Social Responsibilities of Business

You know that business is an economic activity, which is carried out on a regular
basis to earn profit. However, you must have seen businessmen spending money
On different aspects, which is not going to give them any profit straightway?

For example
You must have seen businessmen maintaining and developing gardens and parks on
Streets and squares in cities. Some businessmen engage themselves in research for
improving the quality of products; some provide housing, transport, education and
Health care to their employees and their families. In some places businessmen provide
free medical facility to poor patients. Sometimes they also sponsor games and sports at
national as well as international level.

Did we ever wonder why they do so?

Let us learn more about why businessmen engage themselves in such activities.

Objectives

Our objective is to explain these relevant points

! Explain the concept of social responsibility of business;

! Appreciate the importance of social responsibility;
! Recognize the responsibility of business towards different interest groups;
! Explain the concept of social values and business ethics;
! Identify the causes of environmental pollution; and
! Describe the role of business in preventing and controlling environmental pollution.

What is Social Responsibility?

In your daily life, you perform a number of activities.

For example
Listening to your parents,
Showing respect to elders
Obeying traffic rules on road etc.
Keeping the road clean by not throwing garbage on it,

Why do we perform all these activities?

Because we have certain duties towards society

As we know, every business operates within a society. It uses the resources of the society
and depends on the society for its functioning. This creates an obligation on the part of
business to look after the welfare of society. So all the activities of the business should
be such that they will not harm, rather they will protect and contribute to the interests of
the society. Social responsibility of business refers to all such duties and obligations of
business directed towards the welfare of society. These duties can be a part of the routine
functions of carrying on business activity or they may be an additional function of carrying
out welfare activity.
For example
A rug-manufacturing firm undertakes extensive research and thus, produces drugs which are
qualitatively superior. It also provides scholarships or fellowships to the family members of
its employees for studying abroad. We find, in both the cases, the drug-manufacturing firm is
carrying out its social responsibility. In case of the former, it is a part of its routine business
function while in the latter case it is a welfare function.

Concept of Social Responsibility

We all know that people engage in business to earn profit. However, profit making is not the
sole function of business. It performs a number of social functions, as it is a part of the society.
It takes care of those who are instrumental in securing its existence and survival like- the owners,
investors, employees, consumers and government in particular and the society and community
in general. So, every business must contribute in some way or the other for their benefit.

For example,

Every business must ensure a satisfactory rate of return to investors;

Provide good salary
Security and proper working condition to its employees,
Make available quality products at reasonable price to its consumers,
Maintain the environment properly etc.

However, while doing so two things need to be noted to view it as social responsibility of
business. First, any such activity is not charity. It means that if any business donates some
amount of money to any hospital or temple or school and college etc., it is not to be considered
as discharge of social responsibility because charity does not imply fulfilling responsibility.

Secondly, any such activity should not be such that it is good for somebody and bad for
Others. Suppose a businessman makes a lot of money by smuggling or by cheating customers,
and then runs a hospital to treat poor patients at low prices his actions cannot be socially
justified. Social responsibility implies that a businessman should not do anything harmful to
the society in course of his business activities.
The obligation of any business to protect and serve public interest is known as
Social Responsibilities of Business

Thus, the concept of social responsibility discourages businessmen from adopting unfair means like

Black-marketing,
Hoarding,
Adulteration,
Tax evasion and cheating customers etc to earn profit.

Instead, it encourages them to earn profit through judicious management

of the business, by providing better working and living conditions to its employees, providing
better products, after sales-service, etc. to its customers and simultaneously to control
pollution and conserve natural resources.
Why should business be socially responsible?

Social responsibility is a voluntary effort on the part of business to take various steps to
Satisfy the expectation of the different interest groups.
As you have already learnt, the interest groups may be owners, investors, employees, consumers,
government and society or community. But the question arises, why the business should come
forward and be responsible towards these interest groups.

Let us consider the following points:

Public Image –
The activities of business towards the welfare of the society earn goodwill
and reputation for the business. The earnings of business also depend upon the public
image of its activities. People prefer to buy products of a company that engages itself
in various social welfare programmes. Again, good public image also attracts honest
and competent employees to work with such employers.

Government Regulation –
To avoid government regulations businessmen should
discharge their duties voluntarily. For example, if any business firm pollutes the
environment it will naturally come under strict government regulation, which may
ultimately force the firm to close down its business. Instead, the business firm should
engage itself in maintaining a pollution free environment.

Survival and Growth-

Every business is a part of the society. So for its survival and
growth, support from the society is very much essential. Business utilizes the available
resources like power, water, land, roads, etc. of the society. So it should be the
responsibility of every business to spend a part of its profit for the welfare of the
society.

Employee satisfaction –
Besides getting good salary and working in a healthy atmosphere,
employees also expect other facilities like proper accommodation, transportation,
education and training. The employers should try to fulfill all the expectation of the
employees because employee satisfaction is directly related to productivity and it is
also required for the long-term prosperity of the organisation. For example, if business
spends money on training of the employees, it will have more efficient people to work
and thus, earn more profit.

