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Corporate Social Responsibility Practices in Indian Mining Industry: An Exploratory Study

Authors:
  • Banaras Hindu University, INDIA
  • Central University of South Bihar
Strategic Corporate Social Responsibility- Towards a Sustainable Business, New Delhi
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Corporate Social Responsibility Practices in Indian Mining Industry: An
Exploratory Study
Dr S C Das (Professor of OB and HR), Faculty of Commerce, Banaras Hindu University, INDIA
Pradi Ram, Doctoral Scholar, BHU
1. Introduction: A business organisation is a social unit because it totally depends on the
society for its effective performance in the economy. The society contributes Human
Resource, Infrastructure facilities, Intellectual facilities etc. That helps an organisation in
effective working and achieving higher profit in the competitive market. The economic
activity of the organisation causes of various bad impact on the people, environment, society
and the locality where the organisation is established. Thus redressing, maintaining,
developing of society, environment and people from bad impact of corporate economic
activities is the responsibility of the organisation. These responsibilities of the organisation
are considered as the corporate social responsibility of the organisation. The term social
responsibility has been defined by the various organisations, people and the intellectuals in
different way. Gray in(1987) defined CSR as “the process of communicating the social and
environmental effect of organization economic action to particular interest group within the
society and society at large” .Similarly Perk in (1993) defined CSR as “disclosure of those
cost and benefit that may or may not be quantifiable in monitory term arising from
economic activity and subsequently born by community at large or other stakeholders”
According to EU Commission [(2002)347final:5] “CSR is the concept whereby companies
integrate social and environmental concern in their business operation and in their interaction
with their stockholders on a voluntary basis.” Mining companies have long had a
questionable reputation for social responsibility, especially in developing countries. In recent
years mining companies operating in developing countries have come under increasing
pressure as opponents have placed them under greater public scrutiny. Mining companies
have responded by developing global corporate social responsibility strategies as part of their
larger global strategies. In these strategies a prominent place is given to their relationship
with local community. In the mining sector Corporate Social Responsibility (CSR) refers to a
company’s voluntary actions to either reduce the negative impacts of mining (economic,
social, and environmental) or to improve the living conditions of the local communities
where they operate. By definition, voluntary actions are those that go beyond legal
obligations and binding contracts. Thus, agreements between communities and companies
cannot be considered part of a company’s CSR program because these agreements are similar to
binding contracts (Hamann and Kapelus, 2004).
2. Objective and Methodology
2.1 Objective: The paper attempts to explore the CSR practices that have been adopted by
the select companies under Mining Sector of India.
2.2 Methodology: The methodology adopted in this study is of general review in nature and
falls under the category of exploratory study based on the secondary sources of data. The
study is confined in three Central Public Sector Mining Companies in India. This study has
been divided into three parts. In first pats this paper defines CSR in mining industry. In the
second part paper describes various adverse affects of mining on society including local
communities, environment, people and climate. In the third part of this paper performance of
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the mining companies to the obligation of social responsibility has been shown and
accordingly suggestions have been given.
3. Review of Literature
Viviers and Boudler (2008) investigated the CSR performance of selected mining
companies listed on Johannesburg Security Exchange in the year 2006. The annual report of
the company were analysed by content analysis and found that, those things which have
economic impact like HIV/AIDS are given priority in the CSR of mining companies, whereas
CSR issues related to empowerment receive less attention. This study recommended that
mining company should focus more on health and safety issues and environmental issues
which lies on ethical and philanthropic level of CSR. Cerner (2007) has given examples of
different countries on how they share the project benefit with the project affected persons.
