CSR Policy, Strategy & Goals

MDI Gurgaon

A B Chakraborty
Chief CSR, ONGC
 Emerging national CSR context since 2009

• Heightened attention and action by the Government

• Structured approach by Corporates - Mainstreaming CSR in

corporate working Strategic CSR.

• CSR contributing to inclusive growth and sustainable

development
 Emerging national CSR context since 2009

Key Goverment actions

• Voluntary CSR Guidelines issued by Ministry of Corporate

Affairs, GOI, Dec 2009

• Guidelines on CSR for CPSE’s by DPE, GOI issued vide O.M

dated 9th April,10
 Voluntary CSR Guidelines
Ministry of Corporate Affairs
Applicable for all Corporates - Voluntary
Fundamental Principles
• Formulate a CSR policy to guide
 Strategic planning
 Provide a roadmap for CSR initiatives
• CSR should be an integral part of overall business policy and
aligned with the corporate business goals.
 Voluntary CSR Guidelines

Core Elements
• Care for all Stakeholders
• Ethical functioning
• Respect for
 Workers' Rights and Welfare
 Human Rights
 Environment
• Activities for Social and Inclusive Development
Voluntary CSR Guidelines

Implementation strategy
• Allocate specific amount in the budgets for CSR activities
• Identification of projects/activities
• Setting measurable physical targets with timeframe
• Organizational mechanism and responsibilities, time
schedules and monitoring
• System of need assessment and impact assessment
DPE Guidelines on CSR for CPSE’s

• Provides operational details and guidance

 Investment in CSR should be project-based. Mere donations to
philanthropic/charity or other organizations would not come under the
category of CSR.
 CSR activities should generate community goodwill, create social impact
and visibility
 No duplication of CSR activities with that of programmes run by Central,
State and Local Governments
 Activities related to Sustainable Development will form a significant
element of the total initiatives of CSR
• Mandatory CSR budget allocation Percentage of
net profit through Board Resolution
 CSR in ONGC – In Sync

Actions before and in sync with DPE guidelines

• Restructuring of the CSR set up
• Enhancement of delegated powers
• Issuance of comprehensive guidelines
• Adopting project approach
• Enhanced budgetary allocation
• Redesign specific business processes such as
accounting
• Induction CSR professionals
“Responsibility” as a tradition

New CSR Paradigm

Philanthropy to ‘Stake Holder Participation’
Target group:
Stakeholder in the community whose well-being is integral
to the long term success of the company.
Transparent : Triple bottom line report
Corporate Approach: Identified focus area
Be good Corporate Citizen: Private Public partnerships
Be fair: Fair trade/Equal opportunity
Selective: Multidisciplinary Screening Committee
recommendations, Responsible investment- Communities,
technologies Etc

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Linkage prospects
• Corporate Governance
• DPE guidelines for CPSEs
• Focus on policy level issues; voluntary standards and voluntary action
• Promote knowledge and awareness
Government
• Co branding with other reputed institution for further CSR initiatives
• Respond to high profile issues and help Corporate in implementation
• Focus on maximizing benefits
Multilateral agencies

• Economic dependency on other stakeholders

• Often not professional and highly mission oriented
• Good relationship with media and society and hence high acceptability
Civil Society/NGO • Credibility of the organization is accountable

• Constant pressure on costs

• An increasing need to demonstrate Transparency
• Humongous social needs and Private can help

Corporate Opportunities
• benefiting the society at large;
• Stakeholders participation
• Build brand value community development and environmental
products

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Approach

Approach needs significant

changes in the following:
1. Planning
2. Management
3. Implementation of CSR activities

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ONGC Focus Areas

12 identified focus areas:

• Education including vocational courses
• Health Care
• Entrepreneurship (self help & livelihood generation) schemes
• Infrastructure support roads, bridges, Schools, hospitals in around our operational areas
• Environment protection, ecological conservation, promotion
• Protection of heritage sites, UNESCO heritage monuments etc.
• Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage, art &
culture.
• Women’s empowerment, girl child development, gender sensitive projects
• Water management including ground water recharge
• Initiatives for physically and mentally challenged
• Sponsorship of seminars, conferences, workshops etc
• Promoting sports/sports persons; supporting agencies promoting sports / sports persons

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CSR activities:

