly, society expects businesses to have an obligation to the society in which they are located, to the people they employ, and their customers, beyond their traditional bottom-line and narrow shareholder concerns. At a minimum, businesses operating in a community benefit from the infrastructure of that community (tangible, practical elements such as the roads, other transport infrastructure, the police, fire-fighters, etc) as well as more intangible benefits, such as a safe or clean environment. But, in most cases, businesses also draw their most important resource, its employees, largely from the local community. Any business will be more successful if it employs a well-educated workforce that can attend good hospitals if they become sick, and who have grown up in a positive environment. This is not to mention consumers, also often members of the local community, without whom no business could survive.CSR advocates point out that no organization exists in isolation. They believe that businesses, without exception, have an obligation to contribute as well as draw from the community, on which they rely so heavily.

2. An economic argument for CSR An economic argument in favour of CSR can also be made. It is an argument of economic self-interest that there are very real economic benefits to businesses pursuing a CSR strategyand is designed to persuade those business managers who are not persuaded by the moral case. Proponents of this argument believe that CSR represents an holistic approach to business. Therefore, an effective CSR policy will infuse all aspects of operations. They believe the actions corporations take today to incorporate CSR throughout the organization represent a real point of differentiation and competitive market advantage on which future success can hinge: CSR is an argument of economic self-interest for a business. In todays brand-driven markets, CSR is a means of matching corporate operations with stakeholder values and demands, at a time when these parameters can change rapidly. One example is a companys customers: CSR adds value because it allows companies to better reflect the values of this important constituent base that the company aims to serve.CSR covers all aspects of a business day-today operations. Everything an organization does in some way interacts with one or more of its stakeholder groups, and companies today need to build a watertight brand with respect to all stakeholders. Whether as an employer, producer, buyer, supplier, or investment, the attractiveness and success of a company today is directly linked to the strength of its brand.CSR affects all aspects of all operations within a corporation because of the need to consider the needs of all constituent groups. Each area builds on all the others to create a composite of the corporation (its brand) in the eyes of all stakeholder groups.

3. Arguments against corporate social responsibility If the arguments for a socially responsible approach were widely accepted, nobody would even use the label "CSR" because everyone would be doing it. Those of us who spend our time marshalling the case for would do well to spend a little time hearing the case against, and considering what should be the response.

10

Of course, one of the challenges in considering cases "for" and "against" CSR is the wide variety of definitions of CSR that people use. We assume here we are talking about responsibility in how the company carries out its core function - not simply about companies giving money away to charity Below are some of the key arguments most often used against CSR and some responses. Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners The leading companies who report on their social responsibility are basket cases - the most effective business leaders don't waste time with this stuff Our company is too busy surviving hard times to do this. We can't afford to take our eye off the ball - we have to focus on core business It's the responsibility of the politicians to deal with all this stuff. It's not our role to get involved I have no time for this. I've got to get out and sell more to make our profit line. Corporations don't really care - they're just out to screw the poor and the environment to make their obscene profits

11

C o r p o r a t e S o c i a l r e s p o n s i b i l i t y 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. Most companies appear reluctant to themselves fulfil their CSR unless it is mandatory by law. Generally speaking, most companies seem either unaware or dont care abducts. 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.

12

Measure for applying Corporate Social Responsibility

Sustainability reporting It is recommended that every company should publish a separate Corporate Sustainability Report (as per the Global Reporting Initiative (GRI) framework) along with their Annual Report. At the very least, every company must include corporate Sustainability section in its Annual Report (similar to the mandatory section on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo). CSR philosophy to be defined and articulated Every company must clearly define its own CSR philosophy and objectives, stating which issues it intends working on or contributing to. It is recommended that accompany first takes up areas that directly concern its business processes, and thereafter any other related or unrelated issues. These can also yield strategic benefits to the company. Minimum annual CSR expenditure Every company must spend a minimum of 0.2% of its annual income on CSR activities. The CSR spending of a company should not be linked to the profit made by the company because this would vary from year to year and the CSR activities would thus not be consistently maintained. The scale of operations of a company and its impact is connected with its sales, and not with its profits. The larger the company, the greater is the damage it is doing to the environment. Conversely, the greater is the company's ability to do good . Protection and restoration of the environment Every company must be engaged in CSR activities that minimise its harm to the environment, and which help restore damage done to the environment because of the company. For example, all companies should use energy-efficient technologies for their factories and offices, and adopt rainwater harvesting irrespective of the production process they are engaged in. Employment for marginalized groups Every company should provide inclusive employment opportunities and include the physically-challenged and marginalized groups in their workforce. The number of employment opportunities offered to such groups should be stated in the Annual Reports as is done by Public Sector Undertakings. Local community development It is recommended that a company first undertakes projects in the places where it functions, and helps those local communities and environments that are affected by its work.