Consumer Awareness –
Now-a-days consumers have become very conscious about
their rights. They protest against the supply of inferior and harmful products by forming
different groups. This has made it obligatory for the business to protect the interest of
the consumers by providing quality products at the most competitive price.
Responsibility towards Different Interest Groups

After getting some idea about the concept and importance of social responsibility of business
Let us look into the various responsibilities that a business has towards different groups with
whom it interacts. The business generally interacts with owners, investors, employees,
Suppliers, customers, competitors, government and society. They are called as interest groups
Because by each and every activity of business, the interest of these groups is affected
directly or indirectly.

Responsibility towards owners

Owners are the persons who own the business. They contribute capital and bear the business
risks. The primary responsibilities of business towards its owners are to:

a. Run the business efficiently.

b. Proper utilization of capital and other resources.
c. Growth and appreciation of capital.
d. Regular and fair return on capital invested.

ii. Responsibility towards investors

Investors are those who provide finance by way of investment in debentures, bonds, deposits
etc. Banks, financial institutions, and investing public are all included in this category. The
responsibilities of business towards its investors are:

a. Ensuring safety of their investment,

b. Regular payment of interest,
c. Timely repayment of principal amount.

iii. Responsibility towards employees

Business needs employees or workers to work for it. These employees put their best effort
for the benefit of the business. So it is the prime responsibility of every business to take care
of the interest of their employees. If the employees are satisfied and efficient, then the only
business can be successful. The responsibilities of business towards its employees include:

a. Timely and regular payment of wages and salaries.

b. Proper working conditions and welfare amenities.
c. Opportunity for better career prospects.
d. Job security as well as social security like facilities of provident fund, group
insurance, pension, retirement benefits, etc.
e. Better living conditions like housing, transport, canteen, crèches etc
f. Timely training and development.

iv. Responsibility towards suppliers

Suppliers are businessmen who supply raw materials and other items required by
manufacturers and traders. Certain suppliers, called distributors, supply finished products
to the consumers. The responsibilities of business towards these suppliers are:
a. Giving regular orders for purchase of goods.
b. Dealing on fair terms and conditions.
c. Availing reasonable credit period.
d. Timely payment of dues.
v. Responsibility towards customers
No business can survive without the support of customers. As a part of the responsibility of
business towards them the business should provide the following facilities:
a. Products and services must be able to take care of the needs of the customers.
b. Products and services must be qualitative
c.There must be regularity in supply of goods and services
Business Studies
d. Price of the goods and services should be reasonable and affordable.
e. All the advantages and disadvantages of the product as well as procedure to use
the products must be informed do the customers.
f. There must be proper after-sales service.
g. Grievances of the consumers, if any, must be settled quickly.
h. Unfair means like under weighing the product, adulteration, etc. must be avoided.

vi. Responsibility towards competitors

Competitors are the other businessmen or organizations involved in a similar type
Business
Existence of competition helps the business in becoming more dynamic and innovative so as
to make itself better than its competitors. It also sometimes encourages the business to
Indulge in negative activities like resorting to unfair trade practices. The responsibilities of
Businesses towards its competitors are
i. Not to offer exceptionally high sales commission to distributors, agents etc.
ii. Not to offer to customers heavy discounts and /or free products in every sale.
iii. Not to defame competitors through false or ambiguous advertisements.

vii. Responsibility towards government

Business activities are governed by the rules and regulations framed by the government. The
various responsibilities of business towards government are:

a. Setting up units as per guidelines of government

b. Payment of fees, duties and taxes regularly as well as honestly.
c. Not to indulge in monopolistic and restrictive trade practices.
d. Conforming to pollution control norms set up by government.
h. Not to indulge in corruption through bribing and other unlawful activities.

viii. Responsibility towards society

A society consists of individuals, groups, organizations, families etc. They all are members
of the society. They interact with each other and are also dependent on each other in almost
all activities. There exists a relationship among them, which may be direct or
indirect business,
Being a part of the society, also maintains its relationship with all other members of the
society. Thus, it has certain responsibilities towards society, which may be as follows:
a. to help the weaker and backward sections of the society
b. to preserve and promote social and cultural values
c. to generate employment
d. to protect the environment
e. to conserve natural resources and wildlife
f. to promote sports and culture
 g. to provide assistance in the field of developmental research on education, medical

