CORPORATE SOCIAL RESPONSIBILITY OF INDIAN OIL COPRORATION LIMITED

Submitted to: Prof. Dinesh Kapadia

Assistant Professor

Submitted by: Vishal Bansal(04) Namrata Khushlani(24) Santosh Subramanian(49)

MBA (Marketing) Vivekananda Educational Society Institute of Management Studies & Research Mumbai

ACKNOWLEDGEMENT

Its a privilege to be associated with Indian Oil Corporation limited, a fortune Global 500Company, Indias 2nd most top brand also world 18th largest company.

This acknowledgement is not only the means of formality, but to me, but it is the way by which I am getting the opportunity to show the deep sense of gratitude and obligation to all the people who have provided me with inspiration, guidance and help during preparation of the project.

I articulate my sincere gratitude to my Mr. Sanjay Pednekar, Dy.Manager (RLS) Indian Oil Corporation Limited who has spend his valuable time and guided me throughout inspite of his busy schedule, in shaping of this report.

I would like to express my indebtedness to Prof. Dinesh Kapadia (Vesimsr),as my project guide who has played a pivotal role in the success of this internal assisment project and has always been a source of inspiration to me.

Finally without the blessing of God almighty and moral support of my family members, it would not have been possible to complete the dissertation successfully.

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INDEX
S.NO TOPIC PAGE NO.

1 2

COMPANY PROFILE CORPORATE SOCIAL RESPONSIBILITY

4 5

INDIAN OIL PRESENT CSR POLICY

INDIAN OIL UNIQUE ENDEAVOURS IN CSR

7-8

CURRENT CSR PROJECTS

9-10

CSR BUDGET ALLOCATION

10

LEARNINGS AND CONCLUSION

11

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COMPANY PROFILE

In order to ensure greater efficiency and smooth working in the petroleum sector, Government of India decided to merge the refineneries and the distribution activities. The Indian Refineries and Indian Oil Company were combined to form the giant Indian Oil Corporation (IOCL) on 1stSeptember 1964, with its registered office at Bombay. In 1967, the pipeline division of the corporation was merged with the refineries division. Research &Development of Indian Oil Came into Existence in 1972. In October 1981 Assam Oil Company was nationalized and has been amalgamated with IOCL as Assam Oil Division (AOD).

Indian Oils ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a do4minant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.

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CORPORATE SOCIAL RESPONSIBILITY

"CSR: A Cornerstone of our Enduring Success" At IndianOil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporations objectives in this key performance area are enshrined in its Mission statement: "to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." which succinctly portrays the commitment of the Corporation to its Corporate Social Responsibility (CSR). CSR and working with the communities has been the cornerstone of success for IndianOil right from inception. The three thrust areas of the Corporations CSR initiatives are Clean Drinking Water, Health & Medical Care and Expansion of Education. CSR projects are mostly undertaken in the vicinity of IndianOils installations or establishments for improving the quality of life of the community, which include marginalised groups viz., SCs, STs, OBCs, etc. IndianOils annual CSR budget has gradually increased from 0.5% of previous years net profit in 1991 to 2% of previous years retained profit effective 2009. We at IndianOil have defined a set of core values for ourselves Care, Innovation, Passion and Trust to guide us in all we do. We take pride in being able to claim almost all our countrymen as our customers. Thats why, we coined the phrase, IndianOil India Inspired", in our corporate campaigns. Public corporations like IndianOil are essentially organs of society deploying significant public resources. Every year, IndianOil sets aside a fixed portion of its profits for spreading smiles in millions of lives across the country through a comprehensive community welfare and development programme. About one-fourth of the community development funds are spent on the welfare of Scheduled Caste and Scheduled Tribe beneficiaries. IndianOil has a concerted social responsibility programme to partner communities in health, family welfare, education, environment protection, providing potable water, sanitation, and empowerment of women and other marginalised groups. IndianOil has always been in the forefront in times of national emergencies. IndianOil People have time and again rallied to help victims of natural calamities, maintaining uninterrupted supply of petroleum products and contributing to relief and rehabilitation measures in cash and kind.
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INDIANOIL'S PRESENT CSR POLICY