13

Use of core competence Every company should use its core competence to benefit its stakeholders and society. For instance, banks can use their expertise to identify and counsel debtors who are likely to run into financial trouble Extending profile and area of businesses A company should attempt to stretch its business beyond its existing profile and into areas where it does not normally work so as to reach out to under-served groups and populations. While this may sometimes mean smaller profit margins or marginal losses for the company, it will invariably result in valuable business learnings as well as effective CSR for the company. Developing internal CSR implementation systems A company may choose to develop an in-house CSR team or division that undertakes the CSR activities for the company. This is desirable as it leads to greater sensitization and awareness within the company about its processes, responsibilities, role, etc. and leads to the internalization of the company's CSR philosophy. Instead of contributing to the trust of the CEO or the promoter family, a company should set up its own trust/foundation as a matter of proper business ethics. It is recommended that a company set up a committee that includes an external Director, an NGO and local stakeholders for selecting, monitoring and evaluating its CSR activities. Focused CSR activities for greater impact It is recommended that a company identifies a few issues for its CSR activities and works on these areas for a sustained period of time so that measurable results and improvements can be achieved, rather than undertaking or supporting several small initiatives across several areas thereby reducing effective impact

14

Bharat Petroleum Corporation Limited (BPCL)

Company Profile Bharat Petroleum Corporation Ltd (BPCL) operates in the petroleum industry in India. The company operates in a single segment - Refinery and Marketing activities, which includes Downstream petroleum sector. They are also engaged in the Exploration and Production of Hydrocarbons (E&P). BPCL on a regular basis imports their LPG requirements mainly from the Middle East. Occasional there are import requirements of Gasoil, Kerosene, Gasoline and Base Oil. The company refineries consist of Mumbai Refinery, Kochi Refinery, Numaligarh Refinery and Bina Refinery. BPCL exports Fuel Oil and Naphtha and Base Oil (Group II). Bharat Petroleum Corporation Ltd was incorporated on November 3, 1952 as a private limited company with the name Burmah Shell Refineries Ltd. The company began their work on the marshland of Trombay at Bombay. The refinery on 454 acres of land at village Mahul went on-stream on 30th January 1955, one year ahead of schedule. In January 24, 1976, Burmah Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Ltd. In August 1, 1977, the company was renamed as Bharat Petroleum Corporation Ltd. The company was also the first refinery to process newly found indigenous crude (Bombay High), in the country. During the year 2001-02, the company commissioned the Gas Turbine and Heat Recovery Steam Generator project at a cost of Rs. 1750 million. Refinery Modernization Project was being implemented at a cost of Rs 18,310 million. This project besides improve distillate yield and energy efficiency of the company. The company had Allied Retail Business (ARB) also apart from the regular business, making them not only the largest non-fuel revenue generator in the oil industry, but also amongst the leading retail networks in the country, offering a basket of services ranging from C-stores, Quick Service Restaurants to financial and travel related services. The total of 8 numbers of In & Out convenience stores made up the 'millionaire club' by clocking average sales of Rs 1 million per month. Automatic Teller Machines (ATMs) continued by the company to be a focus area in the ARB initiative under the alliance management strategy. The 222 ATMs in the network are the result of alliances with 22 banks. Given the rapid growth of the travel industry in the country and especially personal travel, the company launched 'In & Out e-Traveller', a onestop facility for all travel and hospitality needs in during year of 2006-07. The In & Out eTraveller is an e-ticketing / e-booking facility for rail, air and bus tickets and hotel accommodation, brought through a web of alliances with best in breed travel service providers. During the year 2009-10, the Mumbai refinery processed the Nigerian crude oil Agbami for the first time. The company started operations at its Bina refinery in the central Indian state of Madhya Pradesh by launching their crude distillation unit, or CDU. The CDU at Bina was commissioned on June 29, 2010. Kerosene and cooking gas have been despatched to the marketing terminal. An oil refinery's CDU is the main unit where crude is separated into different petroleum products. In August 2010, Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Limited entered into a memorandum of understanding (MoU) with Gujarat State Petroleum Corp Ltd to form a joint venture for trunk gas pipelines. In February 2011, the company signed an initial
15

