Corporate Social Responsibility (CSR)

The societal responsibility of companies

Indian Oil Corporation Limited, or IndianOil, (BSE:530965, NSE:IOC) is an Indian s tate-owned oil and gas company headquartered at Mumbai, India. It is India s large st commercial enterprise, ranking 125th on the Fortune Global 500 list in 2010. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34.8% share in refining capacity and 67% downstream sector pipelines ca pacity in India. The Indian Oil Group of Companies owns and operates 10 of India 's 19 refineries with a combined refining capacity of 65.7 million metric tons p er year. Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Corpora te social responsibility is represented by the contributions undertaken by compa nies to society through its business activities and its social investment. This is also to connect the Concept of sustainable development to the company s level.Ove r the last years an increasing number of companies worldwide started promoting t heir Corporate Social Responsibility strategies because the customers, the publi c and the investors expect them to act sustainable as well as responsible. In mo st cases CSR is a result of a variety of social, environmental and economic pres sures.The Term Corporate Social Responsibility is imprecise and its application di ffers. CSR can not only refer to the compliance of human right standards, labor and social security arrangements, but also to the fight against climate change, sustainable management of natural resources and consumer protection. The concept of Corporate Social Responsibility was first mentioned 1953 in the p ublication Social Responsibilities of the Businessman by William J. Bowen. However , the term CSR became only popular in the 1990s, when the German Betapharm, a ge neric pharmaceutical company decided to implement CSR. The generic market is cha racterized by an interchangeability of products. In 1997 a halt in sales growth led the company to the realization that in the generic drugs market companies co uld not differentiate on price or quality. This was the prelude for the company to adopt CSR as an expression of the company s values and as a part of its corpora te strategies. By using strategic and social commitment for families with chroni cally ill children children, Betapharm took a strategic advantage. At IndianOil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporation s objectives in thi s key performance area are enshrined in its Mission statement: " to help enrich th e quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." Every year, IndianOil sets aside a fixed portion of its profits for spreading sm iles in millions of lives across the country through a comprehensive community w elfare and development programme. About one-fourth of the community development funds are spent on the welfare of Scheduled Caste and Scheduled Tribe beneficiar ies. IndianOil has a concerted social responsibility programme to partner communit ies in health, family welfare, education, environment protection, providing pota ble water, sanitation, and empowerment of women and other marginalised groups. I ndianOil has always been in the forefront in times of national emergencies. Indi anOil People have time and again rallied to help victims of natural calamities, maintaining uninterrupted supply of petroleum products and contributing to relie f and rehabilitation measures in cash and kind. Indian Oil Corporation Limited - India's largest commercial enterprise and the N o.1 Indian Company in Fortune 'Global 500' listing under its Corporate Social Re sponsibility Programme had been awarding scholarships to meritorious students ac ross the country under the "IndianOil Educational Scholarships Scheme". From the year 2010-11 IndianOil has increased the number of scholarships from 450 to 260 0 Click here for details. The scholarship scheme covers the students pursuing fi

rst year of 10+ / ITI, Engineering, MBBS and MBA. The scheme provides special en couragement to girls, physically challenged and students from Jammu & Kashmir as well as the Northeast States. Based on number of applications received against adv ertisement published on 1st September 2010, number of seats allocated to specifi ed streams and number found meeting the eligibility criteria, Indian Oil Corpora tion Limited is pleased to announce that a total of 1898 students in different s treams and categories have been selected for award of Scholarship for the academic ye ar 2010-11: Courses Number of Scholarships Scholarship Amount per month (Rs.) 10 + / ITI 1321 1000 Engineerin g 296 3000 MBBS 183 3000 MBA 98 3000 The mobile hospital services of OIL have always been one of the most significant community welfare projects of the Company. Today, the team of doctors and param edical staff of OIL hospital cater to the basic medical needs of the villages in and around OIL s operational areas. In the recently carried out social audit of O IL s community welfare initiatives, the Company s Mobile Hospital services were rank ed very highly by all the respondents. Based on this feedback, the Company decid ed to increase the number of visit as well as extend the services to new areas. From the earlier 16 20 visits per month, the mobile services make 40-50 visits p er month. The Company has signed a MoU with St Luke s Hospital, which will extend the services to villages in Tinsukia District while the Company s own teamwould ca ter to villages in Dibrugarh District. Agriculture Development Programme OIL provides assistance/technical guidance to farmers in nearby villages of OIL s operational areas for agricultural development. Farming equipment, hybrid seeds, fertilizers etc. are distributed to farmers of the region. Introduced in the year 1991, 27 villages h ave been adopted under this scheme till date. The emphasis is towards motivating the rural farmer s to take up agriculture as a commercial activity, which otherwise, was a means of subsistenc e only. Handicraft Training & Production Centre (HTPC) Established in 1984, OIL s Handicraft Training and Production Centre, located at D uliajan imparts training to women on Handicraft, Weaving, Embroidery and Tailori ng on monthly stipendiary for a 9 months period. Till date, over 500 women have been trained, most of whom have set-up their own small production units All is well when OIL is well Ten years back the slogans on the walls of some of OIL s installations read Oil Ind ia go back .today the same walls have been cleaned by local people and they have now writ ten When OIL grows, we grow . This subtly reflects the change in the mindset of once ag gressive and suspecting populace, who have witnessed a literal transformation of their li fe and villages due to OIL s long term CSR goals which lay due emphasis on providing avenues for susta inable self employment and all-round development of the operational areas.

Financial result for time period April 2009 - March 2010 - Sales Rs.277734 Crores - Profit before tax Rs.14106 Crores - Net profit after tax Rs.10220 Crores - CSR Budget Not Disclosed - Remuneration of MD/CEO Nil