Chapter 1-Introduction

Introduction

Origin of the report:

As a partial requirement of M.com (Management) we are required to study the “Organizational Behavior” In the classroom we get the opportunity to know the theoretical part of the subject.

But without practical orientation it is somewhat difficult to grasp the core concept. Organisational Behavior is entirely based on practical situation. So in order to enhance the understanding of the core concept, we are required to prepare a report on practical situation to understand how to implement and practice the theoretical part in real life situation.

Objectives of the study:

General Objective:

The general objective of preparing this report is to know about the “Corporate Culture in India” & fulfill the requirement of the subject 'Organizational Behavior”.

Specific Objective:

The specific objective of preparing this report is -

To get a general idea about the Corporate Culture .

To gather practical knowledge about Corporate Social Responsibility .

To analyze the how Corporate perform social Responsibility.

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Scope of the study:

Corporate in India plays a pivotal role in the economy of any country. They provide necessary instrument and employment to setup different industries essential for a nation to build strong economy. This report has been done basically on analyzing the theoretical and practical practices of Corporate Culture.& how employee employees get effected from it.

Methodology:

The report in this study is basically an inductive one. Two different types of systems have been selected here based on convenience. The report is based on both primary and secondary information.

Primary Information: The primary data have been collected from our class lecture, various types of individual professionals.

Secondary Information: The secondary information has been extracted from various textbooks of Entrepreneurship Development. Other notable information that was used for this report was the information gathered from websites which is mention in bibliography

Limitation:

In spite of having the wholehearted effort, there were some limitations, which acted as a barrier to conduct the program and for doing an empirical research work, such as:

Time Constraint:

The study is based on the analysis of Corporate Culture But this allocated time is not enough for a complete and fruitful study.

Lack of Experience:

Due to lack of experience, there is a chance of having some mistake in the report though best effort has been applied to avoid any kind of mistake.

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Corporate Culture & C.S.R.

Whether written as a mission statement, spoken or merely understood, corporate culture

describes and governs the ways a company's owners and employees think, feel and act. Your

own business's culture may be based on beliefs spelled out in your mission statement. It could

consist in part of a corporate symbol, like the rainbow-colored apple that symbolizes Apple

Computer. Whatever shape it takes, your corporate culture plays a big role in determining how

well your business will do.

If you're not happy with your current culture, there are things you can do to start changing it

now. Look for a symbol, story, ritual or other tool you could use to bring out the values and

practices you want for your company. Your cultural tool might be a new corporate logo

symbolizing your company's personality. Or you could choose a story to embody your approach

and make it part of your culture. If you can't find a tool, make one. For example, you can turn an

admired former employee into a symbol by giving an award named after that individual,

complete with ritual ceremony.

The beliefs and behaviors that determine how a company's employees and management interact

and handle outside business transactions. Often, corporate culture is implied, not expressly

defined, and develops organically over time from the cumulative traits of the people the

company hires. A company's culture will be reflected in its dress code, business hours, office

setup, employee benefits, turnover, hiring decisions, and treatment of clients, client satisfaction

and every other aspect of operations.

Related Corporate culture refers to the shared values, attitudes, standards, and beliefs that

characterize members of an organization and define its nature. Corporate culture is rooted in an

organization's goals, strategies, structure, and approaches to labor, customers, investors, and the

greater community. As such, it is an essential component in any business's ultimate success or

failure.

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Closely related concepts, discussed elsewhere in this volume, are corporate ethics.which

formally state the company's values) and corporate image (which is the public perception of the

corporate culture). The concept is somewhat complex, abstract, and difficult to grasp.

A good way to define it is by indirection. The Hagberg Consulting Group does just that on its

Web page on the subject. HCG suggests five questions that, if answered, get at the essence:

What 10 words would you use to describe your company?

Around here what's really important? Around here who gets promoted? Around here what behaviors get rewarded?

Around here who fits in and who doesn't?

As these questions suggest, every company has a culture—but not all cultures (or aspects of

them) help a company reach its goals. The questions also suggest that companies may have a

"real culture," discernible by answering these questions, and another one which may sound better

but may not be the true one

The concept of corporate culture emerged as a consciously cultivated reality in the 1960s along-

side related developments like the social responsibility movement—itself the consequence of

environmentalism, consumerism, and public hostility to multinationals. Awareness of corporate

culture was undoubtedly also a consequence of growth, not least expansion overseas—where

corporations found themselves competing in other national cultures.

As corporations became aware of themselves as actors on the social scene, corporate culture

became yet another aspect of the business to watch and to evaluate—alongside the "hard"

measures of assets, revenues, profits, and shareholder return.

Corporate culture by definition affects a firm's operations. It is also, by definition, something that

flows from management downward and outward. In many corporations, the "culture" was set

very early on by the charismatic activity and leadership of a founder. But as major tendencies

become deeply institutionalized, corporate culture also becomes an institutional habit that

newcomers acquire. In actual practice "reinventing" the corporation from the top down,

therefore, is difficult to achieve, takes time, and happens only under strong leadership.

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Observers and analysts of the phenomenon tend to subdivide culture into its various expressions

related either to major constituencies (employees and workers, customers, vendors, government,

the community) or to methods or styles of operation (cautious, conservative, risk-taking,

aggressive, innovative). A corporate culture may also, by overstepping certain bounds, become

suicidal—as the case of Enron Corporation, the energy trader, illustrates. In the Enron culture an

aggressive, creative, high-risk style led to fraud and ultimate collapse. Analysis is helpful in

understanding how a corporate culture expresses itself in specific areas. However, the concept is

social and culture, as the phrase itself implies. It does not lend itself to reorganization by a

rearrangement of standard building blocks.

Corporate Social Responsibility:-

Corporate Social Responsibility or CSR has been defined by Lord Holme and Richard Watts in

The World Business Council for Sustainable Development’s publication ‘Making Good Business

Sense’ as “…the continuing commitment by business to behave ethically and contribute to

economic development while improving the quality of life of the workforce and their families as

well as the local community and society at large". CSR is one of the newest management

strategies where companies try to create a positive impact on society while doing business. There

is no clear-cut definition of what CSR comprises. Every company has different CSR objectives

though the main motive is the same. All companies have a two point agenda- to improve

qualitatively (the management of people and processes) and quantitatively (the impact on

society). The second is as important as the first and stake holders of every company are

increasingly taking an interest in “the outer circle”-the activities of the company and how these

are impacting the environment and society. Social responsibility is an ethical ideology or theory

that an entity, be it an organization or individual, has an obligation to act to benefit society at

large. Social responsibility is a duty every individual or organization has to perform so as to

maintain a balance between the economy and the ecosystem. A trade-off always exists between

economic development, in the material sense, and the welfare of the society and environment.

Social responsibility means sustaining the equilibrium between the two. It pertains not only to

business organizations but also to everyone whose any action impacts the environment. This

responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by

performing activities that directly advance social goals.

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INDIAN CORPORATE CULTURE:-

India’s success in entering and building a strong presence in the information technology

and business process outsourcing markets has often been attributed to the fact that a majority of

India’s educated workers speak English. This has been characterized as a unique advantage of

the Indian economy relative to other low cost areas in Asia, South America, and Eastern Europe.

However, language is one of just many factors that shape the corporate culture within a country.

Will India’s broader corporate culture become a source of competitive advantage in the way that

the widespread ability of Indians to speak English .other research indicate that corporate culture

does have the potential to become a source of competitive advantage for the Indian economy.

