APROJECT REPORT

ONA COMPREHENSIVE STUDY ON CSR

AT

VARANASI

FOR THE PARTIAL FULFILLMENT OFMPMIR DEGREE-BHU [2008-2010]

UNDER THE GUIDENCE OFPROF. R.C.MISHRA

SUBMITTED BYSANJAY KUMAR BHARTI

ROLL NO.-23

BANARAS HINDU UNIVERSITY

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PREFACE

This project report is made for the partial fulfillment of the course MPMIR under the topic “COMPREHENSIVE STUDY OF CORPORATE SOCIAL RESPONSIBILITY” in Bharat Heavy Electricals Ltd. The project was assigned to me by PROF.R.C.MISHRA and Mr. Sanjay Sah who was my guide during my Winter project at BHEL.

This project has been very inspiring and educative for me in gaining insight of corporate social responsibility program of BHEL, which is essential for development of human resource in an organization.

The report contains the company profile of BHEL. The origin of BHEL can be traced back to 1956, when the GOI set up Heavy Electricals (HEIL) in technical collaboration with AEI, UK (now Alstom). HEIL started manufacturing electric equipments at its plant in Bhopal. Later in 1959, the Government set up a new company Bharat Heavy Electricals Ltd (BHEL) with the objective of creating indigenous manufacturing base for power plant equipments.

The report is based on a survey trough a structured questionnaire among the people of nearby village to BHEL. The result is drawn on the basis of analysis of the data which was gathered from thirty people of Ganeshpur village.

The report also contains the literature of corporate social responsibility and at last it contains the bibliography.

SANJAY KR.BHARTI MPMIR-BHU

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ACKNOWLEDGEMENT

This report is prepared based on different observations made by me during my training period in Bharat Heavy Electricals Ltd HERP Varanasi. Special thanks to Mr. Sanjay Sinha for helping me during my training. His helpful, caring attitude will always be remembered.

I also express my thanks to all staff members of HR department for devoting their precious time and helping me to complete my project report and my training.

Above all I am thankful to Prof. I.L. Singh(HOD, Deptt. of Psychology BHU), Prof. A.K. Srivastava (Course-Coordinator, MPMIR,BHU)and Prof. A.P. Singh(Chairman, MPMIR,BHU) without whose encouragement, morale support and cooperation the project report was not possible.

Finally I am grateful to MANTOR Prof. R.C.MISHRA for being so helping and caring and without whose help and support this report was not possible.This summer training was an enriching experience for me.

SANJAY KR. BHARTI MPMIR, BHU

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CERTIFICATE OF APPROVAL

I hereby approve this project Report Entitled

A COMPREHENSIVE STUDY ON CSR AT BHEL

submitted by

SANJAY KUMAR BHARTI

In partial fulfillment of the requirement for the award of

Masters of Personnel Management and Industrial Relation

From

Banaras Hindu UniversityVaranasi, UTTAR PRADESH

DATE-

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PLACE Prof. R.C.MISHRA

CONTENT

1. INTRODUCTORY STATEMENTPrefaceAcknowledgement

2. ABOUT THE ORGANIZATIONCompany profileBHEL HERP Varanasi

3. REVIEW OF LITERATUREWhat is CSR?Origin of CSR What business area does CSR coversCSR & corporate brandsImportance of CSRWhy CSR is relevant today

4. NEED OF STUDY5. OBJECTIVE OF STUDY6. SCOPE OF STUDY7. CSR ACTIVITIE OF BHEL8. CSR SCHEME OF BHEL9. METHODOLOGY OF STUDY

10. DATA TABULATION AND ANALYSIS11. QUESTONNAIRE12. RESULT13. CONCLUSION14. SUGGESTION

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15. BIBLIOGRAPHY

ABOUT THE ORGANISATION

BHARAT HEAVY ELECTRICALS LTD

Bharat Heavy Electriclas Limited (BHEL) is one of the largest engineering and manufacturing enterprises in India and is ranked among the leading Power Plant Manufacturers in the world. The corporate office of BHEL is located in New Delhi. BHEL has 14 manufacturing plants and number of service centers spread all over the country and abroad.

BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 50 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. 

BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommun-ication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers.

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BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has :-

1. Installed equipment for over 90,000 MW of power generation - for Utilities, Captive and Industrial users.

2. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC).

3. Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.

4. Supplied Traction electrics and AC/DC locos to power over 12,000 km Railway network.

5. Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organized around three business sectors, namely Power, Industry - including Transmission, Transportation, Telecommunication & Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market.

BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player.

The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management – all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

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BHEL is India’s largest engineering and manufacturing enterprise in the energy sector manufacturing over 180 products under 30 major groups for the core sectors - Power Generation and Transmission, Industry, Transportation, Renewable Energy, Oil Exploration, etc.