Colombia allocates a certain percentage of benefits from hydroelectric plants to the
development of rehabilitated area. In Brazil there is a principle of reinvesting a percentage of
royalties from hydropower to the resettlement area. Canada adopted a strategy of partnering
with the local communities for equity sharing. In China there are important agencies, which
have the responsibility of managing the reservoir development funds and initiating
development interventions to benefit the resettles. Business for Social Responsibility (2007),
CSR brings not only risks for the mining industry, but also creates a set of opportunities. It
can help companies secure their social license to operate, contribute in a meaningful way to
sustainable development, and ultimately add value not just for shareholders but also for all of
their stakeholders- for the communities and others who are affected by the company’s
operations. Lahiri-Dutt (2007) in his study found that poor attention to community
development and engagement with the landowners caused the closing down of a large copper
mine in Papua New Guinea. The Phulbari coal mine project in Bangladesh was abandoned in
(2006) because of community agitations for alternative livelihoods. Verma and Chauhan
(2007) found that roads, pollution and power are the major concern of corporate CSR
activities as compared to least concern area which is communication and education. Jenkins
and Yakovleva (2006) explore recent trends in the reporting of social and environmental
impacts and issues in the global mining industry. He studied world’s 10 largest mining
companies. The result shows that there is evidence of increasing sophistication in the
development of social and environmental disclosure, there is considerable variation in the
maturity of reporting content and styles of these companies. Banerjee (2004) mentioned that
for carrying mining activity in the future, adequate attention should be given to the social
dimensions of mining. He has mentioned the commendable community development work
done by many mining companies and to disseminate the knowledge generated. Hamann and
Kapelus (2004) argued that CSR related narratives and practices can be fruitfully assessed
with reference to accountability and fairness as key criteria. Arora and Puranik (2004)
reviewed contemporary CSR trends in India concluding that the corporate sector in India
benefitted immensely from liberalization and privatisation process, its transition from
philanthropic mindsets to CSR has been lagging behind its impressive financial growth.
Conway (2003),in his study on iron ore mining industry in Goa and found that many
large mining companies have their own initiatives towards environmental and social
development. However, a structured CSR policy and planning is missing especially among
the small and medium players in the industry. TERI Europe and ORG-MARG (2001),
conducted a survey in several cities in India and found that more than 60% of the people felt
that the companies should be held responsible for bringing down the gap between rich and
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poor, reducing human rights abuses, solving social problems and increasing economic
stabilities. A survey conducted by CSM (2001) found various dimensions that companies
follow for performing CSR. Various dimensions are national wealth, employment,
environment and social programme including health and literacy. Arora and Puranik (2004)
found in his study that there are appreciably several cases of companies in India involved in
diverse issues such as health-care, education, rural development, sanitation, micro-credit and
women empowerment, arts, heritage, culture, and conservation of wildlife and nature, etc
Given the increase in corporate profits on the one hand and the reality of human-poverty and
development indicators on the other, CSR seem to be in a embryonic stage in India.
4. Mining Effects: Minerals are non-renewable and limited natural resources and
constitute basis of vital row materials for various important industries. The extraction of
mineral from nature often creates imbalances which adversely affects the environment and
society at large. The key environment effects of mining are on wildlife and fishery habitats,
the water balance, local climate and pattern of rain fall, sedimentation , the depletion if the
forest and disruption of the ecology. Therefore, management of country’s mineral is closely
associated with her overall economic development and environment protection.
4.1 Effect of Mining on Ground Water: Perhaps the most significant impact of a mining
project is its effects on water quality and availability of water resources within the project
area. When mined materials are excavated and exposed to oxygen and water, acid can form if
iron sulphide minerals are abundant and there is an insufficient amount of neutralizing
material to counteract the acid formation. The acid will, in turn, leach or dissolve metals and
other contaminants from mined materials and form a solution that is acidic, high in sulphate,
and metal-rich (including elevated concentrations of cadmium, copper, lead, zinc, arsenic,
etc.) Elevated levels of cyanide and nitrogen compounds (ammonia, nitrate, and nitrite) can
also be found in waters at mine sites, from heap leaching and blasting. Acid drainage and
contaminant leaching is the most important source of water quality impacts related to metallic
ore mining (Environment Health and Safety , 2007) The water in coal mining areas has been
found highly acidic. The pH (Power of Hydrozoans) of streams and rivers varies between
2.31 to 4.01. However, pH of the Myntdu River was found to be 6.67. This indicates serious
condition of the water bodies of the area that hardly can support any aquatic life such as fish,
amphibians and insects. Contamination of Acid Mine Drainage (AMD) leads to acidity or
low pH of the affected water bodies. Acidic water is a matter of primary concern since it can
directly be injurious to aquatic organisms. It also facilitates leaching of toxic metals into the
water that could be hazardous to aquatic life, directly or can disturb the habitat after
precipitation (Indian School of Mines, Dhanbad).
