Reliance Industries Limited and CSR activities Essay

Executive Summary:

Flagrantly presents CSR attack has been vastly exploited by the organisations and non-governmental organisations in a negative mode since the planetary markets are going competitory. The term corporate societal duty has become a tendency of symbols to explicit the company’s corporation as being socially responsible. nevertheless intrinsic purpose has been self-regulation and private involvement of the company. Hence. the trust industry limited has taken the corporate societal duty as their mainstream of net income maximization in footings of being socially responsible to educational. environmental. wellness attention. and agricultural positions.


The purpose of this study is to use sufficient knowledge’s for the importance of ( CSR ) and its part to strategic corporations. critically review the ( CSR ) maps of concerns every bit good as presenting efficient information sing the ( CSR ) activities of Reliance Industries Ltd. To show the above aims it is indispensable to explicate what is meant by CSR? What are the aims of CSR? And moreover brief description of Reliance Industries Ltd profile. In recent old ages. there has been greater attending to the construct of Corporate Social Responsibility.

The term is described as the concerns duty towards their stakeholders’ legal. ethical. societal and environmental outlooks. Different bookmans have defined ( CSR ) in assorted ways. First attempt for specifying ( CSR ) was made by Bowie ( 1953 ) who was observed as the male parent of academic argument for Corporate Social Responsibility ( Carroll 1979. p. 479 ) . Bowie stated. that it is the concerns duty to pull off concern procedure for the improvement of a society and sweetening of its value.

Furthermore. World Business Council for Sustainable Development ( WBCSD ) illustrated CSR as the committedness of concern while acting ethically and collaborating to the economic development by beef uping the choice life of work force. households and local communities. Furthermore. Davis and Blomstorm elaborate the term CSR as an activity in order to better the quality life of a society every bit good as developing the position of the organisation by spread outing its involvement. However. Carroll defined ( CSR ) “Social duty of concern encompasses the economic. legal. ethical and discretional outlooks that society has of organisations at a given point in time” ( Carroll. 1979. p. 500 ) . Relatively. Carroll illustrated the pyramid of CSR by distinguishing the four construct of societal duty: economic. legal. ethical and beneficent duties.

To sum up CSR can be defined. pull offing the concern processes with being reactivity to the economic. legal. ethical and environmental outlooks of stakeholders so that to bring forth a positive impact to the society. Consequently. every bit far as the study do concerns to the CSR activities of Reliance Industries Ltd. it is of import to take a expression after the mentioned company’s profile. The largest private sector of India. The Reliance Group founded by Dhirubhai H. Ambani ( 1932-2002 ) with operating in energy and stuff concerns value concatenation.

The flagship company. Reliance Industries Ltd. owes an surplus of Group one-year grosss of US $ 66 billion and is apart of Fortune Global 500 Company. Get downing with fabrics in late 1970ss. Reliance expanded their concern by prosecuting the backward perpendicular integrating scheme while bring forthing fibre intermediates. plastics. polyester. petrochemical every bit good as crude oil refinement and oil and gas geographic expedition and production. Reliance company proud itself for being the largest polyester narration and fiber manufacturer among the top five manufacturers in the universe.

Conduction of Corporate Social Responsibility scheme has became critical tendency for the companies in a current extremely competitory planetary market. Inherently. the CSR scheme has remained the pillar of the sustainability of a concern every bit far as the consumers and markets gustatory sensation and penchant alterations are concerned. Furthermore. the CSR-Asia has described CSR as the concern operations incorporation in environmental and societal positions with the interaction of their stakeholders.

Hence. CSR attack owe following characteristics: First. it observes for the increasing of the stockholders net income in order to continue the long-run viability of the concern. Second. environmental and societal improvisation has been the nucleus aim of the CSR attack. Third. the CSR construct is non a herding out consequence for the concern. but it is about the manner that concern is operated. In this sequence. CSR construct is concerned with the long-run sustainability of the concern while maximising the stockholders involvement and plays an active function in the development of community.

Inherently. above discourse explicit that mainstream of CSR does concerns with societal. legal. and economical outlooks of stakeholders. Therefore. CSR is flagrantly accountable for capitalist setup that concern entirely considers their ain private benefits of raising their stockholders net income. For case. on the one manus. Coca Cola company do informs African states of HIV in order to enthrone a huge repute to its company. qua net income is considered as nucleus aim of concern. On the other manus. it is a shame that they do non implement a plan for stating the universe sing tooth decay as such plan would impact their trade name name repute. Subsequently. in a study of 1100 main executives. 62 % of those main executives have underpinned the CSR construct as critical for profitableness.

