Corporate Social Responsibility Practices in Indian ...

Strategic Corporate Social Responsibility- Towards a Sustainable Business, New Delhi

Corporate Social Responsibility Practices in Indian Mining Industry: An Exploratory Study Dr S C Das (Professor of OB and HR), Faculty of Commerce, Banaras Hindu University, INDIA Pradi Ram, Doctoral Scholar, BHU

1. Introduction: A business organisation is a social unit because it totally depends on the society for its effective performance in the economy. The society contributes Human Resource, Infrastructure facilities, Intellectual facilities etc. That helps an organisation in effective working and achieving higher profit in the competitive market. The economic activity of the organisation causes of various bad impact on the people, environment, society and the locality where the organisation is established. Thus redressing, maintaining, developing of society, environment and people from bad impact of corporate economic activities is the responsibility of the organisation. These responsibilities of the organisation are considered as the corporate social responsibility of the organisation. The term social responsibility has been defined by the various organisations, people and the intellectuals in different way. Gray in(1987) defined CSR as “the process of communicating the social and environmental effect of organization economic action to particular interest group within the society and society at large” .Similarly Perk in (1993) defined CSR as “disclosure of those cost and benefit that may or may not be quantifiable in monitory term arising from economic activity and subsequently born by community at large or other stakeholders” According to EU Commission [(2002)347final:5] “CSR is the concept whereby companies integrate social and environmental concern in their business operation and in their interaction with their stockholders on a voluntary basis.” Mining companies have long had a questionable reputation for social responsibility, especially in developing countries. In recent years mining companies operating in developing countries have come under increasing pressure as opponents have placed them under greater public scrutiny. Mining companies have responded by developing global corporate social responsibility strategies as part of their larger global strategies. In these strategies a prominent place is given to their relationship with local community. In the mining sector Corporate Social Responsibility (CSR) refers to a company’s voluntary actions to either reduce the negative impacts of mining (economic, social, and environmental) or to improve the living conditions of the local communities where they operate. By definition, voluntary actions are those that go beyond legal obligations and binding contracts. Thus, agreements between communities and companies cannot be considered part of a company’s CSR program because these agreements are similar to binding contracts (Hamann and Kapelus, 2004).

2. Objective and Methodology 2.1 Objective: The paper attempts to explore the CSR practices that have been adopted by the select companies under Mining Sector of India. 2.2 Methodology: The methodology adopted in this study is of general review in nature and falls under the category of exploratory study based on the secondary sources of data. The study is confined in three Central Public Sector Mining Companies in India. This study has been divided into three parts. In first pats this paper defines CSR in mining industry. In the second part paper describes various adverse affects of mining on society including local communities, environment, people and climate. In the third part of this paper performance of

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the mining companies to the obligation of social responsibility has been shown and accordingly suggestions have been given.

