A Report on Strategic CSR Management Activities of Indian Oil Corp

This report provides a comprehensive overview of the Corporate Social Responsibility (CSR) activities undertaken by Indian Oil Corporation Limited. It highlights Indian Oil's commitment to ethical business practices, community development, and environmental protection. The report details various CSR projects, including the Indian Oil Foundation's efforts to preserve national heritage, academic and sports scholarships, and green initiatives such as the development of low-sulfur diesel and alternative fuels. It also discusses the budget allocation for CSR activities and the reasons why companies should adopt CSR, emphasizing the benefits of avoiding corruption, promoting goodwill, and empowering marginalized communities. The report further addresses potential disadvantages of CSR, such as employee frustration and challenges in implementing changes within non-profit organizations. Desklib offers this assignment solution along with a wealth of other study resources for students.

[Date]
STRATEGIC MANAGEMENT
CSR Activities of Indian Oil Corporation Limited
(Student Details)

CSR Activities of Indian Oil Corporation Limited 1
Introduction
Corporate Social Responsibilities refers to the business approach which aims at conducting
activities that are ethical. It includes activities like working in a team within the community,
developing strong relationships between employees and its potential customers and protecting
environment. Business gets involved in CSR activities to minimize the negative impact of its
activities on the society. It helps in contributing a sustainable growth and creating benefits to
its shareholders. Indian Oil Corporation Ltd is the company that is highly involved in the
CSR activities. Indian Oil is public limited company which was founded in 1964 in New
Delhi. It was founded by Sanjiv Singh and it deals in producing oil and gas and other
petrochemicals. It has nearly 33,135 employees working with it. It basically serves in India,
Sri Lanka, Middle East and Mauritius.
Corporate social responsibility is important in order to be aware of every movement about the
impact of the organization’s business on the stakeholders, customers and the environment. It
also helps in maintaining the ethical and developing business environment for the business.
CSR includes many responsibilities and roles such as Human rights, employee evaluation,
corporate governance, health and safety, working conditions and the contribution to the
economy on the whole. The aim of CSR should be quite ambitious to create imbibe change
for an organization to sustain itself in the market.
Indian Oil is one of the India’s largest oil company in terms of sales. It has successfully
ranked itself in the 125th position globally. It manages to control 10 refineries out of 20
refineries in India and calculates to 34.8% of market share of national refining. It aims at
focusing on cost effectiveness, energy efficient and creating eco-friendly environment (Indian
Oil, 2018).
The mission of the company is to boost the participation for the growth of the employees and
motivate them to get involved in innovations. In addition to this, the company also aims at
enriching the quality life of people by maintaining an ecological balance and also conducting
large number of CSR activities.
The vision of the company is to broaden its horizons, to expand across new vistas, and to
infuse new-age dynamism among its employees.

CSR Activities of Indian Oil Corporation Limited 2
Corporate Social Responsibility of Indian Oil Corporation
Ltd
The CSR activities carried out by Indian Oil has achieved a greater success from the very
beginning of its establishment. “Enrich the quality life of the community and protect the
ecological balance and heritage through a strong environment conscience” is the mission
statement of Indian Oil which proves that how devoted they are towards the betterment of the
society. There are majorly four core values of the Indian Oil that includes Care, Innovation,
Passion and Trust. They often feel that it is an honour to serve all the customers of the
country and that is the main reason behind rephrasing from “Indian Oil” to “India Inspired”
in many of the corporate campaigns. Indian Oil helps to develop the society by providing
unlimited number of resources. They always try to work beyond the expectation of the
customers and also try to put an extra effort in order to improve the quality life of the member
sin the society (Rana, 2015).
It aims at operating huge number of activities. Indian Oil is continuously taking concrete
action plans to improve its social objectives by building a value in the mind of its customers
as well as its stakeholders. The company focuses on respecting human rights and investing
more in the adaptation of new technologies for the economic and sustainable growth. In the
last five decades, Indian Oil has been continuously supported the uncountable social
initiatives in India. It has huge number of people by involving in several health care projects
and other many educational programmes. Despite of getting involved in welfare activities, it
has also involved itself in introducing eco-friendly products and services that will be an
advantage for billions of customers. Those products and services will be techno-
economically viable and will also ensure the high standards of safety (Rubin, 2011).
Each year, Indian Oil collects a fix amount of profits that is put aside to serve the customers
and create a million dollar smile on their faces by creating many welfare and development
programmes. Nearly one fourth of the community development funds are spent on the
welfare of the Scheduled caste and scheduled Tribal. Indian Oil has been highly involved in
the communities like health, training and development, education, sanitation facility, water