4.6 Social Values and Business Ethics

Every society generally views certain activities, conduct and behaviour of its members to be
undesirable or harmful to others. Similarly, desirable acts and conduct of people are recognised
and appreciated in society. Social values refer to the general recognition in society about
which acts are good and desirable on the part of people and which acts are not. In relation
to business, social values of business may indicate:
a. the characteristics of good business;
b. objectives which are desirable for business to follow; and
c. the manner in which business activities should be conducted in the interest of
society.
For example, we consider it bad, if any business indulges itself in selling adulterated goods
or charging higher price or polluting the environment. Thus, social values of the business
form the base for social responsibilities.
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Ethics refers to conduct and activities of people based on moral principles. Honesty,
truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical.
Business can also be guided by certain moral principles say, running the business without
adopting unfair practices, being honest and truthful about quality of goods, charging fair
prices, abiding to laws, paying taxes, duties and fees to the government honestly. The basic
question underlying business ethics is whether business should aim at earning profit by any
means? Obviously, not. Thus, businessmen should charge only fair price for the goods and
services supplied, never sell adulterated products as pure. Indeed business ethics suggest
certain principles to conduct business so as to be morally justified. Just like social values,
business ethics also play a major role while fulfulling social responsibilities.
4.7 Environmental Pollution and Role of Business
To preserve the society it is important to protect the environment. And, therefore, every
business must take measures to protect the environment rather than damaging it. In this
section let us learn more about different types of environmental pollution and role of business.
Nature has given us air, land including mountains, hills, forests etc. and water in the form of
rivers, lakes, sea etc., which create an environment in which we live. Our health and well
being largely depend on the quality of such environment. However, it is observed that the
quality of this environment is deteriorating day by day. We are getting neither pure water to
drink nor clean air to breathe. We are having untimely rains, storms, cyclones, floods, extended
summer, etc. We are also suffering from various diseases because of such lower quality of
environment. When the quality of environment deteriorates, it is said that the environment is
getting polluted. Thus, environmental pollution refers to contamination of environment by
various substances that have adverse effects on living and non-living matters.
Environmental pollution is of three types:
i) Air pollution,
ii) Water pollution, and
iii) Land Pollution.
Let us have a brief discussion about these three types of pollution.
i. Air Pollution
As we know the air we breathe contains several gases, dust particles etc. Our body mechanism
helps us in filtering the unwanted ones and retaining those required for our survival. However,
if there is an imbalance in the proportion of gases and dust particles in air, beyond a certain
point, our body mechanism fails to filter them and we face problem. This is also true in care
of other natural things like forests, river etc. Thus, air pollution refers to the presence of any
unwanted gases, dust particles etc. in the air, that can cause damage to people as well as
nature.
Causes of Air Pollution
Let us know how air gets polluted. Some of the common causes of air pollution arei.
Emission of fumes from vehicles.
Pollution simply means
presence of any unwanted
substance that
creates inconvenience
in the natural behaviour
of living and non-living
matter.
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45
ii. Emission of smoke dust and chemicals from manufacturing plants.
iii. Emission of gases and dust arising from atomic plants
iv. Emission of smoke from oil refineries, burning of trees and plants in forests,
buring of coal, etc.
Impact of Air Pollution
Air pollution has a lot of impact on our surroundings and on us. Some of them are-
! Presence of gases in air, which are not required by human beings, animals and birds,
creates serious health problems. It can create diseases like asthma, cough and cold,
blindness, hearing loss, skin disease etc. It also causes genetic disorders. In the long
run and in extreme cases it can also be fatal.
! Air Pollution creates smog in the winter, which is caused by smoke and dust when
they mix with fog. It reduces natural visibility and irritates the eyes and respiratory
tract.
! Ozone layer is a protective layer of gases around our earth, which protects us from
harmful ultraviolet rays that come from the sun. It gets depleted because of air pollution
and thereby causes gene mutation, genetic defects and skin cancer.
! The temperature of the earth increases due to air pollution. This is because whatever
heat our earth receives from the sun is not radiated to the atmosphere due to the
excessive presence of gases like carbon dioxide, methane, nitrous oxide, etc.
! Air pollution causes acid rain which means excessive presence of various poisonous
gases like sulphur dioxide, nitrogen oxide etc. in the rainwater. This causes lot of
damage to vegetation, trees and marine life, buildings and monuments etc.
Environment is also polluted through excessive noise, known as Noise Pollution. Noise
simply means an unwanted sound that causes irritation. It is caused by modern machines
and gadgets such as rail engines, loud speakers, generators, aeroplanes, vehicles,
machineries, telephones, televisions etc. It initially distorts communication process, but
prolonged exposure to noise pollution can cause loss of hearing, headache, irritation, high
blood pressure, neurological or psychological disorders, etc.
b. Water Pollution
Have you seen river Yamuna near Delhi? Are you aware about the clean Ganga project?
These two questions almost immediately remind us about the extent to which the water of
our rivers has been polluted. Water pollution refers to contamination of water due to presence
of unwanted and harmful substances thus, making water unfit for use.
Causes of Water Pollution
The various reasons of water pollution arei.
Drainage of human excreta into rivers, canals etc.
ii. Improper sanitation and sewage system.
iii. Dumping of wastes and effluents by various industrial units into the rivers and
canals.
iv. Drainage of toxic substances like chemicals and fertilizers used in cultivation, into
streams and rivers.
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v. Dumping of garbage, dead bodies and almost every thing used in rituals to the
nearby water source by households.
Effects of Water Pollution
The effects of water pollution are:
a. It can create health hazards among human beings, animals and birds. Diseases
like typhoid, jaundice, cholera, gastroentytis etc. are common.
b. It can endanger lives of various aquatic species.
c. It can lead to scarcity of drinking water as the water of rivers and canals as well
as underground water get polluted.
c. Land Pollution
Land Pollution refers to dumping of useless, unwanted as well as hazardous substances on
the land that degrades the quality of soil we use. Our land gets polluted because of the
human carelessness towards the soil.