 To have perceivable impact over the intended

beneficiaries & society
 CSR spend as investment
 CSR activities to be near operational area
 Clarity on Society and Stakeholders

 Social impact analysis

 CSR MOU parameter with MOP&NG –

Accountability

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CSR as Mainstream Project

 CSR Investing
 Due diligence
 Appraisal
 Project monitoring (including social
milestones)
 Social audit
 Value for Corporate
 Social capital growth
 CSR Pride, Image & People Involvement

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Parameters of CSR Project

 Identification of stake holders (society)

and intended beneficiaries.
 Project details including project
timeline.
 Impact measurement.
 Benefits accruing to the identified
beneficiaries (stake holders).
 Metrics and methodology to measure

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Project Development Approach

 N -Need Assessment( base line survey)

 P- Project identification
 T- Timelines
 I - Indicators for Performance assessment
 D- Documentation
 T- Third party final assessment
Snapshots of few
Projects

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Few ONGC CSR Initiatives

CSR Project 1: Skill based vocational computer

training
Focus Area: Vocational education
Beneficiary: Children of economically weaker
sections around work centers: Dehradun, Sibsagar,
Mehsana, Kariakal, & Rajahmundry (Seats reserved
for children of ONGC secondary work force).
Financial implication: Rs 10 crores
Partner: Bhartiya Vidya Bhavan
Project status: Commenced

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Few ONGC CSR Initiatives contd

CSR Project 2: Supporting education and medical

(Ashadeep- Shiksha ki jyot)
Focus Area: Girl children education
Beneficiary: Started with 997 students of
economically weaker sections around 25 work
centres(2009) with project cost Rs 85 Lakhs approx.
4500 girl children targeted for 2010-11
Financial implication: Rs 5 Crores approx
Partner: ONGC Mahila Samiti
Project status: Already commenced

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Few ONGC CSR Initiatives contd

CSR Project 3: Greening of 1.5 sq. kms area in

Vasant Kunj institutional area, Delhi. 5000 trees
(species native to agro ecology of Delhi) and creation
of 7000 sq. mts of green patches
Focus Area: Environment
Beneficiary: Habitats of southern ridge and nearby
residents
Financial implication: Rs 61 lakhs
Partner: TERI university
Project status: Commenced

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Few ONGC CSR Initiatives contd

CSR Project 4: A global developmental and

environmental awareness programme for future
green leaders
Focus Area: Education on environment protection
Beneficiary: School children of 3 schools.
Information to be sent to 100 schools.
Financial implication: Rs 95.96 Lakhs
Partner: TERI
Project status: Commenced

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Few ONGC CSR Initiatives contd

CSR Project 5: Asmita–Educating youth,

rediscovering pride in India’s heritage. Series of
unique films on India’s cultural heritage. Document
and disseminate cultural heritage knowledge –
telecast and outreach on National Geographic
channel.
Focus Area: Heritage protection and promotion
Beneficiary: Pan India (particularly Youth)
Financial implication: Rs 98 lakhs
Partner: Surabhi Foundation & TERI
Project status: First telecast in May 2010

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Few ONGC CSR Initiatives contd

CSR Project 6: Support for the education of

Hemophilia affected children across India
Focus Area: Initiatives for mentally and physically
challenged
Beneficiary: 1000 children
Financial implication: Rs 33 lakhs
Project partner: Haemophilia Federation (I)
Project status: Launched on 18th Jan 2010
Identification of Children with Hemophilia (CwH) in
progress

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Few ONGC CSR Initiatives contd

CSR Project 7: Mobile Medicare unit operations in

ONGC’s 20 locations in India.
Focus Area: Healthcare
Beneficiary: 4 lakhs per annum (20 lakhs/5 yrs)
Financial implication: Rs 16 Crores (5 yrs)
Partner: Help Age India
Project status: Launching of the project scheduled in
April 2010.

