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CORPORATE SOCIAL RESPONSIBILITY (CSR) AS A STRATEGY FOR INCLUSIVE
DEVELOPMENT - Learning from Oil Companies in India
(Paul V Mathew, Research Scholar, Cochin University of Science and Technology (CUSAT), and
Nimmy A George, Assistant Professor, Bharata Mata College, Thrikkakkara )
Abstract
In the wake of globalization and neo liberalism, the concept of contributing for social
development by business is getting high relevance. It is apparent that a few business enterprises
explore and exploit common resources for lucrative purpose and gain momentum at the cost of
others. While business are promoted by government by encouraging investment, the procuring of
lands, making of decisions, catalyzing innovations and development expects a positive turn . A
participative and responsible approach of the business and the Government alone would secure
our future and ensure that an inclusive development that favors planet, people and profit
happens. CSR, an effective tool for Public Private Partnership (PPP) alone will be able to help
countries to meet their ambitious goal of faster, inclusive and sustainable all round development.
Keywords - Corporate Social Responsibility (CSR), Triple Bottom Line (TBL), Participatory
Approach, Sustainable Development, Inclusive Growth, Base of the Pyramid (BoP)

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INTRODUCTION
The term Corporate Social Responsibility (CSR) is an evolving concept getting wide attention
and gaining different dimensions day by day. Even though the term is new, the concept has a
long history even from pre Christian period. At the same time, sustainable business, responsible
business, social and environmental performance, social action program, corporate citizenship etc
are emerged as a proxy for CSR. Albeit the term „Corporate Social Responsibility‟ was coined
by R. Edward Freeman in his book titled „Strategic Management: A Stakeholder Approach’, this
term does not have a globally accepted definition. But the common concise is that CSR is
essential to business and majority believes that business should serve as a steward in society, and
that it has a duty to investors, employees, consumers, communities and the environment (Michel
Blowfield and Alan Murray (2005). This can be corroborated by the fact that while in 1977 less
than half of the Fortune 500 firms even mentioned CSR in their annual reports, by the end of
1990, approximately 90 percent Fortune 500 firms embraced CSR as an essential element in their
organizational goals, and actively promoted their CSR activities in annual reports (Boli and
Hartsuiker, 2001).
The meaning of CSR has two dimensions. On the one hand, it is the ethical behavior of an
organization that exhibits towards its internal and external stakeholders and on the other hand, it
denotes the responsibility of an organization towards the environment and society in which it
operates. According to World Business Council for Sustainable Development “Corporate social
Responsibility is 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 of the local community and society at large”. While debating on definition, there is no
dual opinion on the fact that CSR relates with sustainable development. The common principles
constitute to form a concept of Triple Bottom Line (TBL) approach which gives a holistic view
on CSR. This may be encapsulated as the organization/individual effort towards overall social,
environmental and economical enhancement of the society. This was evolved in line with the
three pillar concept (People, Planet and Profit). In short CSR can be expressed as the
organization‟s responsibility towards overall positive impact of the society.
APPROACHES OF CSR
Business has a long term liability towards society and environment; this may be in the wake of
its strong link with various components of environment and society. While business explores
resources and fetches profit from the people, it has the liability to ‘give something in return’.

