Corporate Social

Responsibility of NTPC

Submitted By:

Neha Sharma
 Table of Content
S.No. Particulars
1. Introduction

2. Corporate Social Responsibility: What does it mean?

2.1 How CSR help the companies

2.2 The business case for CSR

3. NTPC: The Social Commitment

3.1 Resettlement and Rehabilitation

3.1.1 The Comprehensive Policy Framework

3.2 Ash Utilization

3.3 A forestation

3.3.1 NTPC'S Approach

3.3.2 Forest Bank

3.4 Environmental Management

3.4.1 Environment Management System / ISO-14001

3.4.2 Environment Policy
3.4.3 Resource Conservation
3.4.4 Pollution Control Systems
3.4.5 Monitoring of Environmental Parameters
3.4.6 Ash Water Recycling System
3.4.7 Advanced / Eco-friendly Technologies

3.5 Global Compact

3.5.1 The Ten Principles of Global Compact
3.5.2 Participation by NTPC
3.5.3 Tsunami

3.6 Community Development

4. Research Methodology
5. Result
6. Conclusion
 Corporate Social Responsibility of NTPC
1. Introduction about NTPC
NTPC Limited is the largest thermal power generating company of India. A public sector
company, it was incorporated in the year 1975 to accelerate power development in the
country as a wholly owned company of the Government of India. At present,
Government of India holds 89.5% of the total equity shares of the company and the
balance 10.5% is held by FIIs, Domestic Banks, Public and others. Within a span of 30
years, NTPC has emerged as a truly national power company, with power generating
facilities in all the major regions of the country. Based on 1998 data, carried out by Data
monitor UK, NTPC is the 6th largest in terms of thermal power generation and the
second most efficient in terms of capacity utilization amongst the thermal utilities in the
world.

NTPC's core business is engineering, construction and operation of power generating

plants and also providing consultancy to power utilities in India and abroad. As on date
the installed capacity of NTPC is 24,249 MW through its 13 coal based (19,980 MW), 7
gas based (3,955 MW) and 3 Joint Venture Projects (314 MW). NTPC acquired 50%
equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV company operates
the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74
MW). NTPC is also managing Badarpur thermal power station (705 MW) of Government
of India.

NTPC’s share on 31 Mar 2006 in the total installed capacity of the country was 19.51%
and it contributed 27.68% of the total power generation of the country during 2005-06.
NTPC has set new benchmarks for the power industry both in the area of power plant
construction and operations. It is providing power at the cheapest average tariff in the
country. With its experience and expertise in the power sector, NTPC is extending
consultancy services to various organizations in the power business.

NTPC is committed to the environment, generating power at minimal environmental cost

and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive a
forestation in the vicinity of its plants. Plantations have increased forest area and reduced
barren land. The massive a forestation by NTPC in and around its Ramagundam Power
station (2100 MW) have contributed reducing the temperature in the areas by about 3°c.
NTPC has also taken proactive steps for ash utilization. In 1991, it set up Ash Utilization
Division to manage efficient use of the ash produced at its coal stations. This quality of
ash produced is ideal for use in cement, concrete, cellular concrete, building material.

A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been
established in NTPC with the assistance of United States Agency for International
Development. (USAID). Cenpeep is efficiency oriented, eco-friendly and eco-nurturing
initiative - a symbol of NTPC's concern towards environmental protection and continued
commitment to sustainable power development in India.
As a responsible corporate citizen, NTPC is making constant efforts to improve the socio-
economic status of the people affected by its projects. Through its Rehabilitation and
Resettlement programs, the company endeavors to improve the overall socio-economic
status of Project Affected Persons.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum of
Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under
the 'Excellent category' (the best category) every year since the MOU system became
operative.

Recognizing its excellent performance and vast potential, Government of the India has
identified NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential global
giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize
it’s vision of being “one of the world’s largest and best power utilities, powering India’s
growth”.
2. Corporate Social Responsibility: What does it mean?
"More and more companies are accepting corporate citizenship as a new strategic and
managerial purpose requiring their attention. Once seen as a purely charitable activity--a
source of general goodwill, with no bottom-line consequence--citizenship is moving from
the margins of concern to the center at leading companies."