3. Review of Literature Viviers and Boudler (2008) investigated the CSR performance of selected mining companies listed on Johannesburg Security Exchange in the year 2006. The annual report of the company were analysed by content analysis and found that, those things which have economic impact like HIV/AIDS are given priority in the CSR of mining companies, whereas CSR issues related to empowerment receive less attention. This study recommended that mining company should focus more on health and safety issues and environmental issues which lies on ethical and philanthropic level of CSR. Cerner (2007) has given examples of different countries on how they share the project benefit with the project affected persons. Colombia allocates a certain percentage of benefits from hydroelectric plants to the development of rehabilitated area. In Brazil there is a principle of reinvesting a percentage of royalties from hydropower to the resettlement area. Canada adopted a strategy of partnering with the local communities for equity sharing. In China there are important agencies, which have the responsibility of managing the reservoir development funds and initiating development interventions to benefit the resettles. Business for Social Responsibility (2007), CSR brings not only risks for the mining industry, but also creates a set of opportunities. It can help companies secure their social license to operate, contribute in a meaningful way to sustainable development, and ultimately add value not just for shareholders but also for all of their stakeholders- for the communities and others who are affected by the company’s operations. Lahiri-Dutt (2007) in his study found that poor attention to community development and engagement with the landowners caused the closing down of a large copper mine in Papua New Guinea. The Phulbari coal mine project in Bangladesh was abandoned in (2006) because of community agitations for alternative livelihoods. Verma and Chauhan (2007) found that roads, pollution and power are the major concern of corporate CSR activities as compared to least concern area which is communication and education. Jenkins and Yakovleva (2006) explore recent trends in the reporting of social and environmental impacts and issues in the global mining industry. He studied world’s 10 largest mining companies. The result shows that there is evidence of increasing sophistication in the development of social and environmental disclosure, there is considerable variation in the maturity of reporting content and styles of these companies. Banerjee (2004) mentioned that for carrying mining activity in the future, adequate attention should be given to the social dimensions of mining. He has mentioned the commendable community development work done by many mining companies and to disseminate the knowledge generated. Hamann and Kapelus (2004) argued that CSR related narratives and practices can be fruitfully assessed with reference to accountability and fairness as key criteria. Arora and Puranik (2004) reviewed contemporary CSR trends in India concluding that the corporate sector in India benefitted immensely from liberalization and privatisation process, its transition from philanthropic mindsets to CSR has been lagging behind its impressive financial growth. Conway (2003),in his study on iron ore mining industry in Goa and found that many large mining companies have their own initiatives towards environmental and social development. However, a structured CSR policy and planning is missing especially among the small and medium players in the industry. TERI Europe and ORG-MARG (2001), conducted a survey in several cities in India and found that more than 60% of the people felt that the companies should be held responsible for bringing down the gap between rich and 2


poor, reducing human rights abuses, solving social problems and increasing economic stabilities. A survey conducted by CSM (2001) found various dimensions that companies follow for performing CSR. Various dimensions are national wealth, employment, environment and social programme including health and literacy. Arora and Puranik (2004) found in his study that there are appreciably several cases of companies in India involved in diverse issues such as health-care, education, rural development, sanitation, micro-credit and women empowerment, arts, heritage, culture, and conservation of wildlife and nature, etc Given the increase in corporate profits on the one hand and the reality of human-poverty and development indicators on the other, CSR seem to be in a embryonic stage in India.

4. Mining Effects: Minerals are non-renewable and limited natural resources and constitute basis of vital row materials for various important industries. The extraction of mineral from nature often creates imbalances which adversely affects the environment and society at large. The key environment effects of mining are on wildlife and fishery habitats, the water balance, local climate and pattern of rain fall, sedimentation , the depletion if the forest and disruption of the ecology. Therefore, management of country’s mineral is closely associated with her overall economic development and environment protection. 4.1 Effect of Mining on Ground Water: Perhaps the most significant impact of a mining project is its effects on water quality and availability of water resources within the project area. When mined materials are excavated and exposed to oxygen and water, acid can form if iron sulphide minerals are abundant and there is an insufficient amount of neutralizing material to counteract the acid formation. The acid will, in turn, leach or dissolve metals and other contaminants from mined materials and form a solution that is acidic, high in sulphate, and metal-rich (including elevated concentrations of cadmium, copper, lead, zinc, arsenic, etc.) Elevated levels of cyanide and nitrogen compounds (ammonia, nitrate, and nitrite) can also be found in waters at mine sites, from heap leaching and blasting. Acid drainage and contaminant leaching is the most important source of water quality impacts related to metallic ore mining (Environment Health and Safety , 2007) The water in coal mining areas has been found highly acidic. The pH (Power of Hydrozoans) of streams and rivers varies between 2.31 to 4.01. However, pH of the Myntdu River was found to be 6.67. This indicates serious condition of the water bodies of the area that hardly can support any aquatic life such as fish, amphibians and insects. Contamination of Acid Mine Drainage (AMD) leads to acidity or low pH of the affected water bodies. Acidic water is a matter of primary concern since it can directly be injurious to aquatic organisms. It also facilitates leaching of toxic metals into the water that could be hazardous to aquatic life, directly or can disturb the habitat after precipitation (Indian School of Mines, Dhanbad). 4.2 Mining effect on aquatic life: The mining process not only affects the ground water but also to the aquatic life of the rivers. An unaffected river aquatic community comprises of Phytoplankton’s, Periphyton, Macrophytes, zooplanktons, invertebrates and vertebrate species which play important role in normal functioning of the aquatic ecosystem, any physical chemical or biological change in water bodies affects one or all species and disturbs the normal functioning of the aquatic ecosystem. Like many other potential pollutants, mine drainage causes a reduction in the diversity and total numbers, or abundance, of macroinvertebrates and changes in community structure (Weed and Rutschky, 197) . 4.3 Effect of Mining on Air Quality: Air pollution is the common environmental problem in all mine and quarries, especially open cast operations. Airborne emissions occur during each stage of the mine cycle, but especially during exploration, development, construction, and 3