agreement with the provincial government of Rajasthan to sell fuel products from the state's proposed refinery. The company will sell at least 75% of the volume of the products from the proposed Rajasthan refinery under the agreement. In July 2011, the company sold a rare naphtha cargo from Haldia to Vitol at steep discounts of $63.00 a tonne to Middle East quotes on a free-on-board (FOB) basis, and the refiner may have more of such cargoes for sale. The company plans to rise the capacity at its just commissioned Bina refinery in Madhya Pradesh to nine million tonne and is looking at the right time for a public offering of the unit. The company is planning to bid for city-gas projects in Kochi (Kerala) and Hyderabad (Andhra Pradesh) and plans to launch 600 new fuel retail outlets this fiscal, according to S Vardarajan, director, corporate finance. The company has lined up investments of Rs 50,000 crore ($11 billion) to expand their capacities in refining, retail and upstream projects over the next five years.

16

History

In 1889 during vast industrial development, an important player in the South Asian market was the Burmah Oil Company. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. In 1928, Asiatic Petroleum Company (India) started cooperation with Burma Oil Company. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene. On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crudeBombay High. In 2003, following a petition by the Centre for Public Interest Litigation, the Supreme Court restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. As counsel for the CPIL, Rajinder Sacharand Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s. As a result, the government would need a majority in both houses to push through any privatization.

17

Objective of BPCL towards CSR

Building Sustainable Communities - to have a positive impact on the communities in which we operate Health and Safety - to ensure the health and safety of our workforce and communities Environment - to minimize adverse impacts while taking steps to protect and enhance the natural environment Employees train tomorrows leaders in teamwork skills and running socially responsible business

Methodology

Integrated with Business Strategy and Context Leverage our Core competency People and Technology Three way Execution model for Community Projects Develop deserving Communities through Focused & Need based interventions No Giveaways Create Sustainable Models which are Replicable & Scalable

18

Sharing wider responsibility at BPCL

We believe that its equally important to return back to society which is why, BPCL believes that some of their finest achievements arent those found in their balance sheets but those, in small towns and villages spread across India. Their involvement in sharing this wider responsibility dates way back to 1984, when in pursuance with our philosophy to give back to the society/community our best, they aimed to help the people enrich their lives, be it our employees or their families also extending the scope of definition of families to those that they saw beyond our glass cabins in these rustic surroundings, and thus started our the social work. Today, BPCL terms them as their extended family i.e. the villagers from rural areas. Bharat Petroleum has been the pioneer in the oil sector to hire the services of professional social workers. Areas of work in the initial years were primarily to cater to the softer areas of employee related issues, to mention a few are: Counseling for personal as well as emotional problems affecting work. Assistance to quit substance abuse (like alcohol and other drugs) Marital Conflicts, Divorce Reconciliation, Money Management, etc.

With years our focus changed from restorative to preventive as well as primitive, holistic health. Talks on various issues at plant level like addiction, HIV/AIDS, parental issues, time and finance management, and family relationships were initiated, which still continues and gives considerable positive returns. For the above mentioned activities they have collaborated with various Non Government Organizations, to deliver best humane services for our employees and their family members. Eventually, their involvement in the whole process of employee related issues were taken, there by channelizing their energy positively as well as encouraging prosaically behaviour. India, has a social contrast, while one strata of the society comprising of approximately 30% live in the cities, a great percentage of nearly double -700 million Indians reside in villages, which we term as rural India. Now rural India too has its own disparity, some are what we call the islands of prosperity and the rest that have the other extremes, riddled by droughts and some difficult conditions of weather and climate and sometimes these villages are so remote and far flung from cities that many a times makes others go past unnoticed BPCL initially started working in Mahul, the village located in our neighborhood of its Mumbai refinery since 1986, for the sole reason of their up liftment. The habitants of Mahul, essentially from the fishing community, were rich because they possessed marine wealth but as far as education, health, etc was concerned, they needed help.