Today, there are many references to corporate social responsibility (CSR), sometimes
referred to as corporate citizenship, in our workplaces, in the media, in the government,
in our communities. While there is no agreed-upon definition, the World Business
Council for Sustainable Development defines CSR as the business commitment and
contribution to the quality of life of employees, their families and the local community
and society overall to support sustainable economic development. Simply put, the
business case for CSR--establishing a positive company reputation and brand in the
public eye through good work that yields a competitive edge while at the same time
contributing to others--demands that organizations shift from solely focusing on making a
profit to including financial, environmental and social responsibility in their core business
strategies. Despite what the phrase corporate social responsibility suggests, the concept is
not restricted to corporations but rather is intended for most types of organizations, such
as associations, labor unions, organizations that serve the community for scientific,
educational, artistic, public health or charitable purposes, and governmental agencies.

2.1 How CSR help the compnies

Globalization, the explosion of information technology, advances in the biological
sciences, and the growth of democracy and diversity can be considered among the
positive developments in our world today. On the other hand, poverty, environmental
crises such as global warming, epidemics such as AIDS, and terrorism are also part of
today's world. What do these positive and negative aspects have in common? They reflect
the breathtaking increase in global interdependence, to the extent that borders don't count
for much anymore and local communities are increasingly affected by things that happen
a long way from home.Corporate social responsibility (CSR) has been proposed as a way
to respond to some of these issues, both locally and globally. According to "Integrating
Responsibility," most companies that have initiated CSR programs have done so in
response to one problem or another; for example, in the thermal pwer station, it was
environmental issues. CSR programs have also surfaced in the sourcing departments of
companies facing supply chain issues.

CSR is built on four key points:

• Reputation- Building trust in a company is a long, uphill battle, but losing it can
have dramatic effects on share prices and customer loyalty.
 • Retention and recruitment- Employees want to work for responsible companies
that care about their employees and contribute to society.

• Operational efficiency- CSR can improve the bottom line by using materials
efficiently and minimizing waste.

• Increased sales- Cause-related marketing, ethical and environmentally conscious

labels, and new product innovation can influence the top line.

Every business has an impact on the communities in which it operates, and the business
depends on a basic set of social conditions--an educated workforce, available natural
resources, health care, good government--in order to operate and compete. Communities
also depend on business. The economic and social welfare of the population is dependent
on having companies that can sustain the local economy. Every company draws on
different resources and produces different effects in different locations.CSR practices and
philanthropy must address these specific interactions between a business and the social
conditions in which it operates

• Generic social issues- which neither significantly affect nor are significantly
affected by the business.

• Value chain impact- the consequences of a company's operating activities, good

or bad.

• Competitive context- those aspects of the social environment that constrain the
productivity of the business in its operating location. Schools, for example, may
affect the competitiveness of companies that depend on a local workforce, even if
the companies' activities do not have a direct impact on the schools.

To be an effective and socially responsible business, companies need to move beyond

generalized concepts of good citizenship.

2.2 The business case for CSR

The benefits of CSR to businesses vary depending on the nature of the enterprise, and are
typically very difficult to quantify. A major meta-analysis has been conducted seeking to
draw a correlation between social/environmental performance and financial performance.

It should be noted that the definition of CSR used within business can vary from the strict
'stakeholder impacts' definition and will often include charitable efforts and volunteering.

The business case for CSR within a company will likely rest on one or more of these
arguments:
Human Resources

Corporate Social Responsibility can be an important aid to recruitment and retention,

particularly within the competitive graduate market. Potential recruits are increasingly
likely to ask about a firm's CSR policy during an interview and having a comprehensive
policy can give an advantage. CSR can also help to build a 'feel good' atmosphere among
exisiting staff, particularly when they can become involved through payroll giving,
fundraising activities or community volunteering.

Risk Management

Managing risk is a central part of many corporate strategies. Reputations that take
decades to build up can be ruined in hours through incidents such as corruption scandals
or environmental accidents. These events can also draw unwanted attention from
regulators, courts, governments and media. Building a genuine culture of 'doing the right
thing' within a corporation can offset these risks.

Brand Differentiation

In crowded marketplaces companies strive for 'X Factors' which can separate them from
the competition in the minds of consumers. Several major brands, such as The Co-
operative Group and The Body Shop are built on ethical values. Business service
organisations can benefit too from building a reputation for integrity and best practice.

