This presentation gives an insight about the extent of CSR activities by British Petroleum in India

1. BP – MEETING UP TO THE INDIAN
CSR REQUIREMENTS
By:
Aditya Pattnaik
WBNUJS, Kolkata.

2. INTRODUCTION
• BR or SR, called CSR has developed in the last 50 years.
• Change in the concept – form philanthropy to company’s responsibility to keep in mind
about the society in its business decision.
• Also has included the facet of environmental aspect within CSR.
• Made statutory in India through enforcement of Section 135(1) of CA, 2013.
• But report in Mint suggests that private companies are not being able to fulfil the
requirements
• Most of the Oil Companies are Publicly owned, barring a few.
• This analysis looks at CSR compliance of British Petroleum in the Indian Framework.

3. BACKGROUND OF THE COMPANY
• Multinational Oil and Gas Company headquartered in London.
• Involved mainly in activities such as exploration upstream and marketing of fuels and power
generation. Very recently, involved in renewable energy sector (Biofuels and windpower)
• Originated as early as 1908 as a subsidiary of Burmah Oil Company. Underwent privitization
during 1990s. Merged with Amoco in 1998 to become BP Amoco Plc.
• Fifth largest company on basis of turnover. Headed by Carl-Svanverd as the Chairman and Bob
Dudley as the CEO.
• Primarily listed on the London SE. Forms a part of the Financial Times SE. Secondary Listings
in NY and Frankfurt.
• In India, the presence is through Castrol India and in partnership with Relaince. BP Exploration
(Alpha) Limited and BP India Services Private Limited.

4. CSR BY THE COMPANY -
INTERNATIONAL
• Recognised as one of the leaders in global CSR – Long time A+ rating in the Global
Reoprting Index. Listed by Dow Jones Sustainability Index and FTSE4Good as leader in
CSR. Won best company for CSR in the year 2009.
• Shown commitment towards sustainable development in the energy and oil and gas sector.
Has been publishing the Sustainability Report regularly since the year 2002
• Disaster of Deepwater Horizon in the year 2010 in Mexico. 11 killed and largest
environmental disaster in the US History.
• This brought forward the loopholes in the CSR policy of BP. Although the Reports were
presenting robust health and safety policies, but they were cutting corners in safety and CSR.
• Has been accused of greenwashing the Deepwater Horizon Experience by many scholars.

5. APPLICABLE REGULATIONS
• Under the 1956 Companies Act and Rules, there was no mandatory CSR
activities.
• Not even mooted in the early 2000 where changes were planned to be
brought into the Companies Act.
• Brought into force through the CSR CPSE Guidelines for Public Sector
Enterprises.
• Then made mandatory for all the companies through the Companies Act,
2013. Section 135.

6. REGULATIONS
• Section 135 of the Companies Act.
• Every company of worth more than five hundred crores, turnver of thousand crores or net profit of five
crores shall constitute a CSR Committee.
• The CSR committee will formulate and recommend the CSR policies.
• The Board has to be make public the CSR policy of the company on its website.
• The company has to spend a minimum of 2 percent of the net profit in the last three years towards CSR
activities and preferably in the local areas.
• Schedule VII of the Act describes in detail about the list of activities that would qualify for CSR activities.
• Also the CSR Companies Rules lay down the detailed framework for the CSR reporting by the companies.
• SEBI has also enforced the CSR activities by the listed companies through the Listing Clause Agreement 55
and 34 of the LODR Regulations.

7. ANALYSIS AND FINDINGS
• Focussed on three pronged approach – SUSTAINABILTY of Environment , SAFETY of
Employees and SKILL DEVELOPMENT in the society.
• Two Indian Subsidiaries. BPEAL – wholly owned by BP involved in Exploration. 30 perent
interest in the Oil and Gas Blocks in the KGD6 with Reliance.
• Does not fall under the ambit of section 135. But still has been involved in CSR activities and
made disclosures on its websites.
• It has spent 1.6 crore in CSR activities. Mainly three activities.
• Colab with IECD for skill development in government ITI’s In Gujarat. More than 550 institutes.
Curious Me Project with NGO pravah for scientific temperament among adoloscents. Has
contributed to the CSR activities by Relaince in the Krishna Godavari basin area.

8. Continued.
• The other subsidiary is the BP India Service Private Limited. Involved in
provided manpower and HR resources to the business in India and abroad.
• Calculation on net profit, CSR allocation in 2014 – 43.5 lakhs. That went
upto 46.5 lakhs in the year 2016.
• Three main activities: Colab with LAHI for improvement of teaching and
learning among rural kids of Maharashtra, science and maths lab for poor
children with Doorstep School and also contributed to the program with
Pravah

9. CONCLUSION
• Proper reporting and spending on CSR activities as mandated by the statutes
• There is one problem that the CSR policy of the company doesn’t specify the activities that
is planned to be undertaken. Also the CSR compliance report has not been published in cas
eof BPISPIL.
• BPEAL, though does not fall under the ambit, it has undertaken the CSR activities
voluntarily.
• Although globally criticized for its policy, BP India seems to be making the effort to comply.
• Most of the compnies in this sector are Public Listed companies having greater obligations
under the statute. But still BP being a new entrant has tried to keep up well with the other
companies in this regard.