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“DISASTER MANAGEMENT, CORPORATE GOVERNANCE & 
CORPORATE SOCIAL RESPONSIBILITY” 
Submi t ted to 
MUMBAI UNIVERSITY 
FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF 
MASTERS OF COMMERCE 
STRATEGIC MANAGEMENT 
SESSION 2013-2014 
DEPT. OF MANAGEMENT STUDIES 
MULUND COLLEGE OF COMMERCE 
Under the guidance of: MS. ROOPALI KOTEKAR 
Submi t ted by: RAVEENA UDASI 
Rol l : - 15051 
Page 1
DECLARATION 
I, Raveena Udasi , student of MCom here by declared that the research 
report ent i t led “DISASTER MANAGEMENT, CORPORATE GOVERNANCE 
AND CORPORATE SOCIAL RESPONSIBILITY” is 
completed and submi t ted under the guidance of is my original work. 
The imperial finding in this report is based on the data col lected by me. I have 
not submi t ted this project report to any other Universi ty for the purpose of 
compl iance of any requirement of any examinat ion or degree. 
Page 2 
DATE: Raveena Udasi 
M.Com Sem I 
ROLL NO. 15051
CERTIFICATE 
I, Prof. Roopal i Kotekar , hereby cert i fy thatMiss Raveena Manoj Udasi ROLL. 
No 15051 of Mulund Col lege of Commerce, S. N. Road, Mulund (West ), 
Mumbai -400080 of M.com Par t I (Business Management ) has completed her 
p r o j e ct o n “Disaster Management , Corporate Governance and Corporate Social 
Responsibi l i ty” d u r i n g t h e a c ad emi c ye a r 2 0 1 3 -14. The informat ion submi t ted is 
true and original to the best of my knowledge. 
____________________ ___________________ 
Project Guide Principal 
_____________________ ___________________ 
Co-coordinator External guide 
Page 3 
Date:
EXECUTIVE SUMMARY 
This project aims to understanding the meaning and defini t ion of disaster 
management , corporate governance and corporate social responsibi l i ty. 
For a detai led understanding I have taken a company to dissect the defini t ions of 
the above ment ioned terminology. 
In this project I have tried to highl ight the various disasters in the wor ld and 
one of which is India. And also highl ighted an understanding of how the disaster 
in India has been managed due to strong disaster management forces. 
The other hal f of my project talks about Corporate Governance and Corporate 
Social Responsibi l i ty laid down by Rel iance Indust ries Limi ted. It gives a gist 
of how the company operates. 
Page 4
ACKNOWLEDGEMENTS 
Page 5 
A research project is a golden 
opportuni ty for learning and sel f development . I consider mysel f very lucky and 
honored to have so many wonderful people lead me through in complet ion of 
this project . 
My grateful thanks to Prof . Ms. 
Roopal i Kotekar who in spi te of being extraordinari ly busy wi th her/his dut ies, 
took t ime out to hear , guide and keep me on the correct path. I do not know 
wh er e I wo u l d h a v e b e en wi t h o u t h er / h im. A h umb l e ‘T h an k yo u ’ S i r . 
I would also l ike to thank everyone who took act ive involvemen t in helping me 
wi th my project report wi thout whom, i t would not have been possible. 
RAVEENA UDASI
TABLE OF CONTENT 
SR. NO. TABLE OF CONTENTS 
PG. NO. 
1 DISASTER MANAGEMENT 7 
2 MEANING & CLASSIFICATION 8 
3 TYPES OF DISASTERS 9 
4 UTTARAKHAND: A MODEL OF DISASTER 11 
5 MANAGING UTTARAKHAND 18 
6 CORPORATE GOVERNANCE 21 
7 PRINCIPLES OF CORPORATE GOVERNANCE 23 
8 GOVERNANCE MODEL AROUND THE WORLD 24 
9 CODES & GUIDELINES 26 
10 CORPORATE SOCIAL RESPONSIBILITY 33 
11 LIMITATION 47 
12 BIBLIOGRAPHY 48 
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DISASTER MANAGEMENT 
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A disaster is a natural or man-made (or technological ) hazard resul t ing in an event of 
substant ial extent caus ing signi f icant physical damage or dest ruct ion, loss of l i fe, or 
drast ic change to the envi ronment . A disaster can be ostensively def ined as any t ragic 
event stemming f rom events such asear thquakes , f loods, catast rophic accidents, f i res, 
or explosions. It is a phenomenon that can cause damage to l i fe and proper ty and 
dest roy the economic, social and cul tural l i fe of people. 
In contemporary academia, disasters are seen as the consequence of 
inappropr iately managed r isk. These r isks are the product of a combinat ion of both 
hazard/s and vulnerabi l i ty. Hazards that st r ike in areas wi th low vulnerabi l i ty wi l l 
never become disaster s, as is the case in uninhabi ted regions. 
Developing count r ies suf fer the greatest cos ts when a disaster hi ts – more than 95 
percent of al l deaths caused by disasters occur in developing count r ies, and losses due 
to natural disasters are 20 t imes greater (as a percentage of GDP) in developing 
count r ies than in indust r ial ized count r ies. 
Researchers have been studying disasters for more than a century, and for more than 
for ty years disaster research. The studies ref lect a common opinion when they argue 
that al l disasters can be seen as being human -made, thei r reasoning being that human 
act ions before the st r ike of the hazard can prevent i t developing into a disaster . Al l 
disasters are hence the resul t of human fai lure to int roduce appropr iate disaster 
management measures. [7] Hazards are rout inely divided into natural or human -made, 
al though complex disasters, where there is no single root cause, are more common 
in developing count r ies . A speci f ic disaster may spawn a secondary disaster that 
increases the impact . A classic example is an ear thquake that causes a tsunami , 
resul t ing in coastal f looding. 
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Natural disaster 
A natural disaster is a consequence when a natural hazard af fects humans and/or the 
bui l t envi ronment . Human vulnerabi l i ty, and lack of appropr iate emergency 
management , leads to f inancial , envi ronmental , or human impact . The resul t ing loss 
depends on the capaci ty of the populat ion to suppor t or resist the di saster : thei r 
resi l ience. This unders tanding is concent rated in the formulat ion: "disasters occur 
when hazards meet vulnerabi l i ty". A natural hazard wi l l hence never resul t in a 
natural disaster in areas wi thout vulnerabi l i ty. 
Var ious phenomena l ike ear thquakes, landsl ides, volcanic erupt ions, f loods and 
cyclones are al l natural hazards that ki l l thousands of people and dest roy bi l l ions of 
dol lars of habi tat and proper ty each year . However , natural hazards can st r ike in 
unpopulated areas and never develop into di sasters. However , the rapid growth of the 
wor ld's populat ion and i ts increased concent rat ion of ten in hazardous envi ronments 
has escalated both the f requency and sever i ty of n atural disasters. Wi th the t ropical 
cl imate and unstable land forms, coupled wi th deforestat ion, unplanned growth 
prol i ferat ion, non-engineered const ruct ions which make the disaster -prone areas more 
vulnerable, tardy communicat ion, poor or no budgetary al l ocat ion for disaster
prevent ion, developing count r ies suf fer more or less chronical ly by natural 
disasters. Asia tops the l ist of casual t ies due to natural disasters. 
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Man-made disasters 
Man-made disasters are the consequence of technological or human hazards. Examples 
include stampedes , f i res, t ranspor t accidents , indust r ial accidents, oi l spi l ls and 
nuclear explosions/ radiat ion. War and del iberate at tacks may also be put in this 
category. As wi th natural hazards, man -made hazards are events that have not 
happened, for instance ter ror ism. Man -made disasters are examples of speci f ic cases 
where man-made hazards have become real i ty i n an event . 
Typhoon Haiyan – Phi l ippines 
Considered one of the st rongest storms ever to make landfal l , Typhoon Haiyan tore 
through the cent ral Phi l ippines November 8, ki l l ing near ly 6,000 people and 
displacing more than 3.6 mi l l ion. 
The 13-foot storm surge and up to 235-mph wind gusts largely wiped out coastal ci t ies 
a n d d e s t r o ye d mu c h o f t h e r e gi o n ’ s inf rast ructure, such as roads, water and 
sani tat ion systems, and telecommunicat ions l ines. 
“Wh e n yo u l o o k a t t h e mo u n t a i n s , t h e y l o o k b a r e a n d s t r i p p e d o f a l l ve ge t a t i o n , ” 
Aaron Aspi , a Wor ld Vision communicat ions of f icer , told ABC Radio on November 11 
f rom nor thern Cebu. 
Wi thin one month of the storm, Wor ld Vision had reached almost 150,000 people wi th 
emergency food, shel ter , medical at tent ion, and other assistance. I t is prepar ing long - 
term ef for ts to help people in as many as 80,000 households in the dis aster -prone 
count ry get back on thei r feet . 
Typhoon Phai l in – India 
The st rongest cyclone to hi t India in 14 years, Typhoon Phai l in af fected the 
l i ve l i h o o d s o f mo r e t h a n 1 3 mi l l i o n p e o p l e i n t h e c o u n t r y’ s n o r t h e a s t . 
Heavy rains and more than 150 -mph winds brought widespread devastat ion. But fewer 
than 50 people died in the mid-October storm. Governments and aid 
organizat ions credi ted improved disaster preparedness and the ear ly evacuat ion of 
about 1 mi l l ion of the most vulnerable residents along the coast . 
As Phai l in approached, Wor ld Vision staf f had provided megaphones, l i fe jackets , 
f lashl ights, and ropes to communi ty leaders, enabl ing them to warn residents and 
organize quickly. In the af termath, the organizat ion dist r ibuted emergency food and 
other suppl ies to fami l ies in Brahmapur , in Odisha state. 
Hur r icanes Manuel and Ingr id – Mexico 
Two separate storms overwhelmed western Mexico wi th rain in September , t r igger ing 
widespread f looding and landsl ides. More than 200,000 people were af fected in 
Guer rero state alone. In Acapulco, f ive feet of mud over took vehicles and dest royed 
homes.
Wor ld Vision staf f provided fami l ies in the Xochist lahuaca and Santa Catar ina River 
communi t ies in Guer rero wi th food, blankets, and tarps. In the long term, we wi l l 
provideclean water , sani tat ion ki ts, and cons t ruct ion mater ials to help fami l ies rebui ld 
thei r homes. 
We wi l l also operate Chi ld-Fr iendly Spaces , where chi ldren have a safe place to learn, 
play, and receive counsel ing. 
Ear thquake – Cent ral Visayas, Phi l ippines 
Just three weeks before Typhoon Haiyan hi t Cent ral Visayas, a magni tude -7.2 
ear thquake rocked the same region, ki l l ing 222 people, displacing 350,000, and 
damaging or dest roying about 73,000 bui ldings. Tho usands of displaced or homeless 
quake survivors st i l l had not found adequate shel ter before Haiyan blew through. 
Wor ld Vision provided af fected fami l ies wi th food and basic household suppl ies in the 
days af ter the quake. 
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Tornadoes – Uni ted States 
A massive tornado, packing 200-mph winds, raked a 12-mi le path through the 
Oklahoma Ci ty area May 20, dest roying homes and severely damaging two elementary 
schools. The twister ki l led 24 people, ABC News repor ted. 
The week before, as many as 10 tornadoes touched down in Nor th Texas, ki l l ing six. 
In response to the dual disasters , Wor ld Vision provided more than 15,000 af fected 
people wi th emergency food ki ts, hygiene ki ts, cleanup ki ts, and blankets. Its mobi le 
Teacher Resource Center suppl ied 156 teachers to serve 2,300 students at four schools 
in devastated Oklahoma neighborhoods. 
As par t of a long-term recovery commi tment , Wor ld Vision is par tner ing wi th local 
churches and organizat ions to help fami l ies rebui ld thei r homes. 
Other disasters 
Other large-scale natural disasters Wor ld Vision responded to in 2013 include: 
Solomon Islands ear thquake and tsunami (February) 
Sichuan, China, ear thquake (Apr i l ) 
Southern Af r ica drought (May-present ) 
Ut tarakhand, India, f loods (June) 
Colorado, U.S. , f loods (September ) 
Southern Asia f loods (October ) 
West Af r ica drought (ongoing)
UTTARAKHAND: A MODEL OF DISASTER 
On the af ternoon of 16 June, local resident Manav Bisht watched dozens of constables 
leaving the parami l i tary Sashast ra Seema Bal (SSB) Academy, which stood between 
his house in Shakt i Vihar , a local i ty in Ut tarakhand’ s S r i n a ga r t o w n , a n d t h e 
Alaknanda r iver that had star ted swel l ing f rom 10 am. The waters threatened to enter 
the academy bui lding af ter 5 pm and more jawans were shi f ted to Paur i , the dist r ict 
headquar ters. 
SSB IG S Bandhopadhyay was aware of the tor rent ial rainfal l up in the hi l ls. There 
was also the f lood warning issued by the Indian Meteorological Depar tment ( IMD) . As 
night fel l , the Alaknanda breached the meagre embankment and ravaged the academy 
bui lding. Somet ime af ter midnight , af ter drowning the 500-met re s t retch of the SSB 
campus, the tor rent rose above the 10 -feet -high boundary wal l on the other side and 
entered Shakt i Vihar . 
Ba n d h o p a d h ya y’ s t i me l y a c t i o n s a ve d ma n y l i ve s . Bu t b u s y e va c u a t i n g h i s me n , h e d i d 
not inform the dist r ict administ rat ion. “ I d i d n ’ t n e e d t o t e l l a n yo n e . T h e y c o u l d s e e 
wh a t wa s h a p p e n i n g . E ve r yo n e h a d i n f o r ma t i o n a b o u t t h e h e a v y r a i n f a l l , ” s a ys 
Bandhopadhyay. But nobody thought i t neces sary to warn the residents of Sr inagar . 
So, Bisht , much l ike hi s neighbours, was caught unawares when the r iver entered his 
house around 1.30 am. Suddenly, there was panic everywhere. Wi thin an hour or so, 
the ent i re neighbourhood had gone under the roi l ing waters. Few managed to get hold 
o f a n y va l u a b l e s . Bi s h t ’ s f ami ly barely managed to escape in the clothes they 
weresleeping in. 
About 100 km away, fur ther up in the hi l ls, another r iver was also in spate. Whi le the 
Alaknanda was engul f ing par ts of Sr inagar , the Mandakini began bat ter ing 
the templetown of Kedarnath in the ear ly hours of 17 June. Soon af ter pi lgr ims and 
residents of the pi lgr image cent re woke up to sights of devastat ion, a massive 
landsl ide sent huge mounds of rock into the Charbar i lake, 6 km upst ream 
of Kedarnath. 
Binod Mant r i , a pi lgr im f rom West Be n ga l ’ s Ho o gh l y , w a s u n e a s y s i n c e 1 6 J u n e . Wi t h 
no let -up in the rain, wor r ied loca ls advised him to shi f t closer to 
the Kedarnath temple f rom his hotel by the r iver . So he checked into the Rajasthan 
guesthouse wi th 16 fami ly members and stayed indoors as landsl ides, rain and howl ing 
wind bat tered the town. Next morning, the fami ly was prepar ing to venture out for a 
quick breakfast when the tor rent entered the room. Mant r i and his brother -in-law 
survived by cl inging on to the window gr i l l . Everyone else in the fami ly, al l 14 of 
them, cl imbed onto beds and were swept away wi thin minutes. 
“ T h e l a n d s l i d e c a u s e d a gi a n t s p l a s h l i ke a b r i c k d r o p p e d i n a b u c ke t o f wa t e r , ” r e c a l l s 
one of the four Indian Army jawans posted at Kedarnath. The mass of rock smashed 
against the sand and boulders, giving the r iver momentum to sweep up more rocks on 
i ts way to become the dest ruct ive force that wiped clean everything in i ts path. By 
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nine in the morning, Kedarnath had become a ghost town. Rambara, a set t lement 
downst ream, simply di sappeared. 
By 18 June, the magni tude of the disaster became clear . Across 37,000 sq km of the 
Himalayan state, lands l ide and f loods t rapped more than 80,000 tour ists, t r igger ing 
one of the biggest rescue operat ions by the armed forces and the biggest by 
hel icopters so far . The race against t ime took i ts tol l even on those who toi led round 
the clock to save l ives . On 20 June, Rudraprayag Dist r ict Magist rate Vi jay Dhaundiyal 
suf fered a hear t at tack. At least 20 rescue personnel per ished, adding to the of f icial 
death tol l of 5,000, which, locals and eyewi tnesses claim, wi l l b e in the range of 10- 
20,000 if those who have gone missing are also accounted for. 
For each survivor , another seems to have died in this unfolding t ragedy. Sixty -f ive-year 
-o l d Ai s hwa r ya ma d e i t a l i ve , a l o n g wi t h j u s t s e ve n o f h e r gr o u p o f 1 5 . “ S t a n d i n g 
beside a bonf i re to keep warm, she was having cof fee at a roadside shop when the 
f lood waters came. Before she could react , out of nowhere, a pack of mules charged 
t owa r d s h e r , k n o c ki n g h e r o ve r a n d p u s h i n g h e r i n t o t h e o p e n f i r e , ” s a i d o n e o f h e r 
relat ives at the Himalayan Inst i tute Hospi tal Trust in Dehradun, the state capi tal , 
where she is being t reated for severe burns and an injured hip. 
Against heavy odds, i t took even the army’ s b e s t e f f o r t s mo r e t h a n a we e k t o r e a c h t h e 
s t r a n d e d i n ma n y a r e a s . “We we r e n e r vo u s wh e n we f i r s t go t h e r e . We d i d n ’ t kn o w i f 
we would be able to pul l this of f . But today, we are get t ing the las t of the near ly 300 
s u r vi vo r s d ow n f r om J u n gl e Ch a t t i , ” a Fi f th Sikh Regiment of f icer leading the rescue 
operat ion in Kedarnath told TEHELKA, whi le keeping a watchful eye on able -bodied 
survivors cl imbing of f a rope down a 80 -degree, 90-feet -deep drop. 
As of 26 June, there are st i l l 5,000 survivors st randed in the Badr inath and Harsi l 
areas and the rescue work — Operat ion Surya — cont inues despi te intermi t tent rain 
and worsening weather condi t ions. Whi le some locals al lege that rescue operat ions 
have been skewed towards saving pi lgr ims and foreigners, vi l lager s of Bhagor i and 
Ganeshpur in Ut tarkashi are going out of thei r way to shel ter and feed the st randed. 
Wi th the armed forces and the administ rat ion conf ident that the last f ew wi l l be 
rescued in the next couple of days, the worst seems to be over for the visi tors. 
The surviving tour ists wi l l return home. Ut tarakhand and i ts people wi l l have to face 
the consequence of thi s disaster . Near ly 1 lakh of them have become homeless and 
there is resentment among the locals that rescue ef for ts have ignored them so far . 
Wi th more than 300 repor ted cases, acute diar rhoea is threatening to take epid emic 
propor t ions as rot t ing corpses have begun to contaminate water sources. 
Al ready, the state has est imated the damage to be upwards of Rs 3,000 crore. 
Insurance companies are looking at claims wor th more than Rs 1,000 crore. The Char 
Dham Yat ra has been cal led of f indef ini tely. Damaged roads and other inf rast ructure 
may take years to rebui ld. Rel igious tour ism, the mainstay of G a r h wa l ’ s e c o n omy , 
wi l l now have to star t f rom scratch. 
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In the 2011 census, Ut tarakhand’ s p o p u l a t i o n wa s 1 . 0 8 c r o r e . T h e s t a t e h o s t e d 2 . 6 8 
crore pi lgr ims and tour ists in 2010 - 11. Since then, the Garhwal rel igious ci rcui t saw 
a four -fold increase in the number of pi lgr ims as year -round access to the shr ines — 
ear l ier rest r icted to four months — was al lowed. 
According to Yat ra Rotat ion Sami t i member Sanjay Shast r i , around 1 lakh vehicles — 
50-60 percent of these not f rom the state — do three t r ips of the Char Dham Yat ra 
each year . Since 2005-06, the number of taxis and jeeps registered in the state has 
jumped tenfold. Since 2010, the state has added 4,500 km of road under the Pradhan 
Mant r i Gram Sadak Yojana (PMGSY) alone. Its total road length near ly t r ipled in the 
past decade. 
“ P e o p l e b e c a me g reedy. Everyone went overboard. How long would the mountain 
suf fer thousands of jeeps and buses crawl ing up and down and accommodate thousands 
of tour ists? Al l along the banks of the r iver , there is const ruct ion of houses. Where we 
used to have tents a few years ago, we have f ive -storey bui ldings . At some point or 
t h e o t h e r , n a t u r e h a d t o h i t b a c k. T h i s wa s i t , ” s a ys Ga u r a v S i n g h , wh o r u n s a t e a s t a l l 
in Guptakashi vi l lage. 
And this is when things have gone to plan. Af ter an emot ional ly -charged pol i t ical 
struggle, the creat ion of the Ut tarakhand state in 2000 promised i t s people thei r r ight 
over the hi l ls, forests and water . At the t ime, many professed that the new sta te could 
bui ld i ts economy wi thout compromising i ts pr ist ine hi l ls, by focussing on i t and other 
sof t -ski l l indust r ies. Instead, Ut tarakhand decided to go big on tour ism, the only 
indust ry i t had known unt i l then. 
In 2001, the state cons t i tuted the Ut tarakhand Tour ism Board and chalked up i ts 
t o u r i sm p o l i c y wi t h t h e vi s i o n t o “ m a ke Ut t a r a n c h a l s yn o n ymo u s w i t h t o u r i sm” . T h e 
focus was on drawing higher numbers of tour ists and bigger investment into the state. 
From 1 crore in 2001, the number of visi tors to the state grew to 3 crore in 2010. 
Over the decade, a number of schemes and tax rebates for bui lding tour ism 
i n f r a s t r u c t u r e e n s u r e d ‘ d e ve l o pme n t ’ o f p r i s t i n e d e s t i n a t i o n s a n d mu s h r o omi n g o f 
hotels and resor ts. The state raised the budgetary al locat ion for tour ism by 224 
percent in the 10th Plan. At present , 22 tour ism projects wor th Rs 1,840 crore are 
coming up on the publ ic -pr ivate par tnership (PPP) model and account for 47 percent 
of the total investment in the PPP schemes under implementat ion in the state. 
Whi le promot ing unrest r icted growth in tour ism, the new state decided to exploi t i ts 
hydropower potent ial as wel l . Former chief minister Ramesh Pokhr iyal prepared a 
‘Vi s i o n 2 0 2 0 ’ s t a t e me n t t o ma ke Ut tarakhand a “ p r o s p e r o u s s t a t e ” . Wi t h t h e theme 
‘Pahad Ka Pani , Pahad Ki Jawani ’ , t h e p l a n wa s t o h a r n e s s t h e n a t u r a l r e s o u r c e s o f t h e 
state in an opt imal manner and create more jobs. 
“ T h e s t a t e h a s a c a p a c i t y t o p r o d u c e a t l e a s t 4 0 , 0 0 0 mw o f p o we r f r om hydel projects . 
Therefore, we have planned to instal l several hydel power uni ts in the state. The 
surplus power wi l l be sold to other states. We have invi ted investors and the response 
has been very encouraging. To rope in local talent and provide jobs, we have decided 
t o e mp l o y l o c a l yo u t h s i n mi n i h y d e l p o we r p r o j e c t s , ” P o kh r i ya l wa s q u o t e d a s s a yi n g 
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in 2010. The resul t : 73 hydel projects on the Alaknanda, Mandakini and Bhagi rathi , 
and several more on other r ivers of the state. 
Unbr idled tour ism and const ruct ion of dams on r ivers had one common demand: newer 
and wider roads across the state. 