4.2 Mining effect on aquatic life: The mining process not only affects the ground water but
also to the aquatic life of the rivers. An unaffected river aquatic community comprises of
Phytoplankton’s, Periphyton, Macrophytes, zooplanktons, invertebrates and vertebrate
species which play important role in normal functioning of the aquatic ecosystem, any
physical chemical or biological change in water bodies affects one or all species and disturbs
the normal functioning of the aquatic ecosystem. Like many other potential pollutants, mine
drainage causes a reduction in the diversity and total numbers, or abundance, of macro-
invertebrates and changes in community structure (Weed and Rutschky, 197)
.
4.3 Effect of Mining on Air Quality: Air pollution is the common environmental problem in
all mine and quarries, especially open cast operations. Airborne emissions occur during each
stage of the mine cycle, but especially during exploration, development, construction, and
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operational activities. Mining operations mobilize large amounts of material, and waste piles
containing small size particles are easily dispersed by the wind. Larger sources of water
pollution in the mining are mobile sources and stationary sources. The mobile sources include
heavy vehicles in excavation operation cars that transport personnel at the mining site, and
trucks that transport mining materials. The second sources of air pollution are the stationary
sources this sources includes combustion of fuels in power generation and installation and
drying, roasting and smelting operation (US Environmental Agency, 2009). Many producers
of precious metals metal on-site, prior to shipping to off-site refineries. Typically, gold and
silver is produced in melting/fluxing furnaces that may produce elevated levels of airborne
mercury, arsenic, sulphur dioxide, and other metals which is very dangerous the health of the
environment and the people working in and live in the surroundings. According to
environmental impact Assessment Engineering Institute for the Manganese mine in Sandur
Taluk ,Bellary district, the average suspended particulate matter concentration at various
locations between 130ug/m3and 1678ug/m3.the maximum suspended particulate matters
concentration observed 4474ug/m3. These values are found to be within the norms prescribed
by the director general of mine safety, of 5000ug/m3. However, the permissible level of
suspended particular matter for industrial area as per central pollution control board norms is
300ug/m3 (The state of the environment report, 2003).
4.4 Effect of Mining on Land: Land degradation is one of the significant impacts arising out
of mining and quarrying activity which is mainly in the form of alteration of land due to
excavation, staking of top soil. Stone and sand quarrying causes damage to property,
depletion of ground water, loss of fertile top soil, degradation of forest land adversely affects
on environment and public health. Haphazard quarrying of sand from the riverbed leads to
damage of infrastructure like bridge and roads. Mining operations routinely modify the
surrounding landscape by exposing previously undisturbed earthen materials. Erosion of
exposed soils, extracted mineral ores, tailings, and fine material in waste rock piles can result
in substantial sediment loading to surface waters and drainage ways. In addition, spills and
leaks of hazardous materials and the deposition of contaminated windblown dust can lead to
soil contamination. This leads to the ineffective productivity of the land (Environmental
Management in Mining, 2002).
