A-10 Shreyada Chitnis

8/3/2019 A-10 Shreyada Chitnis

1/68

SUMMER INTERNSHIP PROJECT REPORT ON

CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

IN ONGC

UNDER THE GUIDANCE OF

DR. GOWRI JOSHI

SUBMITTED BY

SHREYADA CHITNIS

ROLL NO: 10

PGDM-A

TO

THE UNIVERSITY OF MUMBAI

IN PARTIAL FULFILMENT OF TWO YEAR FULL TIME

DIPLOMA

OF

POST GRADUATE DIPLOMA IN MANAGEMENT

(PGDM)

GURU NANAK INSTITUTE OF MANAGEMENT STUDIES

MATUNGA, MUMBAI 400 019.


2/68

1 | P a g e

CERITFICATE FROM COMPANY


3/68

2 | P a g e

CERTIFICATE

This is to certify that the study presented by (Shreyada Chitnis) to the University of

Mumbai in part completion of the two year full time diploma of (PGDM) under the title

of (Corporate Social Responsibility Activities in ONGC) has been done under my

guidance.

To the best of my knowledge this project is in the nature of original work that has not

been submitted for any degree of this University or any other University.

Signature of the Candidate

________________________

(Shreyada Chitnis)

Forwarded through the Research Guide

Signature of the Guide


4/68

3 | P a g e

ACKNOWLEDGEMENT

Summer project is a combination of knowledge and experience of students and project guides,

who are an expert in the relevant field. The valuable guidance provided by the guides to the

students with the benevolent purpose of their intellectual development generates a feeling of

immense respect for them.

No significant achievement can be a solo performance especially when starting a project from

ground up. This Summer Internship has by no means been an exception. It took many very

special people to enable it and support it. Here I would like to acknowledge their precious co-

operation and express my sincere gratitude to them.

First and foremost I would like to thank all the employees of Oil And Natural Gas Limited who

have removed time out of their busy schedule in order to help me get my project kick-started. I

would like to express my sense of gratitude and indebtedness towards my mentor Mr. Manish

Soni for giving me his valuable inputs at vulnerable stages, ensuring smooth progress towards

compilation of this project.

I would also like to thank Mr. Puneet Kumar Pandey, DGM HR, I/C HR/ER of ONGC,

Regional Office who has been very helpful throughout and rendered support at every stage of the

project. I thank the entire HR department of Oil And Natural Gas Limited for their kind co-

operation and persistent guidance.

I would like to express my heartfelt gratitude towards Dr. Gowri Joshi, Director, Guru Nanak

Institute of Management Studies (GNIMS).

Last but not the least I would like to thank all my college professors and colleagues for their

continuous, valuable help and support.

With that I hope you enjoy reading this project report and ponder on the insights.


5/68

4 | P a g e

TABLE OF CONTENTS

Sr. No. Particulars Page No.

1 Industry Overview 7-8

2 Introduction to Oil & Natural Gas

2.1 ONGC-Vision and Mission

2.2 Current position2.3 Company profit

9

10

11

12

3 Organization Structure 14

4 HR Policies, Vision and Mission 15-16

5 Introduction To Corporate Social Responsibility (CSR) 19-20

6 Corporate Social Responsibility in ONGC

6.1 Objectives of the Study

6.2 Scope of the study

6.3 Research Methodology

6.4 Limitations

21-36

37

38

39-40

41

7 Data Analysis & Interpretations 42-57

8 Findings 58

9 Recommendations 59

10 Conclusion 60

11 Bibliography And Webliography 61

12 Annexure 62-68


6/68

5 | P a g e

EXECUTIVE SUMMARY

ONGC, the most valuable company in India by market capitalization, is on a high growth

trajectory. It is on its way to be a truly integrated oil and gas player."

Oil and Natural Gas Ltd.(ONGC India) Is considered as Asias best Oil and Gas company. It is

the largest oil exploration and production (E&P) company in India. It has its presence all over

India and the world. ONGC ,a major PSU, is also one of the largest companies in India and has

structured CSR policy, model and process. Our philosophy is to target, support and to selected

programs that are innovative, sustainable and which produce tangible results.

ONGC has supported large scale CSR interventions and employee volunteering initiatives in the

organizations. "To lend a helping hand to the underserved in our society through the support of

women empowerment, children and the aged in the areas of health and education." Implementing

this philosophy in spirit, ONGC has made a positive contribution to the communities in which

they operate, and has invested in health and education programs and partnerships that aim tobring sustainable improvements to underserved people.

A mighty organization like ONGC has minimal, broad and indicative guidelines for well

designed CSR projects to be developed and executed by the work centers called as,12 focus areas

of CSR. The Project includes evaluating the CSR activities of ONGC with emphasis on other

secondary objectives like:

To know the employees interest level among the 12 focus areas.To study the employees awareness towards the Companys CSR activities

To study the employees perception towards CSR.

To analyze the process the CSR.


7/68

6 | P a g e

For this purpose a questionnaire has been duly framed and filled by some employees of ONGC.

This will help to tap and channelize energies on key initiatives that are close to employees hearts

and have a relevance to the business and their existence. In this way the employees themselves

will be voluntarily interested in contributing towards CSR activities of the company.

This project also deals with the companys Corporate Social Responsibility initiatives and

programs. It also provides an insight into various aspects of CSR, and emphasizes the increasing

importance of CSR even in developing countries like India.


8/68

7 | P a g e

INDUSTRY OVERVIEW

IntroductionOil account for 31 percent of Indias total energy consumption .Currently ,of the six core

industries identified in India , the oil and gas sector has propelled the growth of Indian economy

most .India is currently worlds fifth biggest energy consumer and the need is continuously

growing accounting to KPMGs Oil and Natural Gas Overview 2010.Even through the Mumbai

oil fields are still exhausted, the Government realized the need to explore more areas and

introduced New Exploration Licensing Policy (NELP) to encourage the private sector to invest

in exploration of oil. NELP was introduced in March 1997.Currently, about 58 percent of the

prospective Indian sedimentary basins have been explored and till the ninth round of NELP.