 

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BHARAT HEAVY ELECTRICALS LIMITEDHERP VARANASI

About BHEL: HERP Varanasi(Heavy Equipment Repair Plant)

Varanasi is endowed with five universities; Lord Buddha’s first preaching center and many religion / cultural centers, situated near the holy Ganga, with Lord Kashi Vishwanath Temple at the heart of it. HERP is located at Shivpur, 11 Kms from main railway station and 15 Kms from Varanasi Airport. 

HERP is also situated at the center of the largest power belt of northern region. This power belt supplies 10650 MW of power to the country. In the line with BHEL’s of providing constant service at their doorsteps, the idea of establishing repair shop in the vicinity of power station was mooted objective. 

Accordingly, two repair plants at Bombay & Varanasi came into existence; the foundation equipment repair plant sprawling in 29.8 acre area at Varanasi was laid on 20th September 1984 by Chief Minister of U.P. Shri Narayan Dutt Tiwari within a short span of 21 month much before the schedule.

Starting a manufacturer of O&M spares for the boiler and boiler auxiliaries, repair activities got a real break in 1990 when rebabbiting of TG set bearing was taken up in the plant. Since than rebabbiting of different type of bearing including an unconventional synchronous condenser has been carried out to the entire satisfaction of the customers. Now HERP manufactures turbine spares, tools & tackles complete spares of bowl mill XRP 623,803,883 & 1003. The unit has a plan to add Constant load hanger, Variable load hanger & condensate polishing unit in near future.

 

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Heavy Equipment Repair Plant, Varanasi

Heavy Equipment Repair Plant, Varanasi has highly skilled & dedicated technicians, engineers & specialist catering the requirements of various power plants of their mill and turbine O&M spares. HERP has contributed a lot in refurbishing of various units of NTPC after taking it over from SEB’s and is a major player in Govt of India PIE program.

Historical Profile

In line with BHEL's objective of providing consistent service at doorstep, HERP was established in the vicinity of power stations, thus laid at Varanasi. The foundation stone of HERP sprawling in 29.8 acres area at Varanasi was laid on 26th September 1984. Within a short span of 21 months, production activities were started in the plant from 1st April'1986. Having achieved break-even point in the second year of its existence itself, HERP progressed by leaps & bounds. Starting as a manufacturer of O&M spares for boiler auxiliaries, repair activities took off on firm footing in 1990 when rebabbiting of TG set bearings was taken up. Since then, rebabbiting of different kinds of bearings including import substitution (NCL Bearings) as well as bearings of unconventional synchronous condenser have been carried out to the entire satisfaction of the customers. HERP Varanasi has taken up various critical jobs from near by power plants via: NTPC Tanda, Unchahar, UPRVUNL Obra, Anpara, Parichha and helped them to achieve maximum availability of their units.

Range Of Products/Services Provided By Herp:

Bowl Mill XRP/XRS 623, 703HP, 783, 803, 803HP, 883, 1003 spares

Turbine fasteners

Repair/Rebabbiting of TG bearings

Rotor machining

Spares for Boiler Auxiliaries like Coal Burners, Fuel Piping, ESP, Air Preheated & R.C. Feeder etc.

Hydro Turbine component machining like Guide Vanes, Guide Bearings.

Tools & Tackles of Steam Turbines

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Limiter Assembly, Oil Filter Assembly & Speed Changer Assembly of Governing System.

Customers

HERP's customers are various SEBs viz. APGENCO, BSEB, CSEB, MSEB, MPEB, PSEB, RVUNL, TNEB, UPRVUNL, NTPCs, and OPPs & Private Power Plants.

Partners

Our partners & suppliers include our sister units viz. Haridwar, Bhopal, Tiruchy, Hyderabad, Jhansi as well as various ancillaries developed by various units of BHEL.

Total Quality Focus

HERP has achieved certification of ISO 9001, ISO 14001 & OHSAS 18001 and targeted TQM score during 03-04. Unit level TQ council is committed towards improvement on regular basis in line with the organizational goals. The other apex level committee like HMC, PQC & PEC is also having meetings as per schedule for review as per agenda keeping in view, the interests of our Stakeholders.

Business Policy

"In line with Company's Vision, Mission and Values, we dedicate ourselves to sustained growth with increasing Positive Economic Value Addition and Customer focused business leadership in the Power & Industry Sector"

One of the major strengths of HERP Varanasi is its free, open and consistent work culture for making continuous improvement. To recognize employees’ participation & valued suggestions HERP has always been recognizing their good efforts. Felicitation letters are distributed on 15thAugust & 26th January regularly.

Established in the late 50’s, Bharat Heavy Electricals Limited (BHEL) is, today, a name to reckon with in the industrial world. . An ISO 9000 certification has given the company international recognition for its commitment towards quality. With an export presence in more than 60 countries, BHEL is truly India’s industrial ambassador to the world.

