Corporate Social Responsibility of Bhilai Steel Plant

 

Mr. Sandeep Bhawnani1, Prof. D.R. Bhawnani2

1Assistant Professor, St. Thomas College, Bhilai (C.G.)

2Associate Professor & Head, Department of Commerce, Seth R.C.S. Arts and Commerce College, Durg (C.G.)

*Corresponding Author E-mail: sandeep.bhawnani@gmail.com;drbhawnani1957@gmail.com

 

ABSTRACT:

Every country should embrace the remarkable concept of individuals and businesses forming a partnership to support social causes. In the context of India, such a partnership has enormous potential for strengthening society. Corporate social responsibility and volunteerism have no boundaries and are not constrained by race, color, or religion. More and more companies are accepting corporate citizenship as a new strategic and managerial purpose requiring their attention. Once seen as a purely charitable activity--a source of general goodwill, with no bottom-line consequence--citizenship is moving from the margins of concern to the center at leading companies. Harmony between man and environment is the essence of healthy life and growth. Therefore, maintenance of ecological balance and a pristine environment has been of utmost importance to BSP. Environment protection continues to be a key area of activity in BSP along with growth in generation of power. The objective of this paper is to understand the importance of green initiatives and activities taken-up by PSUs like BSP as a part of CSR. The goodwill firms can generate from acts of social responsibility may, in fact, be worth far more to the businesses than the amounts they give. Corporations collectively can make India a better place for every citizen.

 

KEYWORDS: CSR, BSP, PSU, HRM, SAIL

 


INTRODUCTION:

In recent years, interest in socially responsible investing has grown around the world. In the corporate world, corporate social responsibility is increasingly accepted as creating a positive impact on performance. CSR is essentially a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. There is increasing evidence to suggest that corporations need to explore innovative ways of doing business so that all the stakeholders are able to participate; when differences are value, policies are inclusive and the impact on society is positive. There are no indicators of measurement to help evaluate the CSR initiatives but increasingly the companies are building an integrated model that is in alignment with the business processes and functions.

 

India is moving from corporate philanthropy to the stakeholder’s model. By and large Indian companies have a long way to go in imbibing CSR as a business strategy. Corporate philanthropy is only a part of CSR. The perception of CSR among the Indian corporations is that of ethical conduct including compliance and transparency of business and nation building .

 

 

In India, the increase in domestic environmental legislation in the 1990s followed from the commitments made in the international environmental initiatives. The environmental acts and notifications in the 1970s and 1980s covered intrinsically domestic pollution problems, especially those of air and water. In contrast, the domestic initiatives and legislation of the1990s cover aspects of sustainable development and global environmental concerns as well as the depletion of the ozone layer, loss of bio-diversity, patenting of biological resources etc.

 

Current State of CSR in India

As discussed above, CSR is not a new concept in India. Ever since their inception, corporate like the Tata Group, the Aditya Birla Group and Indian Oil Corporation, to name a few, have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR policies, practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes. A growing number of corporate feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness.

 

Companies have specialized CSR teams that formulate policies, strategies and goals for their CSR programs and set aside budgets to fund them. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainstream business. The programs are put into practice by the employees who are crucial to this process. CSR programs ranges from community development to development in education, environment and healthcare etc.

 

ABOUT BHILAI STEEL PLANT :

The Precursor SAIL traces its origin to the formative years of an emerging nation - India, after independence the builders of modern India worked with a vision – to lay the infrastructure for rapid industrialization of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Ltd. was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India.

 

Bhilai Steel Plant (BSP) is India's sole producer of rails and heavy steel plates and major producer of structural. The plant is the sole supplier of the country's longest rail tracks of 260 meters. With an annual production capacity of 3.153 MT of saleable steel, the plant also specializes in other products such as wire rods and merchant products. Since BSP is accredited with ISO 9001:2000 Quality Management System Standard, all saleable products of Bhilai Steel Plant come under the ISO umbrella.