There are robust signs of emerging entrepreneurialism, professionalism, and strong governance

within India’s corporations. These traits are similar to those that the American economy has

exhibited over the last fifty years through rapid company formation, the growth of professional

managers, and good (though improving) governance through boards and public shareholders.

This contrasts with slower growing European economies where entrepreneurialism has been

dampened due to cultural and legal factors and some Asian companies where poor governance

has resulted in some large companies with hidden and deep financial problems.

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Corporate Culture and its Historical Context in India

The corporate culture in India from three perspectives:

How entrepreneurial are the business leaders within their organizations and how likely

are they to become entrepreneurs on their own? This characteristic of India’s business

culture will likely determine the rate of innovation and new company information.

Historically, while India has had a class of active entrepreneurs, government regulation

and bureaucracy has impeded such efforts. In addition, a business that ends in failure and

debts often leaves the founders of the business with a permanent stigma.

How professional, ethical, and dedicated are employees within organizations? This

characteristic will likely influence the ability for Indian companies to compete against

multi-national corporations and to enter global markets. Historically, some business

people have engaged in bribery and other corruption to advance their businesses due to

the pervasive bureaucracy of the Indian government. In addition, many large family

conglomerates have traditionally given preference to family members in promotion to

key positions.

What is the quality of the governance within the organizations? Good governance has

been identified as a key driver of economic success by firms such as McKinsey and is

likely to be crucial to many Indian firms that have traditionally been family owned and

run. Historically, governance in Indian firms has been a mixed bag ranging from tightly

controlled family conglomerates to state owned companies with bureaucratic oversight.

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Entrepreneurialism in India:

a strong culture of entrepreneurialism is emerging in India and has the potential to become a

source of competitive advantage. First, it was clear that employee mobility is rapidly becoming

accepted within India. Companies such as Wipro talked about maintaining employee turnover

rates of 20-30% as positive which indicates a mobile workforce that leaves for appropriate

opportunities. In addition, executives at companies such as Godrej were not just lifelong Godrej

employees, but recent hires as well. Employee mobility is critical to entrepreneurship – it means

that employees are willing to leave to join new ventures and also that they have the ability to

seek employment if the venture fails. The employee mobility is similar to that seen in America,

but is different from countries such as Japan or Germany where employees tend to have a longer

relationship with their employers. Second, Indian employees from overseas are starting to return

to India. executives at companies such as GE and Intel who had returned to India after working

for a number of years in the U.S. These workers bring capita but more importantly a familiarity

with the process of company formation, raising venture capital, and acquiring early customers

for new products. Finally, India is a diverse and fragmented market, which makes it challenging

to do business in and also creates more opportunities for entrepreneurial activities particularly in

areas such as consumer products and services. For example, executives at Godrej talked about

the difficulties of distributing and developing products for the very diverse consumer needs

across India. This is a challenge for Godrej, but also indicates that local entrepreneurs will have

an edge in understanding local needs for certain kinds of products and may be able to compete in

some segments against Indian conglomerates and multi-nationals. This is the opposite of markets

such as the U.S. where consumer products are fairly standardized across the country and thus the

barriers to entry for new consumer products are extremely high.

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Professionalism in India:

Meetings with a wide range of executives from mid-level managers at Wipro to editors at

the Times of India revealed a strong professional class that speaks perfect English,

communicates in the international language of Powerpoint, and that appear dedicated to

advancing the interests of their organizations. These professionals are aware of global

management frameworks and are conscious of the role that their organization can and must play

in India’s economic development. American executives would feel just as comfortable in an

Indian boardroom as they might in a boardroom in the America. This comfort level may be one

of the factors explaining the rapid development of research and other facilities by MNCs in

India.

However, is this apparent professionalism only skin deep? Are Indian corporations truly

adopting best practices in managing and promoting employees and in encouraging appropriate

employee behavior? There appear to be structural forces that are raising the level of

professionalism in India. First, foreign multi-nationals have rapidly become the employer of

choice for top graduates from business and engineering schools in India. These multi-nationals

are bringing their global human resources practices to India in terms of selecting, developing and

advancing employees as well as in their expectations of legal behavior by employees. Labor

mobility means that these practices are spreading across Indian businesses. However, more than

labor mobility, the market for talent is driving change throughout Indian companies. The Vice

President of Human Resources discussed the value proposition of working for Godrej. He talked

about how Godrej offers Indian employees a professional work environment with more latitude

than a multi-national corporation may offer. His presentation was tailored to answering the

question a graduate of India’s top university may ask: “Why should I work for a family run

conglomerate when I can join GE (or Infosys)?” India’s mobile labor markets are requiring all

Indian companies to evaluate their management practices to ensure that they have access to the

best talent.

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Governance in India

The issue of governance and its impact on India’s corporate culture is primarily relevant

to Indian companies as multi-national companies have global governance structures. Within

India, governance can be considered for three sets of companies:

Indian public companies with foreign ADR listings such as Infosys or Wipro. These

companies face the broadest and deepest set of legal requirements regarding governance

since they must comply with SEC regulations. However, what is impressive is that

companies such as Infosys have gone beyond typical requirements in promoting a higher

level of transparence in their governance and reporting. Infosys has a board with a

majority of outside directors, reports results in compliance with eight different accounting

standards, and discloses its compliance with ten external governance codes. Infosys’

premium valuation is providing a clear signal to other India companies that good

governance has tangible benefits. In fact, a McKinsey survey revealed that Indian

investors are willing to pay a 23% premium for companies with good governance

structures.

Indian public companies. These companies need to comply with Indian regulations

which were described by ICICI executives as being fairly robust. A McKinsey analysis

also found that India’s regulations and enforcement of accounting standards for Indian

companies are fairly strong as they were ranked fourth in Asia and ahead of countries

such as China. In addition, the incentive of being able to list shares overseas acts as a

motivator to ensure good governance. However, as state owned enterprises are partially

privatized, it is possible that the role of the government in the governance structures of

such companies could act as an impediment to executing certain business strategies.

Indian family controlled conglomerates such as Godrej and Tata. These conglomerates

are often a mix of private and public holding structures. Some of these conglomerates

have been well managed, but the quality of governance may still be low due to tight

control by family members. The need to raise public capital will clearly enhance the

governance of some of these organizations. However the competition for Indian

management talent that will lead these companies to improve governance to be perceived

as attractive places for long-term career relative to other opportunities in India.

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Indian business culture

India is a culturally rich and diverse country where one can see varied array of language,

religion, caste and regionalism. While doing business in India, every organization has to consider

all these factors before formulating their business plans and take necessary actions accordingly.

The India Business Culture is an extension of the common culture of the society. It is unique in

its own way. However, in Indian business culture, the behavior, etiquette and approach of

organizations and its professionals change according to the addressee and the context of address.

Language: India is a multilingual country with each of its states having different official

languages. However, Hindi is the only officially recognized language in the country. While

talking on India business culture, English is the most preferred language, which is followed

religiously in every industry.

Meetings, Greetings and Courtesies: In India, people greet each other by saying 'Namaste',

while conjoining the palms together below the chin (position of fingers would point up) and

nodding the head. One can also do this while saying good-bye. Use of the Namaste will show

that you have understandings of Indian culture. While greeting superiors or showing respect to

someone, a slight bow is added. In Indian business culture, people also greet each other by a

handshake. In a one-to-one meeting with a male counterpart, a woman usually initiates a

handshake. If the woman doesn’t, the man will smile and nod slightly.

While greeting an individual, people use appropriate formal title. One can also add ‘ji’ after the

title to show respect for the person he/she is greeting. While meeting a person or client for

business purpose, always exchange business cards at the first meeting. You must exchange the

cards with your right hand only. Cards must be put away with due respect.

