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
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.
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http://www.anmconsultants.com/corporate-social-responsibility-green-initiatives-case-study-bhilai-steel-plant
http://www.indiacsr.in/en/?p=4874
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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