4.5 Effect of Mining on Children, Women and Tribal People: In the remote mining areas
children are used as the child labour. They are not provided heath and school facility in, the
neighbourhood of mining area. In the earlier stage they are given the task of stone braking in
smaller pieces and help in loading the stone on trucks. The ILO estimates that more than one
million children worldwide are involved in mining. However, this might be a huge
underestimation. Organizations working in Rajasthan alone, estimate that in that state alone
375,000 children work in the mines and quarries across that state. In the state of Karnataka at
east 200,000 children are said to be working. Cheap child labour is welcomed by the
contractors. The response from the Indian labour department is complete denial.. However, a
big percentage of the stone quarries is illegal (from 25% in Maharashtra to even 50% in
Rajasthan) and are not dealt with in official statistics. Even more children are engaged in
tasks to enable their parents to work fulltime in the quarries - e.g. herding goats and taking
care for younger siblings. The poverty and hardship in which the mine workers’ families live
is well illustrated with their daily diet: rot is with chillies and onions. There is no money for
rice or vegetables. Hence it is not a surprise that the majority of the children the research
team met are chronically malnourished (India Committee of the Netherlands, 2010).
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The situation of the women in the mining sector is not healthy women join the labour
force in quarries and mines to increase their low family income, to be able to repay debts, or
to replace their husbands who are bedridden or have passed away. They have to suffer from
silicosis disease which is causes of death of women at the mining place. In the quarries
women have separate tasks then man. Men are treated skilled worker and women unskilled
worker so discrimination is also prevail in man and women wages. Women are paid less then
minimum support wages.
5. Guideline of CSR for Central Public Sector Enterprises in India
The Department of Public Enterprises, Ministry of Heavy Industries and Public
Enterprises have issued in April 2010, comprehensive “Guidelines on Corporate Social
Responsibility for Central Public Sector Enterprises”. The new guidelines emphasis on the
link of Corporate Social Responsibility with sustainable development and define Corporate
Social Responsibility (CSR) as a philosophy wherein organizations serve the interest of
society by taking responsibility for the impact of their activities on customers, employees,
shareholders, communities and the environment in all aspects of their operations. Under these
guidelines, the long-term CSR Plan should match with the long-term Business Plan of the
organization. The activities under CSR are to be selected in such a manner that the benefits
reach the smallest unit i.e., village panchayat, block or district depending upon the operations
and resource capability of the company. The activities undertaken under CSR should also be
in consonance and consultation with State Governments, district administration, local
administration as well as Central Government Departments/Agencies, Self-Help Groups, etc.,
to avoid duplication. This guideline gives direction for the expenditure of the amount by the
company in a year. According to this guideline Expenditure range for CSR in a financial year
is 3-5% of the net profit, of previous year, in case of CPSEs having profit less than Rs. 100
crore; 2-3% (subject to minimum of Rs. 3 crores) in case the profit ranges from Rs. 100 crore
to Rs. 500 crore and 0.5-2% in case of CPSEs having a net profit of more than Rs. 500 crore
in the previous year. Loss making companies are not mandated to earmark specific funding
for CSR activities but may achieve this objective by integrating business processes with
social processes, wherever possible. The CSR budget has to be fixed for each financial year
and the funds would be non-lapsable. Under these guidelines special stress has been laid on
the proper monitoring of the CSR projects undertaken. The Boards of the CPSEs would be
responsible for the implementation of the CSR activity which would then be a part of the
annual MOU signed between CPSEs and the Government. Also, there is a provision for
appointment of Social Audit Committee and independent external agency for periodic
monitoring as well as evaluation (Approval for Revival of 40 CPSES, November 2010).
6. Performance of CSR of CPSEs in India
Corporate social responsibility is one of the burning questions in developing countries
like India. Mining sector of CPSEs is one of the important and big sectors that provides
fundamental base for the various industries and helps in the infrastructure and economic
development. SAIL, ONGC, and CIL are the biggest company in the mining sector of India.
The performance of CSR in the companies varies according to the objective, vision and
mission of the organisation.