Relationship Building

In India business culture, business development largely depends upon relationship building.

Indians tend to give favorable deal to those whom they know and trust. Hence, a good way to

earn business is to earn the trust of the customers first. You can earn the trust of people by

demonstrating strong business insight, showing honesty and respect.

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Meetings

Any business meeting has to be arranged well in advance. These have to be fixed in writing and

confirmed by phone. It is better to avoid fixing meetings on or near national holidays like

Independence Day, Republic Day, Gandhi Birthday or either of the two Eids. People often club

their leaves to enjoy extended holidays during this time.

Time

Indians value punctuality in others, but they often lag behind the schedule themselves. A

10-minute late is acceptable in most of the cases. It can also be seen that family responsibilities

getting preferences over business, which leads to last minute cancellation of meetings, though

not quite often.

Inside the Meeting Room

After entering into the meeting room, one must approach and greet the senior-most figure first.

Every meeting usually has some 'getting to know you' process, where the meeting starts with

some initial conversation. The favorite topics are business news, how stock market is doing, or

the game of cricket. It is good to avoid discussing personal matters. If you are new to India, it is

always better to refrain from commenting on volatile issues like poverty or beggars.

Process

If your business meeting involves negotiation, be prepared for a slow process. In India business

culture, decision is taken at the highest level and may take more time than one would have

expected. You can’t get a favorable decision unless you can establish the trust of the client. Until

the trust is not established, you should concentrate on building a rapport with the client. As the

decision is taken at the highest level, absence of the any higher-position holder like Director or

owner indicates that it is only the early stage of negotiation.

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Decision

Statistics, empirical data or commendable PowerPoint presentation cannot solely influence the

business decision. Indians tend to reckon the intuitions, feelings and faiths before they reach at

any decision. You must show your patience and good character before any final verdict comes

out. You cannot afford to show frustration or anger.

Negotiation

One should refrain from putting high pressure tactics while negotiation with the clients. Do not

confront or be forceful. If you are to disagree or criticize, you need to do it in the most

diplomatic language. Indians do not say "no" directly, as it is often considered rude. If during the

negotiation process, you come to the terms like "We'll see", "possibly" or "We'll try", there is

every possibility that they are indicating a 'no'.

Business Attire

Business culture in India demands formal attire. Men usually wear formal shirts and pants. Suits

or Blazers are also quite worn, often during the winter. Women wear saris or suits. On the last

working day of the week, people often wear casuals. However, that has to be a decent one.

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CULTURE IN SMALL BUSINESSES

Culture can be a particularly important consideration for small businesses. A healthy company

culture may increase employees' commitment and productivity, while an unhealthy culture may

inhibit a company's growth or even contribute to business failure. Many entrepreneurs, when

they first start a new business, quite naturally tend to take on a great deal of responsibility

themselves. As the company grows and adds employees, however, the authoritarian management

style that the business owner used successfully in a very small company can become detrimental.

Instead of attempting to retain control over all aspects of the business, the small business owner

should, as consultant Morty Lefcoe told Nation's Business, strive to "get everybody else in the

organization to do your job, while you create an environment so that they can do it."

In a healthy culture, employees view themselves as part of a team and gain satisfaction from

helping the overall company succeed. When employees sense that they are contributing to a

successful group effort, their level of commitment and productivity, and thus the quality of the

company's products or services, are likely to improve. In contrast, employees in an unhealthy

culture tend to view themselves as individuals, distinct from the company, and focus upon their

own needs. They only perform the most basic requirements of their jobs, and their main—and

perhaps only—motivation is their paycheck.

Since every company is different, there are many ways to develop a culture that works.

Following are several main principles that small business owners should consider in order to

create a healthy corporate culture:

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Prevailing corporate

Prevailing corporate culture begins at the top. Entrepreneurs need to explain and share their

vision of the company's future with their workers. "Let your vision for the company become their

vision for the company," stated John O'Malley in his article "How to Create a Winning Corporate

Culture." He goes on to say that "a company without a vision is reactive in nature, and its

management is seldom confident addressing competitive threats and stepping into the future." In

addition, small business owners should be aware that their own behavior and attitudes set the

standard for the entire workforce.

Small business owners who set poor examples in areas such as lifestyle, dedication to quality,

business or personal ethics, and dealings with others (customers, vendors, and employees) will

almost certainly find their company Treat all employees equally. Entrepreneurs should treat all

employees equally. This does not mean that business owners cannot bestow extra rewards on

workers who excel, but it does mean that interactions with all employees should be based on a

foundation of respect for them. One particular pitfall in this area for many small business owners

is nepotism. Many small businesses are family-owned and operated. But bloodlines should be

irrelevant in daily operations. "Successful ' businesses constantly place 'you are no different'

expectations on family members they employ," noted O'Malley. "Doing otherwise quickly

undermines employees' morale'. Showing favoritism in the workplace is like swimming with

sharks—you are destined to get bitten.es defined by such characteristics

Treat all employees equally. Entrepreneurs should treat all employees equally. This does not

mean that business owners cannot bestow extra rewards on workers who excel, but it does mean

that interactions with all employees should be based on a foundation of respect for them. One

particular pitfall in this area for many small business owners is nepotism. Many small businesses

are family-owned and operated. But bloodlines be irrelevant in daily operations. "Successful '

businesses constantly place 'you are no different' expectations on family members they employ,"

noted O'Malley. "Doing otherwise quickly undermines employees' morale'. Showing favoritism

in the workplace is like swimming with sharks—you are destined to get bitten."

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Hiring decisions should reflect desired corporate culture. The wise small business owner will

hire workers who will treat clients and fellow employees well and dedicate themselves to

mastering the tasks for which they are responsible. After all, "good attitude" is an essential

component of any healthy corporate culture. But entrepreneurs and their managers also need to

make sure that hiring decisions are not based upon ethnic, racial, or gender issues. Besides,

businesses typically benefit from having a diverse workforce rather than one that is overly

homogeneous.

Two-way communication is essential. Small business owners who discuss problems realistically

with their workforce and enlist employees' help in solving them will likely be rewarded with a

healthy internal environment. This can be an important asset, for once a participatory and

engaging culture has been established, it can help propel a small business ahead of its

competition.

On the other hand, problems with the corporate culture can play a major role in small business

failures. When employees only perform the tasks necessary to their own jobs, rather than putting

out extra effort on behalf of the overall business, productivity declines and growth comes to a

halt. Unfortunately, many entrepreneurs tend to ignore the developing cultures within their

businesses until it is too late to make needed changes.

In an article for Entrepreneur, Robert McGarvey outlined some warning signs of trouble with the

company culture, including: increased turnover; difficulty in hiring talented people; employees

arriving at work and leaving for home right on time; low attendance at company events; a lack of

honest communication and understanding of the company mission; an "us-versus-them"

mentality between employees and management; and declining quality and customer satisfaction.

A small business exhibiting one or more of these warning signs should consider whether the

problems stem from the company culture. If so, the small business owner should take steps to

improve the culture, including reaffirming the company's mission and goals and establishing a

more open relationship with employees.

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The Importance of Ethics in Organizations

Ethics are the principles and values an individual uses to govern his activities and decisions. In

an organization, a code of ethics is a set of principles that guide the organization in its programs,

policies and decisions for the business. The ethical philosophy an organization uses to conduct

business can affect the reputation, productivity and bottom line of the business.

