Corporate Social Responsibilities refers to the business approach which aims at conducting activities that are ethical. It includes activities like working in a team within the community, developing strong relationships between employees and its potential customers and protecting environment. Business gets involved in CSR activities to minimize the negative impact of its activities on the society. It helps in contributing a sustainable growth and creating benefits to its shareholders. Indian Oil Corporation Ltd is the company that is highly involved in the CSR activities. Indian Oil is public limited company which was founded in 1964 in New Delhi. It was founded by Sanjiv Singh and it deals in producing oil and gas and other petrochemicals. It has nearly 33,135 employees working with it. It basically serves in India, Sri Lanka, Middle East and Mauritius.
Corporate social responsibility is important in order to be aware of every movement about the impact of the organization’s business on the stakeholders, customers and the environment. It also helps in maintaining the ethical and developing business environment for the business. CSR includes many responsibilities and roles such as Human rights, employee evaluation, corporate governance, health and safety, working conditions and the contribution to the economy on the whole. The aim of CSR should be quite ambitious to create imbibe change for an organization to sustain itself in the market.
Indian Oil is one of the India’s largest oil company in terms of sales. It has successfully ranked itself in the 125th position globally. It manages to control 10 refineries out of 20 refineries in India and calculates to 34.8% of market share of national refining. It aims at focusing on cost effectiveness, energy efficient and creating eco-friendly environment (Indian Oil, 2018).
The mission of the company is to boost the participation for the growth of the employees and motivate them to get involved in innovations. In addition to this, the company also aims at enriching the quality life of people by maintaining an ecological balance and also conducting large number of CSR activities.
The vision of the company is to broaden its horizons, to expand across new vistas, and to infuse new-age dynamism among its employees.
The CSR activities carried out by Indian Oil has achieved a greater success from the very beginning of its establishment. “Enrich the quality life of the community and protect the ecological balance and heritage through a strong environment conscience” is the mission statement of Indian Oil which proves that how devoted they are towards the betterment of the society. There are majorly four core values of the Indian Oil that includes Care, Innovation, Passion and Trust. They often feel that it is an honour to serve all the customers of the country and that is the main reason behind rephrasing from “Indian Oil” to “India Inspired” in many of the corporate campaigns. Indian Oil helps to develop the society by providing unlimited number of resources. They always try to work beyond the expectation of the customers and also try to put an extra effort in order to improve the quality life of the member sin the society (Rana, 2015).
It aims at operating huge number of activities. Indian Oil is continuously taking concrete action plans to improve its social objectives by building a value in the mind of its customers as well as its stakeholders. The company focuses on respecting human rights and investing more in the adaptation of new technologies for the economic and sustainable growth. In the last five decades, Indian Oil has been continuously supported the uncountable social initiatives in India. It has huge number of people by involving in several health care projects and other many educational programmes. Despite of getting involved in welfare activities, it has also involved itself in introducing eco-friendly products and services that will be an advantage for billions of customers. Those products and services will be techno- economically viable and will also ensure the high standards of safety (Rubin, 2011).
Each year, Indian Oil collects a fix amount of profits that is put aside to serve the customers and create a million dollar smile on their faces by creating many welfare and development programmes. Nearly one fourth of the community development funds are spent on the welfare of the Scheduled caste and scheduled Tribal. Indian Oil has been highly involved in the communities like health, training and development, education, sanitation facility, water management, family welfare programmes and uplifting women and empowering them as well. Indian Oil has always stood up right the way in case of any national emergencies like helping victims of natural calamities by aiding in terms of cash and kind.
Indian Oil has also aimed at creating initiatives that include allotment of petrol and LPG distributorships to some handicapped and disabled people. It has established a retail outlet named Kisan Seva Kendra in rural areas to serve the rural people. Indian Oil Foundation is set in order to protect and preserve national heritages and monuments of India because it has always been supporting the arts and culture which must be protected. For it, it has conducted programmes under its name like Indian Oil Art Exhibition and Indian Oil Sangeet Sabha. Besides protecting the environment, it has also taken initiatives to produce green fuels that will automatically reduce the problem of petroleum products and save the energy of the nation. It has provided alternative solution of the fuels like ethanol- blended petrol, bio diesel, and Hydrogen CNG mixture that will be beneficial for the environment (Buldybayeva, 2014).