License to operate

Corporations are keen to avoid interference in their business through taxation or

regulations. By taking substantive voluntary steps they can persuade governments and the
wider public that they are taking current issues like health, safety, diversity or the
environment seriously and so avoid intervention. This also applies to firms seeking to
justify eye-catching profits and high levels of boardroom pay. Those operating away
from their home country can make sure they stay welcome by being good corporate
citizens with respect to labour standards and impacts on the environment.

Diverting Attention

Major corporations which have existing reputational problems due to their core business
activities may engage in high-profile CSR programmes to draw attention away from their
perceived negative impacts. Thus British American Tobacco (BAT) will take part in
health initatives and the petroleum giant BP has installed very visible wind-turbines on
the roofs of some petrol stations in the UK.
3. NTPC: The Social Commitment
3.1 Resettlement and Rehabilitation
NTPC believes in growth with a human face, and pursuing people-centered development.
NTPC is a socially committed organization and a socially responsible corporate citizen. It
attaches great importance to discharging its overall social responsibilities to the
community and the society at large where its projects and stations are located. In this
regard Resettlement and Rehabilitation (R&R) program becomes an area of sharp focus,
a program that addresses people affected directly or indirectly in the wake of the projects
undertaken by NTPC.

3.1.1 The Comprehensive Policy Framework

The R&R policy aims at improving the overall economic status of Project Affected
Persons (PAPs). This is achieved by providing opportunities in the fields of sustainable
income, health, education, sanitation, communication and other such areas. Community
development activities are carried out in a transparent and participative manner. Each
program is based on the specific local requirement and guided by the extensive Socio
Economic Surveys (SES). This helps meet the objective of ensuring that the Project
Affected Persons (PAPs) improve or at least regain their previous standard of living.
Efforts are made to adopt a holistic approach to community development.

Thrust is also given on participation and consultation of stakeholders and setting up of

institutional mechanisms like Public Information Centre (PIC), Village Development
Advisory Committee (VDAC) etc.

The PAPs are systematically categorized on an individual basis, thereby bringing into its
fold homestead oustees, agricultural land owners, agricultural and non agricultural
laborers, tribals, occupiers cultivating forest land etc. The Resettlement and
Rehabilitation program is meticulously worked out for each PAP. The R&R policy
options and entitlements include:

Resettlement

• Developed alternate free house plot in resettlement colony with necessary

infrastructure facilities or provisions for self resettlement.
• Free transport arrangement for belongings and reusable material or suitable
transport grant.
• Infrastructure to be provided includes primary school, dispensary, panchayat ghar,
drinking water well/ hand pumps, WBM roads, drainage, Sulabh Sauchalaya etc.
• Suitable Resettlement Grant etc.
Rehabilitation

• “Land for land” on a ‘willing buyer willing seller’ basis

• Other rehabilitation options based on need and requirement
• Capacity Addition Programmes
• Suitable Rehabilitation Grants, Subsistence Allowance etc.
• Other innovative measures like incentivising purchase of land by the landless etc.
• Additional Economic Opportunities as per need and requirement

3.2 Ash Utilization

Ash utilization is one of the key concerns at NTPC. The Ash Utilization Division, set up
in 1991, strives to derive maximum usage from the vast quantities of ash produced at its
coal-based stations. The division proactively formulates policy, plans and program for
ash utilization. It further monitors the progress in these areas and works at developing
new fields of ash utilization.

The quality of ash produced conforms to the requirements of 3812. The fly ash generated
at NTPC stations is ideal for use in cement, concrete, concrete products, cellular concrete,
lightweight aggregates, bricks/blocks/tiles etc. This is attributed to its very low loss on
ignition value. To facilitate availability of dry ash to end-users all new units of NTPC are
provided with the facility of dry ash collection system. Partial dry ash collection systems
have also been set up at the existing stations where these facilities did not exist earlier.
Augmentation of these systems to 100% capacity is presently in progress.

The various channels of ash utilization currently include use by a number of Cement,
Asbestos-Cement products & Concrete manufacturing Industries, Land Development,
Roads & Embankments, Ash Dyke Raising, and Building Products. Area wise break-up
of utilization for the year 2004-05 is as under:

Area of Utilization Quantity (in Million Tons)

Land Development 4.55

Cement & Concrete 4.59

Roads/Embankments 0.6
Ash Dyke Raising 2.34

Bricks 0.2

Others 0.46
Total 12.74
NTPC has adopted user friendly policy guidelines on ash utilization. These include
actions identified for:

• Ash Collection & Storage System.