19

Some of Bharat Petroleum's assistance to these inhabitants so far has been Infrastructural development, like construction of jetty, Balwadi, Homeopathic Dispensary

Vocational guidance through aptitude testing, scientific vocational need based study through Jan Shikshan Sansthan (NGO under ministry of HRD)

Exhibition for the Fishermen to equip them with latest avenues in fishing through Central Institute Of Fisheries Education(CIFE)

BPCL volunteered and the initial success brought such gratification that immediately it adopted another village (this time an interior one) called Karjat, developments with selfless intentions helped introspect about the future role BPCL should adopt in its aim to contribute to this effort, then there after there was no looking back The rationale behind selecting Karjat for community development initiatives was that the company wanted to work for vulnerable groups. The Karjat endeavor began with construction of a community hall, which was like a meeting place for villagers and way of reaching out to village women. Later many programs like medical assistance, grain bank, marketing artifacts, conducting certified vocational training courses, etc were carried out. From last 10 years farmers in 21 villages of karjat are helped through our interventions. There are eight villages, which are covered through BPCLs projects in and around Washala. Washala is situated in Shahpur taluka in Thane district. It is made up of tribal population. The various on-going activities are: Farm facts: For agricultural up liftmen, BPCL arrange training through Pune Agricultural University, distribute seeds and fertilizers every year. There are lectures arranged on technical guidance, use of less water for farming, teaching newer methods of agriculture, etc. They also educate the farmers about fish farming and provide them all necessary information. Guidance is also given as regards buying of seeds. The methods of multiple cropping are taught. Every year farmers are given free fertilizers. Bamboo cultivation is also promoted. 5000 Bamboo saplings are planted every year, by giving it to villagers who will take care of it. Along with it, even mango, chikku and guava saplings are provided. Cattle care: At Karjat, BPCL conduct exhibitions of cattle of various breeds, training sessions are arranged for improving the health of available cattle, there is vaccine program conducted on regular basis for all pet animals. Competitions are also held among cattle and prizes are given to the best cattle. Once a year there is a camp organized in which doctors from veterinary inspect all the cattle.
20

Education:

For motivating intelligent students coaching is provided to students. Balwadis is available for small children as pre-school intervention. Tree plantation programs are held at Adivasi ashram schools. Health:

A dispensary with a doctor is available and regular health camps are conducted. General health camps are organized twice a year. To cater to the needs of all villagers, may it be men, women, senior citizens, children and so on. To ensure proper eyesight, eye camps are conducted periodically. their sight back through this endeavor. There are camps held for pregnant women regarding guidance in pregnancy, stress on nutrition, etc. Grain Bank: In the villages of Karjat, Rural Farmers were dependent on money lenders for money as well as seeds and grains and thus in turn fell in the debt trap. The money lenders would harass them and exploit them. For e.g. for every one quintal of grain borrowed, the farmer would have to return it three quintals. To avoid such exploitation, IRCED came out with the grain bank scheme. The concept of grain bank was to make grains easily accessible to the farmers and to keep them away from the clutches of the moneylenders. Grains are made available to the farmers without any advance and they also do not have to return anything extra than what they had taken. Through BPCL, there is also a small room allocated for the purpose of maintaining the grain bank in every village so that the grains do not get spoilt. Community centre: We have provided a multipurpose Samaj Mandir at Pinglas Karjat for the Villagers to have a meeting point. There is a community centre which encompasses classes for villagers on tailoring, mehendi, beautician course, bamboo article making, multi-skill training, etc. Cane Weaving and Bamboo making classes are conducted regularly. Tailoring is helping the girls in income generation. Later there is also an exhibition held in Mumbai for sale of the bamboo articles made in these villages. Rain water harvesting:

To make available water in case of scarcity, there was a need felt to start a project on rain water harvesting. The work has just begun. As this is a hilly area the problem of ground water and land water still remains. For provision of water, tube wells and small dams are made for the villagers.