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Even though this may be the core notion behind CSR, time taught business entities to think
beyond CSR and to behave more responsibly. Researchers have identified the reasons why firms
develop CSR strategies; such as reputation improvement, government regulations, competitive
advantage, stake holder pressure, critical events and top management pressure (Hall and
Vredenburg, 2004; Kassins and Vafeas, 2006; Chih Hung Chen and Winai Wonsgurawat, 2011.).
The selection of issues under CSR by organizations depends on a host of factors including
organizational mandate, current relevance of issues and demand from the community. The
priority areas covered under CSR initiatives include education (82 percent),environment (81 per
cent), health (81 per cent), women empowerment (63 per cent), livelihood promotion (62 per
cent), sanitation (61 per cent), microfinance (60 per cent), HIV/ AIDS (54 per cent), child care
(55 per cent), slum improvement (50 per cent), disaster management (44 per cent) and
agricultural development (29 per cent). (Survey; Times Foundation and TNS, 2010). Other than
CSR initiatives, business enterprises are striving to depict its commitment, transparency,
accountability and governance practices to enhance its brand image and competitiveness through
Global Reporting Initiative (GRI) and Sustainability Reports.
CSR and Inclusive Approach
In order to ensure equality and justice in the society, more attention is vital to cater the needs of
neglected and underprivileged sections of the community. The recently published 12th
plan
period approach paper of India is titled „faster, sustainable and inclusive‟ growth. Inclusive
development, inclusive growth and inclusive banking are some of the key strategies of the
Governments to make certain that all are benefitting. India is the country with largest number of
stunted (31%), wasted and underweight (42%) children in the world (HuNGama Report, 2011).
One in three malnourished children worldwide is found in India (UNICEF India recorded the
highest number of deaths due to premature births (Born Too Soon: The Global Action Report on
Pre-Term Birth, 2012). India accounted for 47 per cent of Measles deaths in 2010 (WHO, The
Lancet, 23 April, 2012). Lack of health service and inadequate nutrition emerge as a serious
cause of concern. It is true that government is very keen to consider various social evils and
implemented myriad schemes to surpass these issues. Whereas many of them are fruitful,
rampant corruption and policy paralysis are drowning people to severe peril. As per the
Transparency International Report, India ranked 83 out of 172 countries in the corruption index.
At the same time, as a result of neo liberal policies of government, corporate powers are now in
the race to fetch public resources with lesser prices. In this background business needs to be

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more transparent and should play a vital role in social development. In order to extend the
services of the Government and to fill the existing lacuna, corporate and business enterprises can
contribute a lot for inclusive development of the country.
CSR and Triple Bottom Line (TBL) approach
The conspicuous concept Triple Bottom Line (TBL) model contributes a large towards
sustainable development initiatives. TBL is the totality of the corporation‟s financial, social, and
environmental performance in conducting its business. It envisions a holistic approach that
reiterates the responsibility of business towards society, economy and environment. Attaining
sustainability requires stabilizing or reducing the environmental burden, keeping business people
friendly by maximizing social benefit and making the business economically feasible. This was
the Sustainable development conceptualized by the Brundtland Commission Report in 1987 –
„meeting the needs of the present generation without compromising the ability of future
generations to meet their own needs‟ and it is now commonly paraphrased. United Utilities
defines sustainability as „development that conserves natural resources, protects and enhances
the environment, support the communities we serve, and maintains economic growth, for
AMEAC, „a commitment to acting responsibly in all that we do, whilst talking into account the
concerns of our stake holders‟. The Global Compact Programme, 2000, announced by Mr Kofi
Annan, is now considered as the model of social responsibility of corporate enterprises all over
the world and its sustainability approach is globally acclaimed. The United Nations' Millennium
Development Goals (MDGs) and the Water, Energy, Health, Agriculture, and Biodiversity
(WEHAB) agenda of the UN Secretary General are also deemed as essentials for bringing about
a solution to the basic problems facing our society and environment. Therefore, responsible
actions of business can tackle multiple problems in the society by incorporating different
dimensions of economy and environment. There are several bodies now emerging on the Indian
scene that focus on issues of CSR. For instance, the Corporate Roundtable on Development of
Strategies for the Environment and Sustainable Development - Business Council for Sustainable
Development (CoRE-BCSD) of India is a grouping of Indian corporate trying collectively and
individually to build in sustainable development concepts into their operations (EMC, 2005). The
efforts of Ministry of Corporate Affairs, Confederation of Indian Industries (CII), Times
Foundation, EU – India CSR Network etc are laudable.