 

At Bhilai IS0:14001 have been awarded for Environment Management System in the Plant, Township and Dalli Mines. It is the only steel plant to get certification in all these areas. The Plant is accredited with SA: 8000 certification for social accountability and the OHSAS-18001 certification for Occupational health and safety. These internationally recognized certifications add value to Bhilai's products and helps create a place among the best organizations in the steel industry.

 

Beginning as a frontier town planted in the broad plains of erstwhile Madhya Pradesh in the late fifties by the Government of India, Bhilai is now a booming and bustling cosmopolitan town on the move and the premier industrial centre of Chhattisgarh with the Bhilai Steel Plant as its hub. Bhilai is today the nerve centre of nearly all enterprise and activity in the region - economic, social and cultural, education and sports. Bhilai continues with the broad philosophy of making the best use of its assets of production at its command while ensuring the best possible life for its employees, their families and the community at large.

 

Corporate Social Responsibility: What does it mean?

Today, there are many references to corporate social responsibility (CSR), sometimes referred to as corporate citizenship, in our workplaces, in the media, in the government, in our communities. While there is no agreed-upon definition, the World Business Council for Sustainable Development defines CSR as the business commitment and contribution to the quality of life of employees, their families and the local community and society overall to support sustainable economic development. Simply put, the business case for CSR--establishing a positive company reputation and brand in the public eye through good work that yields a competitive edge while at the same time contributing to others--demands that organizations shift from solely focusing on making a profit to including financial, environmental and social responsibility in their core business strategies. Despite what the phrase corporate social responsibility suggests, the concept is not restricted to corporations but rather is intended for most types of organizations, such as associations, labor unions, organizations that serve the community for scientific, educational, artistic, public health or charitable purposes, and governmental agencies.

 

How CSR helps the work in Bhilai Steel Plant

For SAIL, CSR was an integral part of its operations ever since the establishment of its production units in remote locations of the country since the early 1950s. Places like Bhilai, Rourkela, Durgapur, etc., which today are thriving industrial and commercial centres having grown around SAIL’s integrated steel plants set up there, were once extremely backward locations without any economic or social infrastructure. The company had to provide basic amenities like power, drinking water, and education and medical facilities for its workforce at these plant locations; these facilities have multiplied over the decades as SAIL’s business has grown.

 

Healthcare
At today’s count, SAIL has established 54 Primary Health Centres, 12 Reproductive and Child Health Centres, 17 Hospitals and 7 Super-Specialty Hospitals for providing specialized healthcare to more then 30 million people since inception. Five special health centre (Kalyan Chikitsalyas) have been set up at plant locations for poor and needy people, where free medical treatment and medicines are provided. SAIL organizes health camps in the range of more than 3,000 every year, reaching out to people needing primary health support. The coverage has spanned various states like Jharkhand, Chhattisgarh, Odisha, West Bengal, Tamil Nadu, Karnataka, Bihar, Maharashtra, Madhya Pradesh, Haryana, Rajasthan, etc. To help the poor and downtrodden patients and to have health outreach, 24 MMUs /ambulances have been provided to various NGOs like Help Age India, Bharat Sewashram Sangha, Anugraha Drishtidaan, etc. A special project ‘Akshaya’ for providing free investigation to TB patients of under privileged sections of society and project ‘Chetna’ for treatment of sickle cell anemia are run in Rourkela.

Education

146 schools have been set up in the steel townships for providing modern education to about 70,000 children and assistance has been provided to over 286 schools of villages surrounding steel plants/units for free education of more than 55,000 students. 225 tribal children at Bhilai and 12 boys of the nearly extinct Birhore tribe at Bokaro have been adopted and are provided free education, boarding and lodging. SAIL has achieved a girl-boy ratio of 1:1 for all levels of education as well as a survival rate of 96% in SAIL primary schools and 90% in SAIL secondary schools. SAIL has also set up 6 Special Schools exclusively for poor, underprivileged, BPL children at its 5 integrated steel plant locations covering around 1,400 children providing free education, midday meals, uniform, including shoes, textbooks, stationery items, school bag, water bottles, etc. With the help of Akshay Patra Foundation, SAIL is providing midday meals to more than 18,000 students in different schools of Bhilai every day. In order to support the existing school infrastructure, SAIL has been providing additional classrooms across the country and such projects are in progress at Bhilai, Durgapur, Bokaro, Rourkela, Burnpur, as well as areas where SAIL carries out mining activities.