CSR Activities of Indian Oil Corporation Limited 3
management, family welfare programmes and uplifting women and empowering them as
well. Indian Oil has always stood up right the way in case of any national emergencies like
helping victims of natural calamities by aiding in terms of cash and kind.
Indian Oil has also aimed at creating initiatives that include allotment of petrol and LPG
distributorships to some handicapped and disabled people. It has established a retail outlet
named Kisan Seva Kendra in rural areas to serve the rural people. Indian Oil Foundation is
set in order to protect and preserve national heritages and monuments of India because it has
always been supporting the arts and culture which must be protected. For it, it has conducted
programmes under its name like Indian Oil Art Exhibition and Indian Oil Sangeet Sabha.
Besides protecting the environment, it has also taken initiatives to produce green fuels that
will automatically reduce the problem of petroleum products and save the energy of the
nation. It has provided alternative solution of the fuels like ethanol- blended petrol, bio diesel,
and Hydrogen CNG mixture that will be beneficial for the environment (Buldybayeva, 2014).
Major CSR projects
The past of India is still stimulating and is rich in terms of economy. Huge number of
monuments, crafts, arts and music is still standing and reflecting a glorious past. In order to
protect and preserve those monuments and heritages, Indian Oil has engaged itself in non-
profit trust named Indian Oil Foundation collaborating with ASI i.e. Archaeological Survey
of India and National culture Fund of the Ministry of culture, Government of India. The main
idea behind the foundation of Indian Oil is to protect the ecological balance and heritage
within the organization. It has successfully contributed 10crore and has aimed to adopt one
heritage site in each stage and Union territory (Sharma and Kiran, 2012).
Some of the major monuments are Qutub Minar, Konark Sun Temple, Khajuraho, kanheri,
Hampi and Warangal fort. Indian Oil foundation will also focus on improving all the world
class facilities and other several conveniences for the tourists. It also launched “Swantantrya
Jyot” to tribute the national freedom fighters.
Indian Oil Academic and Sports Scholarships
Indian Oil has awarded 2600 scholarships to the studious and meritorious students across the
India and provided them an opportunity to build their career in the field of education. In order

CSR Activities of Indian Oil Corporation Limited 4
to develop CSR activities, Indian Oil has conducted several schemes to attract students and
make their future bright. They select the students on the basis of merits. They cover all the
students of 10th, Engineering, MBBS and MBA which is announced through newspapers
advertisements.
Similarly, they also aims at focusing on encouraging the girls and women by giving them
special treatments, helping handicapped and physically challenged people, and serving the
students of Jammu and Kashmir and Northeast states. Indian Oil sports also award the
talented students and deliver promises to create a pool for those (Tiwari, 2016).
Green Initiatives
A diesel named Low sulphur was developed that contains 0.5% of Diesel. It was introduced
in metros in the year 1996. Likewise, extra low sulphur diesel was also introduced in the Taj
Trapezium area in the year 1996 and later it was announced across the country from the year
2000. Low sulphur diesel content was introduced which helped to create Unleaded Motor
Sprit i.e. petrol and Gasoline across the country from February, 2000. Similarly, it has also
introduced Green fuels that will emit Euro 3rd emissions norms in nearly 13 cities. The centre
has also been certified under ISO-14000: 1996 to manage environment systems.
Every Indian Oil refineries aims at preserving the environment standards and provide
efficient innovation in the technologies. Furthermore, to improve the standards of the
environment, it has also launched new state of the art technologies that will enhance the
existing standards (Mishra and Sharma, 2010).
CSR Budget Allocation
The total budget allocated for all the corporate social activities nearly lies to 10crores. It
includes the allocations in several areas like Natural Disasters (35%), Donations (5%),
Community Development (30%), Indian Oil Scholarships (20%) and other many activities
(10%).

CSR Activities of Indian Oil Corporation Limited 5
Reasons why a company should adopt CSR activities
It helps to avoid unnecessary exploitation of Corruption, labour and bribery. It helps to avoid
all those factors if a company gets highly involved in the CSR activities. It will start focusing
on the welfare of the community and society with a view to serve all the members. The main
reason behind getting involved in CSR activities are mentioned below.
Indian Oil would know in advance about their expectation and promote themselves
accordingly. It will get to know what people expect from the company and how the company
will serve to improve the quality life of the people.
Since Indian oil is involved in huge number of CSR activities, it has successfully created a
goodwill and reputation in maianinting a brand name and generate profits and also contribute
to sustainable environment.
CSR activities helped Indian Oil to maintain a balance between company’s protocols and the
norms and values of the employees within the organization.
There are several issues involved in the company which can easily be resolved by the
adaptation of the CSR activities.
When a company gets involved in the CSR activities, it creates an opportunities for the poor
and needy to lead a generous life by involving themselves in many programmes. Moreover
those who earn little are also helped by the company to fulfil their basic needs.
Today, women basically from the rural areas suffers a lot. They are not educated properly nor
are they provided proper health benefits. Indian Oil aims at focusing the women in the rural
areas by conducting training and development programmes and creating a major concerns
related to health and education (Gautam and Singh, 2010).
Today there are many companies that are highly involved in the CSR activities. CSR
activities helps a company to think better in the environment point of view and also boost the
quality life of individuals living in the society.
Disadvantages of CSR in Indian Oil Corporation Ltd