At present, IndianOil has a policy of setting aside upto 2% of its Retained Profit of the previous year towards CSR, which are taken up in a planned manner, based on the local communities' requirements. The policy on CSR states that: a) Expenditure not exceeding 2% of the Retained Profit of the previous year can be incurred towards donations/contributions and community development activities every year. This is inclusive of the annual contribution of Rs.10 crore towards IndianOil Foundation. b) LPG Schemes: IndianOil contributes 20% of 2% of Net Profit of previous year towards LPG scheme(s) of Government of India. c) Donations/contributions and Community Development activities are focused in specific target areas to establish a corporate culture on the subject. After allocating annual contribution towards IndianOil Foundation and LPG Scheme(s), the remaining amount would be utilized as under:

A minimum of 35% towards national causes/natural calamities. Amount not exceeding 5% towards donations/contributions. 30% towards IndianOil's scholarships, out of which 50% would be utilized towards providing scholarships to students belonging to weaker sections of society and 50% for others. 30% towards Community Development activities including Special Component Plan and Tribal Sub Plan.

d) While utilizing the Community Development Funds, more emphasis is laid on the projects of providing Clean Drinking Water, Health & Medical Care and Education to the extent possible. e) Unspent amount, if any, will be carried forward to the next year.

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INDIAN OIL'S UNIQUE ENDEAVOURS IN CSR

IndianOil Sachal Swasthya Seva (mobile medical units) In January 2012, IndianOil launched a primary mobile health care scheme 'IndianOil Sachal Swasthya Seva' for running Mobile Medical Units (MMUs), linked to rural petrol pumps called Kisan Seva Kendras (KSK). In the pilot project, 52 MMUs have been launched in Andhra Pradesh and Uttar Pradesh covering 681 villages in 13 districts. Each MMU, with a 4-member team comprising a registered qualified Doctor (MBBS), a pharmacist, a driver and a community mobilizer, visits the same village once every week. Patients are provided medical services and medicines free of cost. The MMUs are also used for conducting health awareness camps on Family Planning, Health & Hygiene, HIV/AIDS, etc. The Doctors also refer patients to nearby hospitals, as and when required. 52 MMUs are expected to touch lives of about 1.5 million patients in Andhra Pradesh & Uttar Pradesh every year. Assam Oil Division Hospital, Digboi IndianOil's 200-bed Assam Oil Division Hospital (Digboi) (Estd: 1906) caters to a population of about 2 lakh, with catchment area extending to Arunachal Pradesh and nearby areas of the North East. This multi specialty tertiary care hospital has 24-hr emergency centre, well equipped operation theatres, a burn unit, diagnostic services, telemedicine centre, substance abuse and treatment centre, blood bank, medical stores, morgue, etc. This hospital is recognized by the Medical Council of India for compulsory rotating internship and resident housemanship, by National Board of Examinations for Diplomat of National Board in Medicine and by Govt. of Assam for Radiographer and Laboratory Technician training. Besides, the hospital is also certified as 'Baby Friendly Hospital' by Govt. of India. It offers specialized care and treatment at very nominal rates. This hospital also organizes free health camps of general and specialized nature as a part of community outreach services. It has 19 professionally qualified doctors and surgeons with a strong paramedical staff. Annually, this hospital checks about 1 lakh patients in OPD, 4000 patients for indoor admissions and conducts operative procedures on 2000 patients.
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Swarna Jayanti Samudaik Hospital, Mathura A 50-bed Swarna Jayanti Samudaik Hospital (Village: Raunchi Bangar, Mathura, Uttar Pradesh) was established in 1999 to provide medical assistance to residents of nearby areas. This hospital also operates 2 mobile dispensaries to provide primary medical care in the nearby villages of Mathura Refinery. The hospital provides free treatment to the destitute and offers subsidized treatment to others. It has facilities viz. OPD, in-patient department for general medicine and surgery, emergency services, physiotherapy, trauma centre, ICU, burns center, diagnostic services, blood bank, etc. Out of 50-beds, 10 beds are designated to provide free treatment to the destitute. The hospital has 12 professionally qualified doctors/surgeons supported by a strong paramedical staff. Annually, about 55,000 patients are treated in OPD and 3500 are treated as in patient.