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Few ONGC CSR Initiatives contd

CSR Project 8: Setting up multi speciality 500-200

bedded hospital, at Sivasagar, Assam & Ankleshwar,
Gujarat
Focus area: Healthcare
Beneficiary: Local community of Sivasagar/
Ankleshwar district
Financial implication: 200/100 Crores plus
Partner: PPP Mode - to be decided
Project status: Project Feasibility Report
under progress

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Few ONGC CSR Initiatives contd

CSR Project 8: Setting up multi speciality 500-200

bedded hospital, at Sivasagar, Assam & Ankleshwar,
Gujarat
Focus area: Healthcare
Beneficiary: Local community of Sivasagar/
Ankleshwar district
Financial implication: 200/100 Crores plus
Partner: PPP Mode - to be decided
Project status: Project Feasibility Report under
progress

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Few ONGC CSR Initiatives contd

CSR Project 8: Setting up multi speciality 500-200

bedded hospital, at Sivasagar, Assam & Ankleshwar,
Gujarat
Focus area: Healthcare
Beneficiary: Local community of Sivasagar/
Ankleshwar district
Financial implication: 200/100 Crores plus
Partner: PPP Mode - to be decided
Project status: Project Feasibility Report
under progress

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ONGC CSR EXPENDITURE (Crs)

300 268.34

200 169.54 174.45

116.05
100

0
2006-07 2007-08 2008-09 2009-10

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Three key missing “building blocks”

1 Limited Executive oversight ; Lack of Clearly defined Strategy or

direction

2 Low integration with core business processes ; Limited articulation of

how SD supports core business objectives

3 Scarce Measurement

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Which is it to be a “Responsible” Corporate?

These boundaries are nested circles of responsibility with the inner core containing the matters that most with the
Company’s control while those decisions and relationships contained in the outer-most circles are subject to the
least amount of corporate scrutiny or influence

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Which is it to be a “Responsible” Corporate?

Identify corporate Values and Issues

1. How does our company view itself as a corporate citizen and do we have corporate policies which reflect our
values and our attitude towards CSR?
2. Do we understand CSR issues and know how can we influence them so that we add value to society?
3. What does our company stand for? What our value drivers and what are the values for those drivers?
4. Is our approach to CSR one of doing nothing., or crisis management, or risk/issues management, or do we
adopt a proactive “better World” approach?
5. Does the enabling environment we have created support responsible business practice, or is it hostile to it?
6. Are our activities contributing to the development of sustainable economy?
7. As the basis of our approach to CSR, have we identified the issues we want to deal with and thereby define our
corporate boundaries?
8. Are we willing to invest time and reputation in this venture to carry it out?
9. What are the social implications of pullint out of a situation?
10. If we wish to “do something right”, how fare ahead of our market are we prepared to go?

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CSR should eventually embed at 3 different levels

• Cy’ CSR approach translated into vision, mission, targets

• Product & Services portfolio as influenced by greening strategy
• CSR roadmap & priorities
• Re-engineered mechanism to assess investments, decisions, and business
cases
Strategic • Brand building and Communication as impacted by CSR

• CSR into Governance Framework

• CSR Management System
• Extended Risk universe to include Social risks
• Ensure compliance with a broader framework
• Measuring and Monitoring CSR performance
Managerial • Target & Reward systems of Cy' employees
• Revisit code of conduct, ethics, values, with CSR in mind

• Embed CSR into Processes (from procurement to sales ; including

stakeholder engagement processes)
• Embed CSR into HR (CR culture, awareness, KPIs, etc)
Operational • Embed CSR into Information System (to collect new sets of data,
provide MIS, enhance Websites and Intranets, etc)

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CSR in ONGC – The final call

 CSR is neither charity nor philanthropy

action

 CSR is socially responsible business

initiative to empower weaker sections of
society

 CSR is fully internalized in ONGC

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Carbon Management – The ONGC experience

• Dedicated Carbon Management Group

• Climate Change and SD Policy
• Six registered CDM projects – Unique feat for a CPSE
• Pilot GHG accounting
• Monetizing fugitive methane emissions
• Disclosures - carbon and sustainability performance
 Sustainability Report
 CDP reporting

Water management
 Emerging national context - Beyond CSR

Draft Guidelines for the Social, Environmental and Economic

Responsibilities of Business – in progress
Refinement over the CSR Voluntary Guidelines 2009
Not prescriptive in nature
Emphasise that businesses have to endeavour to become
responsible actors in society
Every action of business leads to sustainable growth and
economic development.
CSR as commonly understood, does not take into account the
environmental and ethical considerations that every business
needs to focus on.
 Responsible business

Responsible businesses alone will be able to help India meets its

ambitious goal of inclusive and sustainable all round
development while becoming a powerful global economy
Thank You

Email: chakraborty_ab@ongc.co.in
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