India naturally has about 138 billion barrels of oil equivalent gas and bulk of this has not been

found yet .India will account for 12.59 percent of Asia Pacifics regional oil demand by 2014,

accounting to the latest Indian Oil & Gas Report.

ProductionCrude Oil production from the period April-January 2011 was 31.411 million metric tons

(MMT), as compared to the 28.072 MMT in the past corresponding period .Natural Gas

production during April-January 2011 was 44030 million cubic meters, as compared to 38490.7

million cubic meters in the corresponding period in 2010. From April-January 2011, 136.46

MMT of crude Oil was refined, corresponding period in 2010. The region oil production was

estimated at 8.82mn barrels per day (b/d) in 2010 compared to 8.35 b/d in 2001.The projected

production for crude oil in 2010-11 is 37.96(MMT), which is about 12.67 per cent higher thanthe actual crude oil production of 33.69 MMT during 2009-10.The projected production for

natural gas (including coal bed methane or CBM) for 2010-11 is 53.59 billion cubic meter

(BCM), 12.8 per cent higher than the actual production of 47.51 BCM in 2009-10.Oil & Natural

Gas Corporation (ONGC) produced oil in 2010, averaging to 830000 b/d highlighted the India


9/68

8 | P a g e

Oil and gas Report Q4 2010.The report predicts that with such effort, the production of oil in

India will be as high as 950,000 b/d by 2012.

ConsumptionThe consumption of petroleum products during 2009-10 were 138.196 MMT (including sales

through private imports) an increase of 3.60 per cent over sales of 133.4 MMT during 2008-09,

according to the Ministry of petroleum. Indias current petroleum products consumption rate

from April 2010 to February 2011 was 128.827 million tones (MT),as per the estimates of the

planning and Analysis Cell (PPAC)Diesel consumption in the country grew at 4 per cent annual

rate to 4.96 MT in October 2010 while petrol sales were up 7.3 per cent at 1.21MT.Jet fuel

consumption was up 10 percent at 434,100 tones. Overall fuel sales in the country were up one

per cent at 11.647 MT in October 2010 against 11.538 MT in the same month in the previous

year. Gas consumption is set rise from an estimated 63 BCM in 2010 to 110 BCM, with

domestic supply up from around 45 BCM in 2010 to at least 70 BCM by 2014.

Government InitiativesThe Government of India has implemented NELP, by which 100 per cent FDI is

permitted for small and medium sized oil field through competitive bidding. The refining sector

is open to public-private partnership (PPP) as well as only private investments. In case of an

Indian private company, FDI of 100 percent is permitted.100 percent FDI is allowed for

petroleum product and pipeline sector as well as natural gas/ LNG pipeline, for infrastructure

related to marketing of petroleum product, market study of formulation and investment

financing. For trading and marketing, minimum 26 per cent equity is recovered over five years.


10/68

9 | P a g e

INTRODUCTION TO OIL AND NATURAL GAS

ONGC Group of Companies comprises of Oil and Natural Gas Corporation Limited (ONGC -

The Parent Company); ONGC Videsh Limited (OVL a wholly owned subsidiary of ONGC);

ONGC Nile Ganga BV (ONG BV - a wholly owned subsidiary of OVL) and Mangalore

Refinery and Petrochemicals Limited (MRPL - a subsidiary of ONGC) etc.

Oil and Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company, having a

market share of above 80% in India's Crude Oil and Natural Gas Exploration and Production.

ONGC registered the highest profit among all Indian companies at Rs.16, 126 crores in the

financial year 2009-10. Its production of Crude Oil in 2009-10 was 25.37 MMT and of Natural

Gas 22.48MMSCM. ONGC also produce Value-Added Products (VAP) like C2-C3; LPG;

Naphtha and SKO.

ONGC Videsh Limited (OVL) is overseas arm of ONGC, engaged in Exploration & Production

Activities. It trans-nationally operates with projects in 16 countries, making ONGC the biggest

Indian Multinational Corporation.

Mangalore Refinery and Petrochemicals Limited (MRPL), where ONGC now owns 71.6%

equity, were taken over by ONGC in March 2003. Under ONGC's management control, MRPL

has seen a major turnaround and its market valuation has increased 110%. MRPL has one of the

modern refineries in India at Mangalore having annual capacity of 9.69 MMTPA. It is the most

energy-efficient refinery in India and has a two-digit energy index of 85%.


11/68

10 | P a g e

ONGC-VISION AND MISSION

VISION:To be a world class Oil & Gas Company integrated in energy business with dominant Indian

leadership and global presence.

MISSION:

World Class Dedicated to excellence by leveraging competitive advantages in R&D and

Technology with involved people.

Imbibe high standards of business ethics and organization values. Abiding commitment to health, safety and environment to enrich quality of

community life.

Foster a culture of trust, openness and mutual concern to make working a stimulating& challenging experience for our people.

Strive for customer delight through quality products and services. Integrated in Energy Business Focus on domestic and international oil & gas exploration and production business

opportunities.

Provide value linkages in other sectors of energy business. Create growth opportunities and maximize shareholder value. Dominant Indian Leadership Retain dominant position in Indian Petroleum sector and enhance Indias energy

availability.


12/68

11 | P a g e

Current position ONGC ranks 3rd Oil & Gas Exploration & Production (E&P) Company in the world

and 23rd among leading global energy majors as per Platts 250 Global Energy

Companies List for the year 2009

ONGC ranks 24th among the Global publicly-listed Energy companies as per PFCEnergy 50 (Jan 2008)

Finance Asia 100 list ranks ONGC no 1 among Indian Blue Chips. Occupies 155th rank in Forbes Global 2000 list 2010 of the worlds biggest

companies for 2010 based on sales, profits, assets and market capitalization.

ONGC ranked 402nd position as per Fortune Global 500 - 2009 list;, based onrevenues, profits, assets and shareholders equity

Indias Most Valuable Public Sector Enterprise

Ranked at 2nd position in FE500 list 2010 in net worth and overall composite ranking. ONGC & MRPL won 6 Oil Industry Safety Awards for 2008-09 instituted by OISD,

MOP&NG.