6.1 SAIL: Over the years, the largest steel enterprise in India, SAIL has emerged as a
synonym for steel. SAIL a Maharatna company, maintained its position as a leading producer
of crude steel in the country. It is a matter of great pride that for the first time ever SAIL’s
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turnover crossed `50,000-crore (in 2011-12) mark during the year, at a time when the global
economy faced many challenges. SAIL is really about its people-committed, talented,
passionate employees who want to create and do something meaningful and lasting so as to
realise their full potential & make a positive impact in their area of work. SAIL has
succeeded in instilling the strength that drives our economy’s upsurge. SAIL will continue to
play its leading role in steel ensuring the sustained growth of our economy. This will no
doubt make our company a successful corporate entity with global competence. (CIL Annual
Report, 2011).
In the area of corporate social responsibility SAIL invest 2 % of budgeted
distributable surplus (after Dividend and Dividend Tax). SAIL focus on social responsibility
remains unwavering. The pivotal role of education, health, income generation and sustainable
development is the cornerstone of Corporate Social Responsibility. On the health, the
company is operating 54 Primary Health Centres, 12 Reproductive and Child Health Centres,
17 Hospitals and 7 Super-Specialty Hospitals which provide specialized healthcare to more
than 30 million people living in the vicinity of its Plants and Units. In the year 2011-12, in
order to reach to the underprivileged, over 2400 camps have been organized across the
Country benefiting around 1.80 Lakh people providing free health check-up, path-lab
treatment, medicine, immunization, etc. In the field of education, Company has opened over
146 schools in the Steel Townships to provide modern education to about 70,000 children.
Besides adopting and providing free education and facilities to tribal children, SAIL is
providing assistance to over 286 schools. In this endeavour, SAIL has achieved a Girl: Boy
ratio of 1:1 for all levels of education and a survival rate, i.e. rate of retaining enrolled
students of 93% in SAIL Primary Schools and 90% in SAIL Secondary Schools. Seven
Special Schools for BPL (Kalyan Vidyalaya) at five steel Plants with facilities of free
education, mid-day meals, uniform including shoes, text books, stationery items, school bags,
water bottles and transportation in some cases are running under CSR. Scholarships to
deserving undergraduate & postgraduate engineering students, adoption of 180 tribal children
at Bhilai & fourteen of nearly extinct Birhore Tribes at Bokaro, 4 girl students for Nursing
Course, etc. are the major steps taken for uplifting poor, OBC & SC, ST. With the help of
Akshay Patra Foundation, SAIL is providing Mid-Day Meal to more than 18000 students in
different schools of Bhilai everyday. SAIL has provided access to around 75 lakh people
across 450 villages since inception by constructing and repairing of roads. It has provided
access to water infrastructure to people living in far-flung areas by installing over 6000 water
sources, thereby providing drinking water access to around 50 lakh people. 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”
across the country (in eight states). The developmental activities being undertaken in these
villages include medical & health services, education, roads & connectivity, sanitation,
community centers, livelihood generation, sports facilities, etc. Works at 71 villages have
been completed till 2011-12. Vocational training has been provided to in areas such as
improved Agriculture, Mushroom Cultivation, Poultry, Fishery, Piggery, Agarbati making,
Welder, Fitter & Electrician Training, Sewing and Embroidery, etc. Vocational Training
centre for rural and unemployed youths ‘Bhilai Ispat Kaushal Kutir’ at Bhilai, Skill
Development and Self Employment Training Institute (SDSETI) for the benefit of the women
and girls at Durgapur and Self employment centre “KIRAN” at Kiriburu Ore Mines are
benefiting common masses by way of financial inclusion/ SHG and then empowering them to
be part of main stream.
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SAIL is committed to a sustainable environment and is continuously enhancing its
environmental performance as an integral part of its business philosophy and values. A
number of environmental initiatives have been taken by Company during the year yielding
positive results. The highlights of this area are as under: Best ever achievements were made
during the year 2011-12 in respect of the following Environmental Indices:
2.81 lakh saplings have been planted in and around SAIL Plants and Mines
during the year.
VISL, Bhadravati has been accredited to ISO 14001 Environment
Management System.