21

Infrastructure development: We have constructed shed for schools. For e.g. repairing the fans, replacing broken furniture, etc jetty for fishermen so that they can rest in the night when they are not fishing. We have also constructed a public toilet. We are vigilant in keeping the surroundings clean. Timely garbage disposal is also taken care of. Tree plantation programs are carried out on a regular basis. .

Every village: Sakhi Shejarni: A group of women came together in Karjat who felt the need of being together and saving some amount of money. They started meeting regularly and since then they collect savings and deposit in the bank this is a scheme whereby every village will have one woman leader. This leader is trained in such a way that she is able to manage the whole group of other women, take training sessions for them, conducts awareness programs and also provides counseling help. Such women leaders are termed as SAKHI, which means a friend in Marathi. Thus the groups serve a double purpose, that of starting a small-scale business and that of learning through various sessions. These meetings help them to improve their quality of life.

22

BPCL: CSR in Business Process Environment

As energy corporate, BPCL feel that we may have a larger say in the course of many events in the coming decades. The consequence of our actions, in the short term, may be totally inadequate but in the long term very valid. It is thus that BPCL finds it necessary and proceeds with utmost caution, when it comes to issues related with the environment.

The magnitude of the problem concerning this sensitive eco-balance is so massive that the best way forward for BPCL, as it sees ahead, for the above being achieved is using a two pronged approach of executing environmental protection activities and sharing knowledge, with a view to educate the common man on this front.

The four reasons, believed to be the cause for treading cautiously in matters related to the environment are as follows.

1. Moral responsibility towards the environment. 2. Understanding of the need for an ecological balance. 3. The understanding of the inter-linkages of the web of life. Inadequacy of Human 4. Understanding of Environmental Process. The above four cover the entire canvas of concerns for the subject and BPCLs contribution towards the same has also been oriented around its objective.

Like mentioned, BPCLs corporate philosophy towards environment is also directed towards life and mankind. Thus, it is a tacit responsibility that it proposes to undertake without any solemn promises made. In other words, it would try and ensure that at least in its conscious actions, BPCL would not become party to any decisions which will have damaging consequences to this earth & the life on it.

BPCL, on the other hand would give its best in educating mankind, on the necessity of understanding the dynamics of the fragile eco-diversity and hope to seek contributions from each individual in maintaining the balance.
23

Community Initiatives: Disability

What remains unchanged since 1999 is that BPCL continues to fulfil its corporate responsibilities. What has changed, however, is the fact that the percentage of disabled persons employed by BPCL has risen from 1.11% to 1.37% despite the total employee strength reducing from 12411 to 12082.

Providing equal opportunity to people with disabilities has always been a part of the corporate philosophy of Bharat Petroleum Corporation Limited (BPCL). BPCL's practice of this philosophy is what made it a winner of the 1st NCPEDP-Shell Helen Keller Awards, way back in 1999.

We shall continue to recruit disabled people in the organization as per the laid down guidelines, says Mr. S. Mohan, Executive Director, HRD. And that is exactly what they have been doing. Currently, 166 disabled persons are employed with BPCL. The recruitment process is duly monitored to ensure that vacancies for physically handicapped persons do not remain vacant. Special relaxation is given to these candidates up to 10 years of the required age profile for the post. And whenever required, special recruitment drives are undertaken.

Its not just recruiting candidates with disability BPCL ensures that they are assigned suitable work and a good working environment in the organization. For e.g., visually impaired employees are provided with customized computers equipped with optical character recognizers, enabling them to work independently

Disabled employees are also encouraged in activities outside the organization a visually impaired employee was sent on Rock Climbing Mountaineering Course, and successfully scaled a peak of over 13,000 feet in West Sikkim!

BPCL even follows carefully laid down reservation policies for allotment of dealerships and distributorships to physically disabled candidates. What's more, special concessions and financial assistance is given to deserving candidates initiating the business

24

Other areas of Corporate Social Responsibility that BPCL is active in: it has adopted 37 villages in 13 states, directly impacting 120,000 people; it has initiated the Bharat Petroleum Scholarship' to promote excellence in higher education; it has contributed towards community facilities and infrastructure; and donated generously in times of calamity and disaster.