Bagged BML Munjal Award for Excellence in Learning & Development in PublicSector category.


13/68

12 | P a g e

Company Profit


14/68

13 | P a g e

ONGC GROUP OF COMPANIES


15/68

14 | P a g e

ORGANISATION STRUCTURE


16/68

15 | P a g e

HR VISION, MISSION & OBJECTIVES

HR Vision

To build and Nurture a world Class Human Capital for Leadership in Energy Business.

HR Mission

To adapt and continuously innovate best in class HR practices to support business

Leaders through engaged , empowered and enthused employees.

HR Objectives

Enrich and Sustain the culture of Integrity, belongingness, team work, accountability andinnovation.

Attract nurture , engage and retain talent for competitive advantage

Build a joyous workplace Promote High Performance and work Systems Measure and Audit HR Performance Integrate the employee family into the organizational fabric

Include a sense of Corporate Social Responsibilities among employees

To develop and sustain core values To develop business leaders of tomorrow To provide job contentment


17/68

16 | P a g e

To foster climate of creativity To enhance the quality of life of employees To inculcate higher understanding of Service to a greater cause


18/68

17 | P a g e

1

HR/ERMH AssetS. Jandiyal,

GM (HR)

HR/ERNH AssetPradeep Singh, DGM (HR)

HR/ERB&S AssetY P Soni, DGM(HR))

S. Srikanthan

GM (E&T) - HRO

Loans & AdvancesUsha Kale, CM (HR)

Official LanguageA K Dubey (OL)

Rectt. & PromotionM. Barthwal, DGM (HR)

Estate I & IIR.P. Dubey, DGM(HR)P.K. Mukhopadhyay,

CM (IE)

Medical ServicesDr.G.H. Kuchan,

GM (MS)

Civil Section,D.K. Mishra, GM (C)Head Maintenance

REC /Central DAKC. Rengaraju,

DGM(HR)

HR/ER - ServicesJ.K. Mehan, GM (HR)

Quality AssuranceDivision

S.K. Jayrath, DGM (E)

Regional InfocomS. Srikanthan, GM (E&T)

Legal Services

* V.N. Singh, GM (Legal)

Regional MMS.K. Sinha,DGM (MM)

TA/EMA S Tailang, CE (M)

MIS GROUP

Security servicesM D Jha, DGM( S)

Green BuildingV K Jain, DGM ( C)

Administratively / Functionally

Functionally

CorporateCommunication

S.K.Jha, DGM (CC)

Hospitality & WelfareS.K. Bhatia, CM (HR)

HR/ERRO, RIE CellP.K. Pandey, CM (HR)

Industrial RelationsDevrat Jha, CM (HR)

HR/ERWO BasinS.K. Wadhwani, DGM

(HR)

HR/ER NSBS.Bhatacharjee,

CM (HR)

HR / ER - UranS.R. Maddodi,

GGM (HR)

HR/ER IOGPTJaved Iqbal, CM (HR)

HR/ER IEOTN.K. Singh, CM (HR)

Panvel AdministrationS.C. Tyagi, DGM (HR)

CivilS.K. Chodhary, CE ( C)

Security services

Infocom, Panvel

Finance, Panvel

Medical, Panvel

MM, Panvel

Mumbai Panvel

FMGA.K. Agrawal, DGM (HR)

D&A/RTI/GrievanceHandling

S. Agarwal, DGM (HR)Regional Finance

D.K. Gupta, DGM (F&A)

Electrical Section,S.C.Jain, DGM(E)

Organogram

CSR CellE Mohan Reddy,

DGM (CC)

ElectricalR.S.Tomar, DGM(E)


19/68

18 | P a g e

BACKDROP OF THE STUDY

Corporate social responsibility is a form of corporate self-regulation integrated into a business

model. Corporate social responsibility (CSR) is also often referred to as business responsibility

and an organizations action on environmental, ethical, social and economic issues.

In Todays dynamic work environment and corporate scenario Corporate Social Responsibility(CSR) is evolving as an important element for an organization. It is mandatory for any huge

organization to contribute 2% of its profits to CSR Activities. It acts as a catalyst in brand

building for an organization.

Hence I was motivated to take up a project relating to CSR Activities in ONGC.


20/68

19 | P a g e

Introduction To Corporate Social Responsibility (CSR)

Corporate social responsibility (CSR) is:

An obligation, beyond that required by the law and economics, for a firm to pursue long

term goals that are good for society

The continuing commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their families as

well as that of the local community and society at large

About how a company manages its business process to produce an overall positiveimpact on society.

Corporate social responsibility extends beyond the doors of the company into the local

community and involves a wide range of stakeholders in addition to employees and

shareholders: business partners and suppliers, customers, public authorities and NGOs

representing local communities, as well as the environment.

Corporate social responsibility means:

Conducting business in an ethical way and in the interests of the wider community

Responding positively to emerging societal priorities and expectations

A willingness to act ahead of regulatory confrontation

Balancing shareholder interests against the interests of the wider community

Being a good citizen in the community


21/68

20 | P a g e

Is CSR the same as Business Ethics?

There is clearly an overlap between CSR and business ethics

Both concepts concern values, objectives and decision based on something than the

pursuit of profits

And socially responsible firms must act ethically

The difference is that ethics concern individual actions which can be assessed as right or wrong

by reference to moral principles.

CSR is about the organizations obligations to all stakeholdersand not just shareholders.

There are four dimensions of corporate responsibility:-

Economic - responsibility to earn profit for owners

Legal - responsibility to comply with the law (societys codification of right and wrong)

Ethical - not acting just for profit but doing what is right, just and fair

Voluntary and philanthropic - promoting human welfare and goodwillBeing a good corporate citizen contributing to the community and the quality of life or

individuals.

CSR behavior can benefit the firm in several ways:-

It aids the attraction and retention of staff

It attracts green and ethical investment

It attracts ethically conscious customersIt can lead to a reduction in costs through re-cycling

It differentiates the firm from its competitor and can be a source of competitive advantage

It can lead to increased profitability in the long run.