Causes of Land Pollution

The main causes of land pollution are:
(i) Excessive use of fertilizers, chemicals and pesticides in cultivation.
(ii) Disposal of solid waste of industries, mines and quarries.
(iii) Disposal of solid waste from construction of roads, buildings etc.
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47
(v) Effluents of some plants like paper, sugar etc. which are not absorbed by soil.
(vi) Excessive use of plastic bags, which are non-biodegradable.
(vii) Dumping of non-composable wastes from households, hotels and hospitals as well as
from industries. These may include combustible items like plastic, cloth, wood etc.,
and non-combustible items like metal, glass, ceramics, cement etc.
Effects of Land Pollution
Land Pollution has the following harmful effectsa.
Reduces the quantum of cultivable land area.
b. Causes health hazards as it contaminates the sources of food.
c. Causes damage to the landscape.
d. Leads to water and air pollution.
4.8 Role of Business in Environmental Pollution
From the above discussion on environmental pollution, one thing can clearly be seen that, it
is business that mainly contributes to all sorts of pollution -air, noise, water and land.
Business causes pollution in the following ways:
- Emission of gas and smoke from manufacturing plants;
- Use of machines, vehicles etc. contributing to noise pollution;
- Deforestation due to acquisition of forest lands for setting up plants;
- Growth of urbanization and industrialization;
- Disposal of wastes and effluents into rivers and canals;
- Disposal of solid wastes in the open space;
- Mining and quarrying activities; and
- Increasing use of transport.
Government has taken a major step in protecting the environment by passing the Environment
Protection Act, 1986 in addition to having Water (Prevention and Control of Pollution) Act,
1974, Air (Prevention and Control of Pollution) Act, 1981 and several other Acts. Business
can equally be instrumental in fighting pollution and protecting the environment. Business
can have three types of role - preventive, curative and awareness.
i. Preventive Role
It means business should take all steps so that no further damage is done to the environment.
For this, business must follow the regulations laid down by government to control pollution.
For example, more and more environmental friendly products can be produced, filters can
be used in chimneys; silencers can be fitted in generators; instead of dumping industrial
wastes into river and land it can be treated properly for further productive use etc.
Businessmen should come forward to play a major role in preventing further damage done
to the environment by human beings. Sulabh International is the leading example of how to
provide proper sanitation facilities to the public.
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ii. Curative Role
It means business should rectify whatever damage has been done to the environment. In
addition, if it is not possible to prevent pollution then simultaneous curative measures can be
taken. For example, planting of trees (afforestation programmes) can substantially reduce
air pollution near the industrial area.
iii. Awareness Role
It means making people (both the employees as well as the general public) aware about the
causes and consequences of environmental pollution so that they voluntarily try to protect
rather than damage the environment. For example, business can undertake public awareness
programmes. Now-a-days, we find that some business houses have taken the responsibilities
to develop and maintain parks and gardens in cities and towns, which shows that they care
for the environment.
.
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Reliance Industries Ltd.

Sales (2007-2008) = Rs. 1,40,000 corers (rounded off)
Net profit after tax = Rs. 19500 corers (rounded off)
CSR Budget = Not Available

Karmayog 2008 CSR Rating: 2/5

CSR activities:
Our Commitments :

Growth is care for the environment

Reliance believes that a clean environment in and around the workplace fosters health and prosperity for
the individual, the group and the larger community to which they belong. Environmental protection is an
integral part of the planning, design, construction, operation and maintenance of all our projects.

Growth is thinking beyond business

As corporate citizens, we invest in social infrastructure, believing strongly that our business strength fuels
our social contributions. To this end, Reliance encourages, funds and develops numerous education, health,
 human capital and infrastructure initiatives. These initiatives are undertaken through partnerships with non-
governmental organizations, corporates and trusts.

Social Responsibility & Community Development :

Social welfare and community development is at the core of Reliance’s Corporate Social Responsibility (CSR)
philosophy and continues to be a top priority for the Company. It revolves around the Company’s deeply-held
belief in the principle of symbiotic relationship with the local communities, recognizing that business ultimately
has a purpose - to serve human needs. Close and continuous interaction with the people and communities in
and around the manufacturing divisions has been the key focus while striving to bring around qualitative
changes and supporting the underprivileged.

Reliance’s contributions to the community are in the area of health, education, infrastructure development
(drinking water, improving village infrastructure, construction of schools etc.), environment (effluent treatment,
tree plantation, treatment of hazardous waste), relief and assistance in the event of a natural disaster, and
miscellaneous activities such as contribution to other social development organizations etc. The Company’s
CSR teams at all manufacturing divisions interact with the neighbouring community on regular basis. The
Company takes pride in the fact that its CSR representatives are known by their first names in the regions that
it operates.

Education
‘Teach them young’ is the very motto of Reliance as the Company believes that the quality of inputs received
by an individual at an early age contributes to his or her growth as a capable human being. To ensure high
quality of teaching, Reliance has made significant efforts towards value enhancement of teachers through
professional and institutionalized training. Dahej Manufacturing Division conducted educational and excursion
tours of students and teachers from the primary schools of neighbouring villages, and also organized
‘Balmela’ and Science and Mathematics Fair.

To provide training in the field of effective techniques and modern methods of teaching to high school
teachers in the Hazira area, the Company organized training of teachers in various subjects.

Reliance has launched the “Sky is the limit” programme at Hazira, to address the problem of school drop-outs
in the local community.

The Company also provides opportunities to engineering and management institute students to undergo in-
plant training/projects as part of their academic curriculum, thus enabling them to appreciate application of
theoretical knowledge and get an exposure to the industrial practices.
Efforts were made to enhance employability/skill development of local youths. This was done by giving
opportunities to them to work in the Company’s operating plants, which in turn improve their job prospects.

Executive Development Programs for officers of neighbouring industries were organized in coordination with
PRIA (Patalganga Rasayani Industries Association).