Community Initiatives: Disaster Relief

In times of natural calamities you will always find Bharat Petroleum in the forefront, rendering aid and emergency provisions. Bharat Petroleum relief teams have worked tirelessly to provide the Gujarat Earthquake and the Orissa Flood victims with food and essential survival materials.

Community Initiatives: Rural Development

Bharat Petroleum continues its endeavours in meeting social obligations to the under privileged sections of the society through development of roads, schools, clinics and vocational training centres in rural areas. Cataract camps for villagers, vocational classes to make the rural women self-reliant, development of rural women and children, providing sanitation and drinking water in the villages, are just a few of the many contributions made by Bharat Petroleum to meet its social responsibilities.

In recognition of the outstanding work done in the area of Rural Development, FICCI awarded the 'Rural Development Award 1999-2000' to Bharat Petroleum.

25

List of 20 villages adopted

* Bhogalpura (Agra) * Srinivasapura & Muneshwara (Bangalore) * Neelgarh (Bhopal) * Ramathenga (Bhubaneshwar) * Brindabanpur & Farakidanga (Calcutta) * Jahazpur (Calcutta) * Mankara (Calcutta) * Kadambankulam (Coimbatore) * Basantgarh (Delhi) * Jyotinagar (Goa) * Nangalgovind (Jaipur) * Babukhera (Lucknow) * Pedawada/Manjripal (Nagpur) * Laakarhawar (Patna) * Kasabkhede / Pohey (Pune) * Khara Bairaja (Rajkot) * Mangadih / Jaradih / Dimra / Obar (Ranchi) * Bhaktachiwadi / Mogrej (Karjat) * Tembre (Karjat) * Mahul (Chembur)

We feel happy when we see 'Smiles on the faces of villagers and children'.

It helps us to get closer to our Corporate Philosophy.

26

Community Initiatives: Tribals.

As a part of Society, Bharat Petroleum believes that they owe as a corporate body to give back to society their best. With this social obligation Bharat Petroleum started community work way back in 1987 by adopting Karjat (tribal area in Raigarh District) and Mahul (our neighborhood) for ameliorating lives of the deprived.

Karjat is located in Raigarh District and comprises of mainly tribal population. Some of the activities undertaken to help the tribal population are-

* Constructing a community hall/ Samaj Mandir * Health assistance, through regular health camps, pediatric camps and cataract Camps * Educational assistance through distribution of books, holding competitions * Vocational assistance by imparting training in bamboo and tailoring * Encouraging environment friendly attitude through distribution of smokeless chulhas, solar cookers as well as educating them through folk music.

27

Internal CSR
Social Welfare in Bharat Petroleum was initiated as a non-statutory body in the year 1984. Bharat Petroleum has been the pioneer in the oil sector to hire the services of professional social workers. Areas of work in the initial years were primarily to cater to the softer areas of employee related issues, to mention a few are: Counselling Initially counseling began in BPCL to overcome the different problems of employees at work. But now, BPCL has come closer to their lives. Thus now counselling does not only aim at solving disputes at work but involves a whole gamut of issues ranging from employees overall development to the development of their families. Thus there is a shift from what used to exist earlier as our orientation is towards prevention. Over the time, recoveries and success stories started flowing in resulting in values of counselling being upheld as an important contribution for employees well being. Thus at the refinery counselling is seen as a mission which aims at making people live lives fruitfully. The help received through counselling is what is valued by most of our employees Addiction-The Slow Poison Alcohol and drug use is extremely common in todays world. In spite of the awareness of the ill effects of these substances, people continue to get addicted to it. The abuse and addictions result in malfunctioning of an individual in major spheres of life. Addictions lead to poor work performances, disrupted relationships and adjustment problems. The rising awareness about employee welfare and raising the quality of work, various companies today make efforts to reduce addictions. We have been one of the first companies to engage in continuous endeavours to help our addicted employees to overcome their problems. We have successfully partnered with Kripa Foundations De-addiction Center for sustainable efforts in this direction. Kripa foundation is one of the largest Non- Governmental organizations in India helping people suffering from Chemical Dependency and HIV Infection. Kripa offers a non-discriminating, supportive community living, helping people to introspect and bring about change in lifestyle.