operational activities. Mining operations mobilize large amounts of material, and waste piles containing small size particles are easily dispersed by the wind. Larger sources of water pollution in the mining are mobile sources and stationary sources. The mobile sources include heavy vehicles in excavation operation cars that transport personnel at the mining site, and trucks that transport mining materials. The second sources of air pollution are the stationary sources this sources includes combustion of fuels in power generation and installation and drying, roasting and smelting operation (US Environmental Agency, 2009). Many producers of precious metals metal on-site, prior to shipping to off-site refineries. Typically, gold and silver is produced in melting/fluxing furnaces that may produce elevated levels of airborne mercury, arsenic, sulphur dioxide, and other metals which is very dangerous the health of the environment and the people working in and live in the surroundings. According to environmental impact Assessment Engineering Institute for the Manganese mine in Sandur Taluk ,Bellary district, the average suspended particulate matter concentration at various locations between 130ug/m3and 1678ug/m3.the maximum suspended particulate matters concentration observed 4474ug/m3. These values are found to be within the norms prescribed by the director general of mine safety, of 5000ug/m3. However, the permissible level of suspended particular matter for industrial area as per central pollution control board norms is 300ug/m3 (The state of the environment report, 2003). 4.4 Effect of Mining on Land: Land degradation is one of the significant impacts arising out of mining and quarrying activity which is mainly in the form of alteration of land due to excavation, staking of top soil. Stone and sand quarrying causes damage to property, depletion of ground water, loss of fertile top soil, degradation of forest land adversely affects on environment and public health. Haphazard quarrying of sand from the riverbed leads to damage of infrastructure like bridge and roads. Mining operations routinely modify the surrounding landscape by exposing previously undisturbed earthen materials. Erosion of exposed soils, extracted mineral ores, tailings, and fine material in waste rock piles can result in substantial sediment loading to surface waters and drainage ways. In addition, spills and leaks of hazardous materials and the deposition of contaminated windblown dust can lead to soil contamination. This leads to the ineffective productivity of the land (Environmental Management in Mining, 2002). 4.5 Effect of Mining on Children, Women and Tribal People: In the remote mining areas children are used as the child labour. They are not provided heath and school facility in, the neighbourhood of mining area. In the earlier stage they are given the task of stone braking in smaller pieces and help in loading the stone on trucks. The ILO estimates that more than one million children worldwide are involved in mining. However, this might be a huge underestimation. Organizations working in Rajasthan alone, estimate that in that state alone 375,000 children work in the mines and quarries across that state. In the state of Karnataka at east 200,000 children are said to be working. Cheap child labour is welcomed by the contractors. The response from the Indian labour department is complete denial.. However, a big percentage of the stone quarries is illegal (from 25% in Maharashtra to even 50% in Rajasthan) and are not dealt with in official statistics. Even more children are engaged in tasks to enable their parents to work fulltime in the quarries - e.g. herding goats and taking care for younger siblings. The poverty and hardship in which the mine workers’ families live is well illustrated with their daily diet: rot is with chillies and onions. There is no money for rice or vegetables. Hence it is not a surprise that the majority of the children the research team met are chronically malnourished (India Committee of the Netherlands, 2010).

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The situation of the women in the mining sector is not healthy women join the labour force in quarries and mines to increase their low family income, to be able to repay debts, or to replace their husbands who are bedridden or have passed away. They have to suffer from silicosis disease which is causes of death of women at the mining place. In the quarries women have separate tasks then man. Men are treated skilled worker and women unskilled worker so discrimination is also prevail in man and women wages. Women are paid less then minimum support wages.