 

Connectivity

Roads are a means of communication and help economic and social activities to multiply. Involved in the construction and repair of roads in far-flung locations since inception, SAIL has constructed roads in 435 villages helping around 73 lakh people.

 

Water

SAIL has also provided access to water infrastructure to people living in far-flung areas by installing 5,153 water sources, thereby providing drinking water access to around 38 lakh people. Each SAIL plant has ensured that villages within the radius of approximately 16-18 kms of its township have access to potable water.

 

Model Steel Villages

In order to bridge the gap between rural and urban areas and to provide comprehensive development of both physical and social infrastructure, 79 villages have been identified as ‘Model Steel Villages’ in 8 states across the country. The developmental activities being undertaken in these villages include medical and health services, education, roads and connectivity, sanitation, community centers, livelihood generation, sports facilities, etc.

 

Solar Power

Promotion of alternative source of energy is one of the thrust areas of SAIL. This year, SAIL under this initiative is supporting setting up of 100-kw Community Solar Power Plants in Jarri, Albert Ekka Block, Jharkhand with the help of Jharkhand Renewable Energy Development Agency. SAIL is also installing solar street lights at public places to eradicate the problem of power crisis in rural and mines areas of the country.

Calamity Aid

SAIL has been always a trend setter in supporting people during natural calamities and recently it has supported construction of low cost houses at Leh after a cloud burst, providing galvanized sheets to Sikkim earth quake victims, contributing to Chief Minister’s Relief Fund for aid to people affected by the Odisha floods, and provided flood relief packets during the floods in Uttar Pradesh.

 

Vocational Training

Villagers are being provided vocational training in areas such as improved agriculture, mushroom cultivation, animal husbandry (goatery, poultry, fishery, and piggery), achar/ppapad/agarbatti making, etc. Training is also provided for skill enhancement as welders, fitters and electricians, in sewing and embroidery, smokeless chullah making, etc. Vocational training centres like Bhilai Ispat Kaushal Kutir for rural and unemployed youth and Skill Development and Self Employment Training Institutes for the benefit of women and girls have also been set up. One of the outstanding success stories of SAIL-supported Self Help Group programmers is ‘Kiran’ which is run by 97 lady artisans of nearby villages of Kiriburu Ore Mines. Kiran branded towels, bedsheets, sarees, Diwali candles and agarbattis are beinhg sold through door-to-door marketing efforts and through cooperatives.

 

Sports

SAIL has also become a part and parcel of the sporting history of the Nation. Right from the early trickles to the recent deluge of medals, awards and accolades, the steel major has supported many sports disciplines and promoted numerous sportspersons. SAIL supported wrestlers Sushil Kumar, Yogeshwar Dutt and Deepak Sharma, all of whom won top honours and made the nation proud during international events such as the Beijing Olympics and Commonwealth Games 2010. SAIL was the presenting sponsor of World Cup Hockey 2010 and is also sponsoring the Asian Tour-level SAIL Open Golf Championship for the past 4 years, besides prestigious annual events such as Davis Cup, SAIL Trophy Cricket Tournament, DSA league, Nehru Cup, etc. The company has also set up 6 academies at its plant and mines locations – for Athletics (boys and girls), Hockey, Football and Archery.

 

Preservation of Art and Culture

Promotion and preservation of various forms of Indian arts and cultures enriches our cultural diversity. To fulfill this aspiration, SAIL has supported maintenance of monuments in Delhi’s Lodhi Gardens, and Vedvyas, Saraswati kund in Rourkela. To take care of distinct features of tribal culture, a 5-day Chhattisgarh Lok Kala Mahotsav is celebrated every year in Bhilai and nearby places in which more than 600 artistes participate. To promote local culture and games, various Gramin Lokotsavs and Gramin athletics competitions are organised by SAIL at different locations throughout the year.