The past of India is still stimulating and is rich in terms of economy. Huge number of monuments, crafts, arts and music is still standing and reflecting a glorious past. In order to protect and preserve those monuments and heritages, Indian Oil has engaged itself in non-profit trust named Indian Oil Foundation collaborating with ASI i.e. Archaeological Survey of India and National culture Fund of the Ministry of culture, Government of India. The main idea behind the foundation of Indian Oil is to protect the ecological balance and heritage within the organization. It has successfully contributed 10crore and has aimed to adopt one heritage site in each stage and Union territory (Sharma and Kiran, 2012).
Some of the major monuments are Qutub Minar, Konark Sun Temple, Khajuraho, kanheri, Hampi and Warangal fort. Indian Oil foundation will also focus on improving all the world class facilities and other several conveniences for the tourists. It also launched “Swantantrya Jyot” to tribute the national freedom fighters.
Indian Oil has awarded 2600 scholarships to the studious and meritorious students across the India and provided them an opportunity to build their career in the field of education. In order to develop CSR activities, Indian Oil has conducted several schemes to attract students and make their future bright. They select the students on the basis of merits. They cover all the students of 10th, Engineering, MBBS and MBA which is announced through newspapers advertisements.
Similarly, they also aims at focusing on encouraging the girls and women by giving them special treatments, helping handicapped and physically challenged people, and serving the students of Jammu and Kashmir and Northeast states. Indian Oil sports also award the talented students and deliver promises to create a pool for those (Tiwari, 2016).
A diesel named Low sulphur was developed that contains 0.5% of Diesel. It was introduced in metros in the year 1996. Likewise, extra low sulphur diesel was also introduced in the Taj Trapezium area in the year 1996 and later it was announced across the country from the year 2000. Low sulphur diesel content was introduced which helped to create Unleaded Motor Sprit i.e. petrol and Gasoline across the country from February, 2000. Similarly, it has also introduced Green fuels that will emit Euro 3rd emissions norms in nearly 13 cities. The centre has also been certified under ISO-14000: 1996 to manage environment systems.
Every Indian Oil refineries aims at preserving the environment standards and provide efficient innovation in the technologies. Furthermore, to improve the standards of the environment, it has also launched new state of the art technologies that will enhance the existing standards (Mishra and Sharma, 2010).
The total budget allocated for all the corporate social activities nearly lies to 10crores. It includes the allocations in several areas like Natural Disasters (35%), Donations (5%), Community Development (30%), Indian Oil Scholarships (20%) and other many activities (10%).
It helps to avoid unnecessary exploitation of Corruption, labour and bribery. It helps to avoid all those factors if a company gets highly involved in the CSR activities. It will start focusing on the welfare of the community and society with a view to serve all the members. The main reason behind getting involved in CSR activities are mentioned below.
Indian Oil would know in advance about their expectation and promote themselves accordingly. It will get to know what people expect from the company and how the company will serve to improve the quality life of the people.
Since Indian oil is involved in huge number of CSR activities, it has successfully created a goodwill and reputation in maianinting a brand name and generate profits and also contribute to sustainable environment.
CSR activities helped Indian Oil to maintain a balance between company’s protocols and the norms and values of the employees within the organization.
There are several issues involved in the company which can easily be resolved by the adaptation of the CSR activities.
When a company gets involved in the CSR activities, it creates an opportunities for the poor and needy to lead a generous life by involving themselves in many programmes. Moreover those who earn little are also helped by the company to fulfil their basic needs.
Today, women basically from the rural areas suffers a lot. They are not educated properly nor are they provided proper health benefits. Indian Oil aims at focusing the women in the rural areas by conducting training and development programmes and creating a major concerns related to health and education (Gautam and Singh, 2010).
Today there are many companies that are highly involved in the CSR activities. CSR activities helps a company to think better in the environment point of view and also boost the quality life of individuals living in the society.
Sometimes getting too much involved in the CSR activities can be frustrating and may create a negative work environment i.e. working from antiquated technology to bureaucratic red tape can be a concern. Working to gain no profit can also lead to frustration and exasperating.
In order to meet the CSR activities, employees are forced to work more by utilizing limited resources and satisfy their competing interest. The changes which are generated by the profit organization is very high if compared with the changes that are seen in the non-profit organizations. It generally happens that the lower bottom line is not clear in non-profit organizations so it becomes difficult to implement changes with a pace.