5. Guideline of CSR for Central Public Sector Enterprises in India The Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises have issued in April 2010, comprehensive “Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises”. The new guidelines emphasis on the link of Corporate Social Responsibility with sustainable development and define Corporate Social Responsibility (CSR) as a philosophy wherein organizations serve the interest of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. Under these guidelines, the long-term CSR Plan should match with the long-term Business Plan of the organization. The activities under CSR are to be selected in such a manner that the benefits reach the smallest unit i.e., village panchayat, block or district depending upon the operations and resource capability of the company. The activities undertaken under CSR should also be in consonance and consultation with State Governments, district administration, local administration as well as Central Government Departments/Agencies, Self-Help Groups, etc., to avoid duplication. This guideline gives direction for the expenditure of the amount by the company in a year. According to this guideline Expenditure range for CSR in a financial year is 3-5% of the net profit, of previous year, in case of CPSEs having profit less than Rs. 100 crore; 2-3% (subject to minimum of Rs. 3 crores) in case the profit ranges from Rs. 100 crore to Rs. 500 crore and 0.5-2% in case of CPSEs having a net profit of more than Rs. 500 crore in the previous year. Loss making companies are not mandated to earmark specific funding for CSR activities but may achieve this objective by integrating business processes with social processes, wherever possible. The CSR budget has to be fixed for each financial year and the funds would be non-lapsable. Under these guidelines special stress has been laid on the proper monitoring of the CSR projects undertaken. The Boards of the CPSEs would be responsible for the implementation of the CSR activity which would then be a part of the annual MOU signed between CPSEs and the Government. Also, there is a provision for appointment of Social Audit Committee and independent external agency for periodic monitoring as well as evaluation (Approval for Revival of 40 CPSES, November 2010).

6. Performance of CSR of CPSEs in India Corporate social responsibility is one of the burning questions in developing countries like India. Mining sector of CPSEs is one of the important and big sectors that provides fundamental base for the various industries and helps in the infrastructure and economic development. SAIL, ONGC, and CIL are the biggest company in the mining sector of India. The performance of CSR in the companies varies according to the objective, vision and mission of the organisation. 6.1 SAIL: Over the years, the largest steel enterprise in India, SAIL has emerged as a synonym for steel. SAIL a Maharatna company, maintained its position as a leading producer of crude steel in the country. It is a matter of great pride that for the first time ever SAIL’s 5