Drinking Water Project at Mathura IndianOil successfully implemented a clean drinking water project in two villages near Mathura Refinery for providing drinking water at the doorsteps of villagers. Due to various agro-climatic/anthropogenic reasons, water table in 60-80% of the areas in Barsana Tehsil (Mathura district) has turned saline. For 2 water parched villages (Chiksauli & Maanpur) in Barsana, potable water was found about 2 km away at a depth of about 30 ft (against avg. 100 ft) across a hillock, near a kadam tree belt. Water was pumped upto a 1.25 lakh litre tank (specially constructed for this project on the adjoining hillock) for gravity-based distribution to various points in these 2 villages through a network of pipelines. The villagers have formed Village Management Committee (VMC) (regd.: 2010) to manage this project. For maintenance/ upkeep of equipment, salary of plumbers/ electricians, electricity bills, and sustainability of the project, VMC collects a nominal amount of Rs 100/- per house per month. Water is being supplied twice daily., typically between 6-8 AM and 4-6 PM. For this project, IndianOil got the 'Best CSR Project' award at National CSR Conference at XIM-Bhubaneswar in Feb-2012, which was jointly organized by TISS, Mumbai and XIM-Bhubaneswar.

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CURRENT CSR PROJECTS

The history of India, which can be traced back to the ancient times, is rich and stimulating. A large number of heritage monuments from past centuries still stand tall, as testimony to the glorious past. With the objective of protecting, preserving and promoting this glorious past, IndianOil has created a non-profit trust, the IndianOil Foundation, in collaboration in the Archaeological Survey of India ( ASI ) and the National Culture Fund of the Ministry of Culture, Government of India. The genesis of the creation of IndianOil Foundation lies in IndianOil's Mission statement, to" preserve ecological balance and heritage." Exclusively funded by IndianOil with an initial corpus of Rs. 25 crore and an annual contribution of Rs. 10 crore, IOF will adopt at least one heritage site in every State and Union Territory. Monuments identified in the first phase include Qutab Minar in Delhi, Konark Sun Temple in Orissa, Khajuraho temples of Madhya Pradesh, Kanheri Caves in Maharashtra, Hampi complex in Karnataka, and Warangal fort in Andhra Pradesh. IndianOil, through NCF and ASI, will fund archaeological works while IOF will develop world-class facilities and conveniences for the visitors. In addition to refuelling facilities for travellers, community development in the neighbourhood is to be undertaken by IndianOil. IOF recently unveiled the "Swantantrya Jyot" at the cellular Jail National Memorial, Port Blair as a humble tribute to our great freedom fighters. IndianOil Academic and Sports Scholarships IndianOil awards 2600 Scholarships for meritorious students all over India, under the IndianOil Scholarships Scheme for each academic year. As part of IndianOil's social responsibility programme, the scheme provides for attractive scholarships to bright students selected on 'merit-cum-means' basis. For each academic year, 2600 scholarships covering the first year students of 10+ / ITI, Engineering, MBBS and MBA, have been formally announced through newspaper advertisements inviting applications under the IndianOil Scholarships Scheme. As part of the scheme, special encouragement is being given to girl students, physically challenged students, and students from J & K as well as the Northeast States..
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Green Initiatives
Low Sulphur (0.5%) Diesel was introduced in metros from April 1996. Extra-low Sulphur (0.25%) Diesel was introduced in the eco-sensitive Taj Trapezium area from September 1996, in Delhi from October 1997, and across the country from 1st January 2000. Diesel with 0.05% sulphur content was introduced in the metros in 2001. Unleaded Motor Sprit (petrol or Gasoline) was made available all over the country since February 1, 2000. Green fuels (petrol and diesel) conforming to Euro-III emission norms have already been introduced in 13 cities/states; the rest of the country is getting BS-II fuels. The Centre has been certified under ISO-14000:1996 for environment management systems. All IndianOil refineries fully comply with the prescribed environmental standards and incorporate state-of-the-art effluent treatment technologies. Sustained efforts are being made to further improve the standards by introducing new state-of-the-art technologies further improve the existing standards and facilities.

CSR BUDGET ALLOCATION

(approx Rs.10 crores) National Calamities : 35% Donations : 5% Community Development: 30% Indian Oil Scholarships: 20% Other activities: 10%

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LEARNINGS & CONCLUSION

Corporate Social Responsibility means different things to different people. One end of the spectrum is compliance with laws and other is being philanthropic. Another way of looking at it is who benefits - The beneficiaries range from employees to suppliers to customers to the amorphous entity called 'Community'. CSR is as much about not polluting and being concerned about people being displaced when an industrial unit is set up beyond legal compliance as it is about supporting health or education programme. Today, CSR reiterates the notion that development is not the exclusive responsibility of the government. Business, too, has a legitimate and responsible role to play. With safety, health and environment protection high on its corporate agenda, IndianOil is committed to conducting business with a strong environment conscience, so as to ensure sustainable development, safe work places and enrichment of the quality of life of its employees, customers and the community.

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