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Friday, 26 August 2011

CSR of Big Companies

CSR of Big Companies

ONGC, a major Public Ltd. company, is one of the largest companies in India. This case deals with the company's Corporate Social Responsibility (CSR) programs and initiatives. It emphasizes on the increasing significance of CSR even in developing countries like India.
In May 2006, ONGC Ltd. (ONGC) received the 'Golden Jubilee Award for Corporate Social Responsibility in Emerging Economies - 2006', at the 7th International Conference on Corporate Governance organized by the World Council for Corporate Governance. Since the very beginning, ONGC has regularly contributed to various CSR initiatives in the areas of health, education, infrastructure, and culture. In 2003, it decided to allocate 0.75% of its net profit each year for different socio-economic developmental programs undertaken by the company. In 2004, it drafted a Corporate Citizenship Policy - a written guideline which was to provide a direction to the company's CSR initiatives.
ONGC made an attempt to amalgamate its CSR which aims towards vocational education, hygiene and development of self-employment mechanism through PURA. A multi agency initiative comprising of the non-Government organization, banks and the industry was formed under ONGC PURA Trust.

Objective of the project included ‘Providing urban amenities in rural areas’ (PURA) which was actually the vision of Dr. A P J Abdul Kalam Akhtar, which he outlined in his speech to the Parliament on the eve of Budget Session on 17th February, 2003. PURA visualizes bridging the rural-urban gap and achieving a balance socio-economic development. Project is conceptualized to make possible the formation of self-help groups in local and rural population, especially in poor and socially backward people. This was stated as an integral component of ONGCs Corporate Social Responsibility (CSR).




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ONGC launched PURA project on 18th April 2005 at Maichara of East Kalabaria Panchayat in Belonia Sub-Division of South Tripura District. The Project involved following 4 components:

a) Bijli Ghar - Power Generation
b) Randhan Seva - Community Kitchen
c) Gyan Kendra - Library & Computer Centre
d) Samaj Shibir - Community Hall

A preliminary assessment was done by IISWBM for ONGCs PURA Trust to monitor progress and receive feedback of this project. Presently, ONGC has invited a North East based NGO, RGVN, to study in detail the projects and initiatives that further be taken up to facilitate ONGC to fulfill its commitment towards PURA at Tripura. ONGC had formed PURA Trust with capital investment of Rs.10 Crores. Apart from that, ONGC has spent about Rs.10 lacs in the area of Maichara.

An initiative can achieve its desired result only if it has entire support from the community. Only after the thorough need exercise should a project be initiated in a community.
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