Ut tarakhand star ted widening i ts roads in 2002. Ti l l then, al l roads here were two - 
lane, except for the Tehr i road, which was widened up to the dam si te in the 1990s . 
The story was to repeat under BC Khandur i , the then sur face t ranspor t minister . 
“ P e o p l e t h o u gh t t h a t a l l h e (K h a n d u r i ) wa n t e d wa s t o widen the roads for the growing 
tour ist t raf f ic. It was only later that we star ted to see a di f ferent picture. For example, 
a road was widened t i l l Lambagad and af ter that there was nothing. Now at Lambagad, 
there was a dam const ructed by the Jaypee Group. It created a suspicion in our minds 
that this widening of roads was done pr imar i ly for the movement of big 
t rucks wi thconst ruct ion mater ial for dams, ” s a ys Dr Ra vi Ch o p r a , d i r e c t o r o f 
P e o p l e ’ s ScienceInst i tute in Dehradun. 
The other reason behind the spur t in road projects, says a t ranspor t depar tment of f icial 
wh o d o e s n o t wa n t t o b e n a me d , i s t h a t t h e r e wa s “ a l o t o f mo n e y t o b e ma d e ” . S i n c e 
the 1962 war wi th China, the Border Roads Organisat ion (BRO) bui l t the ar ter ial 
roads in the region, put t ing in reinforcement wal ls in the unstable s t retches. Under the 
cut -and-f i l l method, the excavated ear th was used to pave the road. But as too many 
road projects were commissioned, nobody bothered to ident i fy the unstable slopes; the 
ear th was s imply dumped in the r ivers below. To cut costs, road projects even stopped 
creat ing adequate drainage systems . 
“Us u a l l y, we c u t t h e mo u n t a i n s i d e a n d l e a ve i t f o r t wo ye a r s t o a l l ow d e b r i s a n d 
overhanging mater ial to come down. The mountain stabi l ises thro ugh two monsoons 
before we put in the hard topping. But growing t raf f ic demands that we expand the 
roads and destabi l ise the mountains again. Also, whi le the widening was ear l ier done 
by men and machines, now we use dynami te to do i t quickly. There are sev eral roads 
that have become landsl ide -prone because blast ing l e a ve s c r a c ks i n s i d e t h e mo u n t a i n , ” 
says a former civi l works engineer who served in Rudraprayag dist r ict . 
Since 2010, under the PMGSY, a number of approach roads have been bui l t to vi l lages 
way u p o n t h e s l o p e , wh i c h f u r t h e r i n c r e a s e s t h e r i s k o f l a n d s l i d e s . “ T h e r e h a s b e e n a 
lot of road cut t ing by state agencies, not by the BRO, and the degree of care, I would 
say, is marginal . It is a recipe for disaster i n a yo u n g , u n s t a b l e mo u n t a i n , ” s a ys 
Chopra. 
The indiscr iminate rol lout of roads also spur red unregulated const ruct ion across the 
state. Unl ike in rural areas, there are const ruct ion codes for urban areas, but few 
fol low the rules. Just across the state Assembly bui lding in the state capi tal ar e 
encroachments on the Rispana st reambed. 
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The si tuat ion is wel l imaginable in rural areas, where the tour ism cent res have become 
death t raps. Af ter the 2011 ear thquake in Sikkim, a study by IIT Roorkee found that 
t radi t ional low-r ise, l ightweight t imber bui ldings per formed ext remely wel l . But to 
accommodate the growing number of tour ists , Ut tarakhand’ s t r a d i t i o n a l c o n s t r u c t i o n s 
gave way to unplanned mul t i -stor ied bui ldings on columns and beams. At Gaur ikund, 
where the t rek for Kedarnath begins, walking the 20-feet -wide road along the 200-odd 
met res of the main bazaar is l ike moving t hrough a tunnel wi th ai r less three -storey 
bui ldings on both sides. 
It is not a coincidence that Garhwal suf fers heavy loss of l ives and proper ty year af ter 
year whi le neighbour ing Kumaon repor ts far less damage. Al l major shr ines of the 
state are in Garhwal and these dest inat ions are al l by the r ivers. Since pi lgr ims have 
to access the ghats, hotels have cropped up on the edge of the r iver s. The resul t is an 
unbearable load on the Garhwal mountains that are anyway much steeper compared to 
the rol l ing hi l ls of the Kumaon. Wi th this lopsided burden alongside r ivers prone to 
f lash f loods, i t was only a mat ter of t ime before the overhanging st ructures were swept 
away. 
The const ruct ion boom, on the other hand, fuel led i l legal mining of sand and boulders 
f rom r iverbeds. Such ext ract ion changes the slope of the r iverbed, making the f low 
restabi l ise i tsel f , causing the r iver to change course. Wi th const ruct ions r ight up to 
the bank, the disast rous consequence was vis ible last week. 
Nowhere in the state i s the SC orde r to rest r ict const ruct ion wi thin 200 met res of a 
r iverbed fol lowed. The val leys here have been formed f rom debr is rol l ing down f rom 
the mountain and are loose beds of gravel . When i t rains, the water sinks quickly, 
giving the impression of dry real estate . But dur ing monsoons, these gravel beds 
temporar i ly become very act ive. Yet , wi th the connivance of the local of f icials, scores 
of bui ldings have come up on such t reacherous foundat ion al l over the state. 
The SSB Academy bui lding that was inaugurated last year and damaged last week in 
Sr inagar , for example, was bui l t on the Alaknanda r iverbed. Many houses that were 
b u r i e d i n s i l t i n t h e a d j a c e n t S h a kt i Vi h a r we r e a l s o b u i l t i l l e ga l l y. “ It i s a n o l d 
colony of Sr inagar which used to be a fai r di stance away f rom the r iver . But in the 
p a s t f ew ye a r s , i t e x p a n d e d t owa r d s t h e r i ve r b e d i n c o n n i va n c e wi t h l o c a l o f f i c i a l s , ” 
says Prat ik Palwar , a Sr inagar resident . 
Over the past week, much has been said and wr i t ten about the absence of warning 
f rom the Met depar tment , which, in turn, has claimed that i ts aler ts went unheeded. On 
1 5 J u n e , t h e IMD f l a s h e d a “ s e ve r e ” wa r n i n g f o r K i n n a u r a n d Ga r hwa l . I t w a s 
u p gr a d e d t o “ ve r y s e v e r e ” t h e n e x t d a y. It r e ma i n e d s o t i l l 1 7 J u n e wh e n f l o o d a n d 
landsl ide ravaged Garhwal . Whi le Chief Minister Vi jay Bahuguna dismissed the 
wa r n i n g a s “ u n s p e c i f i c a n d n o n -a c t i o n a b l e ” , h i s o f f i c e r s a p p a r e n t l y a c t e d o n i t . 
“ T h e r e wa s a Me t wa r n i n g f o r h i gh r a i n f a l l a n d we we r e wa t c h i n g t h e wa t e r l e ve l . Bu t 
this happens each year . In Rudraprayag town, we shi f ted people. In Gaur ikund, people 
were asked to cl imb up and some were shi f ted to Rambara (which was eventual ly 
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wiped out ) and the pol ice kept people awake through the night . Al l the people al ive 
today are those who were evacuated to higher ground. But no one expected a mountain 
to crumble and fal l into the lake ( in Kedarnath) , ” s a ys Ru d r a p r a ya g S u p e r i n t e n d e n t o f 
Pol ice Bi render jeet Singh. 
If the warning indeed aler ted at least a sect ion of the state adminis t rat ion, was i t 
merely unprepared to meet the chal lenge? In i ts per formance audi t repor t submi t ted to 
Par l iament on 23 Apr i l , the Compt rol ler and Audi tor General (CAG) of India had 
highl ighted that the Ut tarakhand State Disaster Management Author i ty (SDMA) , 
const i tuted in 2007 and headed by the CM, had not formulated any rules or pol icies 
for disaster management in the state. 
“Wo u l d we b e b e t t e r o f f wi t h a p o l i c y? ” c o u n t e r s a s t a t e o f f i c i a l c l o s e l y i n v o l ve d wi t h 
r e l i e f a n d r e s c u e o p e r a t i o n s . “ T h e s c a l e o f t h e d i s a s t e r wa s s i mp l y u nma n a g e a b l e . Bu t 
we have done wel l . Wi th the army’ s h e l p , we h a ve t a ke n c o n t r o l o f t h e s i t u a t i o n 
wi thin a couple of days. Whi le theoret ical ly i t might have been pos sible to save more 
l ives by evacuat ing people before the f loods hi t , what do you do about the loss of 
inf rast ruct u r e ? Ca n we mo ve r o a d s a n d b u i l d i n gs t o s a f e t y? ” 
Exper ts such as geologist KS Valdiya and envi ronmental ist Himanshu Thakkar have 
faul ted the government on that very ground. The rainfal l , they maintain, was not 
unnatural but the human and inf rast ructural co s t o f t h e t r a ge d y wa s t h e s t a t e ’ s d o i n g. 
“ T h e CM s a y s t h i s r a i n i s u n p r e c e d e n t e d . It i s n o t . Ut tarakhand has seen so many 
disasters of this kind, but not this magni t ude. Just last year , there were two t ragedies 
— Ut tarkashi in August and Rudraprayag in September — when houses col lapsed l ike 
cardboard boxes and roads gave in. Yet , no lesson was learnt and blast tunnel l ing 
wo r k c o n t i n u e d f o r h y d r o p owe r p r o j e c t s , ” s a ys T hakkar . 
Others point out what they feel is the real t ragedy of Ut tarakhand’ s p e o p l e . “ T h e s t a t e 
invests publ ic money in i l l -advised projects that compromise our safe ty. At the same 
t ime , d a ma ge t o mi s p l a c e d i n f r a s t r u c t u r e c a u s e s t h e s t a t e e c o n omy h u ge l o s s e s , ” s a ys 
Mal ika Vr idhi of Munsiyar i -b a s e d NG O Hi ma l P r a kr i t i . “ Af t e r a l l , i t ’ s t h e p e o p l e ’ s 
money. Instead of pumping i t into dest ruct ive projects, the state should invest in 
s u s t a i n a b l e a gr i c u l t u r e a n d s ki l l d e ve l o pme n t p r o gr a mme s . ” 
Even where the warning system could save l ives, the inf rast ructural damage was 
overwhelming. At the SSB Academy, the los s was est imated at 100 crore. Vast lengths 
of vulnerable roads have simply been swal lowed by the r ivers. Several hydel 
projects i n t h e r e gi o n a r e a l s o h i t . “Wh a t i s t h e wi s d om i n ma ki n g i n ve s t me n t t h a t 
sel f -d e s t r u c t s , ” a s ks T h a k k a r , “w h i l e c a u s i n g d a ma ge t o t h e n a t u r a l s ys t e ms a n d 
p e o p l e ? ” 
On paper , the populat ion densi ty of Ut tarakhand is just 189 per sq km. But the sense 
of space is misleading. More than 90 percent of the land is mountainous and 64 
percent is protected forests out of bounds for the locals. Mushrooming development 
projects are fur ther elbowing out the hi l l people whi le the Tour ism Board and 
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numerous pr ivate players are hoarding land. The dams and reservoi rs are also eat ing 
into agr icul tural land. 
“He a v y i n f l u x o f t o u r i s t s a n d wr o n g t o u r i s m p r a c t i c e s a r e s t r e s s i n g t h e s e h i l l s . Ou r 
people most ly work in menial jobs whi le out siders rake in the prof i t . In the t ime of 
cl imate change, i t is very impor tant that the people protect thei r st reams and forests. 
T h a t c a n o n l y h a p p e n wh e n t h e y h a ve t h e ow n e r s h i p , ” a r gu e s Vr i d h i . “Ou r mo d e l o f 
eco-tour ism shows how communi t ies can benef i t by car ing for thei r 
naturalenvi ronment . This is not a model for bout ique out lets but needs to be adopted 
a c r o s s t h e s t a t e . ” 
Through communi ty par t icipat ion in eco-tour ism, the hi l l people may actual ly benef i t 
f rom tour ism that , cont rary to popular bel ief , now accounts for just 2 percent of the 
s t a t e ’ s emp l o yme n t . B u t t h e s t a t e t o u r i s m p o l i c y h a s n o s u c h p l a n s . It s t o u r i s m Ma s t e r 
Plan for 2007-2 2 i d e n t i f i e s “ ve r y l a r ge , o ve r a l l c a r r yi n g c a p a c i t y g i ve n t h e i mme n s i t y 
of the natural envi ronment ” a s t h e b i g ge s t o p p o r t u n i t y f o r t h e i n d u s t r y i n t h e s t a t e . 
Bar r ing a 2012 repor t by Inf rast ructure Leas ing and Financial Services Ltd that 
examined the car rying capaci ty of Dehradun, Har idwar , Rishikesh and Mussoor ie, no 
s t u d y h a s e ve r b e e n c o n d u c t e d t o d e t e r mi n e h ow mu c h t o u r i s m p r e s s u r e t h e s t a t e ’ s 
overcrowded des t inat ions can take. 
Meanwhi le, Bahuguna is determined to make Ut tarakhand p o we r s u r p l u s b y 2 0 1 6 . “ I t 
is chi ldish to suggest that the cloudburst at Kedarnath happened because of wrong 
const ruct ion on the r iverbeds. Wi thout tour ism, there wi l l be pover ty, unrest and 
migrat ion. We have clearance for 53 run -of- the-r iver hydro projects and we wi l l rol l 
o u t 3 6 f o r b i d d i n g b y De c e mb e r . I f yo u t a ke a d e c i s i o n , t h e n s t i c k t o i t , d o n ’ t s c r a p i t 
b e c a u s e o f s ome a c t i vi s t s , ” h e a s s e r t e d , r e p e a t e d l y, o ve r t h e p a s t w e e k. 
It may yet take more l ives for Ut tarakhand to real ise how far down the suicide slope i t 
has come. 
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MANAGING UTTARAKHAND: 
Indian Ai r Force of f icials working in Ut tarakhand—st i l l reel ing under the assaul t of 
the f lash f loods last month—h a ve n o i d e a w h e n t h e i r t a s k c a n b e t e r me d a s “ c l o s e d ” . 
Af ter evacuat ing thousands of people, they are now f lying in suppl ies to help rebui ld 
the l ives of the local people, and set up sturdy inf rast ructure s o that this vulnerable 
p a t c h o f t h e Hi ma l a ya s d o e s n ’ t ge t c u t o f f a ga i n . 
The pace of work has been scaled down, but the operat ion has gained degrees of 
danger wi th the monsoon al ready wel l -advanced into the hi l ls. The casual t ies have 
been taken care of and evacuat ions near ly done, yet the urgency of providing rel ief 
has remained near ly the same wi th locals in a hur ry to re -establ ish thei r vi l lages as 
this is the t ime for stacking up on winter suppl ies. 
“ I h a v e n o c l u e wh e n t h i s c a n b e s a i d t o b e o ve r , ” s a ys Ai r Commodore Rajesh Issar , 
who is leading the Indian Ai r Force operat ions f rom his temporary base at Jol ly Grant 
a i r p o r t i n De h r a d u n . “ Be c a u s e o f t h e n a t u r e o f t h e d i s a s t e r , I t h i nk we would remain 
h e r e f o r s ome t i me . ” 
T h e Ai r F o r c e ’ s o p e r a t i o n s a r e n ow i n p h a s e t wo , d o wn t o f l yi n g 8 -10 ai rcraf t as 
against 45 ear l ier , al l f lying into the nar row, mist -f i l led val leys, del iver ing what the 
civi l administ rat ion and NGOs ask for —ranging f rom dropping road bui lding machines 
l ike bul ldozers to mater ials for use for animal husbandry. 
Bi l led as the biggest rel ief and rescue operat ion in recent t imes, fol lowing the 16 -18 
June rain that ki l led thousands, an est imated 100,000 people have been re scued by the 
Army, Ai r Force, Indo-Tibetan Border Pol ice and civi l rescue workers. Thei r 
operat ions, focused on search, rescue, rel ief and evacuat ion, demonst rate thei r al l - 
round ski l ls in disaster management wi th agencies having di f ferent special izat ions 
working in coordinat ion. 
The Army, cur rent ly ret ract ing f rom Ut tarakhand, deployed more than 
10,000 personnel and saved 42,542 people, data on i ts websi te shows. Its 
senior of f icers inst i l led conf idence into people by leading evacuees in groups of 
hundreds by t rekking on landsl ide -hi t areas and r ickety temporary r iver crossingsto 
reach to safety. 
A major br idge was bui l t at Lambagar across the Alaknanda r iver for people st randed 
in Badr inath to exi t . In other places, where the r iver was too turbulent and ba nks too 
unsafe, hel icopter shut t les were star ted. About two dozen log -cross ings were made al l 
over the af fected par ts of the state. 
The Ai r Force under took 3,117 sor t ies, put t ing in 1,245 hours. It dropped 650 tonnes 
of rel ief mater ials and evacuated 23,221 people. Amid al l this, they suf fered 
casual t ies of thei r own—one MiG-17 ai rcraf tcrashed on 25 June in bad weather ki l l ing 
20 people on board, al l rescuers.
The forces pushed the envelope, improvising ways and means to adapt to the 
ci rcumstances. 
The Ai r Force decent ral ized the operat ions by dist r ibut ing ai rcraf t to 8 -10 ai rst r ips, 
which operated as smal l bases, so they could be closer to the areas of dist ress. Ways 
had to be found to fuel the ai rcraf t , which were f lying wi th vi r tual ly no ai r t raf f ic 
cont rol and negl igible ground suppor t . The ai rcraf t managed to car ry the fuel in 
bar rels and refuel led when necessary. 
Makeshi f t hel ipads were bui l t in Gaur ikund and Jungle Chat t i in the Kedarnath val ley, 
but in many other places the ai rcraf t landed wherever th ey found a patch. 
Looking at the hundreds t rapped in nar row s t r ips of land, dead in thei r midst , in the 
pieced up route to Kedarnath, hel icopter pi lots decided i t was point less to rescue a 
few and so they dropped army personnel special izing in jungle rescu e, wi th food and 
medicines for the marooned people so they could survive a few more days. 
These army personnel f ixed ropes to al low people to sl i ther down to the safety of 
vi l lages or broad roads wherever possible. 
Near the Pindar i glacier in an al l -night operat ion in the f reezing chi l l , wi th great 
di f f icul ty, ColonelPrashant Kandpal and his men lodged a log into rocks to bui ld a 
25f t br idge to br ing people, t ied in harnesses , to safety. At Sunderdunga val ley, 
rescuers zigzagged though mountains to avoid landsl ides, opening an al ternate route to 
keep evacuees safe. 
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Disaster management (or emergency management ) is the discipl ine of avoiding and 
deal ing wi th both natural and man-made disasters. It involves preparedness, response 
and recovery plans made in order to lessen the impact of disasters. 
Preparedness t raining may be done by pr ivate ci t izens, as by the Federal Emergency 
Management Agency (FEMA) in the Uni ted States. 
Al l aspects of disaster management deal wi th the processes used to protect populat ions 
or organizat ions f rom the consequences of di sasters , wars and acts of ter ror ism. This 
can be seen through government publ icat ions such as the Nat ional St rategy for 
Homeland Secur i ty which detai l how individuals and varying levels of government 
respond dur ing the di f ferent phases of a disaster . 
Eme r ge n c y ma n a ge me n t c a n b e f u r t h e r d e f i n e d a s “ t h e d i s c i p l i n e a n d p r o f e s s i o n o f 
applying science, technology, planning and management to deal wi th ext reme events 
that can injure or ki l l large numbers of people, do extensive damage to proper ty , and 
d i s r u p t c ommu n i t y l i f e ” (Dr a b e k, 1 9 9 1 a , p . x vi i ) . 
An ‘ e me r ge n c y’ i s ‘ a n u n p l a n n e d e v e n t t h a t c a n c a u s e d e a t h s o r s i gn i f i c a n t i n j u r i e s t o 
employees, customers or the publ ic; or that can shut down your bus iness, disrupt 
operat ions,may cause physical or e n vi r o nme n t a l d a ma ge , o r t h r e a t e n t h e f a c i l i t y’ s 
f i n a n c i a l s t a n d i n g o r p u b l i c i ma ge ’ ( F EMA, 1 9 9 3 ) . 
Emergency events can include ter ror ist at tacks, indust r ial sabotage, f i re, natural 
disasters (such as ear thquakes, severe weather , etc. ) , publ ic disorder , i ndust r ial 
accident , communicat ions fai lure and loss, or cor rupt ion of cr i t ical informat ion. Some 
examples of catast rophic incidents are: 
The 1995 Kobe, Japan, ear thquake, which ki l led more than 6000 people and lef t 
another 30,000 injured. 
The 1994 Nor thr idge, Cal i fornia, ear thquake, which resul ted in approximately $33 
bi l l ion in damages . 
These individual events are signi f icant enough, but the losses are even more dramat ic 
when accumulated over t ime. Between 1989 and 1999, the average natural disaster 
loss in the US was $1 bi l l ion each week. 
Disaster management does not necessar i ly aver t or el iminate the threats themselves, 
al though the study and predict ion of the threats are an impor tant par t of the f ield. The 
basic levels of emergency management also includ e the var ious kinds of search and 
rescue act ivi ty. 
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CORPORATE GOVERNANCE 
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Corporate governance refers to the system by which corporat ions are di rected and 
cont rol led. The governance st ructure speci f ies the dist r ibut ion of r ights and 
responsibi l i t ies among di f ferent par t icipants in the corporat ion (such as the board of 
di rectors, managers, shareholders, credi tors, audi tors, regulators, and 
other stakeholders) and speci f ies the rules and procedures for making decisions in 
corporate af fai rs. Governance provides the s t ructure through which corporat ions set 
and pursue thei r object ives, whi le ref lect ing the context of the social , regulatory and 
market envi ronment . Governance is a mechanism for moni tor ing the act ions, pol icies 
and decisions of corporat ions. Governance involves the al ignment of interests among 
the stakeholders. 
There has been renewed interest in the corporate governance pract ices of modern 
corporat ions, par t icular ly in relat ion to accountabi l i ty, since the high -prof i le col lapses 
of a number of large corporat ions dur ing 2001 –2002, most of which involved 
account ing f raud. Corporate scandals of var ious forms have maintained publ ic and 
pol i t ical interest in the regulat ion of corporate governance. In the U.S. , these 
include Enron Corporation and MCI Inc. ( former ly Wor ldCom) . Thei r demise is 
associated wi th the U.S. federal government passing the Sarbanes-Oxley Act in 2002, 
intending to restore publ ic conf idence in corporate governance. Comparable fai lures 
in Aust ral ia (HIH, One.Tel) are associated wi th the eventual passage of the CLERP 
9 reforms . Simi lar corporate fai lures in other count r ies st imulated increased regulatory 
interest (e.g. , Parmalat in Italy) . 
Corporate governance has also been def ined as "a system of law and sound approaches 
by which corporat ions are di rected and cont rol led focusing on the internal and 
external corporate st ructures wi th the intent ion of moni tor ing the act ions of 
management and di rectors and thereby mi t igat ing agency r isks which may stem f rom 
the misdeeds of corporate of f icers." 
In contemporary business corporat ions, the main external stakeholder groups are 
shareholders, debtholders, t rade creditors, suppl iers, customers and communi t ies 
af fected by the corporat ion's act ivi t ies. Internal stakeholders are the board of 
directors, executives, and other employees. 
Much of the contemporary interest in corporate governance is concerned wi th 
mi t igat ion of the conf l icts of interests between stakeholders. Ways of mi t igat ing or 
prevent ing these conf l icts of interests include the processes, customs, pol icies, laws, 
and inst i tut ions which have an impact on the way a company is cont rol led. An 
impor tant theme of governance is the nature and extent of corporate accountability. 