• Facilities & Incentives to users.
• Direct Department Activities.
• Administrative & Financial aspects.

In order to motivate entrepreneurs to come forward with ash utilization schemes, NTPC
offers several facilities and incentives. These include free issue of all types of ash viz.
Dry Fly Ash / Pond Ash / Bottom Ash & infrastructure facilities, wherever feasible.
Necessary help and assistance is also offered to facilitate procurement of land, supply of
electricity etc. from Govt. Authorities.

3.3 A forestation
The a forestation activities of the industrial region not only serve as foreground and
background landscape features but also contribute to the overall improvement in the
environment. The crucial need for conservation and restoration of the degraded
ecosystem and preservation of genetic resources of the country led to the enactment of
the "Wild Life Protection Act" (1974) and "Forest Act" (1980) in addition to legal Acts of
Air, Water and Environment.

Maintenance of ecological balance and pristine environment therefore, has been of

utmost importance at NTPC. Environment planning and preservation is an integral part of
its project activities. NTPC undertakes a forestation program covering vast tracts of land
in and around its projects in a concerted bid to counter growing ecological threat.

3.3.1 NTPC'S Approach

It has been possible to achieve a satisfactory combination of environmental quality and

techno-economics through determined efforts at NTPC for its projects. Continuous
vigilance is maintained to minimize pollution apart from other management program
taking root simultaneously with construction activities.

The appropriate a forestation program for plant, township, green-belt and other sites are
designed according to the geographical features. The species are selected on the basis of
their adaptability and grouped with local representatives. The growth characteristics,
flowering pattern and canopy (spreading nature) are evaluated in their distribution over
these sites of a forestation. These considerations not only contribute to the aesthetics but
also go a long way in serving as "Sinks" for the pollutant emissions of the power plant..
At times, they combat pollution from other industries in the surrounding area.
Saving the existing trees, planting right at the beginning of construction phase,
preservation of trees and advice from State Forest Departments and Agriculture
Universities are a few general guidelines followed by NTPC in the a forestation program
at their projects. The site specific a forestation details conform to the natural climatic
conditions and adaptability of species. The species are grouped into a heterogeneous
combination to impart a natural and healthy assemblage.

The arrangement of species in the green belt / buffer zone conforms to hexagonal pattern
to facilitate maximum density of species. In addition, the growth pattern and canopy are
evaluated in their actual locations of the hexagonal pattern which help uniform canopy
spreading. The tree planting, garden and park development in and around the township
adds to the general aesthetics. Plant species of medicinal value are cultivated separately
in isolated patch and information made available to residents for use appropriately.

The nursery ensures good quality planting stock so vital in the success of planting
program. In order to reduce the transport cost and damage to the planting stock, nurseries
have been developed at the projects to meet the planting requirement.

NTPC has developed independent Horticulture Department at its projects headed by

experienced horticulture officers / supervisors.

3.3.2 Forest Bank

An innovative proposal to create "Forest Banks" in each state was wherein the Forest
Department of all States / Union Territories should identify land to initiate plantations
under various program of the state. Such areas would facilitate any power project of
either the State or Centre to draw necessary "Compensatory A forestation Area" against
the existing balance in the Forest Bank. This will ensure that projects need not wait for
clearance for want of identification of areas and State Government's concurrence for
compensatory a forestation.

3.4 Environmental Management

Harmony between man and environment is the essence of healthy life and growth.
Therefore, maintenance of ecological balance and a pristine environment has been of
utmost importance to NTPC. Environment protection continues to be a key area of
activity in NTPC along with growth in generation of power.

Driven by its commitment for sustainable growth of power, NTPC has evolved a well
defined environment management policy for minimizing environmental impact arising
out of setting up of power plants and preserving the natural ecology.