Relatively. CSR has a hazard of obliging main executives to be sociopolitical participants. As the authorities psychiatrists and loses its power. the concern main executives remains with immense power in which the concerns might assoil the power for their self-regulation profitableness of the concern. Companies. such as. Glencore company. whose basking an huge part of political power in some Africa’s state. is carry oning the child labour extra-legal map for the intent of cost decrease.

Relatively. CSR has been criticized by excepting the local communities from policy-making determinations while working on Corporate Social Responsibility scheme. Furthermore. many contradictions exists in CSR attack. such as deficiency of fiscal inducements. deficiency of legal literacy. etc. those disincentives the poorer group to utilize Torahs for their protection of their civil rights. CSR is besides criticized in some spheres as the beginning of deriving entree to the market while utilizing it as a factor of monetary value.

Furthermore. some industries conducts the CSR plan for non sing the government’s strong Torahs and ordinances. every bit far as their CSR undertaking execution are concerned with net income maximization. Therefore. mentioned CSR undertaking execution may take the NGO’S for protesting and boycotting in which houses may digest a immense outgo on such undertakings.

However. CSR attack compels companies who can non cover their costs. to enforce high monetary values to the society while providing their merchandises with high monetary values. In a sequence. reviews have been arisen against CSR policy of companies for its none being of answerability and corporate answerability. where deficiency of transparence. a sophisticated analysis of the political economic dimensions of corporate power and huge unfairnesss of power exists ( Ray Broomhill. corporate societal duty: cardinal issues and arguments. 2007 ) .

To sum up. harmonizing to Rhys Jenkins ( 2005 ) the UK political economic expert. many CSR undertakings of high profiled companies has ample the range of revenue enhancement turning away. reassign pricing and the misusing of market power which contradicts to the legitimacy of CSR. Relatively. some reforms of corporate policies has been exploited by the act of CSR in which accordingly brought huge disparities to the society such as destructing the labour conditions associated with outsourcing and labour market liberalisation. additions in the degree of pollution. and the publicity of macro economic policies through the acquitting of corporate lobbying which has a negative impact on society and environment ( Ray Broomhill. corporate societal duty: cardinal issues and arguments. 2007 ) .

Reliance industries have performed major societal duties towards the improvement of the community. The company has valuable part in footings of wellness. instruction. environment. corporation in natural catastrophes. and substructure development. Following are huge revelation sing CSR activities of Reliance Industries Limited:

1. Education:

Reliance Industries has constructed nine schools with bettering the 13. 251 pupils education degree across the India. Furthermore. the company conducts “the Kanya Kelvani” plan. which plays a critical function to the part of back uping Indian Governments undertakings towards instruction of misss across all over the India. Relatively. RIL’s are implementing ( Jagurti Project ) for those pupils who are enduring mentally from societal and economical backwards and back up them to obstacle with dyslexia. Under the Jagurti Project. 35 trainees are passing 8800 hours in order to originate the tolerance of underprivileged kids to undertake with dyslexia. Consequently. the company owes partnership with UNESCO and BBC for the consciousness of dyslexia to the other villages’ pupils. .

2. Community Health Care:

Reliance Industries has brought polar improvisation to the Community Medical Centers for supplying ample wellness attention services to the adjacent small towns. For case. the Reliance Company is assoiling Drishti undertaking. which is cooperated with the Association of Blind and made part to 9000 free corneal grafted surgeries for those blinded folks who are enduring from being underprivileged. Furthermore. one of the fabrication divisions of Reliance Company ( Hazira Manufacturing divisions ) has commenced an Anti-Retroviral Treatment Center in the state and specifically for the cleaners and drivers of all merchandise conveyance vehicles. The plan mainstream is for HIV / AIDS consciousness.

3. Environment Enterprises for the Community:

The Reliance Industry initiated a nothing refuse run to develop the disposal of solid wastage construct in its milieus and residential country. The purpose of the run is to supply a cleanliness thrust in order to prolong a disease-free environment for its employee’s residuary sites. The industry is assoiling a societal and economical security plan for adult female shred choosers with aid of an NGO. The nucleus aim of the undertaking is to cut down the plastic litter for continuing its committednesss of being responsible attention. Relatively. the company has stretched a 900-meter route through the use of 5 % fictile waste in order to subtract the building cost and every bit good as to better the roads building quality and life .

Reliance Rural Development Trust ( RRDT ) has initiated a rural substructure development plan by set abouting 797 undertakings in 760 small towns of 24 different zone of GUJARAT provinces. The undertaking is consisted of 58 Concrete Cement Roads. 61 belowground. and 06 Check Dams. Subsequently. all the cheque dikes are constructed with conformity to the 8. 7 mcft H2O storage capacity and 1065 Hectors of the land would hold entree to the Check Dams H2O.