turnover crossed `50,000-crore (in 2011-12) mark during the year, at a time when the global economy faced many challenges. SAIL is really about its people-committed, talented, passionate employees who want to create and do something meaningful and lasting so as to realise their full potential & make a positive impact in their area of work. SAIL has succeeded in instilling the strength that drives our economy’s upsurge. SAIL will continue to play its leading role in steel ensuring the sustained growth of our economy. This will no doubt make our company a successful corporate entity with global competence. (CIL Annual Report, 2011). In the area of corporate social responsibility SAIL invest 2 % of budgeted distributable surplus (after Dividend and Dividend Tax). SAIL focus on social responsibility remains unwavering. The pivotal role of education, health, income generation and sustainable development is the cornerstone of Corporate Social Responsibility. On the health, the company is operating 54 Primary Health Centres, 12 Reproductive and Child Health Centres, 17 Hospitals and 7 Super-Specialty Hospitals which provide specialized healthcare to more than 30 million people living in the vicinity of its Plants and Units. In the year 2011-12, in order to reach to the underprivileged, over 2400 camps have been organized across the Country benefiting around 1.80 Lakh people providing free health check-up, path-lab treatment, medicine, immunization, etc. In the field of education, Company has opened over 146 schools in the Steel Townships to provide modern education to about 70,000 children. Besides adopting and providing free education and facilities to tribal children, SAIL is providing assistance to over 286 schools. In this endeavour, SAIL has achieved a Girl: Boy ratio of 1:1 for all levels of education and a survival rate, i.e. rate of retaining enrolled students of 93% in SAIL Primary Schools and 90% in SAIL Secondary Schools. Seven Special Schools for BPL (Kalyan Vidyalaya) at five steel Plants with facilities of free education, mid-day meals, uniform including shoes, text books, stationery items, school bags, water bottles and transportation in some cases are running under CSR. Scholarships to deserving undergraduate & postgraduate engineering students, adoption of 180 tribal children at Bhilai & fourteen of nearly extinct Birhore Tribes at Bokaro, 4 girl students for Nursing Course, etc. are the major steps taken for uplifting poor, OBC & SC, ST. With the help of Akshay Patra Foundation, SAIL is providing Mid-Day Meal to more than 18000 students in different schools of Bhilai everyday. SAIL has provided access to around 75 lakh people across 450 villages since inception by constructing and repairing of roads. It has provided access to water infrastructure to people living in far-flung areas by installing over 6000 water sources, thereby providing drinking water access to around 50 lakh people. In order to bridge the gap between rural and urban areas and to provide comprehensive development of both physical and social infrastructure, 79 villages have been identified as “Model Steel Villages” across the country (in eight states). The developmental activities being undertaken in these villages include medical & health services, education, roads & connectivity, sanitation, community centers, livelihood generation, sports facilities, etc. Works at 71 villages have been completed till 2011-12. Vocational training has been provided to in areas such as improved Agriculture, Mushroom Cultivation, Poultry, Fishery, Piggery, Agarbati making, Welder, Fitter & Electrician Training, Sewing and Embroidery, etc. Vocational Training centre for rural and unemployed youths – ‘Bhilai Ispat Kaushal Kutir’ at Bhilai, Skill Development and Self Employment Training Institute (SDSETI) for the benefit of the women and girls at Durgapur and Self employment centre “KIRAN” at Kiriburu Ore Mines are benefiting common masses by way of financial inclusion/ SHG and then empowering them to be part of main stream.

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SAIL is committed to a sustainable environment and is continuously enhancing its environmental performance as an integral part of its business philosophy and values. A number of environmental initiatives have been taken by Company during the year yielding positive results. The highlights of this area are as under: Best ever achievements were made during the year 2011-12 in respect of the following Environmental Indices: • 2.81 lakh saplings have been planted in and around SAIL Plants and Mines during the year. • VISL, Bhadravati has been accredited to ISO 14001 Environment Management System. • As a part of Greening of Warehouses Initiative, to start with, Warehouses of CMO at Faridabad, Chennai, Kalamboli and Dankuni were accredited to ISO 14001 Environment Management System. • Sustainable Development Policy for the Company has been formulated and released. • “Golden Peacock Environment Management Award, 2011” was conferred upon SAIL in recognition of SAIL’s initiatives and achievements in the field of environment management Based on the large and varied experience acquired over last five decades, SAIL, thought SAIL Consultancy Division (SAILCON), provides design, engineering, training, technical & management consultancy services in Iron & Steel and related areas and offers a wide range of services to clients globally. To scale up the activities and to further reinforce the brand image of SAIL as a consultant, SAILCON is continuously exploring the market, both within and outside the Country for possible business opportunities as well as joint ventures with Global consultants for commercialization of SAIL’s expertise. During the Financial Year 2011-12, SAILCON, ISO: 9001:2008 certified quality organization and the single window consultancy division of the Company recorded the highest ever order booking. ‘SAILCON’ has executed assignments within India and abroad covering countries like Egypt, Saudi Arabia, Iran, Qatar, Thailand, Nepal, Philippines, etc. 6.2 ONGC- It was formed in 1956 with the vision of great leaders to make our country energy-sufficient. Since then, the company has taken every step to fulfil this promise. Over the years, the company has discovered 6 of the 7 producing basins in India and added 6.4 billion tonnes of Oil and Gas reserves. Today, according to Platt’s Top 250 Global Energy Ranking, ONGC is the no. 1 E&P (Exploration and Production) Company in the world. The company is ready to touch new horizons of growth by resolutely focusing on its Oil & Gas production capabilities. ONGC aims to explore newer avenues for a greener planet, excel in .its exploratory endeavours and evolve into a complete energy solution provider. (ONGC Annual Report, 2011). The Corporate Social Responsibility (CSR) initiatives of ONGC continues to primarily focus on education, health, entrepreneurship development, women’s empowerment, girl child development and water management. For the development and improvement of the weaker section of the society like SC/ ST ONGC provides job in the company. The number of percentage Scheduled Caste (SC) and Scheduled Tribe (ST) employees was 15.76% and 8.74% respectively as on 31st March, 2011.The following welfare activities are carried out by your Company for their upliftment in and around its operational areas.