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  PRODUCT RANGE

This list is intended as a general guide and does not represent all of BHEL's products and systems.

THERMAL POWER PLANTS

GAS BASED POWER PLANTS

HYDRO POWER PLANTS

DG POWER PLANTS

INDUSTRIAL SETS

BOILERS

BOILER AUXILIARIES

HEAT EXCHANGERS AND PRESSURE VESSELS

PUMPS

POWER STATION CONTROL EQUIPMENT

SWITCHGEARS

BUS DUCTS

TRANSFORMERS

INSULATORS -   High-tension ceramic insulators

CAPACITORS 

ENERGY METERS

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REVIEW OF LITERATURE

What is CSR?

The entirety of CSR can be discerned from the three words contained within its title phrase: ‘corporate,’ ‘social,’ and ‘responsibility.’ Therefore, in broad terms, CSR covers the responsibilities corporations (or other for-profit organizations) have to the societies within which they are based and operate.

More specifically, CSR involves a business identifying its stakeholder groups and incorporating their needs and values within the strategic and day-to-day decision-making process.

Therefore, a business’ ‘society’ within which it operates, which defines the number of stakeholders to which the organization has a ‘responsibility,’ may be broad or narrow depending on the industry in which the firm operates and its perspective.

Other definitions of CSR:

The notion of companies looking beyond profits to their role in society is generally termed corporate social responsibility (CSR).It refers to a company linking itself with ethical values, transparency, employee relations, compliance with legal requirements and overall respect for the communities in which they operate. It goes beyond the occasional community service action, however, as CSR is a corporate philosophy that drives strategic decision-making, partner selection, hiring practices and, ultimately, brand development.

South China Morning Post, 2002The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.

Archie B. Carroll, 1979CSR is about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society. In particular, this could include how organizations interact with their employees, suppliers, customers and the communities in which they operate, as well as the extent they attempt to protect the environment.

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The Institute of Directors, UK, 2002

CSR is a means of analyzing the inter-dependent relationships that exist between businesses and economic systems, and the communities within which they are based. CSR is a means of discussing the extent of any obligations a business has to its immediate society; a way of proposing policy ideas on how those obligations can be met; as well as a tool by which the benefits to a business for meeting those obligations can be identified.

The origin of CSR

The history of CSR is almost as long as that of companies. Concerns about the excesses of the East India Company were commonly expressed in the seventeenth century. There has been a tradition of benevolent capitalism in the UK for over 150 years. Quakers, suchas Barclays and Cadbury, as well as socialists, such as Engels and Morris, experimented with socially responsible and values-based forms of business. And Victorian philanthropy could be said to be responsible for considerable portions of the urban landscape of older town centres today. In terms of activism aimed at companies perceived as acting against the general interest:England in the 1790s over slave-harvested sugar.(It succeeded in forcing the importer to switch to free-labor sources.).In 1612, EnglishJurist Edward Coke complained that corporations “cannot commit treason, nor be outlawed or excommunicated, for they have no souls.”

Arguments underpinning CSR

Arguments offered in favor of CSR can be broadly split into two camps—moral and economic.

1. A moral argument for CSR

While recognizing that profits are necessary for any business entity to exist, all groups in society should strive to add value and make life better. Businesses rely on the society within which they operate and could not exist or prosper in isolation. They need the infrastructure that society provides, its source of employees, not to mention its consumer base. CSR is recognition of that inter-dependence and a means of delivering on that obligation, to the mutual benefit of businesses and the societies within which they are based:CSR broadly represents the relationship between a company and the wider community within which the company operates. It is recognition on the part of the business that ‘for profit’ entities do not exist in a

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vacuum, and that a large part of any success they enjoy is as much due to the context in which they operate as factors internal to the company alone.

Charles Handy makes a convincing and logical argument for the purpose of a business laying beyond the goals of maximizing profit and satisfying shareholders above all other stakeholders in an organization

The purpose of a business is not to make a profit. It is to make a profit so that the business can do something more or better. That “something” becomes the real justification for the business. It is a moral issue. To mistake the means for the end is to be turned in on oneself, which Saint Augustine called one of the greatest sin. It is salutary to ask about any organization, “If it did not exist, would we invent it?” “Only if it could do something better or more useful than anyone else” would have to be theanswer, and profit would be the means to that larger end.Advocates of CSR believe that, in general, the goal of any economic system should be to further the general social welfare. In advanced economies, the purpose of business should extend beyond the maximization of efficiency and profit. Increasingly, society expects businesses to have an obligation to the society in which they are located, to the people they employ, and theircustomers, beyond their traditional bottom-line and narrow shareholder concerns. At a minimum, businesses operating in a community benefit from the infrastructure of that community (tangible, practical elements such as the roads, other transport infrastructure, the police, firefighters, etc) as well as more intangible benefits, such as a safe or clean environment.