22/68

21 | P a g e

Corporate Social Responsibility in ONGC

CSR activities in Oil & Natural gas corporation Ltd. are currently carried out as per the corporate

citizenship policy(CCP) of ONGC which is in force from 28

th

July 2006.

This policy was modified in the 170th board meeting held at Agra on August 24th 2007.

As per the instructions of Ministry of Petroleum and Natural Gas (MOP&NG) budget allocated

for corporate social responsibility is to be increased from 0.75% of profit after tax to 2% (from

2009-2010).MOP&NG has also proposed to include CSR activities to be one of the parameters

of MOU from financial year 2009 -2010 besides review of CSR activities by the secretary,

MOP&NG as part of Quarterly Progress Review Meeting(QPRM).

CSR - THE PROJECT APPROACH:

Along with the directive for increased spend, MOP&NG, as part of their review of CSR

activities in oil sector PSUs ,has also brought about the requirement of CSR initiatives to have

perceivable impact over the intended beneficiaries and society, treating CSR spend as investment

and for ONGC to take CSR projects near our E&P blocks.

The required thrust on CSR from Approach, Increased Spend and Accountability point of

view and evolving practice ofStakeholder Participation Model, it has been decided to shift

from the charity oriented/philanthropic approach to the stakeholderoriented approach.

Adopting Stakeholder Participation Model, approach needs significant changes in the

planning, management and implementation of corporate social responsibility activities. It also

necessitates CSR activities to be undertaken based on the project concept.

Understanding CSR activities in ONGC

Preparing CSR reports

Framing Questionnaires about employee awareness of CSR activities.

Formation of proper database

Analyzing data by using SPSS Software.

The project proceeds with interpretations, recommendations and ends with conclusion


23/68

22 | P a g e

PROCESS OF CSR

The NGOs or the organizations in need of funds, mention their requirements by sendingan Email to ONGC or by posting a Hardcopy of the letter of fund requirement to the

office of In-charge, CSR .

The requirements may be scrutinized ahead to ensure that it is covered under the 12

FOCUS AREAS of ONGC CSR guidelines, namely:-

1) Education including vocational courses.2) Health Care.3) Entrepreneurship (Self help and livelihood generation) schemes.4) Infrastructure support near our operational areas.5) Environment protection, ecological conservation, promotion.6) Protection of heritage sites, UNESCO heritage monuments etc.7) Promotion of artisans, craftsmen, musicians, artists etc. For preservation of

heritage, art and culture.

8) Womens empowerment, girl child development , gender sensitive projects.9) Promoting sports/sports persons; supporting agencies promoting sports/sports

persons.

10)Water management including ground water recharge.11)Initiatives for physically and mentally challenged.12)Sponsorship of seminars, conferences, workshops etc.

For scrutiny, documents like profit and loss account statement for the past three years,

registration of the NGO are required.

Funds upto 4 lakhs can be sanctioned regionally but above 4 lakhs the request is

forwarded to Headquarters with recommendations.

If the funds required are above 1lakh then members from the CSR committee personally

visit the site for inspection to judge its genuineness.


24/68

23 | P a g e

The documents required for processing payment to the Ngos or the organization in

need are:-

- Cancelled cheque- Pan card copy- 80 G FORM for income tax exemption.

All sponsorships/donations are put up to the CSR Committee for approval after visit to

the site by CSR Team and on the genuineness of the project.

On approval by the CSR committee, process for payment is done through SAP.

The details such as Document Type, Company code, Currency used etc. are entered into

the SAP system to obtain a transaction code for fund reservation.

Later on, after entering the details, Funds are reserved for a specific amount of which the

sponsorship is to be made. Then we get a fund reservation number which is given by the

system.

The Project Proposal File is then sent to L1 level Executive for Administrative approvaland Financial concurrence.

The proposal then moves to Level L 2 and if, where funds are concurred.

Then again the proposal comes to level L 1 for final release in the system.

After the final approval of funds, Vendor code is created for future records.

Once the Vendor code number and fund reservation number has been created a Sanction

order is prepared.

The sanction order is enclosed with a covering letter.

Then the funds are released through Bank transfer.


25/68

24 | P a g e

BENEFITS GIVEN BY ONGC

ONGC SAHYOG YOGNA

ONGC SahayogYojna is being introduced to grant financial assistance for the welfare of

employees and their next of kin.

a. The scheme shall be called ONGC SahayogYojnab. The scheme will come into force with effects from 31st May, 2004. The Trustees may,

however, consider grant of welfare assistance to the employees and to the next kin of

employees who have suffered disability in the course of duty prior to the said date and to

next of kin of employees who died prior to the said date.

c. The scheme shall apply to the employees of ONGC and its affiliates as defined hereinafter.

Objectives:

a. The primary objective of the scheme is to provide ex-gratia financial grants to securethe welfare of next of kin of the employees who have died on duty or who have

suffered disability in the course of the duty, and to secure the welfare of employees

who have suffered disability in the course of duty and are prevented from adequate

gainful vocation and/or have no other adequate means.

b. The scheme is primarily intended for the employees covered by the scheme and theirnext of kin.

c. The financial grants will be made at the discretion of the Trustees to facilitate thewelfare of employees who suffer disability in the course of duty and to their next of


26/68

25 | P a g e

kin, and to the next of kin of employees who die on duty. Such ex-gratia grants may be

provided once or more often as determined necessary by the Trustees

d. The Trustees may decide at their sole discretion to grant the welfare benefits to anyone or several or all of the next of kin depending on the circumstances and the state of

distress or hardship.

e. The financial grants shall be released only on formal undertaking by each recipientindemnifying ONGC and the Trust from any claim or commitment whatsoever

f. The Trustees may consider the financial grant also in the cases where other ex-gratiapayment(s) has/have released or is/are proposed to be released by the ONGC or any

one else if the Trustees consider that such payment(s) released or proposed to be

released are inadequate or insufficient to meet the object(s) of the grant(s).