As a part of Greening of Warehouses Initiative, to start with, Warehouses of
CMO at Faridabad, Chennai, Kalamboli and Dankuni were accredited to
ISO 14001 Environment Management System.
Sustainable Development Policy for the Company has been formulated and
released.
“Golden Peacock Environment Management Award, 2011” was conferred
upon SAIL in recognition of SAIL’s initiatives and achievements in the field
of environment management
Based on the large and varied experience acquired over last five decades, SAIL,
thought SAIL Consultancy Division (SAILCON), provides design, engineering, training,
technical & management consultancy services in Iron & Steel and related areas and offers a
wide range of services to clients globally. To scale up the activities and to further reinforce
the brand image of SAIL as a consultant, SAILCON is continuously exploring the market,
both within and outside the Country for possible business opportunities as well as joint
ventures with Global consultants for commercialization of SAIL’s expertise. During the
Financial Year 2011-12, SAILCON, ISO: 9001:2008 certified quality organization and the
single window consultancy division of the Company recorded the highest ever order booking.
‘SAILCON’ has executed assignments within India and abroad covering countries like Egypt,
Saudi Arabia, Iran, Qatar, Thailand, Nepal, Philippines, etc.
6.2 ONGC- It was formed in 1956 with the vision of great leaders to make our country
energy-sufficient. Since then, the company has taken every step to fulfil this promise. Over
the years, the company has discovered 6 of the 7 producing basins in India and added 6.4
billion tonnes of Oil and Gas reserves. Today, according to Platt’s Top 250 Global Energy
Ranking, ONGC is the no. 1 E&P (Exploration and Production) Company in the world. The
company is ready to touch new horizons of growth by resolutely focusing on its Oil & Gas
production capabilities. ONGC aims to explore newer avenues for a greener planet, excel in
.its exploratory endeavours and evolve into a complete energy solution provider. (ONGC
Annual Report, 2011).
The Corporate Social Responsibility (CSR) initiatives of ONGC continues to
primarily focus on education, health, entrepreneurship development, women’s empowerment,
girl child development and water management. For the development and improvement of the
weaker section of the society like SC/ ST ONGC provides job in the company. The number
of percentage Scheduled Caste (SC) and Scheduled Tribe (ST) employees was 15.76% and
8.74% respectively as on 31st March, 2011.The following welfare activities are carried out by
your Company for their upliftment in and around its operational areas.
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I. Annual Component Plan: An amount of 31.00 million is distributed to various work
centres of ONGC for implementation of welfare schemes. This fund is especially
meant for providing help and support in areas like Education and training,
Community development, Health care, etc.
II. Scholarship to SC and ST Meritorious Students:ONGC spent 4.77 million for
supporting 96 students of the SC and ST community for pursuing higher professional
courses at different recognized institutes and university.
III. ONGC- GICIET-Computer Education Project with Bharatiya Vidya Bhavan:
The initiative envisages setting up of five computer centres in Uttarakhand, Assam,
Andhra Pradesh, Pondicherry and Gujarat for unemployed youth.
IV. HEAT with Haemophilia Federation of India: This operation is to transform lives
of 1000 children with Haemophilia through education.
V. 'Gram Sarv Utthan' with SEED (Society for Educational Welfare and Economic
Development): This scheme attempts to Community mobilization, in school
intervention, adult education with special focus on female literacy, vocational training
to community youth, health and sanitation utilization of effluent water in 3 villages in
Bokaro, Jharkhand.
VI. Construction of Halls and Kitchen with SVS (Shramik Vikas Sansthan): This
scheme provides financial assistance for construction of additional Hall, staff
room & kitchen for the hostel for tribal children in Bhekhadia village, Kawant Tehsil,
Gujarat.
.
VII) TERI-ONGC “Soldiers of the Earth” Project: The Soldiers of the Earth campaign
is an all encompassing, environmental awareness generation program. The campaign
undertaken at Dehradun, Ankleshwar and Nazira is aimed at sensitizing children and
young adults towards a greener future.