The Company’s major manufacturing locations provide good quality education to the children of all employees
and also cater to the needs of surrounding villages. Jamnaben Hirachand Ambani School, Kokilaben
Dhirubhai Ambani Vidya Mandir, and Jamnaben Hirachand Ambani Saraswati Vidya Mandir are schools near
the Company’s manufacturing locations at Patalganga, Hazira and Jamanagar respectively. A modern
educational infrastructure coupled with extra-curricular activities and recreational facilities distinguish all these
schools.

To encourage school children from neighbouring villages, Nagothane Manufacturing Division based CSR cell
– MGCC Area Development Research Foundation (MADER) Trust took following initiatives:
• Felicitated meritorious students from neighbouring villages and tribal hamlets. Each student received a set
of note books, stationary items and a school bag.
• There are several Zilla Parishad schools located on the hilltop near Nagothane Manufacturing Division
where all the children who are attending school are tribal. With an objective to encourage the tribal students,
Reliance also provided school uniforms.

Barabanki Manufacturing Division renovated a primary school in an adjoining village. Hoshiarpur

Manufacturing Division provided free uniform (winter and summer), books, bags, shoes and stationery to the
school-going children of neighbouring village.

Health

Health Awareness Programs, covering diverse topics such as noise pollution, hazards substance abuse,
prevention of HIV/AIDS and First Aid were conducted for students of schools at the neighbouring towns and
villages of Patalganga. Barabanki Manufacturing Division provides medical service and awareness programs
on health, hygiene, cleanliness and sanitation in neighboring villages.

Hoshiarpur Manufacturing Division too conducts monthly checkup camps at neighbouring villages. Free
medicines and spectacles were also provided. Round the clock free ambulance service has been provided to
roadside accident victims. Hazira Rehabilitation Centre for the Physically Challenged has been set up in
partnership with Disabled Welfare Trust of India for capacity building of physically challenged children from
the weaker sections of society.

Initiatives to Combat HIV / AIDS and TB

The Company provides Community Medical Centres near most of its manufacturing divisions. These centres
cater to the Governmental health care programmes like maternal and child health, TB, malaria, HIV / AIDS
etc., besides providing curative treatment. These Centres have been well received and go a long way in
providing the medical relief for the community. The Company has implemented HIV / AIDS and DOTS
programme at Hazira and Jamnagar, and is in the process of replicating the same at the other manufacturing
divisions. This initiative is a publicprivate partnership between the Government, NGOs and Reliance. This
comprehensive project extends from creating awareness to providing treatment, care and support. Reliance’s
initiative to combat HIV / AIDS has been recognized by UNAID, World Bank and other national and
international institutions.

Adoption of Public Health Centre (PHC)

Reliance has adopted a Primary Health Centre (PHC) from the State Government of Gujarat and converted it
into a model primary health centre. The PHC located at Dahej in Bharuch District, Gujarat, has attained the
status of the best PHC in the District in a short-span of 6 months and has established itself as a centre of
excellence.

Highway Rescue Intervention

To provide emergency and trauma care to victims of highway accidents, Hazira has tied-up with an NGO to
run the project on the State Highway in Gujarat starting from Sachin to Bharuch, and the State Highway via
Hazira - Olpad - Hansot - Ankleshwar. The project will benefit thousands of commuters who use this highway
on a daily basis.
Traffic Police personnel are the first government agency to respond to an emergency involving a chemical
tanker or a truck. With the increase in the number of accidents on roads and the unending addition of new
chemicals, it is important that these personnel understand the hazards and the basic steps to be taken to
safeguard themselves and the general public from the hazards of chemicals. The Company’s initiative of
training traffic police personnel by its Kurkumbh Manufacturing Division in handling road transport
emergencies involving chemicals will go a long way in serving the objective of community well-being.

Dhirubhai Ambani Hospital, Lodhivali

Reliance also operates the Dhirubhai Ambani Hospital, Lodhivali and renders quality medical services to the
rural population and highway accident victims.

Moti Khavdi Medical Centre

As part of corporate social responsibility services, a community medical centre was established in Moti
Khavdi, a village near Jamnagar Manufacturing Division, during the pre-commissioning stage of the refinery in
November 1995. This Community Medical Centre provides comprehensive medical services free of cost and
round the clock. About 1.2 lakh villagers of nearby areas like Moti Khavdi, Nani Khavdi, Padana, Meghpar,
Gagva, Jogvad, Baid, Kanalus, Sikka, Sarmat, Navaniya, Mungani, Jakhar, Bara, Vasai and Amra benefit
from the same.

Community Medical Services at SEZ, Jamnagar

A massive workforce from all parts of India are working at the mega construction activities in the SEZ at
Jamnagar. The Company has given shelter in several colonies. Each labour colony has a separate medical
centre. Each medical centre is manned round the clock by doctors, nurses and ambulances.

Thalassaemia detection camp and Parental counselling

The tribal areas in regions near Surat, Gujarat, are highly endemic to the prevalence of a thalassaemic trait,
which is a genetic disorder. The Company launched a thalassaemia detection camp in association with the
Indian Red Cross in the local high school. Children from the nearby school were tested for the disorder. The
opportunity was also used for detecting aneamia and sickle cell aneamia. A post-test counseling session was
organized for the parents of these children.