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I.

Annual Component Plan: An amount of 31.00 million is distributed to various work centres of ONGC for implementation of welfare schemes. This fund is especially meant for providing help and support in areas like Education and training, Community development, Health care, etc.

II.

Scholarship to SC and ST Meritorious Students:ONGC spent 4.77 million for supporting 96 students of the SC and ST community for pursuing higher professional courses at different recognized institutes and university.

III.

ONGC- GICIET-Computer Education Project with Bharatiya Vidya Bhavan: The initiative envisages setting up of five computer centres in Uttarakhand, Assam, Andhra Pradesh, Pondicherry and Gujarat for unemployed youth.

IV.

HEAT with Haemophilia Federation of India: This operation is to transform lives of 1000 children with Haemophilia through education.

V.

'Gram Sarv Utthan' with SEED (Society for Educational Welfare and Economic Development): This scheme attempts to Community mobilization, in school intervention, adult education with special focus on female literacy, vocational training to community youth, health and sanitation utilization of effluent water in 3 villages in Bokaro, Jharkhand.

VI.

Construction of Halls and Kitchen with SVS (Shramik Vikas Sansthan): This scheme provides financial assistance for construction of additional Hall, staff room & kitchen for the hostel for tribal children in Bhekhadia village, Kawant Tehsil, Gujarat.

VII)

TERI-ONGC “Soldiers of the Earth” Project: The Soldiers of the Earth campaign is an all encompassing, environmental awareness generation program. The campaign undertaken at Dehradun, Ankleshwar and Nazira is aimed at sensitizing children and young adults towards a greener future.

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VIII) Badhte Kadam: This scheme helps in massive pan-India disability awareness raising program throughout the country. IX)

Mokshda Green Cremation System: This programme has setting up of 30 energy efficient and environmental friendly green cremation system in association with local municipal bodies at work centres of ONGC.

.X)

Ashadeep' – Girl Child Education Program: This programme aimed to ensure continued schooling of the girl students belonging to economically weaker sections of society, with observable improved learning levels of the support receiving students.

XI)

Project Saraswati with NGRI: This programme is concerned with exploring deep underground water resources in Rajasthan to provide new sources of ground water in the desert / drought prone areas with possible scope for long distance recharge. (ONGC Annual Report 2011-12).

6.3: CIL- Policy on corporate social responsibility of CIL is broadly framed taking into account the following measures: 8