5. Livelihood Support Program:

Reliance Industry has undertaken the self-help group ( SHG ) plan for adult females and youth coevals of the environing small towns in order to heighten their quality life while being “self sustaining” to back up to their households. The plan has facilitated the adult females by supplying assorted classs such as frock devising and designing. beauty civilization. wellness attention. nursing and infirmary attender. However. the plan implement pumping and manus pump repairing. nomadic repairing. computing machine hardware mending. vehicle motor drive and etc. classs.

6. Bettering Quality of Agriculture Produce:

Reliance Industry Limited has besides participated in aid of farming in footings of advanced engineerings. storage. handling and distribution of merchandises. For case. the company vested Leno bags. which are made out of polypropene and such bags are effectual for cut downing the handling losingss of fruits and veggies. Explicitly the company enforced the formers for the use of advanced techniques ( plastic ) as it increases the productiveness. contributes to the decrease of losingss and in sweetening of net incomes and distributed promotional stuffs.

In a current competitory planetary environment. corporations does be immensely where societal duties are concerned ( Halme. Roome. & A ; Dobers. 2009 ) . Therefore. to do more crying the part of corporate societal duty with corporate scheme. it is indispensable to explicit what is corporate or strategic direction? And what is mean by societal duty? Basically. strategic directions core aim is to accomplish ends through standard decision-making that concerns with finding aims. policies and programs ( Andrew. 1987 ) .

Harmonizing to Andrews ( 1987 ) . schemes chief observations are sing the execution of companies and concerns ends. their economic and non-economic corporations and nature. and the relationship between the stakeholders. he moreover stated that corporate schemes are a complex construct as the top directions determinations reflects an impact to the stakeholders who are independent with the company.

However. doubtless the strategic direction determinations covers both the societal every bit good as economic facets. Harmonizing to Porter and Kramer ( 2006 ) . there is a strong correlativity between corporation and society. This is due to the fact of direct influence of company’s activities to the communities of their work and the strategic direction section executives should hold purely see the society’s demands and determinations with conformity to their outlooks. Hence. Reliance Company has processed assorted CSR activities in order to do easiness to their decision-making tendencies towards policies and programs in order to carry through the organization’s end.

For case. the Reliance Limited Industries is carry oning educational plans. wellness attention services. agricultural development services to give a encouragement to their position of their company every bit Wellss as implement environmental enterprises community plan while securing a clean environment to their working community for the intent of being safe to proviso an easiness manner for assoiling policies and programs. As a consequence. the strategic direction executives undertake the corporate societal duties as an intrinsic factor for the intent of providing sustainable net incomes to the stakeholders ( BAR. Curitiba. v. 7. n. 3. art. 5. pp. 294-309. July/Sept. 2010 ) .


To sum up. virtually the corporate societal duty construct considers the ethical. societal. and environmental facets of the stakeholders. Relatively. the organisations exploit the corporate societal duty as maximising their stockholders profit through fulfilling the stakeholders mentioned outlooks. Many organisations make the CSR attack as their mainstream tendency and setup for deriving repute and providing a better working environment for their employers in order to heighten the quality position of their organisation every bit good as assoiling the organisations premier end. For case. Reliance Industries Limited procedure the environment enterprises. instruction plans. wellness attention plans. rural development plan. etc. at their ain working community for heightening the quality life of the company’s employees and maximising the stockholders net income.

Although. CSR attack owes indispensible positive impacts to the society. the construct has extralegal and negative disparity to the community. Equally far as the nucleus aim of the organisation concerns with maximising their net incomes. organisations misuse the CSR attack for their ain private involvement in footings of power ( in instance authorities shrinks the company remains with mass power ) . cost ( in order to retrieve the CSR undertakings cost the company rises the their merchandises cost for the consumers ) . answerability. and etc. Last. CSR construct can be observed as the public-service corporation setup for the stakeholders. owing negative impacts with it.


Since many companies are interlinked with nonlegal activities while implementing the CSR activities due to owing huge power after the authorities in some Asiatic and African states and goes to disparity of their tendencies and codification of moralss such as working the kid labour method. they are recommended to follow the codification of moralss they have established as it might impact to the quality and position of the organisation through the media revealer. Furthermore. companies are required to actuate their CSR undertakings employees via providing preparation installations. fillips. developed salary system in order to heighten their productiveness. therefore. to cut down their entire cost of the CSR undertaking as higher cost for CSR undertaking remains the company with higher monetary values of the merchandises to the clients. Therefore client tends to alter their penchants to other market.