A related but separate thread of discussions focuses on the impact of a corporate 
governance system on economic efficiency, wi th a st rong emphasis on shareholders ' 
wel fare. In large f i rms where there is a separat ion of ownership and management and 
no cont rol l ing shareholder , the principal–agent issue ar ises between upper -management 
( the "agent") which may have very di f ferent interests, and by def ini t ion considerably 
more informat ion, than shareholders ( the "pr incipals") . The danger ar ises that rather 
than overseeing management on behal f of shareholders , the board of di rectors may 
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become insulated f rom shareholders and beholden to management . This aspect is 
par t icular ly present in contemporary publ ic debates and developments in regulatory 
pol icy. (seeregulation and policy regulation) . 
Economic analysis has resul ted in a l i terature on the subject . One source def ines 
corporate governance as "the set of condi t ions that shapes the ex post bargaining over 
the quasi-rentsgenerated by a f i rm." The f i rm i tsel f is model led as a governance 
st ructure act ing through the mechanisms of cont ract . Here corporate governance may 
include i ts relat ion to corporate finance. 
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Pr inciples of corporate governance 
Contemporary discussions of corporate governance tend to refer to pr inciples raised in 
three documents released since 1990: The Cadbury Repor t (UK, 1992) , the Pr inciples 
of Corporate Governance (OECD, 1998 and 2004) , the Sarbanes -Oxley Act of 2002 
(US, 2002) . The Cadbury and OECD repor ts present general pr inciples around which 
businesses are expected to operate to assure proper governance. The Sarbanes -Oxley 
Act , informal ly refer red to as Sarbox or Sox, is an at tempt by the federal government 
in the Uni ted States to legislate several of the pr inciples recommended in the Cadbury 
and OECD repor ts. 
 Rights and equi table t reatment of shareholders: Organizat ions should respect the 
r ights of shareholders and help shareholders to exercise those r ight s. They can 
help shareholders exercise thei r r ights by openly and ef fect ively communicat ing 
informat ion and by encouraging shareholder s to par t icipate in general meet ings. 
 Interests of other stakeholders: Organizat ions should recognize that they have 
legal , cont ractual , social , and market dr iven obl igat ions to non -shareholder 
stakeholders, including employees , investors , credi tors, suppl iers, local 
communi t ies, customers, and pol icy makers. 
 Role and responsibi l i t ies of the board: The board needs suf f icient relevant ski l ls 
and understanding to review and chal lenge management per formance. It also needs 
adequate size and appropr iate levels of independence and commi tment . 
 Integr i ty and ethical behavior : Integr i ty should be a fundamental requi rement in 
choosing corporate of f icers and board members. Organizat ions should develop a 
code of conduct for thei r di rectors and execut ives that promotes ethical and 
responsible decision making. 
 Disclosure and t ransparency: Organizat ions should clar i fy and make publ icly 
known the roles and responsibi l i t ies of board and management to provide 
stakeholders wi th a leve l of accountabi l i ty. They should also implement 
procedures to independent ly ver i fy and safeguard the integr i ty of the company's 
f inancial repor t ing. Di sclosure of mater ial mat ters concerning the organizat ion 
should be t imely and balanced to ensure that al l investors have access to clear , 
factual informat ion.
Corporate governance models around the wor ld 
There are many di f ferent models of corporate governance around the wor ld. These 
di f fer according to the var iety of capi tal ism in which they are embedded. T he Anglo- 
Amer ican "model" tends to emphasize the interests of shareholders. The coordinated 
or Mul t istakeholder Model associated wi th Cont inental Europe and Japan also 
recognizes the interests of workers, manager s, suppl iers, customers , and the 
communi ty. A related dist inct ion is between market -or ientated and network-or ientated 
models of corporate governance. 
Cont inental Europe 
Some cont inental European count r ie s, including Germany and the Nether lands, requi re 
a two-t iered Board of Di rectors as a means of improving corporate governance. [26] In 
the two-t iered board, the Execut ive Board, made up of company execut ives, general ly 
runs day-to-day operat ions whi le the supervisory board, made up ent i rely of non - 
execut ive di rectors who represent shareholders and employees, hi res and f i res the 
members of the execut ive board, determines thei r compensat ion, and reviews major 
business decisions. 
India 
India's SEBI Commi t tee on Corporate Governance def ines corporate governance as the 
"acceptance by management of the inal ienable r ights of shareholders as the t rue 
owners of the corporat ion and of thei r own role as t rustees on behal f of the 
shareholders. It is about commi tment to values, about ethical business conduct and 
about making a dist inct ion between personal & corporate funds in the management of 
a company." It has been suggested that the Indian approach is drawn f rom the 
Gandhian pr inciple of t rusteeship and the Di rect ive Pr inciples of the Indian 
Const i tut ion, but this conceptual izat ion of corporate object ives is also prevalent 
in Anglo-Amer ican and most other jur isdict ions. 
Uni ted States, Uni ted Kingdom 
The so-cal led "Anglo-Amer ican model" of corporate governance emphasizes the 
interests of shareholders. It re l ies on a single -t iered Board of Di rectors that is 
normal ly dominated by non-execut ive di rectors elected by shareholders. Because of 
this, i t is also known as "the uni tary system". Wi thin this system, many boards include 
some execut ives f rom the company (who are ex of f icio members of the board) . Non - 
execut ive di rectors are expected to outnumber execut ive di rectors and hold key posts, 
including audi t and compensat ion commi t tees. The Uni ted States and the Uni ted 
Kingdom di f fer in one cr i t ical respect wi th regard to corporate governance: In the 
Uni ted Kingdom, the CEO general ly does not also serve as Chai rman of the Board, 
whereas in the US having the dual role is the norm, despi te major misgivings 
regarding the impact on corporate governance. 
In the Uni ted States, corporat ions are di rect ly governed by state laws, whi le the 
exchange (of fer ing and t rading) of secur i t ies in corporat ions ( including shares) is 
governed by federal legislat ion. Many US states have adopted the Model Business 
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Corporat ion Act , but the dominant state law for publ icly t raded corporat ions 
is Delaware, which cont inues to be the place of incorporat ion for the major i ty of 
publ icly t raded corporat ions. Individual rules for corporat ions are based upon 
the corporate char ter and, less author i tat ively, the corporate bylaws. Shareholders 
cannot ini t iate changes in the corporate char ter al though they can ini t iate changes to 
the corporate bylaws . 
Legal envi ronment – General 
Corporat ions are created as legal persons by the laws and regulat ions of a par t icular 
jur isdict ion. These may vary in many respects between count r ies, but a corporat ion's 
legal person status is fundamental to al l jur isdict ions and is confer red by statute. This 
al lows the ent i ty to hold proper ty in i ts own r ight wi thout reference to any par t icular 
real person. It also resul ts in the perpetual existence that character izes the modern 
corporat ion. The statutory grant ing of corporate existence may ar i se f rom general 
purpose legislat ion (which is the general case) or f rom a statute to create a speci f ic 
corporat ion, which was the only method pr ior to the 19th century . 
In addi t ion to the statutory laws of the relevant jur isdict ion, corporat ions are subject 
to common law in some count r ies, and var ious laws and regulat ions af fect ing business 
pract ices. In most jur isdict ions , corporat ions also have a const i tut ion that provides 
individual rules that govern the corporat ion and author ize or const rain i ts decision - 
makers. This const i tut ion is ident i f ied by a var iety of terms; in Engl ish -speaking 
jur isdict ions, i t is usual ly known as the Corporate Char ter or the [Memorandum] and 
Ar t icles of Associat ion. The capaci ty of shareholders to modi fy the const i tut ion of 
thei r corporat ion can vary substant ial ly. 
The U.S. passed the Foreign Cor rupt Pract ices Act (FCPA) in 1977, wi th subsequent 
modi f icat ions. This law made i t i l legal to br ibe government of f icials and requi red 
corporat ions to maintain adequate account ing cont rols. It is enforced by the U.S. 
Depar tment of Just ice and the Secur i t ies and Exchange Commission (SEC) . 
Substant ial civi l and cr iminal penal t ies have been levied on corporat ions and 
execut ives convicted of br ibery. 
The UK passed the Br ibery Act in 2010. This law made i t i l legal to br ibe ei ther 
government or pr ivate ci t izens or make faci l i tat ing payments ( i .e. , payment to a 
government of f icial to per form thei r rout ine dut ies more quickly) . It also requi red 
corporat ions to establ ish cont rols to prevent br ibery. 
Sarbanes -Oxley Act of 2002 
Main ar t icle: Sarbanes -Oxley Act 
The Sarbanes -Oxley Act of 2002 was enacted in the wake of a ser ies of high prof i le 
corporate scandals. It establ ished a ser ies of requi rements that af fect corporate 
governance in the U.S. and inf luenced simi lar laws in many other count r ies. The law 
requi red, along wi th many other elements, that : 
 The Publ ic Company Account ing Oversight Board (PCAOB) be establ ished to 
regulate the audi t ing profession, which had been sel f -regulated pr ior to the law. 
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Audi tors are responsible for reviewing the f inancial statements of corporat ions and 
issuing an opinion as to thei r rel iabi l i ty. 
 The Chief Execut ive Of f icer (CEO) and Chief Financial Of f icer (CFO) at test to the 
f inancial statements . Pr ior to the law, CEO's had claimed in cour t they hadn' t 
reviewed the informat ion as par t of thei r defense. 
 Board audi t commi t tees have members that are independent and disclose whether 
or not at least one i s a f inancial exper t , or reasons why no such exper t is on the 
audi t commi t tee. 
 External audi t f i rms cannot provide cer tain types of consul t ing services and must 
rotate thei r lead par tner every 5 years. Fur ther , an audi t f i rm cannot audi t a 
company i f those in speci f ied senior management roles worked for the audi tor in 
the past year . Pr ior to the law, there was the real or perceived conf l ict of interest 
between providing an independent opinion on the accuracy and rel iabi l i ty of 
f inancial statements when the same f i rm was also providing lucrat ive consul t ing 
services. 
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Codes and guidel ines 
Corporate governance pr inciples and codes have been developed in di f ferent count r ies 
and issued f rom stock exchanges, corporat ions, inst i tut ional investors, or associat ions 
( inst i tutes) of di rectors and managers wi th the suppor t of governments and 
internat ional organizat ions. As a rule, compl iance wi th these governance 
recommendat ions is not mandated by law, al though the codes l inked to stock 
exchange l ist ing requi rements may have a coercive ef fect . 
OECD pr inciples[edi t ] 
One of the most inf luent ial guidel ines has been the OECD Pr inciples of Corporate 
Governance—publ ished in 1999 and revised in 2004. [1] The OECD guidel ines are 
of ten referenced by count r ies developing local codes or guidel ines. Bui lding on the 
work of the OECD, other internat ional organizat ions, pr ivate sector associat ions and 
more than 20 nat ional corporate governance codes formed the Uni ted 
Nat ions Intergovernmental Working Group of Exper ts on Internat ional Standards of 
Account ing and Repor t ing ( ISAR) to produce thei r Guidance on Good Pract ices in 
Corporate Governance Disclosure. [35] This internat ional ly agreed[36] benchmark 
consists of more than f i f ty dist inct disclosure i tems across f ive broad categor ies: [37] 
 Audi t ing 
 Board and management st ructure and process 
 Corporate responsibi l i ty and compl iance in organisat ion 
 Financial t ransparency and informat ion disclosure 
 Ownership st ructure and exercise of cont rol r ights 
Stock exchange l ist ing standards 
Companies l isted on the New York Stock Exchange (NYSE) and other stock exchanges 
are requi red to meet cer tain governance standards. For example, the NYSE Listed 
Company Manual requi res, among many other elements:
 Independent di rectors : "Listed companies must have a major i ty of independent 
di rectors. . .Ef fect ive boards of di rectors exercise independent judgment in car rying 
out thei r responsibi l i t ies. Requi r ing a major i ty of independent di rectors wi l l 
increase the qual i ty of board oversight and lessen the possibi l i ty of damaging 
conf l icts of interest ." (Sect ion 303A.01) An independent di rector i s not par t of 
management and has no "mater ial f inancial relat ionship" wi th the company. 
 Board meet ings that exclude management : "To empower non -management di rectors 
to serve as a more ef fect ive check on management , the non -management di rectors 
of each l isted company must meet at regular ly scheduled execut ive sessions 
wi thout management ." (Sect ion 303A.03) 
 Boards organize thei r members into commi t tees wi th speci f ic responsibi l i t ies per 
def ined char ters. "Listed companies must have a nominat ing/corporate governance 
commi t tee composed ent i rely of independent di rectors." This commi t tee is 
responsible for nominat ing new members for the board of di rectors. Compensat ion 
and Audi t Commi t tees are also speci f ied, wi th the lat ter subject to a var iety of 
l ist ing standards as wel l as outside regulat ions. (Sect ion 303A.04 and others) [38] 
Other guidel ines 
The investor -led organisat ion Internat ional Corporate Governance Network ( ICGN) 
was set up by individuals centered around the ten largest pension funds in the wor ld 
1995. The aim is to promote global corporate governance standards. Th e network is 
led by investors that manage 18 t r i l l ion dol lars and members are located in f i f ty 
di f ferent count r ies. ICGN has developed a sui te of global guidel ines ranging f rom 
shareholder r ights to business ethics. 
The Wor ld Business Counci l for Sustainable Development (WBCSD) has done work on 
corporate governance, par t icular ly on accountabi l i ty and repor t ing, and in 2004 
released Issue Management Tool : St rategic chal lenges for business in the use of 
corporate responsibi l i ty codes, standards, and f rameworks . This document of fers 
general informat ion and a perspect ive f rom a business associat ion/ think -tank on a few 
key codes, standards and f rameworks relevant to the sustainabi l i ty agenda. 
In 2009, the Internat ional Finance Corporat ion and the UN Global Compact released a 
repor t , Corporate Governance - the Foundat ion for Corporate Ci t izenship and 
Sustainable Business , l inking the envi ronmental , social and governance 
responsibi l i t ies of a company to i ts f inancial per formance and long -term 
sustainabi l i ty. 
Most codes are largely voluntary. An issue rais ed in the U.S. since the 2005 Disney 
decision is the degree to which companies manage thei r governance responsibi l i t ies; 
in other words , do they merely t ry to supersede the legal threshold, or should they 
create governance guidel ines that ascend to the level of best pract ice. For example, 
the guidel ines issued by associat ions of di rectors, corporate managers and individual 
companies tend to be whol ly voluntary but such documents may have a wider ef fect by 
prompt ing other companies to adopt simi lar pract ices . 
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Rel iance Group, an of fshoot of the Group founded by Shr i Dhi rubhai H Ambani (1932 - 
2002) , ranks among I n d i a ’ s t o p t h r e e p r i va t e s e c t o r b u s i n e s s houses in terms of net 
wor th. The group has business interests that range f rom telecommunicat ions (Rel iance 
Communicat ions Limi ted) to f inancial services (Rel iance Capi tal Ltd) and the 
generat ion and dist r ibut ion of power (Rel iance Inf rast ructure Limi ted) . 
Re l i a n c e Gr o u p ’ s f lagship company, Rel iance Communicat ions, is India's 
largest pr ivate sector informat ion and communicat ions company, wi th over 150 
mi l l ion subscr ibers. It has establ ished a pan -India, high-capaci ty, integrated (wi reless 
and wi rel ine) , convergent (voice, data and video) digi tal network, to of fer services 
spanning the ent i re infocomm value chain. 
Other major group companies — Rel iance Capi tal and Rel iance Inf rast ructure — are 
widely acknowledged as the market leaders in thei r respect ive areas of operat ion. 
We wi l l create wor ld-class benchmarks by: 
 Meet ing and exceeding Customer expectat ions wi th a segmented approach 
 Establ ishing, re -engineer ing and automat ing Processes to make them 
customer cent r ic, ef f icient and ef fect ive 
 Incessant of fer ing of Products and Services 
that are value for money and exci te customers 
 Providing a Network exper ience that is 
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best in the indust ry 
 Bui lding Rel iance into an iconic Brand which 
is benchmarked by others and leads indust ry 
in Intent ion to Purchase and Loyal ty 
 Developing a professional Leadership team 
that inspi res, nur tures talent and 
propagates RCOM Values by 
personal example 
India ’ s l e a d i n g i n t e gr a t e d t e l e c om company Rel iance Communicat ions is 
the f lagship company of the Rel iance Group. Listed on the 
Nat ional Stock Exchange and the Bomb a y S t o c k E x c h a n ge , i t i s I n d i a ’ s 
leading integrated telecommunicat ion company wi th over 150 mi l l ion 
customers. 
Our business encompasses a complete range of telecom services cover ing 
mobi le and f ixed l ine telephony. It includes broadband, nat ional and 
internat ional long distance services and data services along wi th an 
exhaust ive range of value -added services and appl icat ions. Our constant 
endeavour is to provide an enhanced customer exper ience and achieve 
customer sat isfact ion by upscal ing the product ivi ty of the enterpr ises and 
individuals we serve. 
Rel iance Mobi le ( former ly Rel iance India Mobi le) , launched on 28 
December 2002, coinciding wi th the joyous occasion of the late 
Dh i r u b h a i Amb a n i ’ s 7 0 t h b i r t h d a y, wa s a mo n g t h e i n i t i a l i n i t i a t i ve s o f 
Rel iance Communicat ions. It marked the auspicious beginning of 
Dh i r u b h a i ’ s d r e a m of usher ing in a digi tal revolut ion in India. Today, we 
can proudly claim that we were inst rumental in harnessing the t rue power 
of informat ion and communicat ion, by bestowing i t in the hands of the 
common man at af fordable rates. 
We endeavour to fur ther extend our ef for ts beyond the t radi t ional value
chain by developing anddeploying complete telecom solut ions for the 
ent i re spect rum of society. 
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Rel iance Mobi le 
Wi th over 150 mi l l ion subscr ibers across India, Rel iance 
Mo b i l e i s In d i a ’ s l a r g e s t mo b i l e service brand. Rel iance 
Mobi le services now cover over 24,000 towns, 6 lakh vi l lages, 
and st i l l count ing. 
We have achieved many mi lestones in this shor t journey. In 
2003, AC Nielsen voted Rel iance Mobi le ( former ly Rel iance 
I n d i a Mo b i l e ) a s I n d i a ’ s Mo s t T rusted Telecom Brand. In July 
2003, i t created a wor ld record by adding one mi l l ion 
s u b s c r i b e r s i n a ma t t e r o f j u s t 1 0 d a ys t h r o u g h i t s ‘Mo n s o o n 
Hu n ga ma ’ o f f e r . 
What sets Rel iance Mobi le apar t is the fact that near ly 90 per cent of our handsets are 
data-enabled, and can access hundreds of Java appl icat ions on Rel iance Mobi le Wor ld. 
Rel iance Mobi le has ushered in a mobi le revolut ion by of fer ing advanced mul t imedia 
handsets to the common man at very af fordable rates. This innovat ive low pr icing has 
increased the number of mobi le phone users and i ts resul t is clear ly ref lected in the 
me t e o r i c r i s e i n I n d i a ’ s t e l e -densi ty over the past four years. 
Our pan- India wi reless network runs on CDMA2000 1x technology, which has 
super ior voice and data capabi l i t ies compared to other cel lular mobi le technologies. 
CDMA2000 1x is more cost -ef fect ive as i t ut i l ises the scarce radio spect rum more 
ef f icient ly than other technologies do. Enhanced voice clar i ty, super ior data speed of 
up to 144 kbps and seamless migrat ion to newer generat ions of mobi le technologies 
are some of i ts key di f ferent iators. 
R Wor ld 
The R Wor ld sui te of Rel iance Mobi le is a 
unique Java-based appl icat ion. Its uniquenes s 
l ies in the fact that i t enablescomplex Internet 
appl icat ion to be int roduced in mobi le phones 
ef fect ively and quickly. R Wor ld receives over 
1.5 bi l l ion page views per month f rom Rel iance 
Mobi le users. 
R Wor ld of fers a wide ar ray of appl icat ions that 
include hour ly news updates, high qual i ty 
headl ine video cl ips, downloadable mul t i - 
l ingual r ing tones, seasonal updates including 
fest ival specials, ci ty and TV specials, exam 
resul ts, ast rology, mobi le banking, bi l l payment . 
Wi th over 150 data appl icat ions of fer ing var ied services - unique to any 
wi reless service in India - R Wor ld is t ruly a t reasure house of 
knowledge, informat ion, enter tainment and commerce.
Organisat ions, l ike individuals, depend for thei r survival , sustenance and growth on 
the suppor t and goodwi l l of the communi t ies of which they are an integra l par t , and 
must pay back this generosi ty in every way they can. . . 
This ethical standpoint , der ived f rom the vis ion of our founder , l ies at the hear t of the 
CSR phi losophy of the Rel iance Group. 
Whi le we st rongly bel ieve that our pr imary obl igat ion or dut y as corporate ent i t ies is 
to our shareholders – we are just as mindful of the fact that this imperat ive does not 
exist in isolat ion; i t is par t of a much larger compact which we have wi th our ent i re 
body of stakeholders: From employees , customers and vendors to business par tners, 
eco-system, local communi t ies, and society at large. 
We evaluate and asses s each cr i t ical busines s decision or choice f rom the point of 
view of diverse stakeholder interest , dr iven by the need to minimi se r isk and to pro - 
act ively address long-term social , economic and envi ronmental cos ts and concerns. 
For us, being social ly responsible is not an occasional act of char i ty or that one -t ime 
token f inancial cont r ibut ion to the local school , hospi tal or envi ronmental NGO. It is 
an ongoing year -round commi tment , which is integrated into the very core of our 
business object ives and st rategy. 
Rel iance Group of Companies cont inual ly reviews corporate governance best pract ices 
to ensure that they ref lect global developments. It takes fe edback into account , in i ts 
per iodic reviews of the guidel ines to ensure thei r cont inuing relevance, ef fect iveness 
and responsiveness to the needs of local and internat ional investors and other 
stakeholders. 
The Code of Conduct ( s) and Business Pol icies ad opted by the Rel iance Group 
Companies are given here. 
1. Values and Commi tments 
2. Code of Ethics 
3. Business Pol icies 
4. Ethics Management 
5. Prevent ion of Sexual Harassment 
6. Pol icy on Insider Trading 
Every signi f icant management decision has ethical value dimensions. Managing ethics 
is par t icular ly relevant for Rel iance Group Companies today because i t is cr i t ical to 
understand and manage highly diverse values in the workplace. 
At tent ion to business ethics is cr i t ical dur ing t imes of fundamental chang e – t imes 
much l ike those faced now by businesses l ike ours. In t imes of such fundamental 
change, values that were previously taken for granted are now st rongly quest ioned. 
Many of these values are no longer fol lowed. 
Consequent ly, there is no clear compas s to guide us through complex di lemmas about 
what is r ight or wrong. 
T o t h a t e n d , Re l i a n c e Gr o u p Comp a n i e s ’ Va l u e s a n d Commi t me n t s a r e p r e s e n t e d h e r e . 
These should be used to guide our act ions in business conduct . 
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Commi tment to Stakeholders 
In al l our relat ionships we demonst rate our s teadfast commi tment to al l our 
stakeholders: 
Our employees 
Rel iance Group Companies recognize that i ts commercial success depends on the ful l 
commi tment of al l employees . 
We are commi t ted to respect the human r ight s of our employees. We st r ive to t reat our 
employees wi th honesty, just management , due digni ty and fai rnes s. We are commi t ted 
to provide our employees wi th a good, safe and heal thy envi ronment and compet i t ive 
terms and condi t ions of service. Rel iance Group Companies promotes the development 
and best use of human talent . It encourages the involvement of employees in the 
planning, di rect ion and fai r appraisal of thei r work. The employees are also 
encouraged to par t icipate in the appl icat ion of these ethics and va lues wi thin the 
company. 