a) Welfare measures for the community at large including employees and their families. b) Proper land rehabilitation of land displaced persons based on R&R policy separately and expenditure of R&R issues would be included in the project cost. c) Contribution of the society at a large by way of social and cultural development imparting education , training, and social, awareness specially with regard to backward class and generation of employment. d) Promotion and safeguard of environment and maintaining ecological balance. e) The mine of the coal India and its subsidiaries are located in different parts of country in 8 states and relatively in isolated area with little contract of outside society. Mining of the coal has profound impact on the peoples living in and outside the area where the mine are established. (Corporate Social Responsibility in CIL, 2009). As per the CSR policy fund has been allocated to each company based on 5% of the retained earnings of previous year subject to minimum Rs 5 per tonne of coal production in previous year for implementation of CSR activities in and around mining area within the radios of 15 kilometre for the benefit of the villagers and community at large including SC and ST. During the year 2010-11 an amount of 262.28 Crores has been allocated for taking CSR activities. CIL India has always given the highest priority towards safety. Safety is concerned as a part of its core production process and is embodied in the mission statement. CIL has adopted a Central Environmental Policy duly approved in the year 1995 science then due to changing environmental scenario CIL has also revised his environmental policy in the year 2012 in the board meeting. Science the beginning CIL has planted around 76 million trees in the area of 33000 Ha. Various actions have been initiated for the implementation of the ISO: 41001 in CIL mines. In the year 2011-12, a total of 21 projects and one hospital has got certificate. With this total, a lot of 79 units got the certificates till the date which includes open cast projects, workshops and hospitals. Mining is an inherently hazardous activity due to varying geology and geo mining condition. So to minimising the health risk of the employees and people of the society CIL has provided 85 hospital facilities with 5806 bed, 424 dispensaries, 664 ambulance, and 1488 doctors including specialist.(CIL Annual report 2011-12).CIL adopted rehabilitation and resettlement policy in the year 2008. This resettlement and rehabilitation policy aims to peruse best practices for car initiative in vicinity of coal field and to ensure community involvement and (CIL Annual report 200809). 7. Discussions and Conclusion On the basics of the survey of annual report of SAIL, ONGC and CIL which are the large mining companies of CPSEs, it is found that all mining companies whether it is coal mining, iron ore mining or petroleum mining are conscious about the society, environment ,local people and the employees in the organisation. SAIL one of the big company in field of the iron and steel production and got SCOPE Meritorious Award for Environment Excellence & Sustainable Development” for the Year 2009-10. SAIL made expenditure of two percent of budgeted distribution. Development of the health facility in SAIL is supported by seventeen hospitals, seven super –specials hospitals which provide health facilities around one lakh people. The gap between rural and urban area has been filed by comprehensive development of both physical and social infrastructure facility by the company. SAIL has developed seventy nine villages as the Modal Steel Village. These villages have been provided all infrastructure and basic facilities for the development and growth of the people of the village. 9


Vocational training has been provided to in areas such as improved Agriculture, Mushroom Cultivation, Poultry, Fishery, Piggery, Achar / Papad/ Agarbati making, Welder for generating the job opportunity in rural areas. ONGC, the oil mining company of Maharatna status performs social responsibility by enhancing the social health, providing educational facilities, protecting environment. The company expended thirty one million to various centres in the year 2011.For the development of computer educational ONGC has implemented ONGC- GICIET-Computer Education Project facility by setting up of five computer centres in Uttarakhand, Assam, Andhra Pradesh, Pondicherry and Gujarat for unemployed youth .ONGC conducted various training programs for its executives and staff spanning 200,674 training man-days for the development of the employees during the year 2010-11, ONGC give emphasis on the women empowerment .The contribution of the women in the workforce of ONGC is 6.2%. During the year, programs for empowerment and development, including program on gender sensitization was organized. Company actively supported and nominated its lady employees for programs organised by ‘Women in Public Sector’ (WIPS) and ‘Women in Leadership Roles’. CIL contributions in the social responsibility is five percent of the retained earnings of the previous year for implementation of CSR activities in and around mining area within the radios of 15 kilometre for the benefit of the villagers and community at large including SC and ST. During the year 2010-11 an amount of two hundred sixty two Crores has been allocated for taking CSR activities. CIL has adopted Central Environmental Policy 2005 for keeping the environment clean and pollution free and it has been revised in the year 2011-12 to facing recent environmental challenges. Till now about seventy six million trees have been planted in the area of thirty three thousand hectare by CIL in the form of CSR. To minimising the health risk of the employees and people of the society CIL has provided eighty five hospital facilities with five thousand eight hundred six bed, four hundred twenty four dispensaries, six hundred sixty four ambulance, and one thousand four hundred eighty eight doctors including specialist. CIL resettlement policy adopted in the 2008,helps to various people affected by mining activities in the form of rehabilitation packages, compensation to person whose house are acquired, land lessees, tenants and day labours, self employment to landless tribals who are dependent on forest product and community facility and activities under the CSR initiatives. On the basis of survey of the annual reports of the mining companies of India, it is found that all these three mining companies are involved in the corporate social responsibility. They allocate certain percentage of their profit for performing social responsibility of the corporate. These companies gives priority to society, environment and employees in performing their social responsibility. The health, which is considered a prime component for the employees and the people of the society is provided in the form of good hospital, specialised doctors and proper medicine facility by the company. For the upliftment of the rural area and unskilled people of the rural area various schemes such as women skill development programs, vocational training programmes etc. have been launched by these companies. Along with the development of the poor people of the society a special attention over the backward people like SC, ST has been given special priority by the companies. For developing them, companies are providing job opportunity in the organisation, financial assistance and other fundamental facilities. Protection and development of the natural environment is also given importance in the social responsibility of the companies. Companies are involved in the plantation of trees and various other programs to protect the natural beauty. Protection of the employees from the bad effects of the mining activities, employees are given special facilities and the protection by the companies. Overall 10