Project “Cancer-Aid” for Cancer patients

In partnership with the Lions Cancer Detection centre, the Company provides monetary assistance for
purchase of medicines to cancer patients.

Mobile Dispensaries

Reliance also operates free medical diagnostic and therapeutic services at neighbouring villages of several of
its manufacturing locations.

Blood Donation Drives

The Company’s employees organize and participate in blood donation campaigns every year across its
manufacturing divisions and offices.

Public Health Care

Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC) Dhirubhai Ambani Foundation (DAF),
with financial and technical services support from the Reliance Group, joined in 1997 the Management of
HNHRC, a charitable hospital offering tertiary health care facilities to all strata of society and providing free
and subsidized services to the poor and indigent patients availing of various diagnostic and treatment
facilities.
Thousands of patients have received treatment indoors in the various wards and specialized care areas and
at OPD services at P.T. Clinic, the popular Diagnostic Centre of the Hospital. The Hospital continues its age-
old tradition of rendering free service to all in the casualty ward. More than 4,000 surgeries were performed
during the year, of which a major portion was special and supramajor surgeries.

The Hospital carried out several Cadaver Transplants in the recent past. Further, the eye Donation drive
initiated by the hospital witnessed an increased response. Some of the important outreach programmes
conducted during the year included a Senior Citizen Health Screening Program in association with Rotary
Club, and a medical back-up for the Special Olympics event organized by the Lions Club - International. Twice
a month, the hospital continues to conduct free health check-up for senior citizens and physically challenged
in Mumbai. These programmes have gone a long way in educating the community on prevention of diseases,
and promoting a healthy lifestyle.

The hospital is in the process of building a multi-storied ultra modern tertiary care hospital with state-of-art
facilities and infrastructure embracing the entire spectrum of health care services. Several new facilities would
be added, and many of the existing facilities would be significantly upgraded in areas like Neurology and
Neurosurgery, Urosurgery, Cardiology and Cardiac Surgery, Cardiovascular Surgery and Cosmetology. A
chain of blood banks would be established at various centres under a new initiative by the DAF. Educational
and research activities at the hospital shall receive significant boost by way of advanced facilities and better
funding. The project, when completed, would be a landmark healthcare facility in this city.

Sir Hurkisondas Nurrotumdas Medical Research Society (HNMRS) DAF, through the Reliance Group,
supports the scientific research activities of HNMRS. The Society has been carrying out scientific research
activities since 1974 -75 and has completed more than 130 research projects.

The scientists from HNRMS have presented over 180 papers at various national and international
conferences. More than 130 papers have been published in peer reviewed scientific journals, about half of
them being highly rated as prestigious international journals. Topics of national health priority constitute a
major share of the research projects undertaken.

The researchers are motivated to expand their research avenues to carry out epidemiological studies and
community-based surveys. As part of such studies, children from nearby schools and susceptible population
from neighbourhood communities are regularly screened by medical / paramedical professionals. Those in
need of medical care are offered special attention and treatment at the institution free of cost.

Drishti

Project Drishti, a nation-wide corneal grafting drive to bring light into the lives of visually challenged from the
underprivileged segment of society has restored the gift of sight to over 5,500 Indians. A unique joint initiative
of Reliance Industries Limited and National Association of Blind (NAB), Project Drishti has undertaken over
5,500 keroptoplasty surgeries in less than 4 years since it was started - all free of cost. It is now the largest
corneal grafting surgery project enabled by a single corporate entity in India.

Drishti Painting Competition

As a part of corporate initiative to propagate awareness of Project Drishti, Drishti painting competition is
organized for school children at several manufacturing divisions and offices of the Company.

Community Development
Jamnagar Manufacturing Division continues to extend a helping hand to surrounding villages and the
community at large. Activities during the year focussed on improving village infrastructure, supply of drinking
water, education support etc.

During the year, in a unique initiative to improve rural housekeeping and sanitation, a totally fresh approach
was adopted to beautify Moti Khavdi; Reliance’s adopted village. Cleaning and sanitation drive at Moti Khavdi
was taken up as an ongoing project.

Three MoUs were finalized with the State Government of Gujarat for development of Dwarka during the year.
They are to (i) develop the temple square in front of the famous Dwarkadheesh temple (ii) construct ‘Sudama
Setu’-a bridge to connect both the banks of Gomati river behind Dwarkadheesh’s temple and (iii) develop
‘Panch-kui’ area on the sea-shore where five wells, believed to be dug by Pandavas, still give fresh potable
water right on the seashore.

To maintain and support village cows in surrounding villages, two more brand new cow-sheds for Kanalus and
Kanachikari were constructed and handed over to the respective villages. These cows and cow-sheds
(“Gaushala”) receive regular fodder supply from the Company’s Jamnagar Manufacturing Division.

Construction of a public lavatory, water tank and avedo (common drinking water facility for villagers) was done
at Nani Khavdi during the year under report. Drinking water through water tankers was supplied during a crisis
period in Sikka, Nani Khavdi, Meghpar and Padana. At Kanachikari, Drinking water pipelines were laid during
the year.

A new primary school building at Navagam was constructed and repairing of some village schools was taken
up. Participation and distribution of sweets in village schools during the Independence Day and the Republic
Day; support to Government of Gujarat’s drive for girls’ education; distribution of gifts to girls of villages during
Navratri festival; supporting Navratri celebrations in Jamnagar were some of the salient aspects of Jamnagar
Manufacturing Division’s Community Welfare Cell as part of routine and regular activities.