Our customers 
We are commi t ted to produce rel iable, wor ld -class qual i ty products and services, 
del ivered on t ime, at a fai r pr ice. Rel iance Group Companies st r ives to win and 
maintain customers by developing and providing product s and services which of fer 
value in terms of pr ice, qual i ty, safety and envi ronmental impact , which are suppor ted 
by the requisi te technological , envi ronmental and commercial exper t ise. 
Our envi ronment 
Rel iance Group Companies are commi t ted to act ing as a concerned and responsible 
communi ty par t icipant ref lect ing al l aspects of good corporate ci t izenship. Rel iance 
Group Companies are commi t ted to achieving the global standards of heal th, safety 
and envi ronment . Rel iance Group Companies works wi th i ts communi ty by 
volunteer ing and suppor t ing educat ion, medical wel fare and other wor thy causes that 
lead to sustainable development . 
Our shareholders 
We are commi t ted to pursuing sound growth and earnings object ives and to exercising 
prudence in the use of our assets and resources. Enhancing shareholder value remains 
t h e p r i me d r i vi n g f o r c e o f Re l i a n c e Gr o u p C omp a n i e s ’ b u s i n e s s a n d f i n a n c i a l 
decisions. 
We wi l l ensure our success by sat isfying our customers and increasing shareholder 
value. 
Our lenders and other investors 
We are commi t ted to t ruthful disclosure of al l mater ial facts and the regular and 
t imely payment of al l our debt service obl igat ions.
Our Suppl iers and other service providers 
We are commi t ted to fai r compet i t ion and the sense of responsibi l i ty requi red of a 
good customer . 
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The government 
Rel iance Group Companies are f iercely pat r iot ic company and is enthused and proud 
to be a home-grown enterpr ise. 
We are commi t ted to the payment of al l -appl icable taxes and dut ies and adherence to 
al l appl icable laws and regulat ions.
CORPORATE SOCIAL RESPONSIBILITY 
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Corporate social responsibility (CSR, also cal led corporate conscience, corporate 
ci t izenship, social per formance, or sustainable responsible busines s/ Responsible 
Business) is a form of corporate sel f -regulat ion integrated into a business model . CSR 
pol icy funct ions as a bui l t -in, sel f -regulat ing mechanism whereby a business moni tors 
and ensures i ts act ive compl iance wi th the spi r i t of the law, ethical standards, and 
internat ional norms. In some models, a f i rm's implementat ion of CSR goes beyond 
compl iance and engages in "act ions that appear to fur ther some social good, beyond 
the interests of the f i rm and that which is requi red by law." CSR i s a process wi th the 
aim to embrace responsibi l i ty for the company's act ions and encourage a posi t ive 
impact through i ts act ivi t ies on the envi ronment , consumers, employees, 
communi t ies, stakeholders and al l other members of the publ ic sphere who may also 
be considered as stakeholders. 
The term "corporate social responsibi l i ty" became popular in the 1960s and has 
remained a term used indiscr iminately by many to cover legal and moral responsibi l i ty 
more nar rowly const rued. 
Proponents argue that corporat ions make more long term prof i ts by ope rat ing wi th a 
perspect ive, whi le cr i t ics argue that CSR dis t racts f rom the economic role of 
businesses. McWi l l iams and Siegel 's ar t icle (2000) publ ished in St rategic Management 
Journal , ci ted by over 1000 academics, compared exist ing economet r ic studies of the 
relat ionship between social and f inancial per formance. They concluded that the 
cont radictory resul ts of previous studies repor t ing posi t ive, negat ive, and neut ral 
f inancial impact , were due to f lawed empi r ical analysis . McWi l l iams and Siegel 
demonst rated that when the model is proper ly speci f ied; that is, when you cont rol for 
investment in Research and Development , an impor tant determinant of f inancial 
per formance, CSR has a neut ral impact on f inancial outcomes . 
In his widely ci ted book ent i t led Misguided Vi r tue: False Not ions of Corporate Social 
Responsibi l i ty (2001) David Henderson argued forceful ly against the way in which 
CSR broke f rom t radi t ional corporate value -set t ing. He quest ioned the "lof ty" and 
somet imes "unreal ist ic expectat ions" in CSR. 
Some argue that CSR i s merely window-dres sing, or an at tempt to pre-empt the role of 
governments as a watchdog over power ful mul t inat ional corporat ions . Pol i t ical 
sociologists became interested in CSR in the conte xt of theor ies of global izat ion, neo - 
l iberal ism, and late capi tal ism. Adopt ing a cr i t ical approach, sociologists emphasize 
CSR as a form of capi tal ist legi t imacy and in par t icular point out that what has begun 
as a social movement against uninhibi ted corpo rate power has been co-opted by and 
t ransformed by corporat ions into a 'business model ' and a 'r isk management ' device, 
of ten wi th quest ionable resul ts 
CSR is t i t led to aid an organizat ion's mission as wel l as a guide to what the company 
stands for and wi l l uphold to i ts consumers. Development business ethics is one of the 
forms of appl ied ethics that examines ethical pr inciples and moral or ethical problems 
that can ar ise in a business envi ronment . ISO 26000 is the recognized internat ional 
standard for CSR. Publ ic sector organiz at ions ( the Uni ted Nat ions for example) adhere 
to the t r iple bot tom l ine (TBL) . It is widely accepted that CSR adheres to simi lar 
pr inciples but wi th no formal act of l egislat ion. 
The not ion is now extended beyond purely commercial corporat ions, e.g. to 
universi t ies. 
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Social Responsibi l i ty and Communi ty Development 
RIL's cont r ibut ion to the communi ty are in areas of heal th, educat ion, inf rast ructure 
development (dr inking water , improving vi l lage inf rast ructure, const ruct ion of schools 
etc. ) , envi ronment (ef f luent t reatment , t ree plantat ion, t reatment of hazardous waste) , 
rel ief and assistance in the event of a natural disaster , and miscel laneous act ivi t ies 
such as cont r ibut ion to other social development organisat ions etc. RIL's CSR teams 
across i ts manufactur ing divisions interact wi th the neighbour ing communi ty on 
regular basis. 
Educat ion 
A network of nine schools caters to 13,251 s tudents spread across geographies in 
India. CSR teams f rom RIL's manufactur ing divisions and E&P operat ions work 
ardent ly to suppor t the educat ional requi rements of the communi ty and schools in the 
neighbour ing region benef i t ing thousands of students f rom the underpr ivi leged sect ion 
of the society. 
RIL plays a pivotal role in suppor t ing Government 's ini t iat ive towards educat ion of 
gi r l chi ld. In Gujarat , under the project "Kanya Kelvani", RIL's Dahej Manufactur ing 
Division has extended f inancial assistance towards educat ion of gi r l chi ld in the state. 
RIL has created a plat form for computer learning in many vi l lages. Its manufactur ing 
divisions have provided computers to pr imary and secondary schools under the 
Company's computer l i teracy ini t iat ive. 
RIL cont inues to provide suppor t to school run by Lions Club of Naroda Char i table 
Trust . The school renders qual i ty educat ion in Engl ish medium to chi ldren of 
labourers working in GIDC, Naroda area, who are economical ly and social ly 
backward. Jamnagar Manufactur ing Division const ructed a school bu i lding for vi l lage 
Kana Chikar i of Lalpur taluka in Gujarat . Hoshiarpur Manufactur ing Division has 
adopted vi l lage Mangrowal - Nar i pr imary school . Annual ly f ree uni forms , books, 
shoes and school bags are given to students and also f ree elect r ici ty is provi ded to the 
school . 
RIL's CSR teams cont inue to provide uni forms, books etc, to students of neighbour ing 
vi l lages of manufactur ing divisions and E&P operat ions. Fur ther , 
cont inuous moni tor ing is being done in local schools for improving the per formance 
of students. Regular counsel ing sessions are also being ar ranged wi th exper ts in 
personal i ty development and psychology for mot ivat ing the chi ldren to achieve bet ter 
resul ts. 
To encourage school chi ldren f rom neighbour ing vi l lages in thei r learning process, 
Nagothane Manufactur ing Division and the MADER Foundat ion provided school 
uni forms to the t r ibal and underpr ivi leged students. Eleven schools were selected for 
this ini t iat ive, out of which seven Zi l la Par i shad schools are located on a hi l l top near 
the manufactur ing division. Fur ther , mer i tor ious students were fel ici tated wi th an 
object ive of encouraging them for higher studies. 
RIL's Project Jagrut i , the project to tackle dyslexia in Surat , is set t ing the pace for the 
communi ty's response to the social dogma of the mental ly underpr ivi leged chi ldren. 
More than 8,800 hours have been spent by 35 t rained teachers and more than 1,000 
hours by RIL volunteers to upl i f t and br ing the dyslexic students f rom the 
underpr ivi leged segment into the main st ream. RIL employe e's spouses are suppor t ing 
this act ivi ty and many teaching aids have been developed. NIOS regist rat ion has been 
ini t iated for Academic Year ("AY") 2011 -12. 
Par tnership wi th simi lar associat ions across the count ry and UNESCO / BBC has been 
ini t iated to spread awareness and benef i t the students wi th latest t raining aids . 
Awareness stal l was put up that at t racted thousands at the nat ional book fai r organized 
Page 
35
by Surat Municipal Corporat ion (SMC) . Membership of Maharasht ra Dyslexia 
Associat ion and Internat ional Dyslexia Associat ion has been taken to make the project 
more focused wi th proven scient i f ic pract ices and to get avai labi l i ty of resourceful 
exper ts, sourcing global knowledge / resources and best pract ices / models in the 
LD/Dyslexia space. Focus is on ear ly ident i f icat ion of learning disabi l i ty in chi ld and 
procur ing var ious screening tests for the same. 
Rel iance Dhirubhai Ambani Protsaham Scheme 
The Scheme, launched in AY 2008-09, cont inues to suppor tpoor mer i tor ious students. 
Recipient students of Rel iance Dhi rubhai Ambani Protsaham Scheme got admissions 
in junior col leges of thei r choice. Wi th admi ssions of AY 2010 -11, the total st rength 
of students receiving suppor t under the scheme has gone up to 656. The f i rst batch of 
the Protsaham student s passed out the intermediate examinat ion held in March 2010 
wi th f lying colours and f rom AY 2010 -11 onwards, RIL is providing f inancial aid to 
the toppers for pursuing thei r higher studies in engineer ing and medical st reams . 
Mumbai Indians Educat ion for Al l Ini t iat ive 
Mumbai Indians took on the mandate of educat ion as a pr imary social issue. It 
launched i ts Educat ion for Al l Ini t iat ive dur ing the Indian Premier Le ague ( IPL) 
season in 2010 to create a movement to suppor t ef for ts to provide qual i ty educat ionto 
al l chi ldren. This ini t iat ive was the brainchi ld of Mrs. Ni ta Ambani , a passionate 
advocate for the cause of educat ion. Through this ef for t , Mumbai Indians sup por ted 
f ive NGOs car t ing out outstanding work in the f ield of educat ion - Akanksha, Nanhi 
Kal i , Pratham, Teach for India and Ummeed. As par t of this ini t iat ive, Mumbai 
Indians helped create awareness for the cause of educat ion and the work of these f ive 
organizat ions through of f icial Mumbai Indian videos, TV commercials that ran 
through the durat ion of the IPL, sale of Mumbai Indians Educat ion for Al l wr istbands 
as par t of the merchandizing and awareness creat ion through i ts radio par tners and 
instadium announcements dur ing games. 
In addi t ion, Mumbai Indians also invi ted 700 chi ldren f rom al l the NGOs to see each 
of the Mumbai Indians home games . The Mumbai Indians team joined Mrs. Ambani at 
the presentat ion ceremonies and worked wi th the media to ensure ad equate coverage 
of the work of such groups. Mumbai Indians also organized a br ief ing for the cr icket 
team to interact wi th chi ldren and staf f of al l the NGOs. 
Through the sale of the wr istbands and addi t ional suppor t , Mumbai Indians was able 
to gi f t Rs. 11 lacs to each of the groups at the conclusion of IPL 3. This col laborat ion 
cont inued through the year wi th an invi tat ion to the groups to send chi ldren to at tend 
the Mumbai Indians games at the Champions League matches in South Af r ica. 
Communi ty Heal th Care 
RIL has developed Communi ty Medical Cent res near most of i ts manufactur ing 
divisions to provide comprehensive heal th services cover ing prevent ive, promot ive 
and curat ive heal th care services to the communi ty f rom neighbour ing vi l lages. 
The manufactur ing divisions conduct regular heal th checkups for chi ldren in schools 
of thei r respect ive neighbour ing regions . Doctors advise chi ldren and thei r parents on 
var ious heal th care issues and personal hygiene. Medical camps were organized by al l 
si tes benef i t t ing pat ients f rom nearby vi l lages and t r ibal areas. Al l pat ients are given 
medicines f ree of cost . As requi red, al l si tes have provided ambulance suppor t to 
Page 
36
roadside accident vict ims to shi f t them to hospi tals / nursing homes. Patalganga si te 
has conducted a ser ies of heal th awareness programs in local schools and nearby smal l 
scale indust r ies. 
Drisht i 
A unique joint ini t iat ive of RIL and Nat ional Associat ion of Bl ind, Project Dr isht i has 
under taken over 9,000 f ree corneal graf t surger ies for the visual ly chal lenged Indians 
f rom the underpr ivi leged segment of the society. It is the largest corneal graf t ing 
surgery project enabled by a single corporate ent i ty in India. 
The ini t iat ive to combat TB, HIV / AIDS is a unique publ icpr ivate par tnership 
program between the Government , NGOs, several agencies and RIL. It extends f rom 
creat ing awareness to providing care, suppor t and t reatment including f ree of cost 
t reatment to those who cannot af ford the same. 
Hazi ra Manufactur ing Division's DOTS HIV / AIDS Cent re is one of the largest Ant i - 
Ret rovi ral Treatment Cent re (ART Cent re) in the count ry. A 22 bedded hospi tal for 
HIV / AIDS pat ients has been commissioned recent ly. Manufactur ing divisions at 
Jamnagar and Patalganga too have ART Cent re faci l i t ies. The ini t iat ive was expanded 
to other manufactur ing divisions; act ivi t ies are largely in the advocacy and awareness 
area. A special ini t iat ive of awareness campaign on 'Prevent ion of HIV/AIDS' targeted 
at dr ivers and cleaners of al l product t ranspor t vehicles has been und er taken at var ious 
si tes. Awareness lectures on prevent ion are conducted and condoms have been 
dist r ibuted. 
Dahej Manufactur ing Division commenced Integrated Counsel ing and Test ing Cent re 
( ICTC) for HIV/AIDS at Dahej in par tnership wi th Gujarat State AIDS Cont rol 
Society (GSACS) in FY 2010-11. This ini t iat ive is aimed at addres sing the heal th of 
the increasing number of migrant workers in the region resul t ing f rom the indust r ial 
growth planned under Dahej SEZ and PCPIR Zone. Object ive of the ini t iat ive is t o 
create necessary awareness amongst workers to prevent HIV/AIDS. 
Jamnagar Manufactur ing Division runs 'Project Balkalyan' , wi th an object ive to 
provide nut r i t ional suppor t to chi ldren af fected wi th HIV infect ion. Nut r i t ional ki t is 
dist r ibuted to al l HIV posi t ive chi ldren when they visi t the Cent re for monthly fol low 
up. Hazi ra Manufactur ing Division, through Rel iance Ladies Club (an associat ion of 
s p o u s e s o f R I L e mp l o ye e s ) h a s a s i mi l a r o n go i n g c h i l d a d o p t i o n p r o gr a mme â € “ 
'Project Hope' , at Hazi ra to take care of nut r i t ional requi rement of HIV posi t ive 
chi ldren. 
The Primary Heal th Centre (PHC) at Dahej , Bharuch dist r ict , adopted by RIL under 
the Nat ional Rural Heal th Mission Programme caters to the communi ty heal th needs of 
23 sur rounding vi l lages. 
In 2004, RIL establ ished the PHC at Gadimoga. The PHC has six member medical 
staf f wi th al l the ameni t ies such as two -bed nursing room. Medicines are of fered f ree 
of cost . Fur ther , RIL runs two sub -cent res of the PHC at Bhai ravapalem and 
Laxmipathipuram. RIL is also const ruct ing a new 30-bed PHC and the exist ing PHC 
wi l l be shi f ted to the new bui lding. 
Dhirubhai Ambani Hospi tal at Lodhival i , Maharasht ra cont inues to play a signi f icant 
role in improving the qual i ty of l i fe in sur rounding communi t ies. I t extends p rompt 
and special ized services to the Mumbai -Pune highway accident vict ims . Trauma 
pat ients are provided f ree l i fesaving t reatment . Besides taking care of hospi tal izat ion 
requi rements, the hospi tal provides poor pat ients and senior ci t izens subsidized 
t reatment - both in the outpat ient and in-pat ient depar tments. ART cl inic, a publ ic - 
pr ivatepar tnership ini t iat ive between RIL, CII and NACO, of fers f ree of cost 
Page 
37
t reatment to HIV/AIDs pat ients. In associat ion wi th the Lions Club, the hospi tal 
conducts cataract surgery camps annual ly. 
A wel l -equipped communi ty medical cent re wi th four observat ion bed faci l i ty at 
Jamnagar cont inues to of fer f ree -of-cost , round the clock wi th comprehensive heal th 
services. Manufactur ing divisions of fer f ree medical services inclu ding f ree medicines 
to the neighbor ing vi l lages. 
In t r ibal vi l lages sur rounding Nagothane Manufactur ing Division, vi l lagers are 
depr ived of medical faci l i t ies in the region because of absence of proper approach 
road to the vi l lages as they are located on hi l l tops. The manufactur ing division 
real izes the heal th problems faced by the t r ibal 's and i t took a major step towards 
providing f ree OPD (out pat ient depar tment ) t reatment on weekly basis to the t r ibal 
people staying at hi l l tops. Moreover , the manufac tur ing division developed the road 
and even made i t motorable up to vi l lage Gangawane. Every week a doctor wi th 
medical team and medicines visi ts t r ibal hamlet and provides OPD services to t r ibals. 
Hazi ra Manufactur ing Division along wi th an NGO have lau nched an or thopedic 
hospi tal wi th ul t ra -modern faci l i t ies and one rehabi l i tat ion cent re. Both faci l i t ies have 
become operat ional in March 2011. Hospi tal bui lding was inaugurated by the Chief 
Minister of the State of Gujarat . 
RIL's manufactur ing divisions of fer f ree medical , diagnost ic and therapeut ic services 
i n c l u d i n g f r e e me d i c i n e s t o n e i gh b o u r i n g vi l l a ge s . Mo b i l e Va n Cl i n i c s â € “ He a l t h -on- 
Wheels, which are special ly designed mobi le dispensar ies equipped wi th doctor 
accompanied by a nurse, visi ts neighbour ing vi l lages on a scheduled basis al l through 
the week. 
RIL has establ ished an Ear ly Intervent ion and Rehabi l i tat ion Center for suppor t ing the 
mental ly chal lenged chi ldren l iving in Tal larevu Mandal and Yanam Union Ter r i tory. 
This center is being run wi th the technical suppor t of NGO Uma Mano Vikasa 
Kendram, Kakinada. At present , chi ldren f rom the region having di f ferent disabi l i t ies 
have al ready been enrol led. 
Safety ini t iat ives for communi ty 
Road Safety System is most cost ef fect ive and easy to use tool for improving publ ic 
safety and thus of fer ing a l i fe -l ine to humani ty. Hazi ra Manufactur ing Division has 
inst i tut ional ised road safety t raining and has reached out to over 158,000 tanker / 
t ruck dr ivers who visi t the plant for pick -up and dropping feedstock / f inished goods . 
The t raining focuses on safe operat ion of f leet vehicles by el iminat ing unsafe dr iver 
and dr iving behaviors and reinforcing aspect s of save l ives, reduce injur ies, prevent 
crashes, cont rol dr iver per formance, minimize r isk and l iab i l i ty. A cent re dedicated 
for t raining t ruck dr ivers for t ranspor tat ion of hazardous goods has been establ ished 
for round-the-clock t raining. No dr iver is al lowed inside complex wi thout t raining. 
To provide emergency and t rauma care to vict ims of highway a ccidents, Hazi ra 
Manufactur ing Division has t ied up wi th an NGO, 'Li fe Line Foundat ion' and adopted 
110 kms st retch on the State Highway in Gujarat star t ing f rom Sachin to Bharuch and 
the state highway via Hazi ra Olpad Hansot Ankleshwar . 
Fur ther , for the f i rst t ime in State of Gujarat , the local RTO has been suppor ted by 
instal l ing a mul t imedia based t raining faci l i ty to render safety awareness to al l l icense 
aspi rants. 
Page 
38
Environment ini t iat ives for the communi ty 
A zero garbage campaign has been launched i n Rel iance Townships to propagate the 
concept of sol id waste (dry and wet waste) management . This is a par t of cleanl iness 
dr ive for a disease -f ree envi ronment at employees ' township, the sur rounding vi l lages 
of Hazi ra Manufactur ing Division and also Surat ci ty in Gujarat . 
To reduce plast ic l i t ter , as par t of i ts commi tment towards respons ible care and 
product stewardship intervent ion, Hazi ra Manufactur ing Division in par tnership wi th 
an NGO is working for social and economical secur i ty of woman rag -pickers . Under 
the programme, di rect sale of waste PET bot t les to processing uni ts is faci l i tated, thus 
el iminat ing channel of waste merchants and promot ing, woman rag pickers ' group. 
This program is being extended to over 350 s lums of Surat and also var ious othe r RIL 
locat ions in Gujarat and other states. 
Fur ther , RIL in par tnership wi th Gujarat Engineer ing Research Inst i tute (GERI) and R 
& B Depar tment const ructed a 900 meter road st retch using 5% plast ic waste. RIL's 
CSR team used unat tended / non -recyclable plast ic waste in const ruct ion of tar road 
which reduced const ruct ion cost as wel l improved road l i fe and reduced road 
maintenance cost . Unat tended and non recyclable plast ic waste sourced f rom rag 
pickers ' cooperat ive group also dead stock seized by Surat Mu nicpal Corporate was 
used. Awareness and sensi t izat ion programs about the technology and i ts benef i t to 
communi ty have been under taken to benef i t the populat ion of neighbour ing vi l lages of 
Hazi ra. 
RIL's manufactur ing divisions cont inue i ts green energy dr ive by making the rural 
folks aware of al ternate energy, ef f icient energy usage. An NGO cal led GAIA 
Ini t iat ive f rom Japan i s working wi th Hazi ra Manufactur ing Division for this project . 
Some of the projects that have been ini t iated are: instal lat ion and commissioning of 
solar -microwind combined power system at HIV DOT Cent re, Mora vi l lage, Surat , 
instal lat ion and commissioning of Solar -Micro-wind combined system (2 kW) at J H 
Ambani School , Surat , instal lat ion and commissioning of solar AC (1.7 TR) at 
Orphanage, HIV DOT Cent re, Mora Vi l lage and t raining on "house -hold energy 
conservat ion / ef f iciency measures" conducted for al l vi l lage in the vicini ty of the 
manufactur ing division. 
To br ing out the innovat ive spi r i t of young s tudents of Surat / RIL employe es and also 
to acknowledge / reward the ideas that can cont r ibute to improving the envi ronment , 
Hazi ra Manufactur ing Division announced a 'Green Idea Award Scheme' in 2010. 