But, in most cases, businesses also draw their most important resource, its employees, largely from the local community. Any business will be more successful if it employs a well-educated workforce that can attend good hospitals if they become sick, and who have grown up in a positive environment. This is not to mention consumers, also often members of the local community, without whom no business could survive.CSR advocates point out that no organization exists in isolation. They believe that businesses, without exception, have an obligation to contribute as well as draw from the community, on which they rely so heavily.

2. An economic argument for CSR

An economic argument in favor of CSR can also be made. It is an argument of economic self-interest— that there are very real economic benefits to businesses pursuing a CSR strategy—and is designed to

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persuade those business managers who are not persuaded by the moral case.Proponents of this argument believe that CSR represents an holistic approach to business.

Therefore, an effective CSR policy will infuse all aspects of operations. They believe the actions corporations take today to incorporate CSR throughout the organization represent a real point of differentiation and competitive market advantage on which future success can hinge: CSR is an argument of economic self-interest for a business. In today’s brand-driven markets,CSR is a means of matching corporate operations with stakeholder values and demands, at a time when these parameters can change rapidly. One example is a company’s customers: CSR adds value because it allows companies to better reflect the values of this important constituent base that the company aims to serve.

What business areas does CSR cover?

CSR covers all aspects of an organization’s operations. It is important to stress that the study of CSR focuses largely on the margins of a business’ discretionary actions and obligations. This is rather than any legal or regulatory obligations, individuals and corporations face in the day-to-day management of operations within any specific industry. CSR is a much more holistic approach to business, which is designed to enhance corporate success because of its relevance, rather than represent something unconnected to an organization’s core business.

CSR covers all aspects of a business’ day-to-day operations. Everything an organization does in some way interacts with one or more of its stakeholder groups, and companies today need to build a watertight brand with respect to all stakeholders. Whether as an employer, producer, buyer, supplier, or investment, the attractiveness and success of a company today is directly linked to the strength of its brand.CSR affects all aspects of all operations within a corporation because of the need to consider the needs of all constituent groups. Each area builds on all the others to create a composite of the corporation (its brand) in the eyes of all stakeholder groups.

Example of CSR issues

Examples of issues within the economic sphere that contain a CSR component range from ‘corporate governance’ to ‘patriotism;’ from the

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issue of ‘fair trade’ to ‘diversity in the workplace.’ All contain, in some form or another, issues connected to the perception of the company, and therefore its brand, in the eyes of one or more of its stakeholder groups:

• Corporate governance

Transparency is the key to encouraging trust in the managers selected to run a company on behalf of the shareholders. It is also vital to maintaining confidence within other stakeholder groups and the general public. The issues of accurate financial statements, executive compensation, and independent oversight, have become particularly sensitive and important for companies to get right.

• Patriotism

An issue such as ‘patriotism’ is by definition subjective, but has risen in importance in the U.S. following the September 11, 2001 terrorist attacks. A good example of an issue that falls into this category is the trend today of companies attempting to avoid paying corporation tax, some even going to the lengths of incorporating off-shore (particularly Bermuda), even though company headquarters and the majority of workers are based in the U.S:

According to a recent Harvard University study, U.S. companies avoided paying tax on nearly $300 billion in income in 1998. In 1940, companies and individuals each paid about half the federal income tax collected; now the companies pay 13.7% and individuals 86.3%.10

• Fair trade

Companies in particular industries have felt pressured to pay a ‘fair’ price for the goods they purchase, over and above the market-driven price, directly to the producer. This is particularly the case in many food industries, where world market prices may well have decreased over time, while costs have either remained the same or increased: Today, with suppliers at small farmer cooperatives in Peru, Mexico, and Sumatra, Green Mountain pays Fair Trade prices for coffee beans -- not the market price of 24 to 50 cents per pound, but a minimum of $1.26 per pound for conventional coffee and $1.41 for organically grown. In 2002, these Fair Trade purchases represented 8 percent of sales.

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Green Mountain also has a “farm direct” program that cuts out middlemen to deliver higher prices to farmers. Roughly a quarter of its coffee purchases are farm direct.

• Diversity

The 2000 Census data has revealed that the ethnic make-up of the U.S. is changing rapidly. Organizations need to adapt their traditional structures and mind-sets, which prevent companies from marketing products effectively to significant segments within the market:Latinos are now the largest minority in the U.S., making up 13 percent of the overall U.S.population—a 58 percent increase from 1990. As black, Asian, and Pacific Islander populations also experience strong growth rates, whites are steadily heading toward minority status. Already in California, New Mexico, Hawaii and the District of Columbia, the majority of residents are nonwhite. That’s also true in 48 of the nation’s 100 largest cities.Literally, CSR (the extent to which an organization’s decisions reflect the values and needs of consumers and other stakeholders) can creep into every decision that a company makes. One sub-area of the issue of ‘diversity’ involves the equal treatment of men and women. There are plenty of examples of both good and bad practice:

CSR & corporate brands

Brands today are one of the key focal points of corporate success. Companies try to establish popular brands in consumer minds because it increases leverage, which is directly reflected in sales and revenue. All aspects of a company’s operations today feed into helping build the corporate brand. Crucial is how a brand is perceived by all stakeholders.Three benefits in particular indicate the positive value for a company in striving to remain in tune with the community within which it is based by implementing a strong CSR policy:

• Positive marketing/brand-building – BP

BP, with a $200 million re-branding exercise, has effectively re-positioned itself as the most environmentally sound and socially responsible of the extraction companies. The company stands in stark contrast today with Exxon Mobil that faces on-going NGO (Non-Governmental Organization) attacks, consumer boycotts, and activist-led litigation because of its decision to fight the environmental movement, and its failure to recognize the wider importance of CSR as a corporate strategy.

• Brand insurance – NIKE

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NIKE has emerged as one of the most progressive global corporations in terms of CSR because it has learned from its past mistakes and attacks by NGOs. As one of the first corporations to have a Vice-President for Corporate Responsibility and to publish an annual CSR Report, the company has done a lot to mitigate public opinion, establish its brand as representative of a much more committed corporate citizen, and ‘insure’ itself against any repeat of the consumer boycotts it faced in the mid-1990s.

• Crisis management – Johnson & Johnson

Johnson & Johnson’s transparent handling of the crisis facing its Tylenol brand in 1982 is widely heralded as the model case in the area of crisis management. J&J went far and above what had previously been expected of corporations in such situations, instigating a $100 million re-call of 31 million bottles of the drug following a suspected poisoning/product tampering incident. In acting in the way it did , J&J saved the Tylenol brand, enabling it to remain a strong revenue earner for the company to this day Given the large amount of time, money and effort companies invest in their brands, a good CSR policy is an effective means of protecting that investment and maximizing its impact.

Why is CSR important?

CSR is an important business strategy because,

wherever possible, consumers want to buy products from companies they trust;

suppliers want to form business partnerships with companies they can rely on;

employees want to work for companies they respect;

And NGOs, increasingly, want to work together with companies seeking feasible solutions and innovations in areas of common concern.

Satisfying each of these stakeholder groups allows companies to maximize their commitment to another important stakeholder group—their investors, who benefit most when the needs of these other stakeholder groups are being met:

The winning companies of this century will be those who prove with their actions that they can be profitable and increase social value—companies that

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both do well and do good. Increasingly, shareowners, customers, partners and employees are going to vote with their feet—rewarding those companies that fuel social change through business. This is simply the new reality of business—one that we should and must embrace.

The businesses most likely to succeed in the globalizing world will be those best able to combine the often conflicting interests of its multiple stakeholders, and incorporate a wider spectrum of opinions and values within the decision-making process and objectives of the organization.Lifestyle brand firms, in particular, need to live the ideals they convey to their consumers: The 21st century will be the century of the social sector organization. The more economy, money, and information become global, the more community will matter.

CSR is increasingly crucial to maintaining success in business—by providing a corporate strategy around which the company can rally, but also by giving meaning and direction to dayto-day operations.

Why is CSR relevant today?

CSR as a strategy is becoming increasingly important for businesses today because of three identifiable trends:

• Changing social expectationsConsumers and society in general expect more from the companies whose products they buy. This sense has increased in the light of recent corporate scandals, which reduced public trust of corporations, and reduced public confidence in the ability of regulatory

• Increasing affluence

This is true within developed nations, but also in comparison to developing nations. Affluent consumers can afford to pick and choose the products they buy. A society in need of work and inward investment is less likely to enforce strict regulations and penalize organizations that might take their business and money elsewhere.

• Globalization

The growing influence of the media sees any ‘mistakes’ by companies brought immediately to the attention of the public. In addition, the Internet fuels communication among like-minded groups and consumers—empowering them to spread their message, while giving them the means to co-ordinate collective action (i.e. a product boycott).

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These three trends combine with the growing importance of brands and brand value to corporate success (particularly lifestyle brands) to produce a shift in the relationship between corporation and consumer, in particular, and between corporation and all stakeholder groups, in general.The result of this mix is that consumers today are better informed and feel more empowered to put their beliefs into action. From the corporate point of view, the market parameters within which companies must operate are increasingly being shaped by bottom-up, grassroots campaigns. NGOs and consumer activists are feeding, and often driving, this changing relationship between consumer and company.

CSR is particularly important within a globalizing world because of the way brands are built—on perceptions, ideals and concepts that usually appeal to higher values. CSR is a means of matching corporate operations with stakeholder values and demands, at a time when these values and demands are constantly evolving.