The fund has been utilized in terms of providing:

Financial Grants

Pursuing higher studies

Medical Treatment

Marriage of Female Dependent

Sahayog Fund: A fund titled ONGC Sahayog fund with a corpus of Rs. 10.0 crores (Rupees

10 crores) has been established by the ONGC without any commitment on recurring expenditure,

for implementing welfare measures covered under the scheme. The fund shall rest in ONGC

Sahayog Trust and shall be managed by the Board

Contribution: The regular employees of ONGC shall contribute to the Sahayog fund by the way

of periodical subscription which will be realized from their salary/wages by the Wage Disbursing

Authority and remitted to the Trust by the Due Date. The subscription would initially be Rs.100/-

per annum. However, the quantum of subscription may be revised from time to time.


27/68

26 | P a g e

WELFARE SERVICES

Medical services:

Medical facilities are free for all employees, their spouse, dependent children (up to 2 children)

and dependent parents. For retired employees facilities are available to the retired employee and

spouse.

Post retirement benefits:

PRBS (self contributory)

EPS (nominal amount)

Provident fund

Gratuity at retirement which can be a maximum of 10 lakhs.

Children education scheme:

Reimbursement for tuition fees, bus charges, hostel fees etc. are provided for children of

employees. Incentives are also given for children getting good merits.

Loans:

House building advance up to 20 lakhs

Children education loan up to 15 lakhs

Conveyance advance (for car or motorcycle) up to 8 lakhs.

Incentives:

For acquiring higher education an increment of 2 points.

For adopting a small family an increment of 1 point.

For learning Hindi

For learning the local language


28/68

27 | P a g e

Other ONGCs Facilities:

Laptop every 4 years worth Rs. 50,000.

Mobile phone every with monthly reimbursement amounts depending on the level of theemployee.

Spectacles/ contact lenses for needy employees.

Briefcase every 4 years depending on the level of the employee.

Leaves

Earned leave 30 days/ year HPL 20 days/ year Casual leave 12 days/ year For women Maternity leave- 180 days (twice) Child care leave- 2 years (for dependent children) Paternity leave 15 days (twice)


29/68

28 | P a g e

ORGANIZATIONAL STRUCTURE AT WORK CENTRES

Head-HR /ER shall continue to be responsible FPR (First person responsible) for CSR programs

at the respective work center locations as envisaged in CCP. Head of HR-ER shall be assisted by

full time CSR coordinator. At locations where CSR budget layout exceeds Rs.5crore, one

assistant CSR coordinator may also be posted to CSR Cell.

Organizational Structure For CSR Cell-Work center Level:

Multi-Disciplinary Committee

with representatives from

- Line Functions- Finance- HR- CSR Coordinator

Key Executive

Asset/Basin/Plant/ RO

I/C HR/ER

CSR Cell

CSR Coordinator (E5)

Asst. CSR Coordinator

(E2-E-4)


30/68

29 | P a g e

ROLE OF HEADHR/ER AT WORK CENTRES(AS FPR)FOR CSR:

- FPR for interaction with corporate CSR Group with respect to functional guidance onall matters related with CSR.

- Coordination of need assessment and identification of appropriate schemes andimplementing agencies.

- Coordination of Budget/Fund allocation, disbursement of grants, expense tracking andaccounting.

- Submission of proposals to virtual corporate for approval.- Coordination with implementing agencies.- Monitoring and field inspections.- Record Maintenance.- Documentation and reporting progress to Chief- CSR.- Initiatives for providing visibility to CSR programs in association with Corporate

Communications.

ROLE OF CSR COORDINATOR AT WORK CENTRES:

Providing inputs for needs assessment / identification of appropriate programs based onfield visits, analysis of the social dynamics of the work center.

Evaluation of proposals for CSR programs. Providing guidance/inputs for formulating well structured programs and their

implementation.

Identification of CSR projects based on needs assessment and social dynamics prevailingin the vicinity of our work centers.


31/68

30 | P a g e

PARAMETERS FOR A CSR PROJECT IN ONGC

Any activity proposed to be taken up as CSR, needs to be evaluated as a CSR PROJECT and

the following minimum key recommended parameters should be considered in the project-

Identification of stakeholders (society) and intended beneficiaries of the project. Project details including project timeline. Impact measurement. Benefits accruing to the identified beneficiaries (stakeholders) on account of the project

activity. The social benefit arising out of the project needs to be measured.

Metrics and methodology to measure the accruing benefits as identified above. Benefit/impact for ONGC that leads to the increased social bottom line and thus to

corporate social performance.

Role definition of ONGC CSR coordinator in the project activity cycle.


32/68

31 | P a g e

All CSR activities are to be undertaken based on the Projectconcept, which inter-aila will

require, all CSR activities to be based on its accompanying Project Proposal has necessarily to

include the description of the project in the chosen focus area considering the following inputs:

Brief Description of the CSR project.

What the project intends to do?

What are the project timeline/schedule?

Who are the targeted beneficiaries?

How the beneficiaries are going to be benefited?

What are the metrics for measuring intended benefit?

How the project will be monitored in terms of physical milestones and social

milestones.

Measuring performance in terms of the intended benefit.

Financial requirement for undertaking the activity, funding sources(if any other than

ONGC) and fund requirement timeline.

Capturing the social benefits to ONGC and communication accordingly for enhanced

reputation.


33/68

32 | P a g e

IDENTIFIED CSR FOCUS AREAS OF ONGC

The following are the 12 identified focus areas approved by EC:

Education including vocational courses.

Health Care.

Entrepreneurship (Self help and livelihood generation) schemes.

Infrastructure support near our operational areas.

Environment protection, ecological conservation, promotion.

Protection of heritage sites, UNESCO heritage monuments etc.

Promotion of artisans, craftsmen, musicians, artists etc. For preservation of heritage, art and

culture.

Womens empowerment, girl child development , gender sensitive projects.

Promoting sports/sports persons; supporting agencies promoting sports/sports persons.

Water management including ground water recharge.

Initiatives for physically and mentally challenged.

Sponsorship of seminars, conferences, workshops etc.