RIL organised programmes of indust r ial , academic, histor ical and envi ronmental 
impor tance such as Chemical Indust ry-2020 Vision and Act ion at Ankleshwar ; Global 
Bi rd Watchers Conference at Jamnagar ; Van Mahotsav - 2010 at Pal i tana; Internat ional 
Conference on Global Warming at Gujarat Vidyapeeth; Conference on Synergy wi th 
Energy; Conference on Gujarat 's Mar i t ime History by Darshak It ihas Nidhi . Fur ther , 
t ree plantat ion act ivi t ies were organaised at many locat ions. Awareness of cleaner , 
greener envi ronment and global warming issues are made at school s and also to 
vi l lages f rom the sur rounding region. 
Communi ty Development 
Rel iance Rural Development Trust 
In FY 2010-11, Rel iance Rural Development Trust (RRDT) under took 797 works in 
760 benef iciary vi l lages of 125 talukas under 24 dist r icts of Gujarat to create rural 
Page 
39
inf rast ructure under the Gokul Gram Yojana (GGY) of the Government of Gujarat . 
Total 608 faci l i t ies got completed dur ing the year . The completed faci l i t ies include 
478 Anganwadi bui ldings , 58 Cement Concrete Roads, 61 underground RCC sumps 
and 05 Check Dams and 06 other works wi th the total expendi ture of Rs. 24 Crore in 
FY 2010-11. The Check Dams completed in FY 2010 -11, wi l l have total water storage 
capaci ty of 8.7 mcf t and would cater to about 1,065 Hectares of rural land. RRDT, 
since i ts incept ion in 2001 t i l l March 31, 2011 , across the State of Gujarat , has 
completed 7,306 var ious rural inf rast ructure faci l i t ies wi th an expendi ture of more 
than Rs. 270 crore. 
Fur ther , RIL's manufactur ing divisions supply f ree potable water to the neighbour ing 
vi l lages especial ly dur ing water shor tage per iods. They also cont r ibute to the 
development of var ious vi l lage inf rast ructure such as developing, bus sheds, roads, 
st reet l ights, instal lat ion of solar st reet l ight s in number of vi l lages, f ree supply of 
blankets etc. 
Livel ihood Support Programmes 
RIL has always been at the foref ront in implement ing ini t iat ives especial ly for the 
wel fare of rural women and youth of sur rounding vi l lages through var ious sel f -help 
groups (SHG) . 
Cont inuing wi th the services and keeping up the t radi t ion, Hazi r a, Vadodra, 
Nagothane, Gadimoga and many other manufactur ing divisions of fer t raining 
programmes through var ious SHGs help the rural women and youth to be "sel f 
sustaining" and generat ing income for themselves and suppor t ing thei r fami l ies. It is a 
mat ter of great pr ide that many of the benef iciar ies of these t raining programmes are 
earning a decent amount of l ivel ihood and are f inancial ly suppor t ing thei r fami l ies. 
For the womenfolk, courses are of fered for dress making and designing, beauty cul ture 
and heal th care, hospi tal at tendant (Helpers for Hospi tal and Nursing Homes) ; whi le 
for the youth of the sur rounding communi t ies, courses such as plumbing and hand 
pump repai r ing t raining, computer hardware repai r , motor vehicle dr iving, mobi le 
repai r ing and doormat making etc. Fur ther , t raining in hor t icul ture cul t ivat ion and 
f rui t sapl ings are also given to the farmers of the adjoining vi l lages. 
Jamnagar Manufactur ing Division cont inues to serve the vi l lages around the ref inery 
complex, the ci ty of Jamnagar an d the communi ty at large. RIL's local communi ty 
wel fare cel l constant ly remains in close touch wi th the vi l lagers. 
Numerous inf rast ructure developments in vi l lages adjoining and neighbour ing the 
Jamangar Manufactur ing Division such as development of ceme nt concrete roads, 
drainage, cremator ium and also supply of water const ruct ion of Haja Dada temple at a 
neighbour ing vi l lage, Sikka were under taken in FY 2010 -11. Fodder for cows of 
neighbour ing vi l lages was suppl ied by RIL's CSR team working at Jamnagar . 
In FY 2010-11, RIL ini t iated several vi l lage inf rast ructure development projects such 
as const ruct ion and renovat ion of communi ty hal ls, bur ial ground and school 
compound wal l in Gadimoga Panchayat . RIL promoted Organic Aqua cul ture wi th the 
technical guidance of Nat ional Center for Sustainable Aqua cul ture (a sister concern 
of MPEDA) . 
Around RIL's on-land operat ions in the Coal Bed Methane project areas in Madhya 
Pradesh, the Company cont inues to give medical suppor t to the vi l lagers through a 
Page 
40
Sm   corporate g & csr
Sm   corporate g & csr
Sm   corporate g & csr
Sm   corporate g & csr
Sm   corporate g & csr
Sm   corporate g & csr
Sm   corporate g & csr
Sm   corporate g & csr

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Sm corporate g & csr

  • 1. “DISASTER MANAGEMENT, CORPORATE GOVERNANCE & CORPORATE SOCIAL RESPONSIBILITY” Submi t ted to MUMBAI UNIVERSITY FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS OF COMMERCE STRATEGIC MANAGEMENT SESSION 2013-2014 DEPT. OF MANAGEMENT STUDIES MULUND COLLEGE OF COMMERCE Under the guidance of: MS. ROOPALI KOTEKAR Submi t ted by: RAVEENA UDASI Rol l : - 15051 Page 1
  • 2. DECLARATION I, Raveena Udasi , student of MCom here by declared that the research report ent i t led “DISASTER MANAGEMENT, CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY” is completed and submi t ted under the guidance of is my original work. The imperial finding in this report is based on the data col lected by me. I have not submi t ted this project report to any other Universi ty for the purpose of compl iance of any requirement of any examinat ion or degree. Page 2 DATE: Raveena Udasi M.Com Sem I ROLL NO. 15051
  • 3. CERTIFICATE I, Prof. Roopal i Kotekar , hereby cert i fy thatMiss Raveena Manoj Udasi ROLL. No 15051 of Mulund Col lege of Commerce, S. N. Road, Mulund (West ), Mumbai -400080 of M.com Par t I (Business Management ) has completed her p r o j e ct o n “Disaster Management , Corporate Governance and Corporate Social Responsibi l i ty” d u r i n g t h e a c ad emi c ye a r 2 0 1 3 -14. The informat ion submi t ted is true and original to the best of my knowledge. ____________________ ___________________ Project Guide Principal _____________________ ___________________ Co-coordinator External guide Page 3 Date:
  • 4. EXECUTIVE SUMMARY This project aims to understanding the meaning and defini t ion of disaster management , corporate governance and corporate social responsibi l i ty. For a detai led understanding I have taken a company to dissect the defini t ions of the above ment ioned terminology. In this project I have tried to highl ight the various disasters in the wor ld and one of which is India. And also highl ighted an understanding of how the disaster in India has been managed due to strong disaster management forces. The other hal f of my project talks about Corporate Governance and Corporate Social Responsibi l i ty laid down by Rel iance Indust ries Limi ted. It gives a gist of how the company operates. Page 4
  • 5. ACKNOWLEDGEMENTS Page 5 A research project is a golden opportuni ty for learning and sel f development . I consider mysel f very lucky and honored to have so many wonderful people lead me through in complet ion of this project . My grateful thanks to Prof . Ms. Roopal i Kotekar who in spi te of being extraordinari ly busy wi th her/his dut ies, took t ime out to hear , guide and keep me on the correct path. I do not know wh er e I wo u l d h a v e b e en wi t h o u t h er / h im. A h umb l e ‘T h an k yo u ’ S i r . I would also l ike to thank everyone who took act ive involvemen t in helping me wi th my project report wi thout whom, i t would not have been possible. RAVEENA UDASI
  • 6. TABLE OF CONTENT SR. NO. TABLE OF CONTENTS PG. NO. 1 DISASTER MANAGEMENT 7 2 MEANING & CLASSIFICATION 8 3 TYPES OF DISASTERS 9 4 UTTARAKHAND: A MODEL OF DISASTER 11 5 MANAGING UTTARAKHAND 18 6 CORPORATE GOVERNANCE 21 7 PRINCIPLES OF CORPORATE GOVERNANCE 23 8 GOVERNANCE MODEL AROUND THE WORLD 24 9 CODES & GUIDELINES 26 10 CORPORATE SOCIAL RESPONSIBILITY 33 11 LIMITATION 47 12 BIBLIOGRAPHY 48 Page 6
  • 8. A disaster is a natural or man-made (or technological ) hazard resul t ing in an event of substant ial extent caus ing signi f icant physical damage or dest ruct ion, loss of l i fe, or drast ic change to the envi ronment . A disaster can be ostensively def ined as any t ragic event stemming f rom events such asear thquakes , f loods, catast rophic accidents, f i res, or explosions. It is a phenomenon that can cause damage to l i fe and proper ty and dest roy the economic, social and cul tural l i fe of people. In contemporary academia, disasters are seen as the consequence of inappropr iately managed r isk. These r isks are the product of a combinat ion of both hazard/s and vulnerabi l i ty. Hazards that st r ike in areas wi th low vulnerabi l i ty wi l l never become disaster s, as is the case in uninhabi ted regions. Developing count r ies suf fer the greatest cos ts when a disaster hi ts – more than 95 percent of al l deaths caused by disasters occur in developing count r ies, and losses due to natural disasters are 20 t imes greater (as a percentage of GDP) in developing count r ies than in indust r ial ized count r ies. Researchers have been studying disasters for more than a century, and for more than for ty years disaster research. The studies ref lect a common opinion when they argue that al l disasters can be seen as being human -made, thei r reasoning being that human act ions before the st r ike of the hazard can prevent i t developing into a disaster . Al l disasters are hence the resul t of human fai lure to int roduce appropr iate disaster management measures. [7] Hazards are rout inely divided into natural or human -made, al though complex disasters, where there is no single root cause, are more common in developing count r ies . A speci f ic disaster may spawn a secondary disaster that increases the impact . A classic example is an ear thquake that causes a tsunami , resul t ing in coastal f looding. Page 8 Natural disaster A natural disaster is a consequence when a natural hazard af fects humans and/or the bui l t envi ronment . Human vulnerabi l i ty, and lack of appropr iate emergency management , leads to f inancial , envi ronmental , or human impact . The resul t ing loss depends on the capaci ty of the populat ion to suppor t or resist the di saster : thei r resi l ience. This unders tanding is concent rated in the formulat ion: "disasters occur when hazards meet vulnerabi l i ty". A natural hazard wi l l hence never resul t in a natural disaster in areas wi thout vulnerabi l i ty. Var ious phenomena l ike ear thquakes, landsl ides, volcanic erupt ions, f loods and cyclones are al l natural hazards that ki l l thousands of people and dest roy bi l l ions of dol lars of habi tat and proper ty each year . However , natural hazards can st r ike in unpopulated areas and never develop into di sasters. However , the rapid growth of the wor ld's populat ion and i ts increased concent rat ion of ten in hazardous envi ronments has escalated both the f requency and sever i ty of n atural disasters. Wi th the t ropical cl imate and unstable land forms, coupled wi th deforestat ion, unplanned growth prol i ferat ion, non-engineered const ruct ions which make the disaster -prone areas more vulnerable, tardy communicat ion, poor or no budgetary al l ocat ion for disaster
  • 9. prevent ion, developing count r ies suf fer more or less chronical ly by natural disasters. Asia tops the l ist of casual t ies due to natural disasters. Page 9 Man-made disasters Man-made disasters are the consequence of technological or human hazards. Examples include stampedes , f i res, t ranspor t accidents , indust r ial accidents, oi l spi l ls and nuclear explosions/ radiat ion. War and del iberate at tacks may also be put in this category. As wi th natural hazards, man -made hazards are events that have not happened, for instance ter ror ism. Man -made disasters are examples of speci f ic cases where man-made hazards have become real i ty i n an event . Typhoon Haiyan – Phi l ippines Considered one of the st rongest storms ever to make landfal l , Typhoon Haiyan tore through the cent ral Phi l ippines November 8, ki l l ing near ly 6,000 people and displacing more than 3.6 mi l l ion. The 13-foot storm surge and up to 235-mph wind gusts largely wiped out coastal ci t ies a n d d e s t r o ye d mu c h o f t h e r e gi o n ’ s inf rast ructure, such as roads, water and sani tat ion systems, and telecommunicat ions l ines. “Wh e n yo u l o o k a t t h e mo u n t a i n s , t h e y l o o k b a r e a n d s t r i p p e d o f a l l ve ge t a t i o n , ” Aaron Aspi , a Wor ld Vision communicat ions of f icer , told ABC Radio on November 11 f rom nor thern Cebu. Wi thin one month of the storm, Wor ld Vision had reached almost 150,000 people wi th emergency food, shel ter , medical at tent ion, and other assistance. I t is prepar ing long - term ef for ts to help people in as many as 80,000 households in the dis aster -prone count ry get back on thei r feet . Typhoon Phai l in – India The st rongest cyclone to hi t India in 14 years, Typhoon Phai l in af fected the l i ve l i h o o d s o f mo r e t h a n 1 3 mi l l i o n p e o p l e i n t h e c o u n t r y’ s n o r t h e a s t . Heavy rains and more than 150 -mph winds brought widespread devastat ion. But fewer than 50 people died in the mid-October storm. Governments and aid organizat ions credi ted improved disaster preparedness and the ear ly evacuat ion of about 1 mi l l ion of the most vulnerable residents along the coast . As Phai l in approached, Wor ld Vision staf f had provided megaphones, l i fe jackets , f lashl ights, and ropes to communi ty leaders, enabl ing them to warn residents and organize quickly. In the af termath, the organizat ion dist r ibuted emergency food and other suppl ies to fami l ies in Brahmapur , in Odisha state. Hur r icanes Manuel and Ingr id – Mexico Two separate storms overwhelmed western Mexico wi th rain in September , t r igger ing widespread f looding and landsl ides. More than 200,000 people were af fected in Guer rero state alone. In Acapulco, f ive feet of mud over took vehicles and dest royed homes.
  • 10. Wor ld Vision staf f provided fami l ies in the Xochist lahuaca and Santa Catar ina River communi t ies in Guer rero wi th food, blankets, and tarps. In the long term, we wi l l provideclean water , sani tat ion ki ts, and cons t ruct ion mater ials to help fami l ies rebui ld thei r homes. We wi l l also operate Chi ld-Fr iendly Spaces , where chi ldren have a safe place to learn, play, and receive counsel ing. Ear thquake – Cent ral Visayas, Phi l ippines Just three weeks before Typhoon Haiyan hi t Cent ral Visayas, a magni tude -7.2 ear thquake rocked the same region, ki l l ing 222 people, displacing 350,000, and damaging or dest roying about 73,000 bui ldings. Tho usands of displaced or homeless quake survivors st i l l had not found adequate shel ter before Haiyan blew through. Wor ld Vision provided af fected fami l ies wi th food and basic household suppl ies in the days af ter the quake. Page 10 Tornadoes – Uni ted States A massive tornado, packing 200-mph winds, raked a 12-mi le path through the Oklahoma Ci ty area May 20, dest roying homes and severely damaging two elementary schools. The twister ki l led 24 people, ABC News repor ted. The week before, as many as 10 tornadoes touched down in Nor th Texas, ki l l ing six. In response to the dual disasters , Wor ld Vision provided more than 15,000 af fected people wi th emergency food ki ts, hygiene ki ts, cleanup ki ts, and blankets. Its mobi le Teacher Resource Center suppl ied 156 teachers to serve 2,300 students at four schools in devastated Oklahoma neighborhoods. As par t of a long-term recovery commi tment , Wor ld Vision is par tner ing wi th local churches and organizat ions to help fami l ies rebui ld thei r homes. Other disasters Other large-scale natural disasters Wor ld Vision responded to in 2013 include: Solomon Islands ear thquake and tsunami (February) Sichuan, China, ear thquake (Apr i l ) Southern Af r ica drought (May-present ) Ut tarakhand, India, f loods (June) Colorado, U.S. , f loods (September ) Southern Asia f loods (October ) West Af r ica drought (ongoing)
  • 11. UTTARAKHAND: A MODEL OF DISASTER On the af ternoon of 16 June, local resident Manav Bisht watched dozens of constables leaving the parami l i tary Sashast ra Seema Bal (SSB) Academy, which stood between his house in Shakt i Vihar , a local i ty in Ut tarakhand’ s S r i n a ga r t o w n , a n d t h e Alaknanda r iver that had star ted swel l ing f rom 10 am. The waters threatened to enter the academy bui lding af ter 5 pm and more jawans were shi f ted to Paur i , the dist r ict headquar ters. SSB IG S Bandhopadhyay was aware of the tor rent ial rainfal l up in the hi l ls. There was also the f lood warning issued by the Indian Meteorological Depar tment ( IMD) . As night fel l , the Alaknanda breached the meagre embankment and ravaged the academy bui lding. Somet ime af ter midnight , af ter drowning the 500-met re s t retch of the SSB campus, the tor rent rose above the 10 -feet -high boundary wal l on the other side and entered Shakt i Vihar . Ba n d h o p a d h ya y’ s t i me l y a c t i o n s a ve d ma n y l i ve s . Bu t b u s y e va c u a t i n g h i s me n , h e d i d not inform the dist r ict administ rat ion. “ I d i d n ’ t n e e d t o t e l l a n yo n e . T h e y c o u l d s e e wh a t wa s h a p p e n i n g . E ve r yo n e h a d i n f o r ma t i o n a b o u t t h e h e a v y r a i n f a l l , ” s a ys Bandhopadhyay. But nobody thought i t neces sary to warn the residents of Sr inagar . So, Bisht , much l ike hi s neighbours, was caught unawares when the r iver entered his house around 1.30 am. Suddenly, there was panic everywhere. Wi thin an hour or so, the ent i re neighbourhood had gone under the roi l ing waters. Few managed to get hold o f a n y va l u a b l e s . Bi s h t ’ s f ami ly barely managed to escape in the clothes they weresleeping in. About 100 km away, fur ther up in the hi l ls, another r iver was also in spate. Whi le the Alaknanda was engul f ing par ts of Sr inagar , the Mandakini began bat ter ing the templetown of Kedarnath in the ear ly hours of 17 June. Soon af ter pi lgr ims and residents of the pi lgr image cent re woke up to sights of devastat ion, a massive landsl ide sent huge mounds of rock into the Charbar i lake, 6 km upst ream of Kedarnath. Binod Mant r i , a pi lgr im f rom West Be n ga l ’ s Ho o gh l y , w a s u n e a s y s i n c e 1 6 J u n e . Wi t h no let -up in the rain, wor r ied loca ls advised him to shi f t closer to the Kedarnath temple f rom his hotel by the r iver . So he checked into the Rajasthan guesthouse wi th 16 fami ly members and stayed indoors as landsl ides, rain and howl ing wind bat tered the town. Next morning, the fami ly was prepar ing to venture out for a quick breakfast when the tor rent entered the room. Mant r i and his brother -in-law survived by cl inging on to the window gr i l l . Everyone else in the fami ly, al l 14 of them, cl imbed onto beds and were swept away wi thin minutes. “ T h e l a n d s l i d e c a u s e d a gi a n t s p l a s h l i ke a b r i c k d r o p p e d i n a b u c ke t o f wa t e r , ” r e c a l l s one of the four Indian Army jawans posted at Kedarnath. The mass of rock smashed against the sand and boulders, giving the r iver momentum to sweep up more rocks on i ts way to become the dest ruct ive force that wiped clean everything in i ts path. By Page 11
  • 12. nine in the morning, Kedarnath had become a ghost town. Rambara, a set t lement downst ream, simply di sappeared. By 18 June, the magni tude of the disaster became clear . Across 37,000 sq km of the Himalayan state, lands l ide and f loods t rapped more than 80,000 tour ists, t r igger ing one of the biggest rescue operat ions by the armed forces and the biggest by hel icopters so far . The race against t ime took i ts tol l even on those who toi led round the clock to save l ives . On 20 June, Rudraprayag Dist r ict Magist rate Vi jay Dhaundiyal suf fered a hear t at tack. At least 20 rescue personnel per ished, adding to the of f icial death tol l of 5,000, which, locals and eyewi tnesses claim, wi l l b e in the range of 10- 20,000 if those who have gone missing are also accounted for. For each survivor , another seems to have died in this unfolding t ragedy. Sixty -f ive-year -o l d Ai s hwa r ya ma d e i t a l i ve , a l o n g wi t h j u s t s e ve n o f h e r gr o u p o f 1 5 . “ S t a n d i n g beside a bonf i re to keep warm, she was having cof fee at a roadside shop when the f lood waters came. Before she could react , out of nowhere, a pack of mules charged t owa r d s h e r , k n o c ki n g h e r o ve r a n d p u s h i n g h e r i n t o t h e o p e n f i r e , ” s a i d o n e o f h e r relat ives at the Himalayan Inst i tute Hospi tal Trust in Dehradun, the state capi tal , where she is being t reated for severe burns and an injured hip. Against heavy odds, i t took even the army’ s b e s t e f f o r t s mo r e t h a n a we e k t o r e a c h t h e s t r a n d e d i n ma n y a r e a s . “We we r e n e r vo u s wh e n we f i r s t go t h e r e . We d i d n ’ t kn o w i f we would be able to pul l this of f . But today, we are get t ing the las t of the near ly 300 s u r vi vo r s d ow n f r om J u n gl e Ch a t t i , ” a Fi f th Sikh Regiment of f icer leading the rescue operat ion in Kedarnath told TEHELKA, whi le keeping a watchful eye on able -bodied survivors cl imbing of f a rope down a 80 -degree, 90-feet -deep drop. As of 26 June, there are st i l l 5,000 survivors st randed in the Badr inath and Harsi l areas and the rescue work — Operat ion Surya — cont inues despi te intermi t tent rain and worsening weather condi t ions. Whi le some locals al lege that rescue operat ions have been skewed towards saving pi lgr ims and foreigners, vi l lager s of Bhagor i and Ganeshpur in Ut tarkashi are going out of thei r way to shel ter and feed the st randed. Wi th the armed forces and the administ rat ion conf ident that the last f ew wi l l be rescued in the next couple of days, the worst seems to be over for the visi tors. The surviving tour ists wi l l return home. Ut tarakhand and i ts people wi l l have to face the consequence of thi s disaster . Near ly 1 lakh of them have become homeless and there is resentment among the locals that rescue ef for ts have ignored them so far . Wi th more than 300 repor ted cases, acute diar rhoea is threatening to take epid emic propor t ions as rot t ing corpses have begun to contaminate water sources. Al ready, the state has est imated the damage to be upwards of Rs 3,000 crore. Insurance companies are looking at claims wor th more than Rs 1,000 crore. The Char Dham Yat ra has been cal led of f indef ini tely. Damaged roads and other inf rast ructure may take years to rebui ld. Rel igious tour ism, the mainstay of G a r h wa l ’ s e c o n omy , wi l l now have to star t f rom scratch. Page 12