CSR can therefore best be described as a total approach to business. CSR creeps into all aspects of operations. Like quality, it is something that you know when you see it. It is something that businesses today should be genuinely and wholeheartedly committed to. The dangers of ignoring CSR are too dangerous when it is remembered how important brands are to overall company value; how difficult it is to build brand strength; yet how easy it can be to lose brand dominance.

CSR is, therefore, also something that a company should try and get right in implementation.

Implementing CSR: Key steps

CSR is about common sense policies that represent a means of integrating a complete ‘social perspective’ into all aspects of operations. The goal is to maximize true value and benefit for an organization, while protecting the huge investments corporations make today in their brands.

CSR asks companies to ensure their business operations are clean and equitable, and contribute positively to the society in which they are based. Otherwise, they leave themselves open to too much danger from a potential consumer backlash.

CSR is good business sense, and a total approach to doing business, in a globalizing world where companies are increasingly relying on brand strength (particularly global lifestyle brands) to add value and product differentiation, and where NGO-driven consumer activism is increasing.

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Texas A&M University

In a globalize world of retreating nation states and governments,

corporations find themselves in the middle of society. A new

organizational skill set is needed that enables corporations to position themselves as corporate citizens. It is the purpose of this study to identify a best practice to develop these organizational skills based on a policy analysis. The implementation of process structures is proposed as a best practice, and a 10-step approach for implementation is outlined. Also, implications for the field of human resource development and future research are discussed when considering issues of corporate responsibility and citizenship.

(Archie B. Carroll, 1979)

CSR is nearly businesses and other organization going beyond the legally recognized obligation to deal with the impact they enjoy on the environment and society. In singular, this could include how organization interact near their force, suppliers, customers and the communities within which they operate, as okay as the extent they attempt to protect the environment

NEED OF STUDY

.Business depends on the society for the needed input like man, money, &skills. Business also depends on society for market where products may be sold to buyer. Thus business depends on society for existence, sustenance & encouragement.

Social Responsibility is understood as the obligation of decision makers to take action which protect and improve the welfare of society as a whole along with their own interest.

Every decision the businessman takes and every action he contemplates have social implications.

Social Responsibility of the business is not new to our country. In the oldest days, whenever there was a famine, the leading

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businessman of the area would literally throw open their godowns and their treasures to provide food and other assistance to needy.

Even in ordinary times it was businessman who looked after the welfare of the destitute, the goshalas, wells and ponds wherever water was difficult to get, the pathshalas and so on. So to accept corporate social responsibility is no more than dedicating ourselves to the cherished values of our ancestors in the field of business.

OBJECTIVE OF STUDY

PRIMARY OBJECTIVE:

To know overall understanding by people about CSR activities of BHEL.

SECONDARY OBJECTIVES:

To measure the perceive benefits of CSR activities of BHEL. To measure the felt benefits of CSR activities of BHEL. To measure the actual benefits of CSR activities of BHEL To measure the overall rating of BHEL HERP VNS as a

socially responsible organization.

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SCOPE OF STUDY

The scope of study covers mainly the following:

The study covers all stakeholders of BHEL HERP VNS.

The study covers community/society/villagers near BHEL HERP VNS.

The study covers sample of villagers from the village of Ganeshpur and the people of Banvasi Chatravas.

CSR ACTIVITIES OF BHEL

BHEL has joined the ‘Global Compact’ of United Nations and has committed itself to support it and the set of core values enshrined in its ten principles. The ‘Global Compact’ is a partnership between the United Nations, the business community, international labor and NGOs. It provides a forum for them to work together and improve corporate practices through co-operation rather than confrontation.

BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages, free medical camps/charitable dispensaries, schools for the underprivileged and handicapped children, ban on child labor, disaster/natural calamity aid, Employment for handicapped, Widow resettlement, Employment for Ex-serviceman, irrigation using treated sewage, pollution checking camps, plantation of millions of trees, energy saving and conservation of natural resources through environmental management.

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BHEL shares the growing concern on issues related to Environment and Occupational Health & Safety (OHS), and is committed to protecting Environment in and around its own establishment, and to providing safe and healthy environment to all its employees. For fulfilling these obligations, a Health, Safety & Environmental Policy has been formulated and implemented through management systems. 

In recognition of this, BHEL has been awarded the ISO 14001 Environmental Management Systems Certification and OHSAS 18001 Occupational Health & Safety Management Systems Certification from M/s Det Norske Veritas (DNV). Under UNDP programme for specialized services in the area of Environment, BHEL has set up a Pollution Control Research Institute (PCRI).

BHEL also has a Model Centre for Occupational Health Services at Trichy, which is a pioneer in this field in India. Today it offers a wide range of occupational health care as well as expertise in work Environment monitoring, Toxicology, Ergonomics and in organization of OHS to multitude of industries for different sectors in India. Few ILO sponsored candidates from African countries have undergone training at this Model centre. 