CSR Activities of Indian Oil Corporation Limited 6
Sometimes getting too much involved in the CSR activities can be frustrating and may create
a negative work environment i.e. working from antiquated technology to bureaucratic red
tape can be a concern. Working to gain no profit can also lead to frustration and exasperating.
In order to meet the CSR activities, employees are forced to work more by utilizing limited
resources and satisfy their competing interest. The changes which are generated by the profit
organization is very high if compared with the changes that are seen in the non-profit
organizations. It generally happens that the lower bottom line is not clear in non-profit
organizations so it becomes difficult to implement changes with a pace.
Indian Oil conducts several CSR activities within and outside the organization. These all are
conducted and managed by the employees working in it. Sometimes it becomes very difficult
to manage the load of heavy weight on their shoulders for non-profit tasks.
Sometimes there comes a bad day to work for a non-profit job which is very similar to the
bad day in a corporate job. But there is a great difference between losing a few percentage off
the stock than mentoring someone to avoid drugs. But the losses are higher in the non-profit
organization because it involves losses which are caused close to one’s heart.
Indian Oil created unnecessary burdens on the employees because every employees are given
responsibilities to solve internal issues and taking care of them before they exists. Employees
working in the company are sometimes forced to complete their mission without any profit
benefits.
Since, there is no profit motive when a company gets involved in the CSR activities, it
sometimes suffers losses in monetary terms because it becomes difficult for the organization
to maintain their funds and help people. Creating welfare activities in the society and
community may require funds which becomes difficult to manage (Visser, 2011).
Recommendations
Since Indian Oil is involved in many CSR activities, there is still no clear definition and
understanding of CSR among the state as well as society. There must be clarification of the

CSR Activities of Indian Oil Corporation Limited 7
process and every members must be aware of the definition of the CSR and then work
accordingly which will further reduce unnecessary pressure on the non-profit organizations.
There is lack of effective communication strategy which must be implemented and supported
by the government. The company must have long term goals and work on it. More
responsibilities must be carried out to meet the deficits and reduce it.
Indian Oil must start investing more in social investments can create a further challenge in
the development of the company in its overall business activities. It should focus on
producing their goods across the globe i.e. besides serving in few countries, it should also
start introducing their products and services in abroad and other many states as well. This will
help in generating more funds.
Conclusion
Thus, it can be concluded that corporate social responsibility plays a very crucial role in any
business or an organizations. It aims at creating something that is different and contributing
those different things to different people. CSR basically focuses on not polluting the
environment and being more protective and concerned about the harmonious growth of the
customers that exists within the community and the society. It aims at focusing on the health
and education sectors by organizing several programmes. It aims at providing environment
protection against hazardous factors and developing the quality life of every members within
the society.
Indian Oil Corporation Ltd is a multinational company that is highly involved in CSR
activities. It has contributed a lot for the welfare of the society and a nation as well. It has
conducted huge number of health care programs, involved in charity and donations, educating
women and organizing programmes in rural development and also many more. Besides of all
these CSR activities, it has also aimed at protecting the employees’ welfare by providing
them additional benefits and working for their upliftment. Moreover, there are also many
disadvantages which Indian Oil has faced during CSR activities. It has suffered in managing
the funds and helping the people with non-profit motives.
Likewise, it can also be concluded that Indian Oil has introduced some retail outlets in the
rural areas and served their products and services to those who cannot afford a lot. It has also

CSR Activities of Indian Oil Corporation Limited 8
aimed at focusing on the green environment by producing the diesel that will least affect the
environment and its members.

CSR Activities of Indian Oil Corporation Limited 9
References
Buldybayeva, G., 2014, Both Sides of CSR Practice: A Case from Oil and Gas Industry,
Viewed on 15th February, 2017. Available on:
https://www.uni-obuda.hu/journal/Buldybayeva_48.pdf
Gautam, R. and Singh, A., 2010, corporate social responsibility practices in India: A study of
top 500 companies, Global Business and Management Research: An International Journal,
2(1), pp.41-56.
Indian Oil, 2018, CSR activities, viewed on 15th February, 2018. Available on:
https://www.iocl.com/AboutUs/corporatesocialresponsibility.aspx
Mishra, P., and Sharma, P., 2010, Green marketing in India: Emerging opportunities and
challenges, Journal of Engineering, Science and Management Education, 3(1), pp.9-14.
Rana, N., 2015, CSR: What oil and gas companies should really focus on, viewed on 15th
February, 2018. Available on:
https://blogs.economictimes.indiatimes.com/ResponsibleFuture/csr-what-oil-and-gas-
companies-should-really-focus-on/
Rubin, J., 2011, why your world is about to get a whole lot smaller: oil and the end of
globalisation, Random House.
Sharma, A. and Kiran, R., 2012, Corporate social responsibility initiatives of major
companies of India with focus on health, education and environment, African Journal of
Basic & Applied Sciences, 4(3), pp.95-105.
Tiwari, A., 2016, CSR of Indian Oil, 2016. Available on:http://csrworld.net/csr-activities-of-
indian-oil-corporation-limited.asp
Visser, W., 2011, the age of responsibility: CSR 2.0 and the new DNA of business, John
Wiley & Sons.