Our Success- Strength Of Sobriety Although difficult to believe, the success ratio is 60% at the refinery level, whereas the addiction improvement rate worldwide is 45.50%. Through counseling employees who recovered from alcohol addiction and the other personal problems became our biggest strength for extending our chain of human help. These peer educators are very efficient at work and they aid our CSR activity by being of help to the other addict employees and the community too.

28

The Pune Centre A de-addiction center has been set up at Pune for both men and women addicts for all over Maharashtra. The Kripa Foundation runs it. We are supporting them and helping them in their efforts

Family Wellbeing

Through all the Employee assistance programs, prominence is given to family as a system. It is a known fact that family is one of the most closely knit system which needs to be enriched to cope with the stresses and strain of life. Thus when an employee comes with a problem, joint counseling sessions are also conducted including his family members to ensure resolving of problems amicably. Grooming Children As Caretakers Of Next Generation Children are tomorrows future, and when it comes to our own employees children, we ensure their development through various activities like Career guidance, aptitude tests, etc Parenting

During training or workshops, one of the main topics covered is parenting. This is important because in todays competitive world it is very difficult to manage both work and house Thus to ensure care of children, parenting sessions are conducted about emotional problems and problems encountered by children at different stages, puberty issues, etc. Women Empowerment In women lie natures best qualities of motherhood, compassion, humanity and love. Because they have been blessed with the capacity for giving and nurturing life, women also have the capacity for a deep commitment for preserving and nourishing not only their own offspring, but of the entire planet as well. BPCL is also blessed with efficient women staff who are enthusiastic and who come forward to help others. Women power in the true sense is seen when women meet regularly and discuss on varied issues and the stands they take. LIKE WOMAN IS WOMANS BEST FRIEND. It is normally said that a woman is a womans worst enemy. But at the refinery, the bond within the women is exceptionally charged with making a difference to their personal as well as work life.

29

Safety Ambassadors

This is a new activity being started at the refinery. Some of women employees are made safety ambassadors to ensure safety in the plant. These women would co-ordinate with the safety observers at the plant level and ensure that their co-employees take adequate safety measures. It is process to help the employees help themselves for their own safety and that of the others

30

OTHER CSR ACTIVITIES

HIV/ AIDS Care and Prevention AIDS is a major concern worldwide. It is forth killer of human beings. It has spread far and wide across nations, caste, creed, sea and racial boundaries. The UN AIDS estimates 5.3 million sero positive people housed in India alone in 2004. The growing number of sero positive people in the productive age group affects the economy in the long run... BPCL too encountered presence of sero positive employees. However the comprehensive health policy of the company protects the employees and their family. Considering the significance of interventions in this area, the Social Welfare dept. initiated plant talks on Family Life Education and Health and well being. Various awareness programs were conducted in the refinery on HIV/AIDS. Avert Society, a triplicate body of USAID, NACO and Government of Maharashtra, noticed the efforts of BPCL. The Avert Society invited BPCL for long-term partnership for an AIDS Intervention Project in the refinery, and the adjacent community. The project identifies three major areas of intervention, viz. workplace intervention (including around 30000 workers), Mahul and 25 villages from Karjat. The activities under this project include one to one intervention at village level, counseling at workplace, behaviour change communication, street plays and folk media to spread awareness about the same. Generation Next BPCL is passionate about the Generation Next, and thus also supports various education initiatives at all levels. This involves granting aid to schools, acknowledging and rewarding meritorious students and an initiative called BPCL scholars. BPCL scholars are a group of approximately 100 Indian students, who yearly, seek full studyassistance from BPCL in doing their post graduation, both in India and abroad. We support these students, the future of tomorrow, the fuel of tomorrows growth, with all humility and passion. As a corporate responsibility, today 37 villages across India have been adopted. This includes making substantial investments for nearly a decade and a half in them to make them fully self reliant, providing them fresh drinking water, sanitation facilities, medical facilities, enhancing their income standards by imparting vocational training and agricultural innovations. However, BPCL also firmly believes that the only vehicle for raising the villagers from their present state is by educating the young and the old, a focus on providing grants for opening schools and opening adult literacy camps as well.