Leadership Ethics

The ethics that leaders in an organization use to manage employees may have an effect on the

morale and loyalty of workers. The code of ethics leaders use determines discipline procedures

and the acceptable behavior for all workers in an organization. When leaders have high ethical

standards, it encourages workers in the organization to meet that same level. Ethical leadership

also enhances the company’s reputation in the financial market and community. A solid

reputation for ethics and integrity in the community may improve the company’s business.

Employee Ethics

Ethical behavior among workers in an organization ensures that employees complete work with

honesty and integrity. Employees who use ethics to guide their behavior adhere to employee

policies and rules while striving to meet the goals of the organization. Ethical employees also

meet standards for quality in their work, which can enhance the company’s reputation for quality

products and service.

Ethical Organizational Culture

Leaders and employees adhering to a code of ethics create an ethical organizational culture. The

leaders of a business may create an ethical culture by exhibiting the type of behavior they'd like

to see in employees. The organization can reinforce ethical behavior by rewarding employees

who exhibit the values and integrity that coincides with the company code of ethics and

disciplining those who make the wrong choices.

Benefits to the Organization

A positive and healthy corporate culture improves the morale among workers in the organization,

which may increase productivity and employee retention; this, in turn, has financial benefits for

the organization. Higher levels of productivity improve the efficiency in the company, while

increasing employee retention reduces the cost of replacing employees.

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The Role of Ethics in Strategy

Financial excellence results when a corporation's values and its ethics support its strategy. Ethics

is a component of strategy because every business secures its future by making a contribution.

The act of making a contribution is fundamentally an ethical activity. Identifying that

contribution and maximizing its value is the field of strategy. Profit is the value the market

attaches to an organization's contribution and the efficiency with which it makes that

contribution.

Employees who see their company making a valued contribution (with profits as the outcome),

rather than merely generating shareholder wealth, commit to their work with greater passion.

This leads to a partnership between employees and corporate leadership that boosts innovation

and uplifts performance. Ethics play a vital role in the preservation of this priceless partnership,

which can thrive only in an atmosphere of trust and integrity. Trust and integrity result from

integrating an organization's disparate value systems and aligning them with the organization's

strategic objectives

What are Ethics, and How do they Differ from Values?

Values are beliefs about what is good and what is bad, what is right and what is wrong. Even

people of different cultures differ very little about these beliefs.

1 Nearly all people would like their children to be honest, fair, courteous, charitable, and so on.

People do, however, differ substantially when it comes to the "price" they are willing to pay for

what is right.

2 Ethics is the "cost" that a person will pay to uphold his values. It is the way a person translates

his or her beliefs into actions (or abstentions) that entail a cost. Most people differ in their ethics,

rather than in their values.

Thus, adopting a change in values alone will not impact on any aspect of organizational

performance. Rather, the way an organization translates its values into an ethic will impact on its

strategic objectives.

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Integrating Disparate Corporate Values

Many companies, unbeknownst to their leadership, operate with at least three separate and

usually non-aligned value systems. Measuring the degree of alignment between these value

systems and determining what drives each of them highlights the opportunities for change.

The three value systems are:

1. The Espoused Value System - The Values that management communicates both orally

and in writing.

2. The Perceived Value System - The Values that employees believe drive management's

conduct.

3. The Actual Value System - The values that actually underpin the interpersonal dynamics

of the organization. Management may have never previously articulated these values and

employees may never have identified them.

To gain strategic advantage, these three systems must be integrated into one system of values.

Furthermore, in order for these values to impact on financial performance, senior management

must translate them into an ethic that supports the organization's objectives, that is aligned with

its strategy and is understood at all levels of the organization.

Identifying Espoused, Perceived, & Actual Values

An organization's espoused values are either implied or articulated in its published materials. But

the way employees' honestly perceive management's values are often very different from the

values that management espouses. Qualitative research methodology can probe employee

perceptions. However, exposing the actual values and ethics that drive the organization requires

that one analyze the reasons for those perceptions, in light of various management decisions and

behaviors.

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Espoused, Perceived, & Actual Values in One System

It is, at times, difficult for an organization's leadership to acknowledge the existence of divergent

value systems and to understand the implications of the divergence. It is even more difficult for

leaders to confront the truth of what the values are that really drive their organization. Yet this

confrontation with the truth is a vital step in crafting an integrated value system that can

transform an organization and impact its performance.

An integrated value system takes into account the strategic objectives of the organization, the

personal values of leadership, and the diversity of its employees. It aligns employee perceptions

with management's espoused values. A system such as this can translate into the actual ethic that

drives management decisions and conduct. This ethic differentiates

Translating a Value System into a Corporate Ethic

Choosing values is easy. However, leaders often rethink their organizations' values when they

confront the behavioral and organizational changes that those values would compel when

translated into a living ethic. They need to examine how congruent the chosen values are and

how they promote or undermine corporate intent and strategic objectives. Only then can

leadership comfortably commit to a new system with all of its defined implications.

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CSR :- INDIA

"Corporate Social Responsibility is no longer just an addition, it is a key differentiator."

Prasad Chandra, CMD, BASF South Asia

Businesses today have realized that, in order to continue thriving, they have to adopt a more

holistic and inclusive business model which has a direct correlation with business performance.

This includes a system of triple bottom-line reporting - economic, social and environmental - and

a focus on transparency and accountability. Companies are now expected to discharge their

stakeholder responsibilities and societal obligations, along with their shareholder-wealth

maximisation goal.

Even much before the issue became a global concern, India was aware of corporate social

responsibility (CSR), due to the efforts of organisations such as the Tata Group.

Corporate companies like ITC have made farmer development a vital part of its business

strategy, and made major efforts to improve the livelihood standards of rural communities.

Unilever is using micro enterprises to strategically augment the penetration of consumer products

in rural markets. IT companies like TCS and Wipro have developed software to help teachers

and children in schools across India to further the cause of education. The adult literacy software

has been a significant factor in reducing illiteracy in remote communities. Banks and insurance

companies are targeting migrant labourers and street vendors to help them through micro-credits

and related schemes.

In June 2008, a survey was carried out by TNS India (a research organization) and the Times

Foundation with the aim of providing an understanding of the role of corporations in CSR. The

findings revealed that over 90 per cent of all major Indian organizations surveyed were involved

in CSR initiatives. In fact, the private sector was more involved in CSR activities than the public

and government sectors. The leading areas that corporations were involved in were livelihood

promotion, education, health, environment, and women's empowerment. Most of CSR ventures

were done as internal projects while a small proportion were as direct financial support to

voluntary organizations or communities.

21

In a survey carried out by the Asian Governance Association, which ranks the top 10 Asian

countries on corporate governance parameters, India has consistently ranked among the top three

along with Singapore and Hong Kong, for the last eight years.

In another study undertaken by automotive research company, TNS Automotive, India has been

ranked second in global corporate social responsibility. State-owned Bharat Petroleum and

Maruti Udyog were ranked as the best companies in India. Bharat Petroleum and Maruti Udyog

came on top with 134 points each, followed by Tata Motors (133) and Hero Honda (131). The

study was based on a public goodwill index and India received 119 points in the index against a

global average of 100. Thailand was at the top slot with 124 points.

The Indian corporate sector spent US$ 6.31 billion on social expenditure during 2007-08, up

from US$ 3.68 billion spent during the previous fiscal. The Steel Authority of India Ltd (SAIL),

the country's largest steel company, spent US$ 21.05 million on CSR last year; Tata Steel Ltd,

(which runs a 850-bed hospital and rural projects in 800 villages around Jamshedpur), spends

about US$ 31.58 million as part of its annual revenue expenditure.