BHEL is a member of CoRE (Corporate Roundtable on Development of Strategies for Environment) launched by The Energy Research Institute (TERI). CoRE is envisaged as a means to facilitate a proactive and catalytic role for industry in addressing the environmental problems plaguing India and helping the industry towards sustainability paradigm. CoRE is now a partner organization to the WBCSD (World Business Council for Sustainable Development). It has signed a memorandum of understanding with WBCSD, now called as CoRE-BCSD, India. Interfaces between companies such as BHEL, TERI and the WBCSD would provide an important link to address issues of sustainable development at a global level and to learn and exchange experience of the participating companies.

BHEL’s commitment to environmental issues can be seen as an integral part of its core business. In the field of Non-conventional and Renewable Energy, BHEL has successfully launched products like wind electric generators, solar heating systems, solar photovoltaic systems, solar lanterns and battery powered road vehicles. Technology upgradation has been done to minimize environmental impact of fossil energy products, by way of low-NOx oil/ gas burners, circulating fluidized bed combustion boilers etc. Towards meeting its Quality Policy, BHEL is using the vehicle of Quality Management Systems, which are certified to ISO 9001:2000 series of Standards by Internationally acclaimed certifying agency, BVQI. 

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HERP is situated at the center of the largest power belt of northern region. Through small in size, HERP has been in adequate attention to all the facts of plant operation like computerization, inventory control, quality assurance. In order to channellies the creative energy of employees suggestion scheme and quality circle and productivity improvement project are in operation. BHEL HERP has done a lot for the nearby village Ganeshpur.

Along with the production and repairing of equipments BHEL always fulfill its social responsibilities. BHEL helps in the development of the neighborhood areas.

In Ganeshpur village to make the women self-employed and self-dependent BHEL donate 6 sewing machines, 1 embroidery machine and 1 interlock machine to the sewing centre through the Lokhit Samajik Sanstha. BHEL also provide lamp near the pond in Ganeshpur.

SEWA SAMARPAN SANSTHAN, GANESHPUR TARNA VARANASI which is a non-government organization is providing food, education, shelter which is primary need of the children who belong to schedule cast& schedule tribe and running an organization named as Banvasi Chatravaas. BHEL help to the organization and construct a computer class room in the premise of BANVASI CHATRAVAAS.

BHEL provide physiotherapy equipments to the Kiran which is an organization of physically handicapped children for the resettlement of the children. The cost of the equipment is 1,25000/- Rs.

Under the program of community development BHEL HERP VNS organize first-aid for the people in Ganeshpur at the occasion of MAHASHIVRATRI.

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BHEL SCHEME ON CSR

BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages, free medical camps/charitable dispensaries, schools for the underprivileged and handicapped children, ban on child labor, disaster/natural calamity aid, Employment for handicapped, Widow resettlement, Employment for Ex-serviceman, irrigation using treated sewage, pollution checking camps, plantation of millions of trees, energy saving and conservation of natural resources through environmental management.

As per BHEL policies 0.1% of the profit of the company after PAT (Profit After Tax) expend on CSR activities.

TARGET AREAS

The target areas of BHEL for CSR activities are-

1. SELF EMPLOYMENT GENERATION- The CSR policies of BHEL HERP VARANASI intend to facilitate the unemployed people in and around the project, in self-employment through co-operative/self-help groups. The preferences are given to those persons who are-

a) Physically challenged persons or b) Young and poor widows who are economically weak orc) Old people who are self-employed.

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2. ENVIRONMENT PROTECTION- The CSR policies of BHEL to make surrounding areas healthy are-

a) Forestationb) Rain water harvesting c) Sanitary system

3. COMMUNITY DEVELOPMENT- The CSR policies of BHEL intend to undertake community development in the neighborhood area of operation station with particular focus on disabled persons. It also facilitates the disabled person in improving the economic condition by giving employment opportunity. It is for uplift the weaker areas and people.

4. EDUCATION- The CSR policies of BHEL intend to facilitate education to the people of neighborhood areas under the following program-

a) Scholarship programsb) Provide help to the school of physically or mentally

challenged personsc) Adult literacy

5. HEALTH MANAGEMENT AND MEDICAL AIDS- BHEL provide free medical camps and supply free medicines in the neighborhood areas time to time.

6. OLD AGE HOME- the CSR policies of BHEL intend to facilitate the old age home to the nearby areas.

7. INFRASTRUCTURE DEVELOPMENT- The CSR policies of BHEL intend to undertake infrastructure development of the surrounding areas. In infrastructure development BHEL provide –

a) Water systemb) Sewage system or drain system c) Community toiletd) Construction of roads

TARGETED GROUPS

The targeted groups for CSR activities in BHEL are-

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The CSR activities operated through self helped groups or co-operatives or NGOs, but preferably the involvement of local panchayat.