34/68

33 | P a g e

CSR ACTIVIES OF ONGC

Sponsorship to SANMITRA TRUST

The present proposal relates to Health Care wherein the Sanmitra Trust finds community

solution to the problem of Mother-Child health. The project would cover 500 women and

children per month through OPD and health camp approach Their beneficiaries would be the

women who are members of their community based organizations called

VishwasSehatMahilaMandal and SammanMahilaMandal. The project would have special

focus on HIV infected women and their children and female sex workers and their children and

will cater to the slum population in Malwani, Malad (West) which is the second largest slum

next Dharavi slums in Mumbai. As per the Trust, Malwani slums are known as Endemic area of

HIV-TB Infection in Mumbai city.

The Trust would like to carry out the following:

a. To run diagnostic center with laboratory facilities and services for example: bloodinvestigations

b. To run OPD for Gynecological and Pediatric consultations and cover 500 vulnerablewomen and children monthly.

c. To diagnose, treat, refer and follow up diagnosed life style diseases like diabetes,hypertension, cancer, STI/HIV/TB, anemia, etc. and water borne, respiratory, skin

diseases, endemic in such slum communities.

d. Net working with other referral agencies for health services ex PAP smear for canceretc.

e. To conduct 12 health camps annually in slum pockets that houses the identifiedpopulations under this project.

f. To conduct monthly awareness, training, campaigns in the community, street plays,events, etc.


35/68

34 | P a g e

g. To link them with micro health insurance scheme so that they can take benefit ofUniversal health scheme through New India Assurance and State Bank of India for self

and family.

As per the budget proposal the financial implications for 5 years would work out to

Rs.39,71,100/-


36/68

35 | P a g e

Contribution by ONGC to run Mammography Unit

Helping Hand is an NGO started in 2002 by Mrs. GeetaAdvani and her husband Dr. Suresh

Advani. The organization is working by preventing and diagnosing the cancer followed by

treatment, rehabilitation and palliation.

The organization has launched a One Stop Breast Cancer- Mobile Mammography Unit in 2007

for providing a door step mammography screening.

ONGC has previously collaborated with the organization in October, 2008 for running a mobile

mammography at door step for women living in slum areas for mass mammography screening in

Mumbai. ONGC has contributed Rs.3, 00,000 for the above purpose and thereby enhancing

corporate social image and community development.

Helping Hand launched 2nd mobile mammography unit, which goes around in Housing Colonies,

Corporate Offices, Factories, Religious places and Govt. offices etc. in Mumbai and provide

doorstep mammography facilities for eligible women. The mammography van is fully facilitated

for doing mammography screening. It has a mammography machine and a film development

unit.

The Helping Hand seeks financial support from ONGC to launch the second mobile

mammography unit for yearly mammography on all ladies above the age of 40 years in Greater

Bombay.

Donated a Maruti Van

ONGC had in 2008-09 donated a Maruti van costing Rs.2.50 lakhs. The primary objective of

donating the van was to enable the Trust to transport HIV infected women and their children to

hospitals in Mumbai for periodical tests.


37/68

36 | P a g e

Other CSR Activities

Mid Day Meal project with ISKON Food Relief Foundation was conducted in 2009-

2010. Aim of this project was to liberate underprivileged children from hunger and

malnutrition and it was implemented in Govt. and municipal primary schools. The

project cost of this project was Rs.5.5crores.

ONGC funded Cancer Patients Association amount of Rs.50lakhs, to support their cause

of raising the funds for cancer patients.

It also funded State Blood Transfusion Council amount of Rs.25lakhs, and organized a

blood camp at Dadar.

ONGC has also funded Rs.55lakhs to The Blind & Humanity Welfare Centre for

donating the folding sticks to the blind persons.

Also for promotion of Sports, Arts & Culture, ONGC has funded Saunvardhan

Pratishthan Rs.2.15lakhs for the cause of personality development of underprivileged

children.

Also it has funded Sparsh Foundation at Bandra (West), Rs.2.5lakhs for promoting Indian

Classical Dance.


38/68

37 | P a g e

OBJECTIVES OF THE STUDY

Primary Objective:-

To understand the Corporate Social Responsibility (CSR) activities of ONGC Ltd.

Secondary Objectives:-

To identify areas where there can be scope for improvement in CSR

To give suitable recommendations to streamline the communication process for CSR

activity.

To give suitable recommendations in order to increase the CSR activity by employee

contribution.

To study the employees awareness towards the Companys CSR activities.

To study the employees interest level among 12 focus areas of ONGC.

To study the employees perception towards CSR.


39/68

38 | P a g e

SCOPE OF THE STUDY

To study the CSR policy of ONGC

Its methodology of implementation.

Feedback systems & Impact analysis.

To study Identified focus areas of CSR in ONGC.

Identification & approach.

Methods of screening the project.

Scope of improvement.

International CSR scenario.


40/68

39 | P a g e

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It may be

understood as a study of how research is done scientifically. Research is the systematic design,

collection, analysis and reporting of data and findings which are relevant to a specific

organizational situation.

Research design: The research design used for this study is of the descriptive type. Descriptive

research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group.

Sample size: The sample size consisting of 50 respondents, which include employees of ONGC

posted at Regional office, were selected for the study.

Sampling Design: Sampling design comprises of probability sampling technique which is also

known as Random Sampling. Random Sampling from a finite population refers to that method

of sample selection which gives each possible sample combinations an equal probability of being

picked up and each item under entire population to have an equal chance of being included in the

sample.

Questionnaire Design: Questionnaire was designed in consultation with the mentor associated

with the project in such a manner that it would facilitate the respondents to reveal maximum

information. Closed ended questions with few open ended questions are considered so that thestudy can be simple & the necessary feedback can be easily recommended.

The questions were framed in such a way that it would touch all the aspects to know the various

criteria of CSR activities.


41/68

40 | P a g e

Data collection:

Source of data and tool for collection depends on primary and secondary data.

Primary dataQuestionnaire

Secondary Data

ONGC Annual Report

ONGC CSR Guidelines

ONGC manuals

ONGC websites

Academic text books.