Now there are plans to also introduce CSR in the small and medium enterprises (SME) sector to

increase its reach in remote areas.

CSR Initiatives and Green Measures

India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has set up a

global platform to showcase all the work done by Indian firms. Confederation of Indian Industry

(CII) and the TVS Group have collaborated to form the CII-TVS Centre of Excellence for

Responsive Corporate Citizenship. The outfit, based in Chennai, will provide consultancy

services and technical assistance on social development and CSR.

CII's 'Mission on Sustainable Growth' has set up a code which was formulated in 2006. It

provides consultancy services and technical assistance on social development and CSR. The

mission's aims are to promote the reduction of excessive consumption of natural resources and

emission of greenhouse gases. The code had started with 23 new signatories and the total number

of code signatories had gone up to 102, by September 2008.

22

Many large corporate houses are taking up projects — along with the help of the government —

which are 'green' to promote the cause of sustainable development.

Coca-Cola India has started with a corpus of US$ 10 million for its CSR activities in 2008. It has

undertaken US$ 25–30 million a year project on water conservation, and the project "Elixir of

life" to provide drinking water to nearly 30,000 school children. Coca-Cola India won the

'Golden Peacock Global Award for Corporate Social Responsibility – 2008' for these initiatives.

ArcelorMittal will spend about US$ 500 million as part of its CSR initiatives in Jharkhand and

Orissa.

BHEL has joined hands with a UN body 'Global Compact' (The United Nation's Global Compact

is a partnership between the UN, the business community, international labour bodies and non-

government organisations (NGOs) to partner with global corporate houses for greater focus on

corporate social responsibility.

Global Compact, in association with FICCI, is also organising the first ever national convention

on 'Excellence in Corporate Citizenship and Global Compact'.

Tata Motors and space agency ISRO are likely to launch the prototype of the world's cleanest

vehicle that will run on hydrogen and leave behind nothing more than a trail of water vapour.

Bajaj Auto, Ashok Leyland, Tata Motors, Mahindra & Mahindra and Eicher Motors have come

together to develop hydrogen-blended compressed natural gas (HCNG)-run vehicles to tackle the

problem of rising pollution.

Pepsico India has signed the CII-Code for Ecologically Sustainable Business Growth recently,

and in so doing it has committed to decrease the consumption of natural resources and promote

ecologically sustainable growth in the group. Its water conservation initiative has resulted in

saving over 2.4 billion litres of water annually, bringing down the consumption by 40 per cent

since 2005. The effluent discharge has also decreased by 60 per cent. Likewise, the company has

brought down the generation of sludge in effluent treatment plants (with over 25 per cent

reduction in one year alone) through the use of bio-enzymes. At the community level, the waste-

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to-wealth initiative has developed zero solid waste centres that helps more than 2, 00,000

community members all over the country.

Reliance Power (R-Power) is planning an investment of over US$ 12.63 billion for renewable

and alternative energy resources such as hydroelectric, wind, solar and fuel cell-based power.

The company is planning to generate about 5,000 MW from hydroelectric energy and most of the

projects would come up in water-abundant north-eastern states.

The Indian paints industry too is making its products more environmentally friendly by opting

for water-based paints and making it carcinogen-free.

The heating, ventilation, air-conditioning and refrigeration (HVAC) industry is working to get

rid of its 'global warmer' stigma through greater use of gases with zero ozone depletion potential

(zero ODP).

Sustainable Technologies and Environmental Projects Ltd (STEPS) is planning to start a project

to change plastic, organic and electronic waste into petroleum without the usual harmful residue.

Pharmaceuticals Company Jubilant Organosys Ltd runs an anti-tuberculosis programme with the

government of Uttar Pradesh.

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Rural Development

Rural development is attracting major CSR initiatives from various corporates.

Airtel has tied up with Indian Farmers Fertiliser Cooperative Limited (IFFCO) to reach farmers

directly. Farmers will receive free voice messages twice daily on farming techniques, weather

forecasts, dairy farming, rural health initiatives, fertilizer availability, loan information and

market rates. Additionally, farmers can also call a dedicated helpline, manned by experts from

various fields, to get answers to their queries.

Reliance Communications has introduced low tariff initiative like the Grameen Programme for

rural subscribers.

SREI Sahaj e-Village Ltd will set up 25,000 IT kiosks to be known as common service centres

(CSC) across West Bengal, Bihar, Orissa, Assam, Uttar Pradesh and Tamil Nadu, by 2010.

ITC's e-Chapual has been a great developmental initiative which has also added value to its own

agricultural products. It comprises improving the lives of farmers and villagers.

HDFC has started a 'village adoption' scheme to improve the investment climate in Indian

villages.

Mahindra Shubhlabh, the agricultural business arm of Mahindra & Mahindra, aims to use

especially cultured seeds to improve contract-farming productivity.

DCM Shriram provides information services through its chain of Krishi Vikas Kendras, which

have now evolved into Hariyali Kisan Bazaars.

Hindustan Petroleum has started community kitchen programmes in some Indian villages.

ICICI Bank has launched an ambitious rural banking and agribusiness initiative.

The Byrraju Foundation's GramIT programme has generated a rural BPO model. It aims to

employ rural people in the ITES (IT-enabled services) industry, and to create profit for the

entrepreneurs or cooperatives running the BPOs.

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Chapter 3. Case study of Reliance

Social Responsibility & Community Development:

Social welfare and community development is at the core of Reliance’s Corporate Social

Responsibility (CSR) philosophy and continues to be a top priority for the Company. It revolves

around the Company’s deeply-held belief in the principle of symbiotic relationship with the local

communities, recognizing that business ultimately has a purpose - to serve human needs. Close

and continuous interaction with the people and communities in and around the manufacturing

divisions has been the key focus while striving to bring around qualitative changes and

supporting the underprivileged.

Reliance’s contributions to the community are in the area of health, education, infrastructure

development (drinking water, improving village infrastructure, construction of schools etc.),

environment (effluent treatment, tree plantation, treatment of hazardous waste), relief and

assistance in the event of a natural disaster, and miscellaneous activities such as contribution to

other social development organizations etc. The Company’s CSR teams at all manufacturing

divisions interact with the neighbouring community on regular basis. The Company takes pride

in the fact that its CSR representatives are known by their first names in the regions that it

operates.

Education

‘Teach them young’ is the very motto of Reliance as the Company believes that the quality of

inputs received by an individual at an early age contributes to his or her growth as a capable

human being. To ensure high quality of teaching, Reliance has made significant efforts towards

value enhancement of teachers through professional and institutionalized training. Dahej

Manufacturing Division conducted educational and excursion tours of students and teachers from

the primary schools of neighbouring villages, and also organized ‘Balmela’ and Science and

Mathematics Fair.

To provide training in the field of effective techniques and modern methods of teaching to high

school teachers in the Hazira area, the Company organized training of teachers in various

subjects.

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Reliance has launched the “Sky is the limit” programme at Hazira, to address the problem of

school drop-outs in the local community.

The Company also provides opportunities to engineering and management institute students to

undergo in-plant training/projects as part of their academic curriculum, thus enabling them to

appreciate application of theoretical knowledge and get an exposure to the industrial practices.

Efforts were made to enhance employability/skill development of local youths. This was done by

giving opportunities to them to work in the Company’s operating plants, which in turn improve

their job prospects.

Executive Development Programs for officers of neighbouring industries were organized in

coordination with PRIA (Patalganga Rasayani Industries Association).