performance of the companies aims at sustainable development along with corporate social responsibility. As per the ‘Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises (2010)” Department of Public Enterprises, India CPSE’s are required to spend at least 2% of their average net profits during the three previous financial years towards CSR activities. But the guidelines do not provides proper break up contribution in different areas of CSR especially on local communities’ issues. Historically, the mining sector has brought important economic gains to both mining companies and local communities. The main economic benefit for locals was an increase in employment opportunities. However, in the past few years the mining sector has become more technologically intensive and it requires fewer unskilled workers. Since local communities do not see as many direct benefits from the mining industry as they used to, they are now challenging and opposing mining projects more frequently. Furthermore, increased environmental concerns have also contributed to resistance to mining activities. References Arora, B. and R. Puranik. 2004. A Review of Corporate Social Responsibility in India. Development 47(3): 93-100. Cernea, Michael A. 2007. Financing for Development Benefit-Sharing Mechanisms in Population Resettlement. Economic and Political Weekly 42(12): 1033-1046. Coal India Limited, 2011-12,Annual Report. Coal India Limited,2010-11,Annual Report. Banerjee, S. B. 2001. Corporate Citizenship and Indigenous Stakeholders: Exploring a new dynamic organizational-stakeholder relationships. The Journal of Corporate Citizenship 1: 39-55. Business for Social Responsibility. 2007. Emerging Trends in Corporate Social Responsibility in the Mining Industry. PDAC Short Course, Toronto. March 2-3. Banerjee, S.P. 2004. Social Dimensions of Mining Sector.IE (I) Journal-MN. 8: 5-10. Environment Australia (2002) “Overview of Best Practice Environmental Management in Mining.” http://www.ret.gov.au/ resources/Documents/LPSDP/BPEMOverview.pdf. Garriga Elisabet and Domenec Melé (2004) Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics 53: 51-71. Heledd Jenkins1 and Louise Obara. 2008 .Corporate Social Responsibility (CSR) in the mining industry – the risk of community dependency.Queen'sUniversity Belfasthttp://www.crrconference.org. Hamann, Ralph and Paul Kapelus (2004). Corporate Social Responsibility in Mining in Southern Africa: Fair accountability or just greenwash? Development 47(3): 85-92. Jenkins, Heledd and Yakovleva. 2006. Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure. Journal of Cleaner Production. 14,271-284. Oil and Natural Gas Company,2010-11,Annual Report. Oil and Natural Gas Company,2011-12,Annual Report. Paul Kapelus .2002. Corporate Social Responsibility and the "Community": The Case of Rio Tinto,Richards Bay Minerals and the MbonambiAuthorJournal of Business Ethics, Vol. 39, No. 3, pp. 275-296. Pradhan S., Ranjan A. 2010 .Corporate Social Responsibility in Rural Development Sector: Evidences from India School of Doctoral Studies (European Union) Journal. Steel Authority of India Linmited,2011-12, Annual Report. Steel Authority of India Linmited,2010-11, Annual Report. U.S. Environmental Protection Agency, Title 40 Code of Federal Regulations, Section 70.2. http://www.gpo.gov/fdsys/pkg/CFR-2009-title40-vol15/xml/CFR-2009-title40-vol15 part70.xml. 11

Strategic Corporate Social Responsibility- Towards a Sustainable Business, New Delhi http://www.indianet.nl/pdf/ChildrenAndMiningIndia.pdf. http://www.indianet.nl/pdf/WomenMinersInRajasthan.pdf. http://www.dalits.nl/dnn_bedrijv en_e.html.

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