In November 1995, NTPC became the first public utility to bring out a comprehensive
document entitled "NTPC Environment Policy and Environment Management System".
Amongst the guiding principles, adopted in the document, are the company's proactive
approach to environment, optimum utilization of equipment, adoption of latest
technologies and continual environment improvement. The policy also envisages efficient
utilization of resources, thereby minimizing waste, maximizing ash utilization and
providing green belt all around the plant for maintaining ecological balance. NTPC's
environment-friendly approach to power has already begun to show results in
conservation of natural resources such as water and fuel (coal, oil & gas) as well as
control of environmental pollution. NTPC has chalked out a set of well-defined activities
that are envisaged right from the project conceptualization stage.

Performance enhancement and up gradation measures are undertaken by the organization

during the post operational stage of the stations. These activities have greatly helped to
minimize the impact on environment and preserve the ecology in and around its power
projects. These measures have been enumerated as follows.

3.4.1 Environment Management System / ISO-14001

NTPC has established Environmental Management System (EMS) as per ISO-14001 at
its different establishments. As a result of pursuing sound environment management
practices, all NTPC power stations (excluding Simhadri which was commissioned
recently) as well as the Corporate Environment Management.

3.4.2 Environment Policy

The Environment Policy of the Corporate Environment Management and Ash Utilization
Division as adopted in March, 2003 under the Environment Management System is stated
below.

• Continual improvement of environmental performance of all NTPC power

stations in pursuance of our vision of powering India’s growth.
• Continually monitor all the stations for pollution prevention and environmental
protection.
• Conservation of natural resources including land by utilizing more and more ash
generated by thermal power stations of NTPC.
• Assist stations for compliance with relevant environmental legislations and
regulations.
• To promote environmental awareness amongst the employees of NTPC.
• To create awareness of Ash Utilization and its environmental benefits among the
Engineers, Builders, Architects, Potential Entrepreneurs, NTPC personnel and
public at large.

3.4.3 Resource Conservation

With better awareness and appreciation towards ecology and environment, thermal power
utilities have been continually looking for innovative and cost effective solutions to
conserve natural resources and reduce wastes. Some of the measures include:
 • Reduction in land requirements for main plant and ash disposal areas in newer
units.
• Capacity addition in old plants, within existing land.
• Reduction in water requirement for main plant and ash disposal areas through
recycle and reuse of water.
• Reduction in fuel requirement through more efficient combustion and adoption of
state-of-the-art technologies such as super critical boilers.

3.4.4 Pollution Control Systems

While deciding the appropriate technology for its projects, NTPC integrates many
environmental provisions into the plant design. In order to keep emission, effluents and
ambient air quality well within acceptable limits, NTPC has provided the best available
equipments, devices and systems such as high efficiency Electrostatic Precipitators
(ESPs), Tall Stacks and Low NOx Burners for control of stack emissions, Dust
Extraction and Dust Suppression Systems for control of fugitive dust, Effluent Treatment
Plants, Neutralization Pits and Ash Ponds for control of the effluent quality, Ash Water
Re-circulation System and Cooling Towers for control of the effluent quality as well as
conservation of water and Sewage Treatment Plant (STP) for treatment of the domestic
sewage from its plant and township areas.

3.4.5 Monitoring of Environmental Parameters

A broad based Environment Monitoring Program has been formulated and implemented
in NTPC. All pollutants discharged from the power plant through stack emission, ash
pond effluent, main plant effluent, domestic effluent and Condenser Cooling Water
(CCW) effluent are monitored at the stipulated frequency at the source itself and at the
points of discharge. In addition to the above, ambient air, surface water and ground water
quality in and around NTPC plants are regularly monitored to assess any adverse impacts
as a result of operation of the power plant.

3.4.6 Ash Water Recycling System

NTPC is aiming at adopting the concept of "Near Zero Effluent Discharge" for once -
through ash disposal system wherein huge quantity of water is used for disposal of ash to
the ash ponds. This has been further necessitated in view of ever increasing scarcity of
water, as also, fast deterioration in water quality of our rivers and other water sources due
to discharges from polluting industries. For conservation of water, Ash Water Recycling
System has been envisaged for the ash ponds in all new projects and in a number of its
operating stations. NTPC has drawn a program for changing ash disposal systems at its
existing power plants from once-through system to recycling system where clear effluent
from ash pond is recycled and only little quantity of blow down is required to be
discharged after treatment. The ash water recycling system has already been installed and
is in operation at a number of Stations such as Ramagundam, Talcher Kaniha, Talcher
Thermal, Kahalgaon, Korba and Vindhyachal. The scheme has helped stations to save
huge quantity of fresh water required as make-up water for disposal of ash.
3.4.7 Advanced / Eco-friendly Technologies

NTPC has gained expertise in operation and management of 200 MW and 500MW Units
installed at different Stations all over the country and is looking ahead for higher capacity
Unit sizes with super critical steam parameters for higher efficiencies and for associated
environmental gains. At Sipat (Chattisgarh), higher capacity Units of size of 660 MW
and advanced Steam Generators employing super critical steam parameters have already
been envisaged as a green field project.