The Company’s major manufacturing locations provide good quality education to the children of

all employees and also cater to the needs of surrounding villages. Jamnaben Hirachand Ambani

School, Kokilaben Dhirubhai Ambani Vidya Mandir, and Jamnaben Hirachand Ambani

Saraswati Vidya Mandir are schools near the Company’s manufacturing locations at Patalganga,

Hazira and Jamanagar respectively. A modern educational infrastructure coupled with extra-

curricular activities and recreational facilities distinguish all these schools.

To encourage school children from neighbouring villages, Nagothane Manufacturing Division

based CSR cell – MGCC Area Development Research Foundation (MADER) Trust took

following initiatives:

· Felicitated meritorious students from neighbouring villages and tribal hamlets. Each student

received a set of note books, stationary items and a school bag.

· There are several Zilla Parishad schools located on the hilltop near Nagothane Manufacturing

Division where all the children who are attending school are tribal. With an objective to

encourage the tribal students, Reliance also provided school uniforms.

Barabanki Manufacturing Division renovated a primary school in an adjoining village.

Hoshiarpur Manufacturing Division provided free uniform (winter and summer), books, bags,

shoes and stationery to the school-going children of neighbouring village.

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Health

Health Awareness Programs, covering diverse topics such as noise pollution, hazards substance

abuse, prevention of HIV/AIDS and First Aid were conducted for students of schools at the

neighbouring towns and villages of Patalganga. Barabanki Manufacturing Division provides

medical service and awareness programs on health, hygiene, cleanliness and sanitation in

neighboring villages.

Hoshiarpur Manufacturing Division too conducts monthly checkup camps at neighbouring

villages. Free medicines and spectacles were also provided. Round the clock free ambulance

service has been provided to roadside accident victims. Hazira Rehabilitation Centre for the

Physically Challenged has been set up in partnership with Disabled Welfare Trust of India for

capacity building of physically challenged children from the weaker sections of society.

Initiatives to Combat HIV / AIDS and TB

The Company provides Community Medical Centres near most of its manufacturing divisions.

These centres cater to the Governmental health care programmes like maternal and child health,

TB, malaria, HIV / AIDS etc., besides providing curative treatment. These Centres have been

well received and go a long way in providing the medical relief for the community. The

Company has implemented HIV / AIDS and DOTS programme at Hazira and Jamnagar, and is

in the process of replicating the same at the other manufacturing divisions. This initiative is a

publicprivate partnership between the Government, NGOs and Reliance. This comprehensive

project extends from creating awareness to providing treatment, care and support. Reliance’s

initiative to combat HIV / AIDS has been recognized by UNAID, World Bank and other national

and international institutions.

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Adoption of Public Health Centre (PHC)

Reliance has adopted a Primary Health Centre (PHC) from the State Government of Gujarat and

converted it into a model primary health centre. The PHC located at Dahej in Bharuch District,

Gujarat, has attained the status of the best PHC in the District in a short-span of 6 months and

has established itself as a centre of excellence.

Highway Rescue Intervention

To provide emergency and trauma care to victims of highway accidents, Hazira has tied-up with

an NGO to run the project on the State Highway in Gujarat starting from Sachin to Bharuch, and

the State Highway via Hazira - Olpad - Hansot - Ankleshwar. The project will benefit thousands

of commuters who use this highway on a daily basis.

Traffic Police personnel are the first government agency to respond to an emergency involving a

chemical tanker or a truck. With the increase in the number of accidents on roads and the

unending addition of new chemicals, it is important that these personnel understand the hazards

and the basic steps to be taken to safeguard themselves and the general public from the hazards

of chemicals. The Company’s initiative of training traffic police personnel by its Kurkumbh

Manufacturing Division in handling road transport emergencies involving chemicals will go a

long way in serving the objective of community well-being.

Dhirubhai Ambani Hospital, Lodhivali

Reliance also operates the Dhirubhai Ambani Hospital, Lodhivali and renders quality medical

services to the rural population and highway accident victims.

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Moti Khavdi Medical Centre

As part of corporate social responsibility services, a community medical centre was established

in Moti Khavdi, a village near Jamnagar Manufacturing Division, during the pre-commissioning

stage of the refinery in November 1995. This Community Medical Centre provides

comprehensive medical services free of cost and round the clock. About 1.2 lakh villagers of

nearby areas like Moti Khavdi, Nani Khavdi, Padana, Meghpar, Gagva, Jogvad, Baid, Kanalus,

Sikka, Sarmat, Navaniya, Mungani, Jakhar, Bara, Vasai and Amra benefit from the same.

Community Medical Services at SEZ, Jamnagar

A massive workforce from all parts of India are working at the mega construction activities in

the SEZ at Jamnagar. The Company has given shelter in several colonies. Each labour colony

has a separate medical centre. Each medical centre is manned round the clock by doctors, nurses

and ambulances.

Thalassaemia detection camp and Parental counselling

The tribal areas in regions near Surat, Gujarat, are highly endemic to the prevalence of a

thalassaemic trait, which is a genetic disorder. The Company launched a thalassaemia detection

camp in association with the Indian Red Cross in the local high school. Children from the nearby

school were tested for the disorder. The opportunity was also used for detecting aneamia and

sickle cell aneamia. A post-test counseling session was organized for the parents of these

children.

Project “Cancer-Aid” for Cancer patients

In partnership with the Lions Cancer Detection centre, the Company provides monetary

assistance for purchase of medicines to cancer patients.

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Mobile Dispensaries

Reliance also operates free medical diagnostic and therapeutic services at neighbouring villages

of several of its manufacturing locations.

Blood Donation Drives

The Company’s employees organize and participate in blood donation campaigns every year

across its manufacturing divisions and offices.

Public Health Care

Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC) Dhirubhai Ambani

Foundation (DAF), with financial and technical services support from the Reliance Group, joined

in 1997 the Management of HNHRC, a charitable hospital offering tertiary health care facilities

to all strata of society and providing free and subsidized services to the poor and indigent

patients availing of various diagnostic and treatment facilities.

Thousands of patients have received treatment indoors in the various wards and specialized care

areas and at OPD services at P.T. Clinic, the popular Diagnostic Centre of the Hospital. The

Hospital continues its age-old tradition of rendering free service to all in the casualty ward. More

than 4,000 surgeries were performed during the year, of which a major portion was special and

supramajor surgeries.

The Hospital carried out several Cadaver Transplants in the recent past. Further, the eye

Donation drive initiated by the hospital witnessed an increased response. Some of the important

outreach programmes conducted during the year included a Senior Citizen Health Screening

Program in association with Rotary Club, and a medical back-up for the Special Olympics event

organized by the Lions Club - International. Twice a month, the hospital continues to conduct

free health check-up for senior citizens and physically challenged in Mumbai. These

programmes have gone a long way in educating the community on prevention of diseases, and

promoting a healthy lifestyle.

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The hospital is in the process of building a multi-storied ultra modern tertiary care hospital with

state-of-art facilities and infrastructure embracing the entire spectrum of health care services.

Several new facilities would be added, and many of the existing facilities would be significantly

upgraded in areas like Neurology and Neurosurgery, Urosurgery, Cardiology and Cardiac

Surgery, Cardiovascular Surgery and Cosmetology. A chain of blood banks would be established

at various centres under a new initiative by the DAF. Educational and research activities at the

hospital shall receive significant boost by way of advanced facilities and better funding. The

project, when completed, would be a landmark healthcare facility in this city.

Sir Hurkisondas Nurrotumdas Medical Research Society (HNMRS) DAF, through the Reliance

Group, supports the scientific research activities of HNMRS. The Society has been carrying out

scientific research activities since 1974 -75 and has completed more than 130 research projects.