42/68

41 | P a g e

LIMITATIONS

The questionnaires were distributed to the employees of ONGC posted at regional office

(NSE work center).

Some of the respondents could not provide response because of various factors like

hesitation that came as obstacle in extracting information from the respondents.

Some of the respondents were not able to understand the meaning of CSR.

Time constraint was the major factor for the study.


43/68

42 | P a g e

DATA ANALYSIS

DATA INTERPRETATION

Majority of the respondents belong to the age group of 45-55 years. Followed by 25-35years and

35-45years constituting 24% respectively. The respondents from the age group of 55-60 years

are the least i.e 10%.

24%

24%

42%

10%

AGE

25-35 35-45 45-55 55-60


44/68

43 | P a g e

DATA INTERPRETATION

Maximum number of questionnaires were distributed in the HR department constituting

32%,followed by Material Management 26%,Other sections 24%,Legal 10% and Finance

department 8%.

32%

8%

10%

26%

24%

Departments

hr finance

legal materials_managementOthers


45/68

44 | P a g e

DATA INTERPRETATION

Maximum number of employees working in ONGC have more than 20 years of experience,

which interprets that they have gained expertise and quality knowledge in their respective fields

over the years.

16%

16%

32%

36%

Years of service

less_than_5_years 5-10years 10-20years more_than_20years


46/68

45 | P a g e

DATA INTERPRETATION

As far as the awareness of CSR is concerned the feedback received is very positive, since 60% of

the employees are aware what CSR means even though still there is a scope of improvement.

60%

38%

2%

Awareness of CSR

yes somewhat no


47/68

46 | P a g e

DATA INTERPRETATION

As per the survey conducted, 68% of the employees are of the opinion that ONGC has its own

CSR Dept.

68%

30%

2%

Implementation of CSR

own_CSR_department

cross_functional_collaboration

no_organisational_CSR_structure


48/68

47 | P a g e

DATA INTERPRETATION

The above diagram reflects a positive approach of the ONGC employees towards CSR activities,

since 74% are voluntarily interested to engage themselves in CSR activities. This has been a

positive sign since employees are keen to take an initiative and participate in CSR activities of

the company.

74%

26%

Interest in CSR

yes no


49/68

48 | P a g e

DATA INTERPRETATION

Analysis of the above data reflects that majority of the employees (92%) are of the opinion that

company should encourage its employees to participate in CSR activities.

This has been a positive sign since employees are keen to take an initiative and participate in

CSR activities of the company

92%

8%

Should company encourage its employees

to participate in CSR

YES NO


50/68

49 | P a g e

DATA INTERPRETATION

The role of SAP has been significant as far as the simplification and implementation of CSR is

concerned.

This is clearly evident from the illustration since majority (52 %) has agreed to the point that

SAP has made the process of CSR easier.

14%

52%

22%

8%

4%

SAP in CSR

STRONGLY_AGREE AGREE UNCERTAIN DISAGREE STRONGLY_DISAGREE


51/68

50 | P a g e

DATA INTERPRETATION

As per the survey conducted, 74% of the employees agree that participation in CSR activities

would lead to enhancement in skills and career growth.

Enhancement in skills because individuals become more socially inclined, become socially

active thereby developing their overall persona.It is a good means to career growth as well since

it increases the global awareness, thereby transforming oneself to become more knowledgeable

and experienced.

74%

26%

Enhancement in Skills & Career

YES NO


52/68

51 | P a g e

DATA INTERPRETATION

The interpretation of the above data indicates that employees are more keen on conducting CSR

activities quarterly.

50 % of them are of the opinion that CSR activities should be conducted atleast quarterly if not

more.

28%

50%

12%

10%

Frequency in conducting CSR activities

monthly quarterly half_yearly annually


53/68

52 | P a g e

DATA INTERPRETATION

Contribution to CSR activities shall improve the brand image of the company.

This is evident from the above pie chart, since 88% of them have agreed to the same.

88%

12%

Contribution of CSR to Brand Image

yes no


54/68

53 | P a g e

DATA INTERPRETATION

As per the survey conducted, 40 % of the respondents have agreed that participation in CSR

activities creates positive image of the company followed by 38% who believe that it is the sense

of duty as the citizen of India.14% of them are of the view that it helps in maintaining cordial

relation with the company followed by 10% who have stated other reasons for the same

40%

38%

14%

8%

Reasons to undertake CSR

to_create_positive_image_of_the_company

sense_of_duty_as_a_citizen

to_maintain_cordial_relations_with_the_society

any_other


55/68

54 | P a g e

DATA INTERPRETATION

The above illustration depicts that the employees of ONGC are socially inclined.

This is because 52% of the employees do perform social welfare activities outside ONGC too

48%52%

Social Welfare outside ONGC

yes no


56/68

55 | P a g e

DATA INTERPRETATION

As far as the awareness of the global CSR activities is concerned, the response has beencomparatively cold.

This is because 50% of the employees are aware but 50% of them arent aware.The awareness

can be increased by keeping oneself updated about the global trends and thereby enhancing the

global awareness.

50%50%

Awareness of Global CSR activities

yes no


57/68

56 | P a g e

DATA INTERPRETATION

The above data depicts that CSR helps in maintaining work life balance too.

This is because 84% of the people believe that they achieve a sense of self satisfaction when they

contribute something to the society besides their professional life, and thereby enabling them to

perform better.

84%

16%

Role of CSR in Work Life Balance

yes no


58/68

57 | P a g e

DATA INTERPRETATION

There is a lot of scope of improvement in CSR.

This is because 66% of the employees believe that the awareness can be increased by publishing

the CSR activities of the company on the home page of the website, by providing proper training

on the same, and by encouraging the employees to participate in the same.

66%

34%

Scope of improvement in CSR

yes no


59/68

58 | P a g e

FINDINGS

1) Some employees have suggested to conduct water harvesting activities to cope up with theshortage of water.

2) The CSR activities of ONGC are not published up to the mark in the annual reports and thereis no separate forum of CSR in the website of the company.