  • 13. In the 2011 census, Ut tarakhand’ s p o p u l a t i o n wa s 1 . 0 8 c r o r e . T h e s t a t e h o s t e d 2 . 6 8 crore pi lgr ims and tour ists in 2010 - 11. Since then, the Garhwal rel igious ci rcui t saw a four -fold increase in the number of pi lgr ims as year -round access to the shr ines — ear l ier rest r icted to four months — was al lowed. According to Yat ra Rotat ion Sami t i member Sanjay Shast r i , around 1 lakh vehicles — 50-60 percent of these not f rom the state — do three t r ips of the Char Dham Yat ra each year . Since 2005-06, the number of taxis and jeeps registered in the state has jumped tenfold. Since 2010, the state has added 4,500 km of road under the Pradhan Mant r i Gram Sadak Yojana (PMGSY) alone. Its total road length near ly t r ipled in the past decade. “ P e o p l e b e c a me g reedy. Everyone went overboard. How long would the mountain suf fer thousands of jeeps and buses crawl ing up and down and accommodate thousands of tour ists? Al l along the banks of the r iver , there is const ruct ion of houses. Where we used to have tents a few years ago, we have f ive -storey bui ldings . At some point or t h e o t h e r , n a t u r e h a d t o h i t b a c k. T h i s wa s i t , ” s a ys Ga u r a v S i n g h , wh o r u n s a t e a s t a l l in Guptakashi vi l lage. And this is when things have gone to plan. Af ter an emot ional ly -charged pol i t ical struggle, the creat ion of the Ut tarakhand state in 2000 promised i t s people thei r r ight over the hi l ls, forests and water . At the t ime, many professed that the new sta te could bui ld i ts economy wi thout compromising i ts pr ist ine hi l ls, by focussing on i t and other sof t -ski l l indust r ies. Instead, Ut tarakhand decided to go big on tour ism, the only indust ry i t had known unt i l then. In 2001, the state cons t i tuted the Ut tarakhand Tour ism Board and chalked up i ts t o u r i sm p o l i c y wi t h t h e vi s i o n t o “ m a ke Ut t a r a n c h a l s yn o n ymo u s w i t h t o u r i sm” . T h e focus was on drawing higher numbers of tour ists and bigger investment into the state. From 1 crore in 2001, the number of visi tors to the state grew to 3 crore in 2010. Over the decade, a number of schemes and tax rebates for bui lding tour ism i n f r a s t r u c t u r e e n s u r e d ‘ d e ve l o pme n t ’ o f p r i s t i n e d e s t i n a t i o n s a n d mu s h r o omi n g o f hotels and resor ts. The state raised the budgetary al locat ion for tour ism by 224 percent in the 10th Plan. At present , 22 tour ism projects wor th Rs 1,840 crore are coming up on the publ ic -pr ivate par tnership (PPP) model and account for 47 percent of the total investment in the PPP schemes under implementat ion in the state. Whi le promot ing unrest r icted growth in tour ism, the new state decided to exploi t i ts hydropower potent ial as wel l . Former chief minister Ramesh Pokhr iyal prepared a ‘Vi s i o n 2 0 2 0 ’ s t a t e me n t t o ma ke Ut tarakhand a “ p r o s p e r o u s s t a t e ” . Wi t h t h e theme ‘Pahad Ka Pani , Pahad Ki Jawani ’ , t h e p l a n wa s t o h a r n e s s t h e n a t u r a l r e s o u r c e s o f t h e state in an opt imal manner and create more jobs. “ T h e s t a t e h a s a c a p a c i t y t o p r o d u c e a t l e a s t 4 0 , 0 0 0 mw o f p o we r f r om hydel projects . Therefore, we have planned to instal l several hydel power uni ts in the state. The surplus power wi l l be sold to other states. We have invi ted investors and the response has been very encouraging. To rope in local talent and provide jobs, we have decided t o e mp l o y l o c a l yo u t h s i n mi n i h y d e l p o we r p r o j e c t s , ” P o kh r i ya l wa s q u o t e d a s s a yi n g Page 13
  • 14. in 2010. The resul t : 73 hydel projects on the Alaknanda, Mandakini and Bhagi rathi , and several more on other r ivers of the state. Unbr idled tour ism and const ruct ion of dams on r ivers had one common demand: newer and wider roads across the state. Ut tarakhand star ted widening i ts roads in 2002. Ti l l then, al l roads here were two - lane, except for the Tehr i road, which was widened up to the dam si te in the 1990s . The story was to repeat under BC Khandur i , the then sur face t ranspor t minister . “ P e o p l e t h o u gh t t h a t a l l h e (K h a n d u r i ) wa n t e d wa s t o widen the roads for the growing tour ist t raf f ic. It was only later that we star ted to see a di f ferent picture. For example, a road was widened t i l l Lambagad and af ter that there was nothing. Now at Lambagad, there was a dam const ructed by the Jaypee Group. It created a suspicion in our minds that this widening of roads was done pr imar i ly for the movement of big t rucks wi thconst ruct ion mater ial for dams, ” s a ys Dr Ra vi Ch o p r a , d i r e c t o r o f P e o p l e ’ s ScienceInst i tute in Dehradun. The other reason behind the spur t in road projects, says a t ranspor t depar tment of f icial wh o d o e s n o t wa n t t o b e n a me d , i s t h a t t h e r e wa s “ a l o t o f mo n e y t o b e ma d e ” . S i n c e the 1962 war wi th China, the Border Roads Organisat ion (BRO) bui l t the ar ter ial roads in the region, put t ing in reinforcement wal ls in the unstable s t retches. Under the cut -and-f i l l method, the excavated ear th was used to pave the road. But as too many road projects were commissioned, nobody bothered to ident i fy the unstable slopes; the ear th was s imply dumped in the r ivers below. To cut costs, road projects even stopped creat ing adequate drainage systems . “Us u a l l y, we c u t t h e mo u n t a i n s i d e a n d l e a ve i t f o r t wo ye a r s t o a l l ow d e b r i s a n d overhanging mater ial to come down. The mountain stabi l ises thro ugh two monsoons before we put in the hard topping. But growing t raf f ic demands that we expand the roads and destabi l ise the mountains again. Also, whi le the widening was ear l ier done by men and machines, now we use dynami te to do i t quickly. There are sev eral roads that have become landsl ide -prone because blast ing l e a ve s c r a c ks i n s i d e t h e mo u n t a i n , ” says a former civi l works engineer who served in Rudraprayag dist r ict . Since 2010, under the PMGSY, a number of approach roads have been bui l t to vi l lages way u p o n t h e s l o p e , wh i c h f u r t h e r i n c r e a s e s t h e r i s k o f l a n d s l i d e s . “ T h e r e h a s b e e n a lot of road cut t ing by state agencies, not by the BRO, and the degree of care, I would say, is marginal . It is a recipe for disaster i n a yo u n g , u n s t a b l e mo u n t a i n , ” s a ys Chopra. The indiscr iminate rol lout of roads also spur red unregulated const ruct ion across the state. Unl ike in rural areas, there are const ruct ion codes for urban areas, but few fol low the rules. Just across the state Assembly bui lding in the state capi tal ar e encroachments on the Rispana st reambed. Page 14
  • 15. The si tuat ion is wel l imaginable in rural areas, where the tour ism cent res have become death t raps. Af ter the 2011 ear thquake in Sikkim, a study by IIT Roorkee found that t radi t ional low-r ise, l ightweight t imber bui ldings per formed ext remely wel l . But to accommodate the growing number of tour ists , Ut tarakhand’ s t r a d i t i o n a l c o n s t r u c t i o n s gave way to unplanned mul t i -stor ied bui ldings on columns and beams. At Gaur ikund, where the t rek for Kedarnath begins, walking the 20-feet -wide road along the 200-odd met res of the main bazaar is l ike moving t hrough a tunnel wi th ai r less three -storey bui ldings on both sides. It is not a coincidence that Garhwal suf fers heavy loss of l ives and proper ty year af ter year whi le neighbour ing Kumaon repor ts far less damage. Al l major shr ines of the state are in Garhwal and these dest inat ions are al l by the r ivers. Since pi lgr ims have to access the ghats, hotels have cropped up on the edge of the r iver s. The resul t is an unbearable load on the Garhwal mountains that are anyway much steeper compared to the rol l ing hi l ls of the Kumaon. Wi th this lopsided burden alongside r ivers prone to f lash f loods, i t was only a mat ter of t ime before the overhanging st ructures were swept away. The const ruct ion boom, on the other hand, fuel led i l legal mining of sand and boulders f rom r iverbeds. Such ext ract ion changes the slope of the r iverbed, making the f low restabi l ise i tsel f , causing the r iver to change course. Wi th const ruct ions r ight up to the bank, the disast rous consequence was vis ible last week. Nowhere in the state i s the SC orde r to rest r ict const ruct ion wi thin 200 met res of a r iverbed fol lowed. The val leys here have been formed f rom debr is rol l ing down f rom the mountain and are loose beds of gravel . When i t rains, the water sinks quickly, giving the impression of dry real estate . But dur ing monsoons, these gravel beds temporar i ly become very act ive. Yet , wi th the connivance of the local of f icials, scores of bui ldings have come up on such t reacherous foundat ion al l over the state. The SSB Academy bui lding that was inaugurated last year and damaged last week in Sr inagar , for example, was bui l t on the Alaknanda r iverbed. Many houses that were b u r i e d i n s i l t i n t h e a d j a c e n t S h a kt i Vi h a r we r e a l s o b u i l t i l l e ga l l y. “ It i s a n o l d colony of Sr inagar which used to be a fai r di stance away f rom the r iver . But in the p a s t f ew ye a r s , i t e x p a n d e d t owa r d s t h e r i ve r b e d i n c o n n i va n c e wi t h l o c a l o f f i c i a l s , ” says Prat ik Palwar , a Sr inagar resident . Over the past week, much has been said and wr i t ten about the absence of warning f rom the Met depar tment , which, in turn, has claimed that i ts aler ts went unheeded. On 1 5 J u n e , t h e IMD f l a s h e d a “ s e ve r e ” wa r n i n g f o r K i n n a u r a n d Ga r hwa l . I t w a s u p gr a d e d t o “ ve r y s e v e r e ” t h e n e x t d a y. It r e ma i n e d s o t i l l 1 7 J u n e wh e n f l o o d a n d landsl ide ravaged Garhwal . Whi le Chief Minister Vi jay Bahuguna dismissed the wa r n i n g a s “ u n s p e c i f i c a n d n o n -a c t i o n a b l e ” , h i s o f f i c e r s a p p a r e n t l y a c t e d o n i t . “ T h e r e wa s a Me t wa r n i n g f o r h i gh r a i n f a l l a n d we we r e wa t c h i n g t h e wa t e r l e ve l . Bu t this happens each year . In Rudraprayag town, we shi f ted people. In Gaur ikund, people were asked to cl imb up and some were shi f ted to Rambara (which was eventual ly Page 15
  • 16. wiped out ) and the pol ice kept people awake through the night . Al l the people al ive today are those who were evacuated to higher ground. But no one expected a mountain to crumble and fal l into the lake ( in Kedarnath) , ” s a ys Ru d r a p r a ya g S u p e r i n t e n d e n t o f Pol ice Bi render jeet Singh. If the warning indeed aler ted at least a sect ion of the state adminis t rat ion, was i t merely unprepared to meet the chal lenge? In i ts per formance audi t repor t submi t ted to Par l iament on 23 Apr i l , the Compt rol ler and Audi tor General (CAG) of India had highl ighted that the Ut tarakhand State Disaster Management Author i ty (SDMA) , const i tuted in 2007 and headed by the CM, had not formulated any rules or pol icies for disaster management in the state. “Wo u l d we b e b e t t e r o f f wi t h a p o l i c y? ” c o u n t e r s a s t a t e o f f i c i a l c l o s e l y i n v o l ve d wi t h r e l i e f a n d r e s c u e o p e r a t i o n s . “ T h e s c a l e o f t h e d i s a s t e r wa s s i mp l y u nma n a g e a b l e . Bu t we have done wel l . Wi th the army’ s h e l p , we h a ve t a ke n c o n t r o l o f t h e s i t u a t i o n wi thin a couple of days. Whi le theoret ical ly i t might have been pos sible to save more l ives by evacuat ing people before the f loods hi t , what do you do about the loss of inf rast ruct u r e ? Ca n we mo ve r o a d s a n d b u i l d i n gs t o s a f e t y? ” Exper ts such as geologist KS Valdiya and envi ronmental ist Himanshu Thakkar have faul ted the government on that very ground. The rainfal l , they maintain, was not unnatural but the human and inf rast ructural co s t o f t h e t r a ge d y wa s t h e s t a t e ’ s d o i n g. “ T h e CM s a y s t h i s r a i n i s u n p r e c e d e n t e d . It i s n o t . Ut tarakhand has seen so many disasters of this kind, but not this magni t ude. Just last year , there were two t ragedies — Ut tarkashi in August and Rudraprayag in September — when houses col lapsed l ike cardboard boxes and roads gave in. Yet , no lesson was learnt and blast tunnel l ing wo r k c o n t i n u e d f o r h y d r o p owe r p r o j e c t s , ” s a ys T hakkar . Others point out what they feel is the real t ragedy of Ut tarakhand’ s p e o p l e . “ T h e s t a t e invests publ ic money in i l l -advised projects that compromise our safe ty. At the same t ime , d a ma ge t o mi s p l a c e d i n f r a s t r u c t u r e c a u s e s t h e s t a t e e c o n omy h u ge l o s s e s , ” s a ys Mal ika Vr idhi of Munsiyar i -b a s e d NG O Hi ma l P r a kr i t i . “ Af t e r a l l , i t ’ s t h e p e o p l e ’ s money. Instead of pumping i t into dest ruct ive projects, the state should invest in s u s t a i n a b l e a gr i c u l t u r e a n d s ki l l d e ve l o pme n t p r o gr a mme s . ” Even where the warning system could save l ives, the inf rast ructural damage was overwhelming. At the SSB Academy, the los s was est imated at 100 crore. Vast lengths of vulnerable roads have simply been swal lowed by the r ivers. Several hydel projects i n t h e r e gi o n a r e a l s o h i t . “Wh a t i s t h e wi s d om i n ma ki n g i n ve s t me n t t h a t sel f -d e s t r u c t s , ” a s ks T h a k k a r , “w h i l e c a u s i n g d a ma ge t o t h e n a t u r a l s ys t e ms a n d p e o p l e ? ” On paper , the populat ion densi ty of Ut tarakhand is just 189 per sq km. But the sense of space is misleading. More than 90 percent of the land is mountainous and 64 percent is protected forests out of bounds for the locals. Mushrooming development projects are fur ther elbowing out the hi l l people whi le the Tour ism Board and Page 16
  • 17. numerous pr ivate players are hoarding land. The dams and reservoi rs are also eat ing into agr icul tural land. “He a v y i n f l u x o f t o u r i s t s a n d wr o n g t o u r i s m p r a c t i c e s a r e s t r e s s i n g t h e s e h i l l s . Ou r people most ly work in menial jobs whi le out siders rake in the prof i t . In the t ime of cl imate change, i t is very impor tant that the people protect thei r st reams and forests. T h a t c a n o n l y h a p p e n wh e n t h e y h a ve t h e ow n e r s h i p , ” a r gu e s Vr i d h i . “Ou r mo d e l o f eco-tour ism shows how communi t ies can benef i t by car ing for thei r naturalenvi ronment . This is not a model for bout ique out lets but needs to be adopted a c r o s s t h e s t a t e . ” Through communi ty par t icipat ion in eco-tour ism, the hi l l people may actual ly benef i t f rom tour ism that , cont rary to popular bel ief , now accounts for just 2 percent of the s t a t e ’ s emp l o yme n t . B u t t h e s t a t e t o u r i s m p o l i c y h a s n o s u c h p l a n s . It s t o u r i s m Ma s t e r Plan for 2007-2 2 i d e n t i f i e s “ ve r y l a r ge , o ve r a l l c a r r yi n g c a p a c i t y g i ve n t h e i mme n s i t y of the natural envi ronment ” a s t h e b i g ge s t o p p o r t u n i t y f o r t h e i n d u s t r y i n t h e s t a t e . Bar r ing a 2012 repor t by Inf rast ructure Leas ing and Financial Services Ltd that examined the car rying capaci ty of Dehradun, Har idwar , Rishikesh and Mussoor ie, no s t u d y h a s e ve r b e e n c o n d u c t e d t o d e t e r mi n e h ow mu c h t o u r i s m p r e s s u r e t h e s t a t e ’ s overcrowded des t inat ions can take. Meanwhi le, Bahuguna is determined to make Ut tarakhand p o we r s u r p l u s b y 2 0 1 6 . “ I t is chi ldish to suggest that the cloudburst at Kedarnath happened because of wrong const ruct ion on the r iverbeds. Wi thout tour ism, there wi l l be pover ty, unrest and migrat ion. We have clearance for 53 run -of- the-r iver hydro projects and we wi l l rol l o u t 3 6 f o r b i d d i n g b y De c e mb e r . I f yo u t a ke a d e c i s i o n , t h e n s t i c k t o i t , d o n ’ t s c r a p i t b e c a u s e o f s ome a c t i vi s t s , ” h e a s s e r t e d , r e p e a t e d l y, o ve r t h e p a s t w e e k. It may yet take more l ives for Ut tarakhand to real ise how far down the suicide slope i t has come. Page 17
  • 18. Page 18 MANAGING UTTARAKHAND: Indian Ai r Force of f icials working in Ut tarakhand—st i l l reel ing under the assaul t of the f lash f loods last month—h a ve n o i d e a w h e n t h e i r t a s k c a n b e t e r me d a s “ c l o s e d ” . Af ter evacuat ing thousands of people, they are now f lying in suppl ies to help rebui ld the l ives of the local people, and set up sturdy inf rast ructure s o that this vulnerable p a t c h o f t h e Hi ma l a ya s d o e s n ’ t ge t c u t o f f a ga i n . The pace of work has been scaled down, but the operat ion has gained degrees of danger wi th the monsoon al ready wel l -advanced into the hi l ls. The casual t ies have been taken care of and evacuat ions near ly done, yet the urgency of providing rel ief has remained near ly the same wi th locals in a hur ry to re -establ ish thei r vi l lages as this is the t ime for stacking up on winter suppl ies. “ I h a v e n o c l u e wh e n t h i s c a n b e s a i d t o b e o ve r , ” s a ys Ai r Commodore Rajesh Issar , who is leading the Indian Ai r Force operat ions f rom his temporary base at Jol ly Grant a i r p o r t i n De h r a d u n . “ Be c a u s e o f t h e n a t u r e o f t h e d i s a s t e r , I t h i nk we would remain h e r e f o r s ome t i me . ” T h e Ai r F o r c e ’ s o p e r a t i o n s a r e n ow i n p h a s e t wo , d o wn t o f l yi n g 8 -10 ai rcraf t as against 45 ear l ier , al l f lying into the nar row, mist -f i l led val leys, del iver ing what the civi l administ rat ion and NGOs ask for —ranging f rom dropping road bui lding machines l ike bul ldozers to mater ials for use for animal husbandry. Bi l led as the biggest rel ief and rescue operat ion in recent t imes, fol lowing the 16 -18 June rain that ki l led thousands, an est imated 100,000 people have been re scued by the Army, Ai r Force, Indo-Tibetan Border Pol ice and civi l rescue workers. Thei r operat ions, focused on search, rescue, rel ief and evacuat ion, demonst rate thei r al l - round ski l ls in disaster management wi th agencies having di f ferent special izat ions working in coordinat ion. The Army, cur rent ly ret ract ing f rom Ut tarakhand, deployed more than 10,000 personnel and saved 42,542 people, data on i ts websi te shows. Its senior of f icers inst i l led conf idence into people by leading evacuees in groups of hundreds by t rekking on landsl ide -hi t areas and r ickety temporary r iver crossingsto reach to safety. A major br idge was bui l t at Lambagar across the Alaknanda r iver for people st randed in Badr inath to exi t . In other places, where the r iver was too turbulent and ba nks too unsafe, hel icopter shut t les were star ted. About two dozen log -cross ings were made al l over the af fected par ts of the state. The Ai r Force under took 3,117 sor t ies, put t ing in 1,245 hours. It dropped 650 tonnes of rel ief mater ials and evacuated 23,221 people. Amid al l this, they suf fered casual t ies of thei r own—one MiG-17 ai rcraf tcrashed on 25 June in bad weather ki l l ing 20 people on board, al l rescuers.