Higher efficiency Combined Cycle Gas Power Plants are already under operation at all
gas-based power projects in NTPC. Advanced clean coal technologies such as Integrated
Gasification Combined Cycle (IGCC) have higher efficiencies of the order of 45% as
compared to about 38% for conventional plants. NTPC has initiated a techno-economic
study under USDOE / USAID for setting up a commercial scale demonstration power
plant by using IGCC technology. These plants can use low grade coals and have higher
efficiency as compared to conventional plants.

3.5 Global Compact

Globalization has brought significant advantages to countries and business around the
world but the benefits have spread unequally both within and among countries.

While the rules favoring global market expansion have grown more robust, the rules
intended to promote equally valid social objectives viz. in the areas of human rights,
labor standards and environment lag behind and in some cases actually have become
weaker.

In order to promote Corporate Social Responsibility and citizenship in the new global
marketplace, UN Secretary General, Mr. Kofi Annan first proposed the Global Compact
at Davos in Jan'99. It was thus created to help organizations redefine their strategies and
course of actions so that all people can share the benefits of globalization, not just a
fortunate few.

The Global Compact’s operational phase was launched at UN Headquarters in New York
on 26 July 2000. and has since then focused its efforts on achieving practical results and
fostering the engagement of business leaders in the direction.

Through the power of collective action, the Global Compact seeks to promote responsible
corporate citizenship so that business can be part of the solution to the challenges of
globalization. In this way, the private sector – in partnership with other social actors –
can help realize the Secretary-General’s vision: a more sustainable and inclusive global
economy.
3.5.1 The Ten Principles of Global Compact

The Global Compact's ten principles in the areas of human rights, labour, the
environment and anti-corruption enjoy universal consensus

Human Rights

• Principle 1 : Business should support and respect the protection of internationally

proclaimed human rights; and
• Principle 2 : Make sure that they are not complicit in human rights abuses.

Labor

• Principle 3 : Business should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
• Principle 4 : The elimination of all forms of forced and compulsory labor;
• Principle 5 : The effective abolition of child labor; and
• Principle 6 : The elimination of discrimination in respect of employment and
occupation.

Environment

• Principle 7 : Business should support a precautionary approach to environmental

challenges;
• Principle 8 : Undertake initiatives to promote greater environmental
responsibility; and
• Principle 9 : Encourage the development and diffusion of environmentally
friendly technologies.

Anti-Corruption

• Principle 10 : Business should work against corruption in all its forms, including
extortion and bribery.

3.5.2 Participation by NTPC

Due to keenness of UN that this movement takes root in India, some business leaders
took the initiative and organized a meeting of select business leaders in Mumbai in Dec'
2000. NTPC as a prominent business and community leader in the power sector was also
invited to the meeting and thus engage/associate itself with Global Compact.

Following this meeting which was attended by CMD NTPC, NTPC agreed to be
associated with the Global Compact. In his letter in May 2001 CMD addressed to Mr.
Kofi Annan, Secretary General, UN formally expressed its support for the Global
Compact and its commitment to take action in this regard.
NTPC expresses its continued support for the Global Compact and its commitment
to take action in this regard. The principles of GC are regularly communicated to
all employees through in-house magazines, internal training program and posters.

NTPC along with major corporate in India took the lead and founded Global Compact
Society of India in the year 2003. Further, NTPC as founder member of Global Compact
Society took the lead for organizing the 1st national convention on “Excellence in
Corporate Citizenship and Global Compact” on 27th July 2004 at New Delhi.