The scientists from HNRMS have presented over 180 papers at various national and international

conferences. More than 130 papers have been published in peer reviewed scientific journals,

about half of them being highly rated as prestigious international journals. Topics of national

health priority constitute a major share of the research projects undertaken.

The researchers are motivated to expand their research avenues to carry out epidemiological

studies and community-based surveys. As part of such studies, children from nearby schools and

susceptible population from neighbourhood communities are regularly screened by medical /

paramedical professionals. Those in need of medical care are offered special attention and

treatment at the institution free of cost.

Drishti

Project Drishti, a nation-wide corneal grafting drive to bring light into the lives of visually

challenged from the underprivileged segment of society has restored the gift of sight to over

5,500 Indians. A unique joint initiative of Reliance Industries Limited and National Association

of Blind (NAB), Project Drishti has undertaken over 5,500 keroptoplasty surgeries in less than 4

years since it was started - all free of cost. It is now the largest corneal grafting surgery project

enabled by a single corporate entity in India.

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Drishti Painting Competition

As a part of corporate initiative to propagate awareness of Project Drishti, Drishti painting

competition is organized for school children at several manufacturing divisions and offices of the

Company.

Community Development

Jamnagar Manufacturing Division continues to extend a helping hand to surrounding villages

and the community at large. Activities during the year focussed on improving village

infrastructure, supply of drinking water, education support etc.

During the year, in a unique initiative to improve rural housekeeping and sanitation, a totally

fresh approach was adopted to beautify Moti Khavdi; Reliance’s adopted village. Cleaning and

sanitation drive at Moti Khavdi was taken up as an ongoing project.

Three MoUs were finalized with the State Government of Gujarat for development of Dwarka

during the year. They are to (i) develop the temple square in front of the famous Dwarkadheesh

temple (ii) construct ‘Sudama Setu’-a bridge to connect both the banks of Gomati river behind

Dwarkadheesh’s temple and (iii) develop ‘Panch-kui’ area on the sea-shore where five wells,

believed to be dug by Pandavas, still give fresh potable water right on the seashore.

To maintain and support village cows in surrounding villages, two more brand new cow-sheds

for Kanalus and Kanachikari were constructed and handed over to the respective villages. These

cows and cow-sheds (“Gaushala”) receive regular fodder supply from the Company’s Jamnagar

Manufacturing Division.

Construction of a public lavatory, water tank and avedo (common drinking water facility for

villagers) was done at Nani Khavdi during the year under report. Drinking water through water

tankers was supplied during a crisis period in Sikka, Nani Khavdi, Meghpar and Padana. At

Kanachikari, Drinking water pipelines were laid during the year.

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A new primary school building at Navagam was constructed and repairing of some village

schools was taken up. Participation and distribution of sweets in village schools during the

Independence Day and the Republic Day; support to Government of Gujarat’s drive for girls’

education; distribution of gifts to girls of villages during Navratri festival; supporting Navratri

celebrations in Jamnagar were some of the salient aspects of Jamnagar Manufacturing Division’s

Community Welfare Cell as part of routine and regular activities.

In a major initiative to celebrate Navratri, the world’s longest dance festival on a large scale;

Jamnagar manufacturing division took a lead to form Gujarat Industries Navratri Festival. A gala

festival was organized and celebrated at state capital Gandhinagar’s helipad ground for nine days

jointly with leading industries of Gujarat. The event brought to fore the role of industries,

handicrafts, art and culture etc in the development of Gujarat as a vibrant state. The event evoked

tremendous response and applause from every quarter of the society at large.

Reliance Rural Development Trust (RRDT)

The work to improve the rural infrastructure under the Government of Gujarat’s rural

development plans was continued with full energy by RRDT. During the year under report, the

RRDT created 760 facilities in the rural areas at a cost of Rs. 24.07 crore. The facilities included

247 concrete roads, 465 anganwadis, 38 drinking water facilities, 1 panchayat office, 2

community halls, 5 check-dams and 2 other amenities in the rural areas of the State of Gujarat.

RRDT has turned out to be an exemplary corporate NGO steadily and silently implementing

government’s developmental plans for rural areas of Gujarat. It is a unique synergy between a

corporate giant like Reliance Industries Limited and the Government of Gujarat, formed to carry

out rural development projects in private public partnership.

Dahej Manufacturing Division has been playing a pivotal role in the development of the society.

Social initiatives undertaken by Dahej Manufacturing Division are concentrated towards

promotion of education, health awareness and medical facilities, infrastructure development and

supply of safe drinking to the villages.

34

Some of the initiatives undertaken by the Company’s E&P Division near KG-D6 include 1)

gainful employment for local communities, 2) vocational training for the youth, 3) employment

for members of Gadimoga panchayat, 4) financial assistance for community activities, 5)

sponsoring of cultural and sports events, 6) financial relief to affected communities, 7)

compensation to local fishermen, 8) academic and financial assistance and educational support

through distribution of books, 9) improvement of village school infrastructure and 10) medical

help to local communities.

After successfully implementing zero garbage concept at Nagothane Manufacturing Division, the

Company’s CSR cell took the initiative to propagate the concept of solid waste (dry and wet

waste) management in the neighbouring villages so as to help villagers in keeping their village

environment neat, clean and garbage-free.

Reliance has also solved the long-standing drinking water problem of villages near its

Manufacturing Divisions located at Naroda and Nagpur. Further, Reliance has created public

bathing facilities and toilets for truckers and residents of villages for improving hygiene near its

Allahabad Manufacturing Division.

35

Empowerment of Women and Youth

Reliance has conducted many training programmes, which would help the rural women and

youth to be self sustaining and generate income for themselves and support their families.

The training programmes conducted at Vadodara for the rural women and youth of surrounding

villages of Vadodara Manufacturing Division during the current year are: 1) Women

Empowerment, 2) Dress making & Designing, 3) Beauty Culture & Healthcare, 4) Hospital

attendant (Helpers for Hospital & Nursing Homes), 5) Plumbing & Hand Pump repairing

training, 6) Computer Hardware, 7) Motor Vehicle Driving, 8) Mobile Repairing and 9) Doormat

making. Several persons participated and benefited from the above training programmes.

Nagothane Manufacturing Division based CSR cell-MADER Trust is supporting several Self-

Help groups in income generating activities such: Hatsadi tandul (brown rice cultivation),

phenoyl making, agarbati-making, candle-making, papad-making and supplying it to industrial

canteens and also hand-carry-bag making. Hoshiarpur Manufacturing Division conducts free

stitching courses for the women of nearby villages.

Skill Up-gradation

Reliance runs special training programs to equip the young people of neighboring villages with

life and work skills necessary for sustaining livelihood. Nagothane Manufacturing Division

conducted training in fashion designing courses for the ladies to upgrade the skills of those

women who are already trained in basic tailoring. This division also conducted computer

education courses and nursing assistant training courses. The trainees also received hands on

training at the local hospitals and primary health centres at Nagothane. The Company also trains

the youth in vehicle driving courses and also helps them in getting a driver’s license so that they

can earn a livelihood by starting their own business as motor drivers.

The Company’s Polymer business division organised technical training programmes at 50

Industrial Training Institutes (ITIs) all over India to enhance skills of artisans for new and

advanced technique of plumbing with PPR pipes. The Company also offers plumbing kits, free

of cost, to various plumbers as well as to ITIs to promote this new energy efficient application in

the building industry. PPR pipes are faster to install than metal pipes. This results in improving

36

daily productivity of plumbers thereby increasing in their earnings. This initiative covered many

plumbers across the country.