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CSR and Participatory Approach
Participation is considered as one of the success factors of effectiveness and mission
accomplishment. People democracy, works committee, community involvement, industrial
democracy and employee participation have evolved from this ideology. The same has been
enshrined in our constitution especially through 73rd
and 74th
amendments which provided
constitutional guarantee to the formation of Panchayat at village and other levels (Grama Sabha).
However, there is no expectation in the case of CSR implementation. CSR defined by the World
Business Council for Sustainable Development (1999) gives a stakeholder dimension – „the
commitment of business to contribute to sustainable economic development, working with
employees, their families, local community and society at large to improve their quality of life‟.
Another definition states as „Corporate social responsibility is the overall relationship of the
corporation with all of its stakeholders. These include customers, employees, communities,
owners/investors, government, suppliers and competitors. Elements of social responsibility
include investment in community outreach, employee relations, creation and maintenance of
employment, environmental stewardship and financial performance‟ (Khoury et al., 1999). The
stakeholder theory of CSR put forwarded by Freeman (1984) describes the role of primary and
secondary stake holders. The business community can make tremendous contributions in the
well being of our nation in partnership with local people, NGO‟s, Government and different
philanthropists. In order to understand the ground realities and people needs, a strong
participatory approach is essential. This will help to create a win - win situation by maintaining a
strong and long lasting partnership with different stake holders. It is apparent that a healthy
collaboration among business, Government and community is very essential in CSR projects.
During this period, expectations of people have increased enormously along with their demands
focusing on unemployment, health, social infrastructure, education and poverty alleviation.
Pressure groups like NGO‟s and Community organizations are successfully persuading corporate
enterprises to fund various CSR schemes. However, the efforts of the Government may not be
adequate to provide basic services to its citizens. It is being increasingly recognized that progress
and welfare of a society is not only the responsibility of the Government alone, but many more
stakeholders need to be involved to attain the development goal (Save the Children Sweden,
2007). The corporate sector has a pivotal role to play in ensuring private investment flows to
those rural areas that have been left out of the development process so far and also to work for
sustainable development of rural areas in general. (Corporate Social Responsibility in Rural
Development Sector: Evidences from India, Sanjay Pradhan, Akhilesh Ranjan) . At the same

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time, it is essential to understand the actual needs of society rather than creating a doom effect
through CSR.
METHODOLOGY
The main objectives of the study were:
 To study and understand the CSR initiatives being taken by selected oil companies in
India
 To examine the CSR approach and their mode of action for implementation for CSR
initiatives;
This paper adopted case study method to analyze various approaches and practices of CSR
implementation. Three elite Oil companies Bharath Petrolium (BPCL), Indian Oil and Hindustan
Petroleum (HPCL) have been selected to identify the practices. While considering the business
of exploring natural resources and creating environmental hazards in different ways, Oil
companies have a clear responsibility towards its consumers/people and the environment. The
sector was selected in the wake of its highly international orientation, successful and diverse
CSR strategies and availability of comprehensive overview on Sustainable Management. These
oil companies have well written CSR policies and demonstrate their sustainability strategy
through Global Reporting Initiative. Data were collected from different secondary sources like
Sustainability reports, Annual reports, especially web sites of corresponding companies.
Researchers also conducted interviews with public relations officers in oil companies to
crystallize the CSR orientation of related companies.
CASE ANALYSIS
HPCL Corporate Social Responsibility –Inclusive Approach
Hindustan Petroleum
Approach Inclusive
Target Girl Child, Juveniles, School Dropouts, Youth and Truck Drivers
Thematic Areas Women Empowerment, Education, Health and Skill Enhancement
Partners People, Employee, Experts, Experienced Agencies
Ownership Human Resource Department
HPCL is built on its founding principle “creating socially responsible business processes to
produce an overall positive impact on society”. The company aims at taking up various CSR
activities and initiatives to reach out the rural sector and underprivileged sections of the society.

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HPCL‟s CSR model is based on “Creating Shared Value”. The shared value model is based on
the concept that corporate success and social welfare are interdependent. Additionally it develops
and initiates plans that consider “People, Planet and Profit” equally. HPCL‟s commitment
towards building social capital, skill development, community development and care of girl child
is highly noteworthy. Its inclusive approach invariably proves that the company has a special
consideration for the marginalized and neglected community especially in rural hinterlands.
Primary focus of HPCL is in girl child, juveniles, school dropouts, youth and truck drivers.
Almost all projects are developing only after the critical analysis and understanding of the
problems exist in the society and with the aim of finding solutions to these problems.
Dating back to 1985, HPCL is one of the organizations in the country initiated CSR with a
philosophy to work with all stakeholders and communities, where the organization has its
operations. In partner with the inclusive approach of Government, HPCL initiates CSR projects
aims at Women Empowerment, Education, Health and Skill Enhancement of the people. There is
an array of projects envisions at the overall development of the society. Hamara pump is a
venture of HPCL to provide fuel to the farmers in rural areas. Farmers can access this single
point outlet for a variety of agri inputs and farm financing. The HP Rasoi Ghar (Community
Kitchen) is a now a boon to women in the rural areas. Women who wandered for collecting bio-
fuels and exhausted by obnoxious fumes while cooking are now provided with LPG connections.
Over 22,000 families benefit every day from the 15,000 HP Rasoi Ghar spread across the
country. Considering this, HPCL has been awarded Golden Peacock Award in 2005 for CSR and
National Excellence Award for innovative techniques for improving the access of rural women
to a modern fuel. The Inclusive approach of HPCL is evident from the table below.
Name of the Project Theme Beneficiaries Number
Unnati IT Education Rural People 18550
Nanhi Kali Education Girls 11603
Muskan Housing Street Children 800
Suraksha AIDS Awareness Truckers -----
Swalamban Training BPL 5600
Navjyot Health Children 19060
Child Right & You Human Rights Children -------
TOTAL 55613
Table 1: HPCL CSR Highlights (Source: Bringing Smiles, HPCL)