Preferences are provided to those groups who provide participation of women.

Only 70-80% of the total cost of capital of any scheme/project submitted by any group will be supported by BHEL and rest of the investment will be beared by the group or institution itself.

METHODOLOGY OF STUDY

A survey is conducted among the people of village Ganeshpur, through a questionnaire named “BHEL HERP VNS KE BARE MEIN SAMAJIK BODH SARVEKSHAN”. The survey questionnaire was administered on 30 villagers of the village near the BHEL.

TOOLS FOR DATA COLLECTION

A structured questionnaire of 11 items was used for the data collection. Name of the questionnaire was “BHEL HERP VNS KE BARE MEIN SAMAJIK BODH SARVEKSHAN”.

The rating was on five point basis:a) Poor =1;b) Average=2;c) Good=3d) Excellent=4;

Division of question on basis of objectives

Perceived level of benefit is measured by the question numbers- 4,6,7,9

Felt level of benefit is measured by the question numbers- 1,2,3,11,

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Actual level of benefit is measured by the question numbers- 1,5,8,10

Overall rating of the organization by the all question.

PROCEDURE

1. A specific structured questionnaire was filled by the researcher with consultation of the respondent. The respondent were well communicated the meaning of each question of the questionnaire named “BHEL HERP VNS KE BARE MEIN SAMAJIK BODH SARVEKSHAN”.

2. Only responses of those respondents were included for the purpose of data analysis and conclusion, who were having knowledge about BHEL HERP VNS, and its CSR activities.

DATA SOURCES

Data in the study is of two types:

PRIMARY DATA: the data collected from the villagers through the questionnaire.

SECONDARY DATA: the data collected from : Internet. Official records of BHEL HERP VNS

.

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DATA TABULATION AND ANALYSIS

Master table of frequency distribution was prepared and then divided into fractions according to objectives.

Simple percentage frequency distribution pie-chart was drawn, and conclusions were drawn.

For convenience four point scales was divided in two point scale, Negative: a combined pool of poor &average. Positive: a combined pool of good & excellent.

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RESULT

1. To measure the PERCEIVED BENEFIT of CSR Activities of BHEL.

WHOLE SAMPLE

POSITIVE; 80%

NEGATIVE; 20%

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RESULT: most of the respondents perceive that BHEL HERP VNS is socially responsible firm. About 15% responses were poor & 5% responses were average (in negative). Were as in positive group 20% responses were excellent, 40% responses were very good & 20% responses were good.

0%

10%

20%

30%

40%

50%

60%

70%

80%

POSITIVE NEGATIVE

2. To measure the FELT BENEFIT of CSR Activities of BHEL.

RESULT: 70% of the respondents are feeling improvement in their living standard as a result of BHEL HERP’s CSR Activities. Only 30% of responses were negative. About 13.33% were poor & about 17%

WHOLE SAMPLE

POSITIVE70%

NEGATIVE30%

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responses were average (in negative).were as in positive group 30.33% responses were excellent, 18% were very good & 21.66% were good.

0%

20%

40%

60%

80%

POSITIVE NEGATIVE

Series1

3. To measure the actual benefit of CSR Activities of BHEL.

RESULT- Most of the respondent accepts that their standard of living has been elevated due to CSR activities of BHEL HERP. 68% positive (18% excellent, 30% very good & 20% good) responses were obtained,

WHOLE SAMPLE

POSITIVE

68%

NEGATIVE

32%

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where as only 32% negative (12% poor& 20% average) responses were obtained.

0%

20%

40%

60%

80%

POSITIVE NEGATIVE

4. To measure the overall rating of BHEL VNS as socially responsible organization.

RESULT- Majority of respondent view BHEL VNS as socially responsible firm. Total 98% respondent view that organization is a socially responsible, only 2% says that it is not working for society.

WHOLE SAMPLE

POSITIVE

98%

NEGATIVE

2%

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0%

20%

40%

60%

80%

100%

POSITIVE NEGATIVE

CONCLUSION

The villagers have benefited through additional means of livelihood.

There have a high level of knowledge about BHEL HERP VNS’s CSR Activities, in the society around it.

Level of perception is high in a nearby village. Level of felt benefit is also high. The scheme is beneficial to a large number of people. The scheme is tangible too.

SUGGESTIONS

The CSR activities should have continuity.

Also the achievement should be measurable.

The activities of the organization to which BHEL provided help should be checked time to time by BHEL

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There is no information on the internet about CSR activities of BHEL. Some information should give on the website of BHEL.

BIBLIOGRAPHY

BOOKSFrancis C : Business EnvironmentAswathappa K : Essentials of Business Environment Datt R. & Sundaram : Indian EconomyAdhikary M. : Economics Environment of Business

INTERNETWeb-site of BHEL Ltd. Google.comWikipidea.org

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