In a major initiative to celebrate Navratri, the world’s longest dance festival on a large scale; Jamnagar
manufacturing division took a lead to form Gujarat Industries Navratri Festival. A gala festival was organized
and celebrated at state capital Gandhinagar’s helipad ground for nine days jointly with leading industries of
Gujarat. The event brought to fore the role of industries, handicrafts, art and culture etc in the development of
Gujarat as a vibrant state. The event evoked tremendous response and applause from every quarter of the
society at large.

Reliance Rural Development Trust (RRDT)

The work to improve the rural infrastructure under the Government of Gujarat’s rural development plans was
continued with full energy by RRDT. During the year under report, the RRDT created 760 facilities in the rural
areas at a cost of Rs. 24.07 crore. The facilities included 247 concrete roads, 465 anganwadis, 38 drinking
water facilities, 1 panchayat office, 2 community halls, 5 check-dams and 2 other amenities in the rural areas
of the State of Gujarat. RRDT has turned out to be an exemplary corporate NGO steadily and silently
implementing government’s developmental plans for rural areas of Gujarat. It is a unique synergy between a
corporate giant like Reliance Industries Limited and the Government of Gujarat, formed to carry out rural
development projects in private public partnership.

Dahej Manufacturing Division has been playing a pivotal role in the development of the society. Social
initiatives undertaken by Dahej Manufacturing Division are concentrated towards promotion of education,
health awareness and medical facilities, infrastructure development and supply of safe drinking to the villages.

Some of the initiatives undertaken by the Company’s E&P Division near KG-D6 include 1) gainful employment
for local communities, 2) vocational training for the youth, 3) employment for members of Gadimoga
panchayat, 4) financial assistance for community activities, 5) sponsoring of cultural and sports events, 6)
financial relief to affected communities, 7) compensation to local fishermen, 8) academic and financial
assistance and educational support through distribution of books, 9) improvement of village school
infrastructure and 10) medical help to local communities.
After successfully implementing zero garbage concept at Nagothane Manufacturing Division, the Company’s
CSR cell took the initiative to propagate the concept of solid waste (dry and wet waste) management in the
neighbouring villages so as to help villagers in keeping their village environment neat, clean and garbage-free.

Reliance has also solved the long-standing drinking water problem of villages near its Manufacturing Divisions
located at Naroda and Nagpur. Further, Reliance has created public bathing facilities and toilets for truckers
and residents of villages for improving hygiene near its Allahabad Manufacturing Division.

Empowerment of Women and Youth

Reliance has conducted many training programmes, which would help the rural women and youth to be self
sustaining and generate income for themselves and support their families.

The training programmes conducted at Vadodara for the rural women and youth of surrounding villages of
Vadodara Manufacturing Division during the current year are: 1) Women Empowerment, 2) Dress making &
Designing, 3) Beauty Culture & Healthcare, 4) Hospital attendant (Helpers for Hospital & Nursing Homes), 5)
Plumbing & Hand Pump repairing training, 6) Computer Hardware, 7) Motor Vehicle Driving, 8) Mobile
Repairing and 9) Doormat making. Several persons participated and benefited from the above training
programmes.

Nagothane Manufacturing Division based CSR cell-MADER Trust is supporting several Self-Help groups in
income generating activities such: Hatsadi tandul (brown rice cultivation), phenoyl making, agarbati-making,
candle-making, papad-making and supplying it to industrial canteens and also hand-carry-bag making.
Hoshiarpur Manufacturing Division conducts free stitching courses for the women of nearby villages.

Skill Up-gradation
Reliance runs special training programs to equip the young people of neighboring villages with life and work
skills necessary for sustaining livelihood. Nagothane Manufacturing Division conducted training in fashion
designing courses for the ladies to upgrade the skills of those women who are already trained in basic
tailoring. This division also conducted computer education courses and nursing assistant training courses.
The trainees also received hands on training at the local hospitals and primary health centres at Nagothane.
The Company also trains the youth in vehicle driving courses and also helps them in getting a driver’s license
so that they can earn a livelihood by starting their own business as motor drivers.

The Company’s Polymer business division organised technical training programmes at 50 Industrial Training
Institutes (ITIs) all over India to enhance skills of artisans for new and advanced technique of plumbing with
PPR pipes. The Company also offers plumbing kits, free of cost, to various plumbers as well as to ITIs to
promote this new energy efficient application in the building industry. PPR pipes are faster to install than metal
pipes. This results in improving daily productivity of plumbers thereby increasing in their earnings. This
initiative covered many plumbers across the country.

Eco-friendly Initiatives
In addition to the above initiatives, the Company also focusses on the development of the eco-system and
improvement of the green belt across its manufacturing and E&P sites.

Transforming lives at the bottom of the Pyramid

Reliance constantly aims at creating and living up to rising expectations among its valued stakeholders. The
Company cares for providing clean and green environment on a sustainable basis. It recycles used bottles to
produce value added products. When most of the environmental concerns are subsidised, Reliance has found
a solution for being environmental friendly on a sustainable basis. In the case of recycling bottles, Reliance is
indirectly providing livelihood to around 200,000 individuals. This business has transformed lives of those at
the bottom of the pyramid.