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The project Unnati in association with National Institute of Information Technology, (NIIT)
aimed at providing computer training programmes and personal computers to students in semi-
urban and rural schools. HPCL takes up a strategy to tackle unemployment through its project
Swalaban. By providing skills training, capacity building exercises, workshops and technical
supports, Swalabhan equips the rural youth capable of being self employed. It also gives
preference to provide amble opportunities in primary sector of the economy which also
contributes to the accomplishment self sufficiency and high agricultural productivity. Training is
being given to 1,800 youths in different locations in association with the Confederation of India
Industry (CII) have already started earning. HPCL concentrates on the health and academic
excellence of girl children in rural areas. The girl child is provided with school uniforms, given
extra training and encouraged to participate in extra-curricular activities like singing, dramatics
and the like. Muskan provides shelter and basic needs for two hundred street children and
Navjyot improves the health index of children by providing health care. Suraksha is the project
of HPCL to educate the truck drivers and cleaners about HIV-AIDS and ways of preventing the
diseases. As a part of its inclusive approach, HPCL has established various skill development
centers, craft making units and IT training centers for employment generation, skill enhancement
and livelihood. Along with these HPCL focuses on awareness on global warming, rehabilitating
victims of natural calamities and poverty eradication projects.
It is true that the key success factor of CSR of any organisation is not only the funds earmarked,
but the commitment and enthusiasm of the employees of that organization. The participation and
commitment of employees of HPCL in its CSR activates is an exceptional feature. Here Human
Resource Department is the owners of Corporate Social Responsibility projects. Employees
identify the needs of the community and implement multitude of programs to bridge the gap of
the people needs. HPCL staffs play a crucial role in creating a strong bond between the
community and company at its locations. The staff at the HPCL outlets educates the drivers and
cleaners and leads various section of the society about HIV - AIDS. Each year, a large number of
employees of HPCL offer voluntary services at the Dikshabhoomi at Nagpur (to commemorate
the embracing of Buddhism by Dr Babasasheb Ambedkar) to make the programme successful.
In par with the „Agenda of Government for inclusive growth‟, HPCL strives to maintain
harmony and equality in the society. HPCL strongly believes that doing business responsibly
does have a positive impact and the contribution to society. CSR policies and practices of HPCL
stand in 4 pillars- Community based CSR, Environment based CSR, Product based CSR and
Workplace based CSR. HPCL proceeds in a truly corporate manner, planning investments in

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social causes methodically, executing the various steps with utmost care and securing distinctive
developments for the poor and the downtrodden masses. The company works closely with
district administration and identifies developmental needs of the area and the people. It is certain
from its purpose statement „using core competence, expertise and technology of our business to
reach the common people, especially the underprivileged, is our aim, Developing capacity in the
community is our strategy; and Enhancing human excellence and improving quality of life is our
endeavor..
Indian Oil
Indian Oil – Triple Bottom Line Approach
Approach Sustainable Development (Triple Bottom Line Approach)
Target Scheduled Caste and Scheduled Tribe
Thematic Areas Health, Family Welfare, Education, Environment and Women
Empowerment
Partners Community
Ownership Indian Oil Foundation and Indian Oil
Fund Allocation: 2% of the Retained Profit
CSR is inherent in whatever Indian Oil do. Beyond CSR initiatives, Indian Oil strives to
incorporate intrinsic values in its products and services. Indian Oil has been considering CSR as
the cornerstone of success right from the inception in the year 1964. Mission statement of Indian
Oil reads like that "…to help enrich the quality of life of the community and preserve ecological
balance and heritage through a strong environment conscience." The commitment towards
society, economy and environment is evident from the aforesaid statement. The same has been
proved by Indian oil through myriad ventures.
Indian Oil has clear policy guidelines for CSR projects. 2% of its retained profit is devoted for
social development activities. Unspent amount, if any, will be carried forward to the next year.
(This is against the ceiling of 0.75% of net profit, which was in force hitherto). In this a
minimum of 35% towards national causes/natural calamities, amount not exceeding 5% towards
donations/contributions, 30% towards community development activities including special
component plan and tribal sub plan, 30% towards IOC's scholarship, of which 50% amount
would be utilized towards providing scholarships to the students belonging to weaker sections of
society and 50% amount for others. About one-fourth of the community development funds are