  • 19. The forces pushed the envelope, improvising ways and means to adapt to the ci rcumstances. The Ai r Force decent ral ized the operat ions by dist r ibut ing ai rcraf t to 8 -10 ai rst r ips, which operated as smal l bases, so they could be closer to the areas of dist ress. Ways had to be found to fuel the ai rcraf t , which were f lying wi th vi r tual ly no ai r t raf f ic cont rol and negl igible ground suppor t . The ai rcraf t managed to car ry the fuel in bar rels and refuel led when necessary. Makeshi f t hel ipads were bui l t in Gaur ikund and Jungle Chat t i in the Kedarnath val ley, but in many other places the ai rcraf t landed wherever th ey found a patch. Looking at the hundreds t rapped in nar row s t r ips of land, dead in thei r midst , in the pieced up route to Kedarnath, hel icopter pi lots decided i t was point less to rescue a few and so they dropped army personnel special izing in jungle rescu e, wi th food and medicines for the marooned people so they could survive a few more days. These army personnel f ixed ropes to al low people to sl i ther down to the safety of vi l lages or broad roads wherever possible. Near the Pindar i glacier in an al l -night operat ion in the f reezing chi l l , wi th great di f f icul ty, ColonelPrashant Kandpal and his men lodged a log into rocks to bui ld a 25f t br idge to br ing people, t ied in harnesses , to safety. At Sunderdunga val ley, rescuers zigzagged though mountains to avoid landsl ides, opening an al ternate route to keep evacuees safe. Page 19
  • 20. Disaster management (or emergency management ) is the discipl ine of avoiding and deal ing wi th both natural and man-made disasters. It involves preparedness, response and recovery plans made in order to lessen the impact of disasters. Preparedness t raining may be done by pr ivate ci t izens, as by the Federal Emergency Management Agency (FEMA) in the Uni ted States. Al l aspects of disaster management deal wi th the processes used to protect populat ions or organizat ions f rom the consequences of di sasters , wars and acts of ter ror ism. This can be seen through government publ icat ions such as the Nat ional St rategy for Homeland Secur i ty which detai l how individuals and varying levels of government respond dur ing the di f ferent phases of a disaster . Eme r ge n c y ma n a ge me n t c a n b e f u r t h e r d e f i n e d a s “ t h e d i s c i p l i n e a n d p r o f e s s i o n o f applying science, technology, planning and management to deal wi th ext reme events that can injure or ki l l large numbers of people, do extensive damage to proper ty , and d i s r u p t c ommu n i t y l i f e ” (Dr a b e k, 1 9 9 1 a , p . x vi i ) . An ‘ e me r ge n c y’ i s ‘ a n u n p l a n n e d e v e n t t h a t c a n c a u s e d e a t h s o r s i gn i f i c a n t i n j u r i e s t o employees, customers or the publ ic; or that can shut down your bus iness, disrupt operat ions,may cause physical or e n vi r o nme n t a l d a ma ge , o r t h r e a t e n t h e f a c i l i t y’ s f i n a n c i a l s t a n d i n g o r p u b l i c i ma ge ’ ( F EMA, 1 9 9 3 ) . Emergency events can include ter ror ist at tacks, indust r ial sabotage, f i re, natural disasters (such as ear thquakes, severe weather , etc. ) , publ ic disorder , i ndust r ial accident , communicat ions fai lure and loss, or cor rupt ion of cr i t ical informat ion. Some examples of catast rophic incidents are: The 1995 Kobe, Japan, ear thquake, which ki l led more than 6000 people and lef t another 30,000 injured. The 1994 Nor thr idge, Cal i fornia, ear thquake, which resul ted in approximately $33 bi l l ion in damages . These individual events are signi f icant enough, but the losses are even more dramat ic when accumulated over t ime. Between 1989 and 1999, the average natural disaster loss in the US was $1 bi l l ion each week. Disaster management does not necessar i ly aver t or el iminate the threats themselves, al though the study and predict ion of the threats are an impor tant par t of the f ield. The basic levels of emergency management also includ e the var ious kinds of search and rescue act ivi ty. Page 20
  • 22. Corporate governance refers to the system by which corporat ions are di rected and cont rol led. The governance st ructure speci f ies the dist r ibut ion of r ights and responsibi l i t ies among di f ferent par t icipants in the corporat ion (such as the board of di rectors, managers, shareholders, credi tors, audi tors, regulators, and other stakeholders) and speci f ies the rules and procedures for making decisions in corporate af fai rs. Governance provides the s t ructure through which corporat ions set and pursue thei r object ives, whi le ref lect ing the context of the social , regulatory and market envi ronment . Governance is a mechanism for moni tor ing the act ions, pol icies and decisions of corporat ions. Governance involves the al ignment of interests among the stakeholders. There has been renewed interest in the corporate governance pract ices of modern corporat ions, par t icular ly in relat ion to accountabi l i ty, since the high -prof i le col lapses of a number of large corporat ions dur ing 2001 –2002, most of which involved account ing f raud. Corporate scandals of var ious forms have maintained publ ic and pol i t ical interest in the regulat ion of corporate governance. In the U.S. , these include Enron Corporation and MCI Inc. ( former ly Wor ldCom) . Thei r demise is associated wi th the U.S. federal government passing the Sarbanes-Oxley Act in 2002, intending to restore publ ic conf idence in corporate governance. Comparable fai lures in Aust ral ia (HIH, One.Tel) are associated wi th the eventual passage of the CLERP 9 reforms . Simi lar corporate fai lures in other count r ies st imulated increased regulatory interest (e.g. , Parmalat in Italy) . Corporate governance has also been def ined as "a system of law and sound approaches by which corporat ions are di rected and cont rol led focusing on the internal and external corporate st ructures wi th the intent ion of moni tor ing the act ions of management and di rectors and thereby mi t igat ing agency r isks which may stem f rom the misdeeds of corporate of f icers." In contemporary business corporat ions, the main external stakeholder groups are shareholders, debtholders, t rade creditors, suppl iers, customers and communi t ies af fected by the corporat ion's act ivi t ies. Internal stakeholders are the board of directors, executives, and other employees. Much of the contemporary interest in corporate governance is concerned wi th mi t igat ion of the conf l icts of interests between stakeholders. Ways of mi t igat ing or prevent ing these conf l icts of interests include the processes, customs, pol icies, laws, and inst i tut ions which have an impact on the way a company is cont rol led. An impor tant theme of governance is the nature and extent of corporate accountability. A related but separate thread of discussions focuses on the impact of a corporate governance system on economic efficiency, wi th a st rong emphasis on shareholders ' wel fare. In large f i rms where there is a separat ion of ownership and management and no cont rol l ing shareholder , the principal–agent issue ar ises between upper -management ( the "agent") which may have very di f ferent interests, and by def ini t ion considerably more informat ion, than shareholders ( the "pr incipals") . The danger ar ises that rather than overseeing management on behal f of shareholders , the board of di rectors may Page 22
  • 23. become insulated f rom shareholders and beholden to management . This aspect is par t icular ly present in contemporary publ ic debates and developments in regulatory pol icy. (seeregulation and policy regulation) . Economic analysis has resul ted in a l i terature on the subject . One source def ines corporate governance as "the set of condi t ions that shapes the ex post bargaining over the quasi-rentsgenerated by a f i rm." The f i rm i tsel f is model led as a governance st ructure act ing through the mechanisms of cont ract . Here corporate governance may include i ts relat ion to corporate finance. Page 23 Pr inciples of corporate governance Contemporary discussions of corporate governance tend to refer to pr inciples raised in three documents released since 1990: The Cadbury Repor t (UK, 1992) , the Pr inciples of Corporate Governance (OECD, 1998 and 2004) , the Sarbanes -Oxley Act of 2002 (US, 2002) . The Cadbury and OECD repor ts present general pr inciples around which businesses are expected to operate to assure proper governance. The Sarbanes -Oxley Act , informal ly refer red to as Sarbox or Sox, is an at tempt by the federal government in the Uni ted States to legislate several of the pr inciples recommended in the Cadbury and OECD repor ts.  Rights and equi table t reatment of shareholders: Organizat ions should respect the r ights of shareholders and help shareholders to exercise those r ight s. They can help shareholders exercise thei r r ights by openly and ef fect ively communicat ing informat ion and by encouraging shareholder s to par t icipate in general meet ings.  Interests of other stakeholders: Organizat ions should recognize that they have legal , cont ractual , social , and market dr iven obl igat ions to non -shareholder stakeholders, including employees , investors , credi tors, suppl iers, local communi t ies, customers, and pol icy makers.  Role and responsibi l i t ies of the board: The board needs suf f icient relevant ski l ls and understanding to review and chal lenge management per formance. It also needs adequate size and appropr iate levels of independence and commi tment .  Integr i ty and ethical behavior : Integr i ty should be a fundamental requi rement in choosing corporate of f icers and board members. Organizat ions should develop a code of conduct for thei r di rectors and execut ives that promotes ethical and responsible decision making.  Disclosure and t ransparency: Organizat ions should clar i fy and make publ icly known the roles and responsibi l i t ies of board and management to provide stakeholders wi th a leve l of accountabi l i ty. They should also implement procedures to independent ly ver i fy and safeguard the integr i ty of the company's f inancial repor t ing. Di sclosure of mater ial mat ters concerning the organizat ion should be t imely and balanced to ensure that al l investors have access to clear , factual informat ion.
  • 24. Corporate governance models around the wor ld There are many di f ferent models of corporate governance around the wor ld. These di f fer according to the var iety of capi tal ism in which they are embedded. T he Anglo- Amer ican "model" tends to emphasize the interests of shareholders. The coordinated or Mul t istakeholder Model associated wi th Cont inental Europe and Japan also recognizes the interests of workers, manager s, suppl iers, customers , and the communi ty. A related dist inct ion is between market -or ientated and network-or ientated models of corporate governance. Cont inental Europe Some cont inental European count r ie s, including Germany and the Nether lands, requi re a two-t iered Board of Di rectors as a means of improving corporate governance. [26] In the two-t iered board, the Execut ive Board, made up of company execut ives, general ly runs day-to-day operat ions whi le the supervisory board, made up ent i rely of non - execut ive di rectors who represent shareholders and employees, hi res and f i res the members of the execut ive board, determines thei r compensat ion, and reviews major business decisions. India India's SEBI Commi t tee on Corporate Governance def ines corporate governance as the "acceptance by management of the inal ienable r ights of shareholders as the t rue owners of the corporat ion and of thei r own role as t rustees on behal f of the shareholders. It is about commi tment to values, about ethical business conduct and about making a dist inct ion between personal & corporate funds in the management of a company." It has been suggested that the Indian approach is drawn f rom the Gandhian pr inciple of t rusteeship and the Di rect ive Pr inciples of the Indian Const i tut ion, but this conceptual izat ion of corporate object ives is also prevalent in Anglo-Amer ican and most other jur isdict ions. Uni ted States, Uni ted Kingdom The so-cal led "Anglo-Amer ican model" of corporate governance emphasizes the interests of shareholders. It re l ies on a single -t iered Board of Di rectors that is normal ly dominated by non-execut ive di rectors elected by shareholders. Because of this, i t is also known as "the uni tary system". Wi thin this system, many boards include some execut ives f rom the company (who are ex of f icio members of the board) . Non - execut ive di rectors are expected to outnumber execut ive di rectors and hold key posts, including audi t and compensat ion commi t tees. The Uni ted States and the Uni ted Kingdom di f fer in one cr i t ical respect wi th regard to corporate governance: In the Uni ted Kingdom, the CEO general ly does not also serve as Chai rman of the Board, whereas in the US having the dual role is the norm, despi te major misgivings regarding the impact on corporate governance. In the Uni ted States, corporat ions are di rect ly governed by state laws, whi le the exchange (of fer ing and t rading) of secur i t ies in corporat ions ( including shares) is governed by federal legislat ion. Many US states have adopted the Model Business Page 24
  • 25. Corporat ion Act , but the dominant state law for publ icly t raded corporat ions is Delaware, which cont inues to be the place of incorporat ion for the major i ty of publ icly t raded corporat ions. Individual rules for corporat ions are based upon the corporate char ter and, less author i tat ively, the corporate bylaws. Shareholders cannot ini t iate changes in the corporate char ter al though they can ini t iate changes to the corporate bylaws . Legal envi ronment – General Corporat ions are created as legal persons by the laws and regulat ions of a par t icular jur isdict ion. These may vary in many respects between count r ies, but a corporat ion's legal person status is fundamental to al l jur isdict ions and is confer red by statute. This al lows the ent i ty to hold proper ty in i ts own r ight wi thout reference to any par t icular real person. It also resul ts in the perpetual existence that character izes the modern corporat ion. The statutory grant ing of corporate existence may ar i se f rom general purpose legislat ion (which is the general case) or f rom a statute to create a speci f ic corporat ion, which was the only method pr ior to the 19th century . In addi t ion to the statutory laws of the relevant jur isdict ion, corporat ions are subject to common law in some count r ies, and var ious laws and regulat ions af fect ing business pract ices. In most jur isdict ions , corporat ions also have a const i tut ion that provides individual rules that govern the corporat ion and author ize or const rain i ts decision - makers. This const i tut ion is ident i f ied by a var iety of terms; in Engl ish -speaking jur isdict ions, i t is usual ly known as the Corporate Char ter or the [Memorandum] and Ar t icles of Associat ion. The capaci ty of shareholders to modi fy the const i tut ion of thei r corporat ion can vary substant ial ly. The U.S. passed the Foreign Cor rupt Pract ices Act (FCPA) in 1977, wi th subsequent modi f icat ions. This law made i t i l legal to br ibe government of f icials and requi red corporat ions to maintain adequate account ing cont rols. It is enforced by the U.S. Depar tment of Just ice and the Secur i t ies and Exchange Commission (SEC) . Substant ial civi l and cr iminal penal t ies have been levied on corporat ions and execut ives convicted of br ibery. The UK passed the Br ibery Act in 2010. This law made i t i l legal to br ibe ei ther government or pr ivate ci t izens or make faci l i tat ing payments ( i .e. , payment to a government of f icial to per form thei r rout ine dut ies more quickly) . It also requi red corporat ions to establ ish cont rols to prevent br ibery. Sarbanes -Oxley Act of 2002 Main ar t icle: Sarbanes -Oxley Act The Sarbanes -Oxley Act of 2002 was enacted in the wake of a ser ies of high prof i le corporate scandals. It establ ished a ser ies of requi rements that af fect corporate governance in the U.S. and inf luenced simi lar laws in many other count r ies. The law requi red, along wi th many other elements, that :  The Publ ic Company Account ing Oversight Board (PCAOB) be establ ished to regulate the audi t ing profession, which had been sel f -regulated pr ior to the law. Page 25
  • 26. Audi tors are responsible for reviewing the f inancial statements of corporat ions and issuing an opinion as to thei r rel iabi l i ty.  The Chief Execut ive Of f icer (CEO) and Chief Financial Of f icer (CFO) at test to the f inancial statements . Pr ior to the law, CEO's had claimed in cour t they hadn' t reviewed the informat ion as par t of thei r defense.  Board audi t commi t tees have members that are independent and disclose whether or not at least one i s a f inancial exper t , or reasons why no such exper t is on the audi t commi t tee.  External audi t f i rms cannot provide cer tain types of consul t ing services and must rotate thei r lead par tner every 5 years. Fur ther , an audi t f i rm cannot audi t a company i f those in speci f ied senior management roles worked for the audi tor in the past year . Pr ior to the law, there was the real or perceived conf l ict of interest between providing an independent opinion on the accuracy and rel iabi l i ty of f inancial statements when the same f i rm was also providing lucrat ive consul t ing services. Page 26 Codes and guidel ines Corporate governance pr inciples and codes have been developed in di f ferent count r ies and issued f rom stock exchanges, corporat ions, inst i tut ional investors, or associat ions ( inst i tutes) of di rectors and managers wi th the suppor t of governments and internat ional organizat ions. As a rule, compl iance wi th these governance recommendat ions is not mandated by law, al though the codes l inked to stock exchange l ist ing requi rements may have a coercive ef fect . OECD pr inciples[edi t ] One of the most inf luent ial guidel ines has been the OECD Pr inciples of Corporate Governance—publ ished in 1999 and revised in 2004. [1] The OECD guidel ines are of ten referenced by count r ies developing local codes or guidel ines. Bui lding on the work of the OECD, other internat ional organizat ions, pr ivate sector associat ions and more than 20 nat ional corporate governance codes formed the Uni ted Nat ions Intergovernmental Working Group of Exper ts on Internat ional Standards of Account ing and Repor t ing ( ISAR) to produce thei r Guidance on Good Pract ices in Corporate Governance Disclosure. [35] This internat ional ly agreed[36] benchmark consists of more than f i f ty dist inct disclosure i tems across f ive broad categor ies: [37]  Audi t ing  Board and management st ructure and process  Corporate responsibi l i ty and compl iance in organisat ion  Financial t ransparency and informat ion disclosure  Ownership st ructure and exercise of cont rol r ights Stock exchange l ist ing standards Companies l isted on the New York Stock Exchange (NYSE) and other stock exchanges are requi red to meet cer tain governance standards. For example, the NYSE Listed Company Manual requi res, among many other elements:
  • 27.  Independent di rectors : "Listed companies must have a major i ty of independent di rectors. . .Ef fect ive boards of di rectors exercise independent judgment in car rying out thei r responsibi l i t ies. Requi r ing a major i ty of independent di rectors wi l l increase the qual i ty of board oversight and lessen the possibi l i ty of damaging conf l icts of interest ." (Sect ion 303A.01) An independent di rector i s not par t of management and has no "mater ial f inancial relat ionship" wi th the company.  Board meet ings that exclude management : "To empower non -management di rectors to serve as a more ef fect ive check on management , the non -management di rectors of each l isted company must meet at regular ly scheduled execut ive sessions wi thout management ." (Sect ion 303A.03)  Boards organize thei r members into commi t tees wi th speci f ic responsibi l i t ies per def ined char ters. "Listed companies must have a nominat ing/corporate governance commi t tee composed ent i rely of independent di rectors." This commi t tee is responsible for nominat ing new members for the board of di rectors. Compensat ion and Audi t Commi t tees are also speci f ied, wi th the lat ter subject to a var iety of l ist ing standards as wel l as outside regulat ions. (Sect ion 303A.04 and others) [38] Other guidel ines The investor -led organisat ion Internat ional Corporate Governance Network ( ICGN) was set up by individuals centered around the ten largest pension funds in the wor ld 1995. The aim is to promote global corporate governance standards. Th e network is led by investors that manage 18 t r i l l ion dol lars and members are located in f i f ty di f ferent count r ies. ICGN has developed a sui te of global guidel ines ranging f rom shareholder r ights to business ethics. The Wor ld Business Counci l for Sustainable Development (WBCSD) has done work on corporate governance, par t icular ly on accountabi l i ty and repor t ing, and in 2004 released Issue Management Tool : St rategic chal lenges for business in the use of corporate responsibi l i ty codes, standards, and f rameworks . This document of fers general informat ion and a perspect ive f rom a business associat ion/ think -tank on a few key codes, standards and f rameworks relevant to the sustainabi l i ty agenda. In 2009, the Internat ional Finance Corporat ion and the UN Global Compact released a repor t , Corporate Governance - the Foundat ion for Corporate Ci t izenship and Sustainable Business , l inking the envi ronmental , social and governance responsibi l i t ies of a company to i ts f inancial per formance and long -term sustainabi l i ty. Most codes are largely voluntary. An issue rais ed in the U.S. since the 2005 Disney decision is the degree to which companies manage thei r governance responsibi l i t ies; in other words , do they merely t ry to supersede the legal threshold, or should they create governance guidel ines that ascend to the level of best pract ice. For example, the guidel ines issued by associat ions of di rectors, corporate managers and individual companies tend to be whol ly voluntary but such documents may have a wider ef fect by prompt ing other companies to adopt simi lar pract ices . Page 27
  • 28. Rel iance Group, an of fshoot of the Group founded by Shr i Dhi rubhai H Ambani (1932 - 2002) , ranks among I n d i a ’ s t o p t h r e e p r i va t e s e c t o r b u s i n e s s houses in terms of net wor th. The group has business interests that range f rom telecommunicat ions (Rel iance Communicat ions Limi ted) to f inancial services (Rel iance Capi tal Ltd) and the generat ion and dist r ibut ion of power (Rel iance Inf rast ructure Limi ted) . Re l i a n c e Gr o u p ’ s f lagship company, Rel iance Communicat ions, is India's largest pr ivate sector informat ion and communicat ions company, wi th over 150 mi l l ion subscr ibers. It has establ ished a pan -India, high-capaci ty, integrated (wi reless and wi rel ine) , convergent (voice, data and video) digi tal network, to of fer services spanning the ent i re infocomm value chain. Other major group companies — Rel iance Capi tal and Rel iance Inf rast ructure — are widely acknowledged as the market leaders in thei r respect ive areas of operat ion. We wi l l create wor ld-class benchmarks by:  Meet ing and exceeding Customer expectat ions wi th a segmented approach  Establ ishing, re -engineer ing and automat ing Processes to make them customer cent r ic, ef f icient and ef fect ive  Incessant of fer ing of Products and Services that are value for money and exci te customers  Providing a Network exper ience that is Page 28 best in the indust ry  Bui lding Rel iance into an iconic Brand which is benchmarked by others and leads indust ry in Intent ion to Purchase and Loyal ty  Developing a professional Leadership team that inspi res, nur tures talent and propagates RCOM Values by personal example India ’ s l e a d i n g i n t e gr a t e d t e l e c om company Rel iance Communicat ions is the f lagship company of the Rel iance Group. Listed on the Nat ional Stock Exchange and the Bomb a y S t o c k E x c h a n ge , i t i s I n d i a ’ s leading integrated telecommunicat ion company wi th over 150 mi l l ion customers. Our business encompasses a complete range of telecom services cover ing mobi le and f ixed l ine telephony. It includes broadband, nat ional and internat ional long distance services and data services along wi th an exhaust ive range of value -added services and appl icat ions. Our constant endeavour is to provide an enhanced customer exper ience and achieve customer sat isfact ion by upscal ing the product ivi ty of the enterpr ises and individuals we serve. Rel iance Mobi le ( former ly Rel iance India Mobi le) , launched on 28 December 2002, coinciding wi th the joyous occasion of the late Dh i r u b h a i Amb a n i ’ s 7 0 t h b i r t h d a y, wa s a mo n g t h e i n i t i a l i n i t i a t i ve s o f Rel iance Communicat ions. It marked the auspicious beginning of Dh i r u b h a i ’ s d r e a m of usher ing in a digi tal revolut ion in India. Today, we can proudly claim that we were inst rumental in harnessing the t rue power of informat ion and communicat ion, by bestowing i t in the hands of the common man at af fordable rates. We endeavour to fur ther extend our ef for ts beyond the t radi t ional value
  • 29. chain by developing anddeploying complete telecom solut ions for the ent i re spect rum of society. Page 29 Rel iance Mobi le Wi th over 150 mi l l ion subscr ibers across India, Rel iance Mo b i l e i s In d i a ’ s l a r g e s t mo b i l e service brand. Rel iance Mobi le services now cover over 24,000 towns, 6 lakh vi l lages, and st i l l count ing. We have achieved many mi lestones in this shor t journey. In 2003, AC Nielsen voted Rel iance Mobi le ( former ly Rel iance I n d i a Mo b i l e ) a s I n d i a ’ s Mo s t T rusted Telecom Brand. In July 2003, i t created a wor ld record by adding one mi l l ion s u b s c r i b e r s i n a ma t t e r o f j u s t 1 0 d a ys t h r o u g h i t s ‘Mo n s o o n Hu n ga ma ’ o f f e r . What sets Rel iance Mobi le apar t is the fact that near ly 90 per cent of our handsets are data-enabled, and can access hundreds of Java appl icat ions on Rel iance Mobi le Wor ld. Rel iance Mobi le has ushered in a mobi le revolut ion by of fer ing advanced mul t imedia handsets to the common man at very af fordable rates. This innovat ive low pr icing has increased the number of mobi le phone users and i ts resul t is clear ly ref lected in the me t e o r i c r i s e i n I n d i a ’ s t e l e -densi ty over the past four years. Our pan- India wi reless network runs on CDMA2000 1x technology, which has super ior voice and data capabi l i t ies compared to other cel lular mobi le technologies. CDMA2000 1x is more cost -ef fect ive as i t ut i l ises the scarce radio spect rum more ef f icient ly than other technologies do. Enhanced voice clar i ty, super ior data speed of up to 144 kbps and seamless migrat ion to newer generat ions of mobi le technologies are some of i ts key di f ferent iators. R Wor ld The R Wor ld sui te of Rel iance Mobi le is a unique Java-based appl icat ion. Its uniquenes s l ies in the fact that i t enablescomplex Internet appl icat ion to be int roduced in mobi le phones ef fect ively and quickly. R Wor ld receives over 1.5 bi l l ion page views per month f rom Rel iance Mobi le users. R Wor ld of fers a wide ar ray of appl icat ions that include hour ly news updates, high qual i ty headl ine video cl ips, downloadable mul t i - l ingual r ing tones, seasonal updates including fest ival specials, ci ty and TV specials, exam resul ts, ast rology, mobi le banking, bi l l payment . Wi th over 150 data appl icat ions of fer ing var ied services - unique to any wi reless service in India - R Wor ld is t ruly a t reasure house of knowledge, informat ion, enter tainment and commerce.
  • 30. Organisat ions, l ike individuals, depend for thei r survival , sustenance and growth on the suppor t and goodwi l l of the communi t ies of which they are an integra l par t , and must pay back this generosi ty in every way they can. . . This ethical standpoint , der ived f rom the vis ion of our founder , l ies at the hear t of the CSR phi losophy of the Rel iance Group. Whi le we st rongly bel ieve that our pr imary obl igat ion or dut y as corporate ent i t ies is to our shareholders – we are just as mindful of the fact that this imperat ive does not exist in isolat ion; i t is par t of a much larger compact which we have wi th our ent i re body of stakeholders: From employees , customers and vendors to business par tners, eco-system, local communi t ies, and society at large. We evaluate and asses s each cr i t ical busines s decision or choice f rom the point of view of diverse stakeholder interest , dr iven by the need to minimi se r isk and to pro - act ively address long-term social , economic and envi ronmental cos ts and concerns. For us, being social ly responsible is not an occasional act of char i ty or that one -t ime token f inancial cont r ibut ion to the local school , hospi tal or envi ronmental NGO. It is an ongoing year -round commi tment , which is integrated into the very core of our business object ives and st rategy. Rel iance Group of Companies cont inual ly reviews corporate governance best pract ices to ensure that they ref lect global developments. It takes fe edback into account , in i ts per iodic reviews of the guidel ines to ensure thei r cont inuing relevance, ef fect iveness and responsiveness to the needs of local and internat ional investors and other stakeholders. The Code of Conduct ( s) and Business Pol icies ad opted by the Rel iance Group Companies are given here. 1. Values and Commi tments 2. Code of Ethics 3. Business Pol icies 4. Ethics Management 5. Prevent ion of Sexual Harassment 6. Pol icy on Insider Trading Every signi f icant management decision has ethical value dimensions. Managing ethics is par t icular ly relevant for Rel iance Group Companies today because i t is cr i t ical to understand and manage highly diverse values in the workplace. At tent ion to business ethics is cr i t ical dur ing t imes of fundamental chang e – t imes much l ike those faced now by businesses l ike ours. In t imes of such fundamental change, values that were previously taken for granted are now st rongly quest ioned. Many of these values are no longer fol lowed. Consequent ly, there is no clear compas s to guide us through complex di lemmas about what is r ight or wrong. T o t h a t e n d , Re l i a n c e Gr o u p Comp a n i e s ’ Va l u e s a n d Commi t me n t s a r e p r e s e n t e d h e r e . These should be used to guide our act ions in business conduct . Page 30
  • 31. Page 31 Commi tment to Stakeholders In al l our relat ionships we demonst rate our s teadfast commi tment to al l our stakeholders: Our employees Rel iance Group Companies recognize that i ts commercial success depends on the ful l commi tment of al l employees . We are commi t ted to respect the human r ight s of our employees. We st r ive to t reat our employees wi th honesty, just management , due digni ty and fai rnes s. We are commi t ted to provide our employees wi th a good, safe and heal thy envi ronment and compet i t ive terms and condi t ions of service. Rel iance Group Companies promotes the development and best use of human talent . It encourages the involvement of employees in the planning, di rect ion and fai r appraisal of thei r work. The employees are also encouraged to par t icipate in the appl icat ion of these ethics and va lues wi thin the company. Our customers We are commi t ted to produce rel iable, wor ld -class qual i ty products and services, del ivered on t ime, at a fai r pr ice. Rel iance Group Companies st r ives to win and maintain customers by developing and providing product s and services which of fer value in terms of pr ice, qual i ty, safety and envi ronmental impact , which are suppor ted by the requisi te technological , envi ronmental and commercial exper t ise. Our envi ronment Rel iance Group Companies are commi t ted to act ing as a concerned and responsible communi ty par t icipant ref lect ing al l aspects of good corporate ci t izenship. Rel iance Group Companies are commi t ted to achieving the global standards of heal th, safety and envi ronment . Rel iance Group Companies works wi th i ts communi ty by volunteer ing and suppor t ing educat ion, medical wel fare and other wor thy causes that lead to sustainable development . Our shareholders We are commi t ted to pursuing sound growth and earnings object ives and to exercising prudence in the use of our assets and resources. Enhancing shareholder value remains t h e p r i me d r i vi n g f o r c e o f Re l i a n c e Gr o u p C omp a n i e s ’ b u s i n e s s a n d f i n a n c i a l decisions. We wi l l ensure our success by sat isfying our customers and increasing shareholder value. Our lenders and other investors We are commi t ted to t ruthful disclosure of al l mater ial facts and the regular and t imely payment of al l our debt service obl igat ions.