VIII) Badhte Kadam: This scheme helps in massive pan-India disability awareness raising
program throughout the country.
IX) Mokshda Green Cremation System: This programme has setting up of 30 energy
efficient and environmental friendly green cremation system in association with local
municipal bodies at work centres of ONGC.
.X) Ashadeep' Girl Child Education Program: This programme aimed to ensure
continued schooling of the girl students belonging to economically weaker sections of
society, with observable improved learning levels of the support receiving students.
XI) Project Saraswati with NGRI: This programme is concerned with exploring deep
underground water resources in Rajasthan to provide new sources of ground water in
the desert / drought prone areas with possible scope for long distance recharge.
(ONGC Annual Report 2011-12).
6.3: CIL- Policy on corporate social responsibility of CIL is broadly framed taking into
account the following measures:
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a) Welfare measures for the community at large including employees and their families.
b) Proper land rehabilitation of land displaced persons based on R&R policy separately
and expenditure of R&R issues would be included in the project cost.
c) Contribution of the society at a large by way of social and cultural development
imparting education , training, and social, awareness specially with regard to
backward class and generation of employment.
d) Promotion and safeguard of environment and maintaining ecological balance.
e) The mine of the coal India and its subsidiaries are located in different parts of country
in 8 states and relatively in isolated area with little contract of outside society. Mining
of the coal has profound impact on the peoples living in and outside the area where
the mine are established. (Corporate Social Responsibility in CIL, 2009).
As per the CSR policy fund has been allocated to each company based on 5% of the
retained earnings of previous year subject to minimum Rs 5 per tonne of coal production in
previous year for implementation of CSR activities in and around mining area within the
radios of 15 kilometre for the benefit of the villagers and community at large including SC
and ST. During the year 2010-11 an amount of 262.28 Crores has been allocated for taking
CSR activities. CIL India has always given the highest priority towards safety. Safety is
concerned as a part of its core production process and is embodied in the mission statement.
CIL has adopted a Central Environmental Policy duly approved in the year 1995 science then
due to changing environmental scenario CIL has also revised his environmental policy in the
year 2012 in the board meeting. Science the beginning CIL has planted around 76 million
trees in the area of 33000 Ha. Various actions have been initiated for the implementation of
the ISO: 41001 in CIL mines. In the year 2011-12, a total of 21 projects and one hospital has
got certificate. With this total, a lot of 79 units got the certificates till the date which includes
open cast projects, workshops and hospitals. Mining is an inherently hazardous activity due
to varying geology and geo mining condition. So to minimising the health risk of the
employees and people of the society CIL has provided 85 hospital facilities with 5806 bed,
424 dispensaries, 664 ambulance, and 1488 doctors including specialist.(CIL Annual report
2011-12).CIL adopted rehabilitation and resettlement policy in the year 2008. This
resettlement and rehabilitation policy aims to peruse best practices for car initiative in
vicinity of coal field and to ensure community involvement and (CIL Annual report 2008-
09).
7. Discussions and Conclusion
On the basics of the survey of annual report of SAIL, ONGC and CIL which are the
large mining companies of CPSEs, it is found that all mining companies whether it is coal
mining, iron ore mining or petroleum mining are conscious about the society, environment
,local people and the employees in the organisation. SAIL one of the big company in field of
the iron and steel production and got SCOPE Meritorious Award for Environment Excellence
& Sustainable Development for the Year 2009-10. SAIL made expenditure of two percent of
budgeted distribution. Development of the health facility in SAIL is supported by seventeen
hospitals, seven super specials hospitals which provide health facilities around one lakh
people. The gap between rural and urban area has been filed by comprehensive development
of both physical and social infrastructure facility by the company. SAIL has developed
seventy nine villages as the Modal Steel Village. These villages have been provided all
infrastructure and basic facilities for the development and growth of the people of the village.
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Vocational training has been provided to in areas such as improved Agriculture, Mushroom
Cultivation, Poultry, Fishery, Piggery, Achar / Papad/ Agarbati making, Welder for
generating the job opportunity in rural areas.