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spent on the welfare of scheduled caste and scheduled tribe beneficiaries. While utilizing the
community development funds, more emphasis should be laid on the projects of providing clean
drinking water, health & medical care and education. Health, family welfare, education,
environment protection, providing potable water, sanitation, and empowerment of women and
other marginalized groups are the thematic areas of operation. Indian oil enshrined a holistic
approach which is not limited in economic development. It says „economic development alone is
no longer viewed as a strategy for poverty reduction and well being of society. It is recognized
that a society‟s economic goals are intricately intertwined with its social and environmental
goals. This realization is also the guiding force behind Indian Oil‟s commitment to build a strong
sustainable business that is firmly rooted in the community and demonstrates concern for the
environment‟.
Diagram 1: Indian OIL CSR Themes
The sustainability approach of Indian Oil spreads in Triple Bottom Line areas. Reduce its carbon
footprint, become water positive, manage waste responsibly are the key environmental strategies
of Indian Oil. Indian Oil has done a serious of experiments in the exploration of renewable
energy for alleviating energy poverty and improving energy access at the „base of the pyramid‟
in India. By adopting “3 – R” (Reduce, Recycle and Reuse) policy, Indian Oil ensures resource
efficiency in operations, especially for key resources like energy and water. Effective waste
management, water treatment and installation of regulatory requirements make Indian oil, the
best in sustainable environmental practices.
Indian Oil operates and undertakes various solar power projects (in Rajasthan under the
Jawaharlal Nehru National Solar Mission), wind mills (Gujarat and Andhra Pradesh), and
nuclear power plants (Rawatbhata, Rajasthan with Pressurised Heavy Water Based Reactor
(PHWR) technology). Addition to this Indian Oil-CREDA Biofuels Ltd. has undertaken nearly

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6000ha plantations of Jatropha curcas in different districts of Chhattisgarh. The projects at
Chhattisgarh and Madhya Pradesh have generated more than 3.5 lakh man days of rural
employment. Solar lanterns project of Indian Oil is one of the novel ventures that provides basic
energy solutions to the poor by distributing solar lanterns through its extensive retail network and
Kisan Sewa Kendras spread across the country. More than 30,000 solar lanterns have been
distributed during 2010-11.
Some of the other major sustainability initiatives of Indian Oil are
Solar Photovoltaic systems installed at retail outlets to minimize the use of diesel
generators for dispensing units and lighting loads, thereby reducing carbon emissions.
Exercise to assess ecological foot printing Indian Oil‟s operations in terms of carbon
emissions, water use and waste generation.
Constant endeavors to make all its major events/workshops/seminars/conferences carbon
neutral.
Rainwater harvesting projects at several of its locations.
Use of Organic Waste Converters for the eco-friendly utilization of organic waste
Regular workshops and training programmes are organized to generate awareness about
sustainability issues.
Indian Oil takes concrete action to realize its social responsibility objectives, by supporting
various social and community initiatives in India. Besides focusing primarily on the welfare of
economically and socially deprived sections of society, Indian Oil helps victims of natural
calamities. Indian Oil‟s community-focused initiatives include allotment of petrol/diesel station
dealerships and LPG distributorships to beneficiaries from among scheduled castes, scheduled
tribes, physically handicapped, ex-servicemen, war widows, etc
The Indian Oil Foundation (IOF), a non-profit trust focuses on protection, preservation and
promotion the national heritages, art, culture and traditional folks in collaboration with ASI and
NCF of the government of India. Community Development programme of Indian Oil adopts a
multi-disciplinary approach that encompasses medical camps, immunization, AIDS awareness,
eye, blood donation, pre and post-natal care. Besides the above, Indian Oil also runs and
maintains number of hospitals for the benefit of the local community. In order to support
education Indian Oil provide financial assistance to schools and distributes around 2600
scholarships to meritorious students.