3) Employees are not made aware about the CSR initiatives and funding s done by ONGC on aregular basis. Circulars, Messages via. Intranet should be made use of to convey the activities

of CSR.

4) There is no much involvement of Non HR employees.5) The employees of other departments are having a vague knowledge about the major CSR

activities that ONGC has conducted like Sanmita Trust.

6) Employees of the Age group 25 -35years of ONGC are more inclined towards Environmentprotection, ecological conservation, promotion. Education including vocational courses and

water conservation among the 12 focus areas of ONGC.

7) Employees of the Age group of 35-45 years of ONGC are inclined towards Health Care andEnvironment protection, ecological conservation, and promotion.

8) Employees of the Age group 45-55 years of ONGC are more inclined towards Health Care,Initiatives for physically and mentally challenged and Environment protection, ecological

conservation, promotion.

9) Employees of the Age group above 55 years of ONGC are inclined towards Health Care.10) Ongicians are interested in engaging in CSR activities as the interest shown by them is 74%

and they believe that it leads to work life balance.


60/68

59 | P a g e

RECOMMENDATIONS

Employees must be made aware of the CSR activities of ONGC by providing appropriate

training on the same.

The awareness may be increased by publishing the activities in their annual reports in

detail and also a separate forum of CSR should be created on their homepage.

The process of CSR should be more transparent and the criterias for the same should be

more specific.

CSR activity should be made, much more professional by conducting an in-depth study

of the requirement put forward.

Large scale involvement of Non HR employees should also be there in the CSR

activities.

Employees must be encouraged to participate voluntarily in the CSR activities by sending

messages via. Intranet or ongcreports.net.

Involvement of a consultancy for better CSR projects.

Creation of online database including CSR reports, photos, videos of the activities

undertaken. etc.

CSR activities should be widely spread amongst all the disciplines so as to make it easier

for any individual to be a part of it.


61/68

60 | P a g e

CONCLUSION

To sum up, ONGC work centers are located all over India under varying socio-economic

conditions. The community development CSR projects in the focus areas have to be identified

and formulated based on the specific needs and requirement of the particular site.

ONGC CSR projects are to aim at providing following to the deprived and weaker sections of the

communities around our work place to begin with:

Clean drinking water

Basic medical facilities

A school with at least the basics

A clean, green environment

Basic village infrastructure

Vocational training for a sustainable livelihood

Skill enhancement for better prospects

Empowered women

Market linkage for rural artisans and craftsmen.


62/68

61 | P a g e

WEBLIOGRAPHY

Online published material on the World Wide Web

www.ongcindia.com

www.google.com

www.ongcreports.net

Online ONGC CSR Guidelines.

BIBLIOGRAPHY

Published Books

Kothari C.R, Research methodology

ONGC Annual reports
http://www.ongcindia.com/http://www.ongcindia.com/http://www.google.com/http://www.google.com/http://www.ongcreports.net/http://www.ongcreports.net/http://www.ongcreports.net/http://www.google.com/http://www.ongcindia.com/


63/68

62 | P a g e

Questionnaire for ONGC employees

Name of the Employee: ___________________________________________

Designation: _______________________________

Age: 25-35 35-45

45-55 55 Above

Years of Service:

Less Than 5 years 5-10yrs

10-20 More than 20yrs.

Discipline: Finance HR

Marketing Others ____________

1. Are you aware about the CSR activities undertaken by ONGC?Yes Somewhat No

2. How is CSR organized in your company, or how is its implementation planned?Own CSR department

Cross functional collaboration

No organizational CSR structure

3. Are you voluntarily interested in engaging with CSR activities of your company ?Yes No


64/68

63 | P a g e

4. If yes, then amongst which focus areas of ONGC( Please rate according to your importance numerically)

(GIVE TOP 5 RANKINGS)

Education including vocational courses.

Health Care.

Entrepreneurship (Self help and livelihood generation) schemes.

Infrastructure support near our operational areas.

Environment protection, ecological conservation, promotion.

Protection of heritage sites, UNESCO heritage monuments etc.

Promotion of artisans, craftsmen, musicians, artists etc.For preservation of heritage, art and culture.

Womens empowerment, girl child development , gender sensitive projects.

Promoting sports/sports persons; supporting agencies promoting sports/sports persons.

Water management including ground water recharge.

Initiatives for physically and mentally challenged.

Sponsorship of seminars, conferences, workshops etc.

5. Do you think company should encourage its employees to participate in CSR activities?Yes No


65/68

64 | P a g e

6. CSR process has been simplified by implementation of SAP.Strongly Agree

Agree

Uncertain

Disagree

Strongly Disagree

7.

Do you feel that your participation in CSR activities will enhance your skills and Career in thecompany?

Yes No

8. How many times in a year a CSR activity should be conducted?Monthly Quarterly

Half Yearly Annually

9. Do you feel CSR initiatives contribute towards ONGCs brand image?Yes No

10.Are you aware of the CSR projects undertaken by ONGC? If Yes, mention 1 name of the project______________________________________________________________________________

______________________________________________________________________________


66/68

65 | P a g e

11.Do you think that ONGC provides adequate updates about the CSR activities conducted?Yes No

12. According to you, what could be the reason for ONGC to undertake CSR activities?To create positive image of the company

Sense of duty as a citizen

To gain competitive advantage

To maintain cordial relations with the society

Any other

13.Have you performed any activity for the betterment of the society outside ONGC?Yes No

14. If yes, then please mention the name of the NGO_____________________________________________________________________________________

______________________________________________________________________________

15. Are you aware of the CSR activities that are conducted globally?Yes No

16. If yes, then which global CSR activities?_____________________________________________________________________________________

______________________________________________________________________________


67/68

66 | P a g e

17.Active involvement in CSR activities leads to work-life balance?Yes No

18. Is there any scope of improvement in the CSR adopted by ONGC.Yes No

19. If yes, then please mention the same_____________________________________________________________________________________

________________________________________________________________________________

20.Suggestions related to CSR apart from the above if any:


68/68

A-10 Shreyada Chitnis

Documents

Transcript of A-10 Shreyada Chitnis