Saturday, September 20, 2008

Communities is an inherent part of its business strategy

CSR is actually bundled along with the company business charter that the union cabinet outlined while allowing the incorporation of the company. The charter for the then – proposed gas corporation was: “to create necessary infrastructure for transport, processing and distribution of gas, to set up facilities for segregating natural gas into different components by a process called fractionation. Secondly, to acquire gas assets of Oil and Natural Gas Corporation and Oil India Limited. And lastly to act as coordinator for gas sector to ensure proper utilisation of gas.” Judge the significance of the words ‘proper utilisation’ that mentioned in the last line against the backdrop of the fact that gas flaring was then rampant in both onshore and offshore fields. This burning issue figured regularly in Parliament in the form of written questions. But things have changed today. There are hardly any questions that are asked about flaring. The new questions now primarily relate to supply, shortage and the price of gas that’s being supplied by various producers.

Over the years, GAIL has created awareness about the eco-friendly and energy-efficiency virtues of gas over liquid fuels and coal across the country. Thus, the more gas it transports and markets, the stronger it emerges as a protector of the environment, which has slowly become a vital component of CSR of corporates the world over. One should thus not feel surprised to find the catchline ‘Blueprint for a Greener Tomorrow’ donning the cover page of GAIL’s annual report for 2006-07.

The annual report stated that “as we expand our gas pipeline networks, reaching the green fuel to newer ports of call, we are proud to contribute in our small way towards the preservation of the environment by making the gas available to increasing parts of the country, helping curb hazardous emissions and provide clean fuel for city transportation.” GAIL adds value to its business-embedded CSR activities by amplifying them at the project sites and through a slew of philanthropic, medical, educational, vocational, explicit environment protection and other welfare activities across the country.

The very business of laying and operating pipelines confers additional advantage and challenges on GAIL when it comes to fulfilling CSR. It has to know the people, understand their problems and aspirations, and it has to do with communities located along the length and breadth of its pipelines network. The company has thus to reach to the people cutting across caste, culture and geographical boundaries, unlike other companies that have the easy option of funding a few show-piece CSR projects located in villages around their factories.

Take the case of GAIL’s proposal to lay a parallel pipeline for transporting gas in the existing right of undertaking (ROU) of Vijaipur (MP)-Dadri(UP) pipeline to carry more gas to these two states as well as to Rajasthan and Haryana. In August 2007, it decided to commission a ‘Population Density Index’ survey, 200 metres on either side of entire pipeline route. The survey would identify dwellings and all public places such as schools and dispensaries where more than 20 persons assemble.

Such data would not only enable GAIL to factor in the safety requirements and future expansion prospects, but also help it know about the lack of public facilities along the route. This enables the company to spread and stretch its resources on CSR initiatives over diverse locations ranging from supply of water tankers in Ajmer district of Rajasthan, to funding of a respiratory disease treatment centre at Agartala in Tripura.

And GAIL does innumerable activities across the entire CSR spectrum all over the country in a low-key fashion. It has hardly ever invited the media to report on its CSR operations, unlike other companies that want the world to perceive them as socially-responsible corporate citizens. The company sets aside 1% of its profit after tax for CSR initiatives every year. It has an explicit CSR policy in place for several years.

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Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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1 comment:

Anonymous said...

hi, nice to hear that GAIL is a socially and environmentally responsible business. On the other hand, not communicating this to the media and the general public, as well as other stakeholders, is the opposite of the corporate responsibility approach. CSR is bases on transparency. Transparency is necessary to gain and build ongoing trust and encourage other businesses to act in a similar way. I would encourage GAIL to produce a csr report and to ensure its responsibile activities gain media exposure. companies to have nothing to tell enage in greenwash. If there is substance, the message is important.

elaine cohen
www.potential-one.com
social business consultant, social auditor and reporting consultant