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Bharath Petroleum – Participatory Approach
Bharath Petroleum
Approach Participatory
Target Vicinity of Operation
Thematic Areas Education, Health, Environment and Community Support
Partners Local Body, NGO‟s and People
Ownership Human Resource
BPCL firmly believes that sustainable business and inclusive growth can be achieved through
responsible efforts in all areas of their operations. While traversing through development, BPCL
balances economic progress with social value, health, safety, security and environmental care.
The organization has a strong commitment towards social development and depicts it through
multiple ways. Education, health,
environment and community support are the
key thematic areas of company‟s CSR
operation. Even though BPCL concentrates
on its vicinity of operation for the
implementation of CSR projects, its impact is
ubiquitous. Corporate Social Responsibility
initiatives (CSR) in BPCL have emerged from
the belief that it is only through collective
effort that change can be brought about in society. BPCL‟s CSR initiatives are pan India in reach
and involve collaboration with a number of Non-Government Organisations (NGOs) who are
committed to the cause of social development and people empowerment.
The CSR vision of BPCL states like that „build a powerful partnership with society for
„Sustainable Development‟. It is evident that the strategy adopted by the BPCL for the
implementation CSR initiatives is in partnership with society. This participatory approach, grass
root level planning process and the involvement of bottom to top members make the CSR efforts
of BPCL unique. In order to identify the needs and wants of the local people and to identify the
gaps in the society, an attempt for participatory planning and grass root level interventions are
necessary. Local government has a crucial role in the development of region as well as the
bridging of infrastructure lacunas. Local governments provide the core utilities and infrastructure
on which the community requires. Additionally, role of NGO‟s can enhance the robustness of
Diagram 2: BPCL - CSR Approach

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CSR initiatives by augmenting capacity building plans and by maintaining strong acquaintance
with people and government. Here BPCL is synergizing the actions of stake holders like local
self government, NGO‟s and community through a participatory planning approach. (The CSR
methodology of BPCL is shown in the diagram 2.) Through this strategy, BPCL acts as a centre
point to hold all its stake holders together thereby provide the needs of community. While
ensuring the involvement of local Panchayat, BPCL manages to utilize the expertise of NGO‟s.
Benefitting communities are selected on the basis of their socio economic circumstances and
their needs are identified through discussion with local stakeholders. Local NGO‟s that are
familiar and adept at working with these communities are identified to carryout work with the
communities on behalf of BPCL. The CSR activities are regularly monitored and evaluated by
BPCL officials. Along with these, employees of BPCL visit these locations and participated with
the local community by providing training, medical benefits, workshops and construction of
basic amenities. The strong network exists between local self governments and NGO‟s serves as
a catalyst for CSR operations.
BPCL has a tie up with Gramin Social Welfare Society & Community Action for Rural
Development in Tamilnadu,Vivekananda Girjana Kalyan Kendra in
Bhubaneswar(Orissa),Kalyan Vikas Kendra & Sevavrata & Divyayana in Jharkhand,G.P.Tin UP
& Rajasthan,Sevavrata in West Bengal, to deliver social welfare services at grass root level.
Project Boond is one of the novel CSR ventures of BPCL aims at alleviating the drought
situation in five villages on the leeward side of the Western Ghats. This was in support with a
well known NGO, Bridge Public Charitable Trust. BPCL provided all the material supports.
Community contribution was raised in the form of “Shram Daan”, or voluntary service. Villagers
contributed a day‟s work per week to the village and were paid for the remaining days of the
week. BPCL employees also participated along with villagers in construction of some of the
structures. The project Boond has been honored with Asian Corporate Social Responsibility
Award 2008. In the wake of the positive impacts of the project, BPCL now extends it to various
villages all over the country. BPCL received the „CIDC Vishwakarma Award 2011‟ for the good
work done in the area of CSR
Corporate Social Responsibility initiatives (CSR) in BPCL have emerged from the belief that it
is only through collective effort that change can be brought about in society. BPCL has
successfully completed various projects in the fields of education, water conservation, health,
environment conservation and economic empowerment in collaborations with different NGO‟s
and local governments.