 

 

Awards and Accolades

SAIL’s efforts as a responsible corporate citizen in Nation building have been recognized by various organizations in the form of awards and accolades. These include the SKOCH  Financial Inclusion Award-2012 for Women Empowerment , India Shining Star CSR Award-2010 by Wockhardt Foundation in the Iron and Steel category, SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness for the year 2008-09, Annual FICCI Awards 2008-09 in the category of ‘The Vision Corporate Triple Impact – Business Performance, Social and Environmental Action and Globalization’, Business World -FICCI-SEDF CSR Award for the year 2006, FICCI Award for Rural and Community Development 2006-07, CSR Award of the Ministry of Rural Development, Government of India, Golden Peacock Award – 2008, 2009 and 2008-09 for CSR to Bhilai Steel Plant , CSR Award of Tamil Nadu Government to Salem Steel Plant for the consecutive years 2007-08 and 2008-09,  etc

 

CONCLUSIONS:

The top management of Bhilai Steel Plant gives prime importance to environment management and green initiatives. BSP, as a responsible corporate citizen is fully committed to safeguard, maintain and improve the quality of the environment and protecting human health. BSP is contributing to reduction of 45 million tons of carbon dioxide considering 30 years service life of its new generation products. BSP has also adopted various environmental protection measures through natural resources conservation, pollution control systems implementation and waste minimization, recycling and reuse strategies. These efforts have resulted in minimizing the adverse impacts on the environment and health of employees and people inhabiting the surroundings. BSP is the first public sector company in India to have published this report and second steel plant in world to publish sustainability report as per GRI G3 guidelines. As a symbol of a "New Age" in India, Bhilai Steel Plant has been consistently performing on various grounds including CSR and green initiatives, despite several odds and has achieved profit for the twenty first consecutive years. Their journey is marked by indomitable Bhilai spirit which enabled organization to scale newer heights every year.

 

REFERENCES:

Bagchi Jayanta, “Development of Steel Industry in India”, I. K. International Pvt. Ltd, 2005, pp. 120

Crowther David and Bacchus Lez Rayman, “Perspectives on corporate social responsibility -Corporate social responsibility series”, Ashgate Publishing, Ltd., 2004, pp. 161

Dave S, Praveer Saket Ranjan and Shrivastava Monika, “A Critical Evaluation of Bhilai Steel Plant (BSP) as a Learning Organization: An Empirical Study” ,Pranjana: The Journal of Management Awareness, 2007, Volume : 10, Issue : 2

Fernando A. C., Business Ethics : An Indian Perspective, Pearson Education India, 2009 , pp. 237

National Weld Meet 2009 On Fighting Recession through Reclamation and Welding, Bhilai Steel Plant, Bhilai and The Indian Institute of Welding, Bhilai Branch , 29th August 2009

Sawhney Aparna, “The new face of environmental management in India; Ashgate studies in environmental and natural resource economics-New Voices in Economics Series’, Ashgate Publishing, Ltd., 2004, pp. 28

Soundarapandian M. “Green Productivity in Small and Medium Enterprises”, Concept Publishing Company, Vol. II , 2007, pp. 53

 

Web References:

http://www.anmconsultants.com/corporate-social-responsibility-green-initiatives-case-study-bhilai-steel-plant

http://www.indiacsr.in/en/?p=4874

www.sail.co.in

www.sail-bhilaisteel.com

http://www.indiacsr.in/en/?p=4874.

www.bhilai.co.in accessed on 5th August’2013.

www.steelworld.com/profile04008.pdf

 

 

 

Received on 17.01.2014               Modified on 28.01.2014

Accepted on 11.02.2014                © A&V Publication all right reserved

Asian J. Management 5(2): April-June, 2014 page 166-169