ONGC, the oil mining company of Maharatna status performs social responsibility
by enhancing the social health, providing educational facilities, protecting environment. The
company expended thirty one million to various centres in the year 2011.For the development
of computer educational ONGC has implemented ONGC- GICIET-Computer Education
Project facility by setting up of five computer centres in Uttarakhand, Assam, Andhra
Pradesh, Pondicherry and Gujarat for unemployed youth .ONGC conducted various training
programs for its executives and staff spanning 200,674 training man-days for the
development of the employees during the year 2010-11, ONGC give emphasis on the women
empowerment .The contribution of the women in the workforce of ONGC is 6.2%. During
the year, programs for empowerment and development, including program on gender
sensitization was organized. Company actively supported and nominated its lady employees
for programs organised by ‘Women in Public Sector’ (WIPS) and ‘Women in Leadership
Roles’.
CIL contributions in the social responsibility is five percent of the retained earnings
of the previous year for implementation of CSR activities in and around mining area within
the radios of 15 kilometre for the benefit of the villagers and community at large including
SC and ST. During the year 2010-11 an amount of two hundred sixty two Crores has been
allocated for taking CSR activities. CIL has adopted Central Environmental Policy 2005 for
keeping the environment clean and pollution free and it has been revised in the year 2011-12
to facing recent environmental challenges. Till now about seventy six million trees have been
planted in the area of thirty three thousand hectare by CIL in the form of CSR. To minimising
the health risk of the employees and people of the society CIL has provided eighty five
hospital facilities with five thousand eight hundred six bed, four hundred twenty four
dispensaries, six hundred sixty four ambulance, and one thousand four hundred eighty eight
doctors including specialist. CIL resettlement policy adopted in the 2008,helps to various
people affected by mining activities in the form of rehabilitation packages, compensation to
person whose house are acquired, land lessees, tenants and day labours, self employment to
landless tribals who are dependent on forest product and community facility and activities
under the CSR initiatives.
On the basis of survey of the annual reports of the mining companies of India, it is
found that all these three mining companies are involved in the corporate social
responsibility. They allocate certain percentage of their profit for performing social
responsibility of the corporate. These companies gives priority to society, environment and
employees in performing their social responsibility. The health, which is considered a prime
component for the employees and the people of the society is provided in the form of good
hospital, specialised doctors and proper medicine facility by the company. For the upliftment
of the rural area and unskilled people of the rural area various schemes such as women skill
development programs, vocational training programmes etc. have been launched by these
companies. Along with the development of the poor people of the society a special attention
over the backward people like SC, ST has been given special priority by the companies. For
developing them, companies are providing job opportunity in the organisation, financial
assistance and other fundamental facilities. Protection and development of the natural
environment is also given importance in the social responsibility of the companies.
Companies are involved in the plantation of trees and various other programs to protect the
natural beauty. Protection of the employees from the bad effects of the mining activities,
employees are given special facilities and the protection by the companies. Overall
Strategic Corporate Social Responsibility- Towards a Sustainable Business, New Delhi
11
performance of the companies aims at sustainable development along with corporate social
responsibility.
As per the ‘Guidelines on Corporate Social Responsibility for Central Public Sector
Enterprises (2010)” Department of Public Enterprises, India CPSE’s are required to spend at
least 2% of their average net profits during the three previous financial years towards CSR
activities. But the guidelines do not provides proper break up contribution in different areas
of CSR especially on local communities’ issues. Historically, the mining sector has brought
important economic gains to both mining companies and local communities. The main
economic benefit for locals was an increase in employment opportunities. However, in the
past few years the mining sector has become more technologically intensive and it requires
fewer unskilled workers. Since local communities do not see as many direct benefits from the
mining industry as they used to, they are now challenging and opposing mining projects more
frequently. Furthermore, increased environmental concerns have also contributed to
resistance to mining activities.
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