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BPCL gives preference for local procurement of goods and services to support the livelihood of
immediate communities. For procurements other than crude, approximately 90% of the materials
procure indigenously. NRL is historically been isolated from rest of the India's growth story due
to difficult terrain, lack of infrastructure and few access routes. Albeit many constraints like
limited availability of local vendors and contractors, BPCL procures goods and services from the
region. During the financial year 2007-08, the quantum of social benefits to local communities in
and around NRL is estimated to be Rs. 84.82 million.
DISCUSSION AND CONCLUSION
The purpose of this case study is to analyze the strategies, practices and approaches of oil
companies in their CSR projects. Even though the study incorporates many factors of CSR for
analysis, one should bear in mind the fact that most of the observations are based on qualitative
data derived from secondary data sources and limited resources were available to analyze the
data quantitatively. Another factor for consideration is the sector we considered for analysis
includes three elite oil companies which have sustainable foot prints in the industry and regularly
publishing its sustainability reports as part of the Global Reporting Initiative (GRI). Additionally,
all of these companies are emerging as model in sustainable practices and the same is evident
from the honors and awards received. Albeit activities of all the organizations are more or less
same, the study is limited to identify the strategy they adopted for CSR implementation. At the
same time companies insist responsible and sustainable practices in almost all areas of operations
inherently. The CSR implementation strategy adopted for the analysis is the widely accepted
notions and the researchers tries to comply company‟s practices with these concepts. There may
be diverse approaches for CSR implementation and further research recommended in this regard.
It is apparent from the case study that priority of companies varies. HPCL adopts an inclusive
approach and strives to enhance social indices of the nation by including the neglected and
marginalized. Whereas Indian Oil adopting a triple bottom line (TBL) approach that gives equal
attention for people, planet and profit by enhancing intrinsic values, BPCL adopts participatory
approach for sustainability by ensuring active participation of stakeholders. Whilst considering
different strategies of oil company for the implementation of CSR, an integrated approach
incorporates some common features evolve as a model CSR. A Triple Bottom Line (TBL)
approach which imbibes all the responsibilities in its operation seems very sustainable for any
organization. But while implementing CSR initiatives, a participatory approach involving
underprivileged sections of the society shall be accepted.

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Though keeping pace with sustainable development we need to keep in mind that the
responsibility lies in the hands of certain people in power. The interference of Government,
NGO's, Corporate and various funding agencies can have multitude effects in the community. In
a market oriented economic structure, corporate sector is the prime mover of economic growth. It
is, therefore, imperative that it comes forward and shares the responsibilities for redistributive
and inclusive growth. The role plays by corporate in supporting Government‟s commitment to
provide greater economic opportunities to the disadvantaged makes a win - win situation. Thus
the initiatives put forward by the corporate seem to be most effective. At the same time new and
more effective forms of interventions at grassroots level, addressed at underprivileged sections,
are needed. To comply with this objective, a self driven urge to adopt Responsible Business
practices is very vital. Along with the aim of profit, a triple bottom line approach that ensures
commitment towards society, economy and environment is a need of this hour. In short, ethical
principles and responsible practices in all the areas of business have significant role in the
success and sustainability of business. In order to achieve developmental goals, Participatory
Approach as a mode of operation and Participatory Planning, Execution and Management as the
strategy for implementation are necessary.

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Institute for Managing Sustainability, University of Economics and Business, Vienna
Paul V Mathew
Vazhayil
Kinginimattam, Kolenchery
Ernakulam, Kerala
India - 682311
Res: 0484-2766667
Mob: +91-9745482028
Email: paulvmathew.hr@gmail.com
Nimmy A George
Assitant Professor
Department of Commerce
Bharat Mata College, Thrikkakkara
Kochi-682 021
Ph: 91-484-2425121 Fax: 91-484-2427796
Email: nimmygeorge86@gmail.com
All Rights Reserved @ Maha Journal of Education (Citation: Paul, V. M., &
Nimmy, A. G. (2014). Corporate Social Responsibility (CSR) as a
Strategy for Inclusive Development-Learning from Oil Companies in
India. Maha Journal of Education , 1 (1), 22-30.)