3.5.3 Tsunami

The employee of NTPC with support of company volunteered to contribute a total sum of
approximately Rs.15.2 million from their salary, in addition to NTPC contribution of
Rs.880 million to Prime Minister Relief Fund as immediate relief measures. The team of
52 NTPC employee provided medical treatment and relief material to the affected
persons. This team treated 7838 patients and provided food to 18398 villagers and
children till alternate arrangements were made by local authorities.

NTPC team assisted for restoration of power supply in 53 relief camps, rectification of 2
nos. control panel, inspection and suggesting rectification for 33 KV transmission
systems, installing small DG set, and repairing a number of DG sets of various capacities.

3.6 Community Development

NTPC has been a committed and socially responsible corporate citizen since its inception
and formulated specific guidelines for the welfare of Project Affected persons (PAPs) and
community development in the neighborhood villages around its power stations as early
as 1980s. It is one of the first in the corporate sector to formulate comprehensive
resettlement and rehabilitation policy for addressing the issue of PAPs.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC.s culture.

NTPC’s mission in the area of CSR is to “Be a socially responsible corporate entity
with thrust on environment protection, ash utilization, community development,
and energy conservation”.

NTPC’s approach towards CSR, further articulated in the corporate objectives on

sustainable power development, is as follows::

“To contribute to

• Sustainable power development by discharging corporate social

responsibilities.
 • Lead the sector in the areas of resettlement and rehabilitation and
environment protection including effective ash-utilization, peripheral
development and energy conservation practices.”

NTPC’s fresh impetus on Community Development is reflected through formulation of

CSR-CD Policy, July 04, establishing NTPC foundation as a trust and initiating scheme
for economic self reliance of physically challenged persons (PCP).
 CERTIFICATE
This is to certify that Neha Sharma of MBA (2nd SEM) has completed this project
entitled to “ Corporate Social Responsibility of NTPC ” under my guidance.

Signature

(Mr. Mukul Gupta)

 ACKNOWLEDGEMENT
I would like to express my sincere thanks to my
Research Methodology Prof. Mukul Gupta for the most
valuable advice and guidance.

NEHA SHARMA
MBA (2nd SEM)
 4. Research Methodology
4.1 Research Plan

a) Research Type: Descriptive research.

b) Research Method: Extensive literature study
c) Research Design: Descriptive- exploratory

4.2 Sample Plan

a) Sample Design: Non probability purposive sampling.

4.3 Data Collection: Secondary

a) Secondary data collection method: Desk research

b) Secondary data sources: Printed & Digital information

4.4 Methods of Research

a) Meeting with management personal and Executives

b) Literature and statistics from the Internet.
c) From books, magazines and newspaper.
 Result
Every country should embrace the remarkable concept of individuals and businesses
forming a partnership to support social causes. In the context of India, such a partnership
has enormous potential for strengthening society. Corporate social responsibility and
volunteerism have no boundaries and are not constrained by race, colour, or religion.
Sadly, concern for the community is often mistaken for socialism. On the contrary,
capitalism thrives only when every citizen is an asset in economic activity and has
opportunities to succeed. Corporate social responsibility is a culture and unwritten
contract with the community. This invisible culture can shape brighter futures for nations.

Some would argue that it is self-evidently “good” that businesses should seek to
minimize any negative social and environmental impact resulting from their economic
activity. It can also be beneficial for a company’s reputation to publicize (for example)
any environmentally beneficial business activities. A company which develops new
engine technology to reduce fuel consumption will (if it chooses) be able to promote its
CSR credentials as well as increase profits. Some commentators are cynical about
corporations’ commitment to CSR and Sustainable Development and say that the idea of
an “Ethical company” is an oxymoron.
 Conclusion
Corporate social responsibility has much broader implications for the nation as a whole.
It reduces dependency on the government for social change. Most governmental program
quickly becomes embroiled in political manipulation, corruption, communal overtones,
and bitter infighting. There is a need for public-private partnership with well-defined
controls and processes for the best use of resources for social change. Social reforms
driven by the community will bring people together, turn the attention of the masses to
tasks that benefit society, and reinforce peace and harmony.

However, the challenges in India are enormous. Social responsibility should not be
limited to large successful corporations; there should be greater participation from most
small, medium, and large businesses. The goodwill firms can generate from acts of social
responsibility may, in fact, be worth far more to the businesses than the amounts they
give. Corporations collectively can make India a better place for every citizen.