31

 BPCL thus believes in giving the rural people vocational guidance and give them a platform for market-linkages and become self-sufficient.

BPCL self-sufficient projects include the Water project in the rural area which has been initiated by Oil Development Board (ODB) with the Ngo Bridge Trust which trains the rural people to build water projects for which they receive minimum waged.

BPCL is also planning to do some work for the Truckers of BPCL as they play a major role in laying down the foundation stone to what BPCL is today.

Project Boond BPCL understand the value of water in the lives of people who strive for it. Whose lives are dependent on its availability alone? These sentiments gave birth to the project Boond. Because when BPCL being a company of fuel, how can they miss out on the fuel of life? Boond is a Rain Water Harvesting Project undertaken by BPCL with financial support from (Oil Industries Development Board) and executed in collaboration with NGO, Bridge Public Charitable Trust. Villages suffering from acute shortage of water were identified for this activity. Women from these villages had to walk long distances in the blazing sun on mountainous paths, at times exceeding four kilometers to fetch water. Runoffs triggered by topographical conditions, impervious bedrock, poor water holding capacity of the soil, soil erosion and unrestrained grazing had made the situation critical. The objective was to turn these villages from Water scarce to water positive. The work mainly comprised of repairs/Deepening of wells, building bunds to capture and store rain water, repairs and leak proofing of existing bunds, building water tanks etc. All the activities undertaken to draught free the villages were performed with complete participation from the villagers. This imparted a sense of belonging and responsibility towards their own village. Not just that, while working they learnt additional skills like masonry, welding etc. which they later used as an additional source of income for themselves. This helped check the rampant levels of migration as well. Another unique aspect of the whole project was the concept of Shram Dan. The villagers performed Shram Daan once a week and for the balance days they were paid minimum wages. Seeing the enthusiasm of the villagers, BPCL also initiated an Employee Volunteering Initiative where in approximately 100 BPCL employees gathered collectively for Shram Daan.

32

8. What BPCL Achieved? Bringing people together for a common cause: We were able to bring people together for a common cause, the cause being wellbeing of all. We were blessed with committed staff who also took the initiative to work for their own good. Employees also sustained their enthusiasm and motivation throughout which added to our strength. Non-biased attitude: May it be a worker or an engineer or a driver or any administration staff, we give equal treatment to all. Never do employees feel that some are favoured and others are not. Trust: Employees do have the trust in whatever the department does. The department has helped them help themselves in such a way that it has left a long lasting effect on their minds. This trust made it obvious for them to keep participating actively in all the activities. Transparency: The department has been totally transparent regarding all its activities. Employees were made equal partners in conducting any activity. Because of this there was no point where employees felt left out. Need based activities: We at BPCL have never arranged activities for the sake of doing it. We have conducted activities as and when people demanded, may it be our own employees or people from the communities. Thus we have indirectly given onus to the people to decide when, why and which activity they need. Involvement of all: We have been successful in involving people of all cadres at the refinery level, right from the managers to the workers, and from the various departments to the different unions. This helped us to get the opinions and contributions of all. At the community level, all the people are involved right from the planning level. People take decisions along with us. Human stories of revival helped: We had many success stories of our employees which constantly motivated us to work consistently. The recovered addicts are our strength. They help us to help the others who are in similar problem.

33

CONCLUSIONS

Each and every company should undertake the element of corporate social responsibility into consideration. It is for the benefit of the companys long life and consistent growth. as we have seen in this project, bpcl has conducted a number of social responsibility activities; it has gained a good reputation in the globally competitive market .In these days more social responsibility u undertake, more you will get consumers satisfaction and earn our customers the business is operated within the society, it becomes compulsory to conduct csr activities to win consumers confidence and represent a global brand image Atlast to say we should give back to the world, what we take from it.

34

BIBLIOGRAPHY
www.wikipedia.org www.indianngos.com

www.karmayog.org www.bharatpetroleum.in http://www.scribd.com/doc/29104400/Corporate-Social-Responsibility

35