Packaging solution to farmers (Leno bags)

Reliance organised extensive awareness programmes on improved packaging solutions for potato and other
vegetables for farmers all over India. This included demonstration on use of Leno bags, which are more
durable, functionally more efficient and cheaper than traditional materials. This programme helped the farmers
reduce the cost of packaging of potato. These bags also helped farmers to reduce wastage while keeping in
cold storage. The Company’s efforts helped the farmers to improve their earnings. The programme covered
more than 10,000 farmers across India.

Polyethylene (PE) Biogas Domes for Renewable Energy Source

Biogas technology for rural development has been a focus area for Government of India. Ministry of New and
Renewable Energy (MNRE) promotes family-type biogas plants under the National Project on Biogas
Development (NPBD). The project was launched in 1981-82 with the objective of producing clean and
alternate renewable energy for cooking and lighting, enriched organic manure for agricultural usage,
improving sanitation and hygiene and reducing drudgery of women. The two cubic metre “Deenabhandu”
model is the most popular family type fixed dome biogas plant developed with conventional brick and cement.
Many of these plants get defunct due to dome cracks leading to gas leakages. The Company has developed a
100 per cent leak-proof Rotomolded PE Dome, which gives end-users a unique combination of properties like
good strength, stiffness, light weight, seamless construction, ease of installation and very little maintenance.
The PE-based dome has been developed by Reliance and has been approved by the Ministry of New and
Renewable Energy, Government of India.

Sports for the Physically Challenged

Reliance has joined hands with the organising team of Special Olympics Gujarat (Bharat) for the physically
challenged children of Gujarat. Several hundred children participated in the events that were organised at the
Reliance Sports Complex, Vadodara.

Real Indian Heroes

On the occasion of Shri Dhirubhai Ambani’s 75th birthday, 60 years of Indian Independence and 30 years of
Reliance, the Company took up a unique initiative to salute the Real Indian Heroes of Independent India.
Partnering with the TV Channel, CNN-IBN, a series of programmes to felicitate the unsung heroes of India
was launched. CNN-IBN identified 24 Real Heroes, which included six each from the four zones of India. In
recognition for their outstanding contribution to society, Reliance felicitated each of these 24 Real Heroes to
further encourage their contributions.

Dhirubhai Ambani Foundation (DAF)

Dhirubhai Ambani Foundation (DAF) was established in 1995 by Shri Dhirubhai Ambani, the Patron Trustee of
the Foundation. A public charitable trust registered under the Bombay Public Trusts Act, 1950, DAF has for its
objectives a broad spectrum of worthy causes ranging from health and environment, to promotion of social
and economic welfare, and rural development. However, its main thrust has been on education and public
healthcare.

DAF systematically pursues philanthropic activities to promote national welfare and social good. Reliance
lends valuable support to DAF in terms of financial contribution and wherever necessary, infrastructural
support. Reliance also draws on the DAF expertise in evolving and coordinating the Corporate Social
Responsibility Initiatives and other group companies also help DAF initiatives wherever possible. Thus, DAF
initiatives reinforce Reliance’s commitment to social responsibility.

Education: Rewards and Scholarships

DAF SSC Merit Reward and Undergraduate Scholarship Schemes: The Foundation’s much acclaimed SSC
Merit Reward and Undergraduate Scholarship Schemes continued to encourage and assist meritorious
students at the district level to pursue higher education in different vocations to enhance the Human Resource
potential of the country. Now in their twelvth year, both the schemes are currently applicable in the states of
Maharashtra, Gujarat, Goa and the Union Territory of Daman, Diu and Dadra Nagar Haveli. The first three in
overall merit and one physically challenged student securing the highest marks in each of the 64 districts at
the annual SSC and HSC examinations of the respective state Boards, as well as the first ten CBSE students
from Maharashtra and Gujarat and 2 from Goa, in the merit list of CBSE New Delhi, are eligible for the
Rewards and Scholarships.

Reaching out to other states:

To offer equal opportunities to the physically challenged meritorious students from the rest of the country, the
Foundation has extended the Rewards and Scholarship Schemes to the first five physically challenged
students from all the States and Union Territories of India that provide the list of such meritorious students.
Accordingly, in 2007-08, physically challenged meritorious students from Rajasthan received SSC Merit
Rewards and Undergraduate Scholarships at a function held in Jaipur, whereas at a function held in
Hyderabad, 20 Physically Challenged meritorious students from the state of Andhra Pradesh received the
Rewards and Undergraduate Scholarships for the years 2006-07 and 2007-08.

Reliance Kargil scholarships scheme

Children of martyrs / disabled soldiers of the Kargil war received financial support under this Scheme for their
education from Std. V to XII. The unique feature of the Scheme is that the corpus was created with
contributions from Reliance Group employees, with the Management responding by making equal
contribution.

“Dhiruhbai Ambani Scholars’ scheme” for Meritorious Children of Reliance Shareholders

The Scheme was announced in 2003 as a one-time measure to commemorate the silver jubilee of the
company’s listing on the Bombay Stock Exchange. In the first year, 900 meritorious children of the
shareholders received the scholarships. Of these, in 2007 - 08 which is the 4th year of the Scheme, a total of
101 scholars continued to receive the scholarship for their education, leading to Degree / Diploma course, the
rest having completed their education.