Eco-friendly Initiatives

In addition to the above initiatives, the Company also focusses on the development of the eco-

system and improvement of the green belt across its manufacturing and E&P sites.

Transforming lives at the bottom of the Pyramid

Reliance constantly aims at creating and living up to rising expectations among its valued

stakeholders. The Company cares for providing clean and green environment on a sustainable

basis. It recycles used bottles to produce value added products. When most of the environmental

concerns are subsidised, Reliance has found a solution for being environmental friendly on a

sustainable basis. In the case of recycling bottles, Reliance is indirectly providing livelihood to

around 200,000 individuals. This business has transformed lives of those at the bottom of the

pyramid.

Packaging solution to farmers (Leno bags)

Reliance organised extensive awareness programmes on improved packaging solutions for potato

and other vegetables for farmers all over India. This included demonstration on use of Leno

bags, which are more durable, functionally more efficient and cheaper than traditional materials.

This programme helped the farmers reduce the cost of packaging of potato. These bags also

helped farmers to reduce wastage while keeping in cold storage. The Company’s efforts helped

the farmers to improve their earnings. The programme covered more than 10,000 farmers across

India.

Polyethylene (PE) Biogas Domes for Renewable Energy Source

Biogas technology for rural development has been a focus area for Government of India.

Ministry of New and Renewable Energy (MNRE) promotes family-type biogas plants under the

National Project on Biogas Development (NPBD). The project was launched in 1981-82 with the

objective of producing clean and alternate renewable energy for cooking and lighting, enriched

organic manure for agricultural usage, improving sanitation and hygiene and reducing drudgery

37

of women. The two cubic metre “Deenabhandu” model is the most popular family type fixed

dome biogas plant developed with conventional brick and cement. Many of these plants get

defunct due to dome cracks leading to gas leakages. The Company has developed a 100 per cent

leak-proof Rotomolded PE Dome, which gives end-users a unique combination of properties like

good strength, stiffness, light weight, seamless construction, ease of installation and very little

maintenance. The PE-based dome has been developed by Reliance and has been approved by the

Ministry of New and Renewable Energy, Government of India.

Sports for the Physically Challenged

Reliance has joined hands with the organising team of Special Olympics Gujarat (Bharat) for the

physically challenged children of Gujarat. Several hundred children participated in the events

that were organised at the Reliance Sports Complex, Vadodara.

Real Indian Heroes

On the occasion of Shri Dhirubhai Ambani’s 75th birthday, 60 years of Indian Independence and

30 years of Reliance, the Company took up a unique initiative to salute the Real Indian Heroes of

Independent India. Partnering with the TV Channel, CNN-IBN, a series of programmes to

felicitate the unsung heroes of India was launched. CNN-IBN identified 24 Real Heroes, which

included six each from the four zones of India. In recognition for their outstanding contribution

to society, Reliance felicitated each of these 24 Real Heroes to further encourage their

contributions.

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Dhirubhai Ambani Foundation (DAF)

Dhirubhai Ambani Foundation (DAF) was established in 1995 by Shri Dhirubhai Ambani, the

Patron Trustee of the Foundation. A public charitable trust registered under the Bombay Public

Trusts Act, 1950, DAF has for its objectives a broad spectrum of worthy causes ranging from

health and environment, to promotion of social and economic welfare, and rural development.

However, its main thrust has been on education and public healthcare.

DAF systematically pursues philanthropic activities to promote national welfare and social good.

Reliance lends valuable support to DAF in terms of financial contribution and wherever

necessary, infrastructural support. Reliance also draws on the DAF expertise in evolving and

coordinating the Corporate Social Responsibility Initiatives and other group companies also help

DAF initiatives wherever possible. Thus, DAF initiatives reinforce Reliance’s commitment to

social responsibility.

Education: Rewards and Scholarships

DAF SSC Merit Reward and Undergraduate Scholarship Schemes: The Foundation’s much

acclaimed SSC Merit Reward and Undergraduate Scholarship Schemes continued to encourage

and assist meritorious students at the district level to pursue higher education in different

vocations to enhance the Human Resource potential of the country. Now in their twelvth year,

both the schemes are currently applicable in the states of Maharashtra, Gujarat, Goa and the

Union Territory of Daman, Diu and Dadra Nagar Haveli. The first three in overall merit and one

physically challenged student securing the highest marks in each of the 64 districts at the annual

SSC and HSC examinations of the respective state Boards, as well as the first ten CBSE students

from Maharashtra and Gujarat and 2 from Goa, in the merit list of CBSE New Delhi, are eligible

for the Rewards and Scholarships.

39

Reaching out to other states:

To offer equal opportunities to the physically challenged meritorious students from the rest of the

country, the Foundation has extended the Rewards and Scholarship Schemes to the first five

physically challenged students from all the States and Union Territories of India that provide the

list of such meritorious students. Accordingly, in 2007-08, physically challenged meritorious

students from Rajasthan received SSC Merit Rewards and Undergraduate Scholarships at a

function held in Jaipur, whereas at a function held in Hyderabad, 20 Physically Challenged

meritorious students from the state of Andhra Pradesh received the Rewards and Undergraduate

Scholarships for the years 2006-07 and 2007-08.

Reliance Kargil scholarships scheme

Children of martyrs / disabled soldiers of the Kargil war received financial support under this

Scheme for their education from Std. V to XII. The unique feature of the Scheme is that the

corpus was created with contributions from Reliance Group employees, with the Management

responding by making equal contribution.

“Dhiruhbai Ambani Scholars’ scheme” for Meritorious Children of Reliance Shareholders

The Scheme was announced in 2003 as a one-time measure to commemorate the silver jubilee of

the company’s listing on the Bombay Stock Exchange. In the first year, 900 meritorious children

of the shareholders received the scholarships. Of these, in 2007 - 08 which is the 4th year of the

Scheme, a total of 101 scholars continued to receive the scholarship for their education, leading

to Degree / Diploma course, the rest having completed their education.

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Conclusion:

The legacy of English that the British left in India was a dormant competitive advantage

until a decade ago until technologies emerged to enable Indian employees to serve customers

anywhere in the world. In addition to adopting English, India’s corporate culture also appears to

adopting global corporate cultural practices in the areas of entrepreneurship, professionalism,

and governance. This complements many of India’s existing strong cultural traditions such as a

belief in education and will contribute to India’s long-term competitive advantage.

India has already leveraged English to develop a leading position for its economy in

exporting services. India now has the golden opportunity to take some of the steps described

above as well as other to encourage a constructive corporate culture that provides a new source

of long term competitive advantage.

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BIBLIOGRAPHY

Books & News Articles:-

Barrier, Michael. "Building a Healthy Company Culture." Nation's Business. September 1997.

Grensing-Pophal, Lin. "Hiring to Fit Your Corporate Culture." HRMagazine. August 1999.

Hindle, Tim. Field Guide to Strategy. Boston: Harvard Business/The Economist Reference

Series, 1994.

McGarvey, Robert. "Culture Clash." Entrepreneur. November 1997.

O'Malley, John. "How to Create a Winning Corporate Culture

Dominic Barton, Paul Coombes, and Simon Chiu-Yin Wong, “Asia’s Governance Challenge”,

The McKinsey Quarterly page 58

Website:-

"Corporate Culture: Telling the CEO the Baby is Ugly." Hagenberg Consulting Group. Available

from http://www.hcgnet.com/research.asp?id=6. Retrieved on 2 February 2006.

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