Indian Oil conducts several CSR activities within and outside the organization. These all are conducted and managed by the employees working in it. Sometimes it becomes very difficult to manage the load of heavy weight on their shoulders for non-profit tasks.
Sometimes there comes a bad day to work for a non-profit job which is very similar to the bad day in a corporate job. But there is a great difference between losing a few percentage off the stock than mentoring someone to avoid drugs. But the losses are higher in the non-profit organization because it involves losses which are caused close to one’s heart.
Indian Oil created unnecessary burdens on the employees because every employees are given responsibilities to solve internal issues and taking care of them before they exists. Employees working in the company are sometimes forced to complete their mission without any profit benefits.
Since, there is no profit motive when a company gets involved in the CSR activities, it sometimes suffers losses in monetary terms because it becomes difficult for the organization to maintain their funds and help people. Creating welfare activities in the society and community may require funds which becomes difficult to manage (Visser, 2011).
Since Indian Oil is involved in many CSR activities, there is still no clear definition and understanding of CSR among the state as well as society. There must be clarification of the process and every members must be aware of the definition of the CSR and then work accordingly which will further reduce unnecessary pressure on the non-profit organizations.
There is lack of effective communication strategy which must be implemented and supported by the government. The company must have long term goals and work on it. More responsibilities must be carried out to meet the deficits and reduce it.
Indian Oil must start investing more in social investments can create a further challenge in the development of the company in its overall business activities. It should focus on producing their goods across the globe i.e. besides serving in few countries, it should also start introducing their products and services in abroad and other many states as well. This will help in generating more funds.
Conclusion
Thus, it can be concluded that corporate social responsibility plays a very crucial role in any business or an organizations. It aims at creating something that is different and contributing those different things to different people. CSR basically focuses on not polluting the environment and being more protective and concerned about the harmonious growth of the customers that exists within the community and the society. It aims at focusing on the health and education sectors by organizing several programmes. It aims at providing environment protection against hazardous factors and developing the quality life of every members within the society.
Indian Oil Corporation Ltd is a multinational company that is highly involved in CSR activities. It has contributed a lot for the welfare of the society and a nation as well. It has conducted huge number of health care programs, involved in charity and donations, educating women and organizing programmes in rural development and also many more. Besides of all these CSR activities, it has also aimed at protecting the employees’ welfare by providing them additional benefits and working for their upliftment. Moreover, there are also many disadvantages which Indian Oil has faced during CSR activities. It has suffered in managing the funds and helping the people with non-profit motives.
Likewise, it can also be concluded that Indian Oil has introduced some retail outlets in the rural areas and served their products and services to those who cannot afford a lot. It has also aimed at focusing on the green environment by producing the diesel that will least affect the environment and its members.
References
Buldybayeva, G., 2014, Both Sides of CSR Practice: A Case from Oil and Gas Industry, Viewed on 15th February, 2017. Available on: https://www.uni-obuda.hu/journal/Buldybayeva_48.pdf
Gautam, R. and Singh, A., 2010, corporate social responsibility practices in India: A study of top 500 companies, Global Business and Management Research: An International Journal, 2(1), pp.41-56.
Indian Oil, 2018, CSR activities, viewed on 15th February, 2018. Available on: https://www.iocl.com/AboutUs/corporatesocialresponsibility.aspx
Mishra, P., and Sharma, P., 2010, Green marketing in India: Emerging opportunities and challenges, Journal of Engineering, Science and Management Education, 3(1), pp.9-14.
Rana, N., 2015, CSR: What oil and gas companies should really focus on, viewed on 15th February, 2018. Available on: https://blogs.economictimes.indiatimes.com/ResponsibleFuture/csr-what-oil-and-gas-companies-should-really-focus-on/
Rubin, J., 2011, why your world is about to get a whole lot smaller: oil and the end of globalisation, Random House.
Sharma, A. and Kiran, R., 2012, Corporate social responsibility initiatives of major companies of India with focus on health, education and environment, African Journal of Basic & Applied Sciences, 4(3), pp.95-105.
Tiwari, A., 2016, CSR of Indian Oil, 2016. Available on:https://csrworld.net/csr-activities-of-indian-oil-corporation-limited.asp
Visser, W., 2011, the age of responsibility: CSR 2.0 and the new DNA of business, John Wiley & Sons.
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