  • 32. Our Suppl iers and other service providers We are commi t ted to fai r compet i t ion and the sense of responsibi l i ty requi red of a good customer . Page 32 The government Rel iance Group Companies are f iercely pat r iot ic company and is enthused and proud to be a home-grown enterpr ise. We are commi t ted to the payment of al l -appl icable taxes and dut ies and adherence to al l appl icable laws and regulat ions.
  • 34. Corporate social responsibility (CSR, also cal led corporate conscience, corporate ci t izenship, social per formance, or sustainable responsible busines s/ Responsible Business) is a form of corporate sel f -regulat ion integrated into a business model . CSR pol icy funct ions as a bui l t -in, sel f -regulat ing mechanism whereby a business moni tors and ensures i ts act ive compl iance wi th the spi r i t of the law, ethical standards, and internat ional norms. In some models, a f i rm's implementat ion of CSR goes beyond compl iance and engages in "act ions that appear to fur ther some social good, beyond the interests of the f i rm and that which is requi red by law." CSR i s a process wi th the aim to embrace responsibi l i ty for the company's act ions and encourage a posi t ive impact through i ts act ivi t ies on the envi ronment , consumers, employees, communi t ies, stakeholders and al l other members of the publ ic sphere who may also be considered as stakeholders. The term "corporate social responsibi l i ty" became popular in the 1960s and has remained a term used indiscr iminately by many to cover legal and moral responsibi l i ty more nar rowly const rued. Proponents argue that corporat ions make more long term prof i ts by ope rat ing wi th a perspect ive, whi le cr i t ics argue that CSR dis t racts f rom the economic role of businesses. McWi l l iams and Siegel 's ar t icle (2000) publ ished in St rategic Management Journal , ci ted by over 1000 academics, compared exist ing economet r ic studies of the relat ionship between social and f inancial per formance. They concluded that the cont radictory resul ts of previous studies repor t ing posi t ive, negat ive, and neut ral f inancial impact , were due to f lawed empi r ical analysis . McWi l l iams and Siegel demonst rated that when the model is proper ly speci f ied; that is, when you cont rol for investment in Research and Development , an impor tant determinant of f inancial per formance, CSR has a neut ral impact on f inancial outcomes . In his widely ci ted book ent i t led Misguided Vi r tue: False Not ions of Corporate Social Responsibi l i ty (2001) David Henderson argued forceful ly against the way in which CSR broke f rom t radi t ional corporate value -set t ing. He quest ioned the "lof ty" and somet imes "unreal ist ic expectat ions" in CSR. Some argue that CSR i s merely window-dres sing, or an at tempt to pre-empt the role of governments as a watchdog over power ful mul t inat ional corporat ions . Pol i t ical sociologists became interested in CSR in the conte xt of theor ies of global izat ion, neo - l iberal ism, and late capi tal ism. Adopt ing a cr i t ical approach, sociologists emphasize CSR as a form of capi tal ist legi t imacy and in par t icular point out that what has begun as a social movement against uninhibi ted corpo rate power has been co-opted by and t ransformed by corporat ions into a 'business model ' and a 'r isk management ' device, of ten wi th quest ionable resul ts CSR is t i t led to aid an organizat ion's mission as wel l as a guide to what the company stands for and wi l l uphold to i ts consumers. Development business ethics is one of the forms of appl ied ethics that examines ethical pr inciples and moral or ethical problems that can ar ise in a business envi ronment . ISO 26000 is the recognized internat ional standard for CSR. Publ ic sector organiz at ions ( the Uni ted Nat ions for example) adhere to the t r iple bot tom l ine (TBL) . It is widely accepted that CSR adheres to simi lar pr inciples but wi th no formal act of l egislat ion. The not ion is now extended beyond purely commercial corporat ions, e.g. to universi t ies. Page 34
  • 35. Social Responsibi l i ty and Communi ty Development RIL's cont r ibut ion to the communi ty are in areas of heal th, educat ion, inf rast ructure development (dr inking water , improving vi l lage inf rast ructure, const ruct ion of schools etc. ) , envi ronment (ef f luent t reatment , t ree plantat ion, t reatment of hazardous waste) , rel ief and assistance in the event of a natural disaster , and miscel laneous act ivi t ies such as cont r ibut ion to other social development organisat ions etc. RIL's CSR teams across i ts manufactur ing divisions interact wi th the neighbour ing communi ty on regular basis. Educat ion A network of nine schools caters to 13,251 s tudents spread across geographies in India. CSR teams f rom RIL's manufactur ing divisions and E&P operat ions work ardent ly to suppor t the educat ional requi rements of the communi ty and schools in the neighbour ing region benef i t ing thousands of students f rom the underpr ivi leged sect ion of the society. RIL plays a pivotal role in suppor t ing Government 's ini t iat ive towards educat ion of gi r l chi ld. In Gujarat , under the project "Kanya Kelvani", RIL's Dahej Manufactur ing Division has extended f inancial assistance towards educat ion of gi r l chi ld in the state. RIL has created a plat form for computer learning in many vi l lages. Its manufactur ing divisions have provided computers to pr imary and secondary schools under the Company's computer l i teracy ini t iat ive. RIL cont inues to provide suppor t to school run by Lions Club of Naroda Char i table Trust . The school renders qual i ty educat ion in Engl ish medium to chi ldren of labourers working in GIDC, Naroda area, who are economical ly and social ly backward. Jamnagar Manufactur ing Division const ructed a school bu i lding for vi l lage Kana Chikar i of Lalpur taluka in Gujarat . Hoshiarpur Manufactur ing Division has adopted vi l lage Mangrowal - Nar i pr imary school . Annual ly f ree uni forms , books, shoes and school bags are given to students and also f ree elect r ici ty is provi ded to the school . RIL's CSR teams cont inue to provide uni forms, books etc, to students of neighbour ing vi l lages of manufactur ing divisions and E&P operat ions. Fur ther , cont inuous moni tor ing is being done in local schools for improving the per formance of students. Regular counsel ing sessions are also being ar ranged wi th exper ts in personal i ty development and psychology for mot ivat ing the chi ldren to achieve bet ter resul ts. To encourage school chi ldren f rom neighbour ing vi l lages in thei r learning process, Nagothane Manufactur ing Division and the MADER Foundat ion provided school uni forms to the t r ibal and underpr ivi leged students. Eleven schools were selected for this ini t iat ive, out of which seven Zi l la Par i shad schools are located on a hi l l top near the manufactur ing division. Fur ther , mer i tor ious students were fel ici tated wi th an object ive of encouraging them for higher studies. RIL's Project Jagrut i , the project to tackle dyslexia in Surat , is set t ing the pace for the communi ty's response to the social dogma of the mental ly underpr ivi leged chi ldren. More than 8,800 hours have been spent by 35 t rained teachers and more than 1,000 hours by RIL volunteers to upl i f t and br ing the dyslexic students f rom the underpr ivi leged segment into the main st ream. RIL employe e's spouses are suppor t ing this act ivi ty and many teaching aids have been developed. NIOS regist rat ion has been ini t iated for Academic Year ("AY") 2011 -12. Par tnership wi th simi lar associat ions across the count ry and UNESCO / BBC has been ini t iated to spread awareness and benef i t the students wi th latest t raining aids . Awareness stal l was put up that at t racted thousands at the nat ional book fai r organized Page 35
  • 36. by Surat Municipal Corporat ion (SMC) . Membership of Maharasht ra Dyslexia Associat ion and Internat ional Dyslexia Associat ion has been taken to make the project more focused wi th proven scient i f ic pract ices and to get avai labi l i ty of resourceful exper ts, sourcing global knowledge / resources and best pract ices / models in the LD/Dyslexia space. Focus is on ear ly ident i f icat ion of learning disabi l i ty in chi ld and procur ing var ious screening tests for the same. Rel iance Dhirubhai Ambani Protsaham Scheme The Scheme, launched in AY 2008-09, cont inues to suppor tpoor mer i tor ious students. Recipient students of Rel iance Dhi rubhai Ambani Protsaham Scheme got admissions in junior col leges of thei r choice. Wi th admi ssions of AY 2010 -11, the total st rength of students receiving suppor t under the scheme has gone up to 656. The f i rst batch of the Protsaham student s passed out the intermediate examinat ion held in March 2010 wi th f lying colours and f rom AY 2010 -11 onwards, RIL is providing f inancial aid to the toppers for pursuing thei r higher studies in engineer ing and medical st reams . Mumbai Indians Educat ion for Al l Ini t iat ive Mumbai Indians took on the mandate of educat ion as a pr imary social issue. It launched i ts Educat ion for Al l Ini t iat ive dur ing the Indian Premier Le ague ( IPL) season in 2010 to create a movement to suppor t ef for ts to provide qual i ty educat ionto al l chi ldren. This ini t iat ive was the brainchi ld of Mrs. Ni ta Ambani , a passionate advocate for the cause of educat ion. Through this ef for t , Mumbai Indians sup por ted f ive NGOs car t ing out outstanding work in the f ield of educat ion - Akanksha, Nanhi Kal i , Pratham, Teach for India and Ummeed. As par t of this ini t iat ive, Mumbai Indians helped create awareness for the cause of educat ion and the work of these f ive organizat ions through of f icial Mumbai Indian videos, TV commercials that ran through the durat ion of the IPL, sale of Mumbai Indians Educat ion for Al l wr istbands as par t of the merchandizing and awareness creat ion through i ts radio par tners and instadium announcements dur ing games. In addi t ion, Mumbai Indians also invi ted 700 chi ldren f rom al l the NGOs to see each of the Mumbai Indians home games . The Mumbai Indians team joined Mrs. Ambani at the presentat ion ceremonies and worked wi th the media to ensure ad equate coverage of the work of such groups. Mumbai Indians also organized a br ief ing for the cr icket team to interact wi th chi ldren and staf f of al l the NGOs. Through the sale of the wr istbands and addi t ional suppor t , Mumbai Indians was able to gi f t Rs. 11 lacs to each of the groups at the conclusion of IPL 3. This col laborat ion cont inued through the year wi th an invi tat ion to the groups to send chi ldren to at tend the Mumbai Indians games at the Champions League matches in South Af r ica. Communi ty Heal th Care RIL has developed Communi ty Medical Cent res near most of i ts manufactur ing divisions to provide comprehensive heal th services cover ing prevent ive, promot ive and curat ive heal th care services to the communi ty f rom neighbour ing vi l lages. The manufactur ing divisions conduct regular heal th checkups for chi ldren in schools of thei r respect ive neighbour ing regions . Doctors advise chi ldren and thei r parents on var ious heal th care issues and personal hygiene. Medical camps were organized by al l si tes benef i t t ing pat ients f rom nearby vi l lages and t r ibal areas. Al l pat ients are given medicines f ree of cost . As requi red, al l si tes have provided ambulance suppor t to Page 36
  • 37. roadside accident vict ims to shi f t them to hospi tals / nursing homes. Patalganga si te has conducted a ser ies of heal th awareness programs in local schools and nearby smal l scale indust r ies. Drisht i A unique joint ini t iat ive of RIL and Nat ional Associat ion of Bl ind, Project Dr isht i has under taken over 9,000 f ree corneal graf t surger ies for the visual ly chal lenged Indians f rom the underpr ivi leged segment of the society. It is the largest corneal graf t ing surgery project enabled by a single corporate ent i ty in India. The ini t iat ive to combat TB, HIV / AIDS is a unique publ icpr ivate par tnership program between the Government , NGOs, several agencies and RIL. It extends f rom creat ing awareness to providing care, suppor t and t reatment including f ree of cost t reatment to those who cannot af ford the same. Hazi ra Manufactur ing Division's DOTS HIV / AIDS Cent re is one of the largest Ant i - Ret rovi ral Treatment Cent re (ART Cent re) in the count ry. A 22 bedded hospi tal for HIV / AIDS pat ients has been commissioned recent ly. Manufactur ing divisions at Jamnagar and Patalganga too have ART Cent re faci l i t ies. The ini t iat ive was expanded to other manufactur ing divisions; act ivi t ies are largely in the advocacy and awareness area. A special ini t iat ive of awareness campaign on 'Prevent ion of HIV/AIDS' targeted at dr ivers and cleaners of al l product t ranspor t vehicles has been und er taken at var ious si tes. Awareness lectures on prevent ion are conducted and condoms have been dist r ibuted. Dahej Manufactur ing Division commenced Integrated Counsel ing and Test ing Cent re ( ICTC) for HIV/AIDS at Dahej in par tnership wi th Gujarat State AIDS Cont rol Society (GSACS) in FY 2010-11. This ini t iat ive is aimed at addres sing the heal th of the increasing number of migrant workers in the region resul t ing f rom the indust r ial growth planned under Dahej SEZ and PCPIR Zone. Object ive of the ini t iat ive is t o create necessary awareness amongst workers to prevent HIV/AIDS. Jamnagar Manufactur ing Division runs 'Project Balkalyan' , wi th an object ive to provide nut r i t ional suppor t to chi ldren af fected wi th HIV infect ion. Nut r i t ional ki t is dist r ibuted to al l HIV posi t ive chi ldren when they visi t the Cent re for monthly fol low up. Hazi ra Manufactur ing Division, through Rel iance Ladies Club (an associat ion of s p o u s e s o f R I L e mp l o ye e s ) h a s a s i mi l a r o n go i n g c h i l d a d o p t i o n p r o gr a mme â € “ 'Project Hope' , at Hazi ra to take care of nut r i t ional requi rement of HIV posi t ive chi ldren. The Primary Heal th Centre (PHC) at Dahej , Bharuch dist r ict , adopted by RIL under the Nat ional Rural Heal th Mission Programme caters to the communi ty heal th needs of 23 sur rounding vi l lages. In 2004, RIL establ ished the PHC at Gadimoga. The PHC has six member medical staf f wi th al l the ameni t ies such as two -bed nursing room. Medicines are of fered f ree of cost . Fur ther , RIL runs two sub -cent res of the PHC at Bhai ravapalem and Laxmipathipuram. RIL is also const ruct ing a new 30-bed PHC and the exist ing PHC wi l l be shi f ted to the new bui lding. Dhirubhai Ambani Hospi tal at Lodhival i , Maharasht ra cont inues to play a signi f icant role in improving the qual i ty of l i fe in sur rounding communi t ies. I t extends p rompt and special ized services to the Mumbai -Pune highway accident vict ims . Trauma pat ients are provided f ree l i fesaving t reatment . Besides taking care of hospi tal izat ion requi rements, the hospi tal provides poor pat ients and senior ci t izens subsidized t reatment - both in the outpat ient and in-pat ient depar tments. ART cl inic, a publ ic - pr ivatepar tnership ini t iat ive between RIL, CII and NACO, of fers f ree of cost Page 37
  • 38. t reatment to HIV/AIDs pat ients. In associat ion wi th the Lions Club, the hospi tal conducts cataract surgery camps annual ly. A wel l -equipped communi ty medical cent re wi th four observat ion bed faci l i ty at Jamnagar cont inues to of fer f ree -of-cost , round the clock wi th comprehensive heal th services. Manufactur ing divisions of fer f ree medical services inclu ding f ree medicines to the neighbor ing vi l lages. In t r ibal vi l lages sur rounding Nagothane Manufactur ing Division, vi l lagers are depr ived of medical faci l i t ies in the region because of absence of proper approach road to the vi l lages as they are located on hi l l tops. The manufactur ing division real izes the heal th problems faced by the t r ibal 's and i t took a major step towards providing f ree OPD (out pat ient depar tment ) t reatment on weekly basis to the t r ibal people staying at hi l l tops. Moreover , the manufac tur ing division developed the road and even made i t motorable up to vi l lage Gangawane. Every week a doctor wi th medical team and medicines visi ts t r ibal hamlet and provides OPD services to t r ibals. Hazi ra Manufactur ing Division along wi th an NGO have lau nched an or thopedic hospi tal wi th ul t ra -modern faci l i t ies and one rehabi l i tat ion cent re. Both faci l i t ies have become operat ional in March 2011. Hospi tal bui lding was inaugurated by the Chief Minister of the State of Gujarat . RIL's manufactur ing divisions of fer f ree medical , diagnost ic and therapeut ic services i n c l u d i n g f r e e me d i c i n e s t o n e i gh b o u r i n g vi l l a ge s . Mo b i l e Va n Cl i n i c s â € “ He a l t h -on- Wheels, which are special ly designed mobi le dispensar ies equipped wi th doctor accompanied by a nurse, visi ts neighbour ing vi l lages on a scheduled basis al l through the week. RIL has establ ished an Ear ly Intervent ion and Rehabi l i tat ion Center for suppor t ing the mental ly chal lenged chi ldren l iving in Tal larevu Mandal and Yanam Union Ter r i tory. This center is being run wi th the technical suppor t of NGO Uma Mano Vikasa Kendram, Kakinada. At present , chi ldren f rom the region having di f ferent disabi l i t ies have al ready been enrol led. Safety ini t iat ives for communi ty Road Safety System is most cost ef fect ive and easy to use tool for improving publ ic safety and thus of fer ing a l i fe -l ine to humani ty. Hazi ra Manufactur ing Division has inst i tut ional ised road safety t raining and has reached out to over 158,000 tanker / t ruck dr ivers who visi t the plant for pick -up and dropping feedstock / f inished goods . The t raining focuses on safe operat ion of f leet vehicles by el iminat ing unsafe dr iver and dr iving behaviors and reinforcing aspect s of save l ives, reduce injur ies, prevent crashes, cont rol dr iver per formance, minimize r isk and l iab i l i ty. A cent re dedicated for t raining t ruck dr ivers for t ranspor tat ion of hazardous goods has been establ ished for round-the-clock t raining. No dr iver is al lowed inside complex wi thout t raining. To provide emergency and t rauma care to vict ims of highway a ccidents, Hazi ra Manufactur ing Division has t ied up wi th an NGO, 'Li fe Line Foundat ion' and adopted 110 kms st retch on the State Highway in Gujarat star t ing f rom Sachin to Bharuch and the state highway via Hazi ra Olpad Hansot Ankleshwar . Fur ther , for the f i rst t ime in State of Gujarat , the local RTO has been suppor ted by instal l ing a mul t imedia based t raining faci l i ty to render safety awareness to al l l icense aspi rants. Page 38
  • 39. Environment ini t iat ives for the communi ty A zero garbage campaign has been launched i n Rel iance Townships to propagate the concept of sol id waste (dry and wet waste) management . This is a par t of cleanl iness dr ive for a disease -f ree envi ronment at employees ' township, the sur rounding vi l lages of Hazi ra Manufactur ing Division and also Surat ci ty in Gujarat . To reduce plast ic l i t ter , as par t of i ts commi tment towards respons ible care and product stewardship intervent ion, Hazi ra Manufactur ing Division in par tnership wi th an NGO is working for social and economical secur i ty of woman rag -pickers . Under the programme, di rect sale of waste PET bot t les to processing uni ts is faci l i tated, thus el iminat ing channel of waste merchants and promot ing, woman rag pickers ' group. This program is being extended to over 350 s lums of Surat and also var ious othe r RIL locat ions in Gujarat and other states. Fur ther , RIL in par tnership wi th Gujarat Engineer ing Research Inst i tute (GERI) and R & B Depar tment const ructed a 900 meter road st retch using 5% plast ic waste. RIL's CSR team used unat tended / non -recyclable plast ic waste in const ruct ion of tar road which reduced const ruct ion cost as wel l improved road l i fe and reduced road maintenance cost . Unat tended and non recyclable plast ic waste sourced f rom rag pickers ' cooperat ive group also dead stock seized by Surat Mu nicpal Corporate was used. Awareness and sensi t izat ion programs about the technology and i ts benef i t to communi ty have been under taken to benef i t the populat ion of neighbour ing vi l lages of Hazi ra. RIL's manufactur ing divisions cont inue i ts green energy dr ive by making the rural folks aware of al ternate energy, ef f icient energy usage. An NGO cal led GAIA Ini t iat ive f rom Japan i s working wi th Hazi ra Manufactur ing Division for this project . Some of the projects that have been ini t iated are: instal lat ion and commissioning of solar -microwind combined power system at HIV DOT Cent re, Mora vi l lage, Surat , instal lat ion and commissioning of Solar -Micro-wind combined system (2 kW) at J H Ambani School , Surat , instal lat ion and commissioning of solar AC (1.7 TR) at Orphanage, HIV DOT Cent re, Mora Vi l lage and t raining on "house -hold energy conservat ion / ef f iciency measures" conducted for al l vi l lage in the vicini ty of the manufactur ing division. To br ing out the innovat ive spi r i t of young s tudents of Surat / RIL employe es and also to acknowledge / reward the ideas that can cont r ibute to improving the envi ronment , Hazi ra Manufactur ing Division announced a 'Green Idea Award Scheme' in 2010. RIL organised programmes of indust r ial , academic, histor ical and envi ronmental impor tance such as Chemical Indust ry-2020 Vision and Act ion at Ankleshwar ; Global Bi rd Watchers Conference at Jamnagar ; Van Mahotsav - 2010 at Pal i tana; Internat ional Conference on Global Warming at Gujarat Vidyapeeth; Conference on Synergy wi th Energy; Conference on Gujarat 's Mar i t ime History by Darshak It ihas Nidhi . Fur ther , t ree plantat ion act ivi t ies were organaised at many locat ions. Awareness of cleaner , greener envi ronment and global warming issues are made at school s and also to vi l lages f rom the sur rounding region. Communi ty Development Rel iance Rural Development Trust In FY 2010-11, Rel iance Rural Development Trust (RRDT) under took 797 works in 760 benef iciary vi l lages of 125 talukas under 24 dist r icts of Gujarat to create rural Page 39
  • 40. inf rast ructure under the Gokul Gram Yojana (GGY) of the Government of Gujarat . Total 608 faci l i t ies got completed dur ing the year . The completed faci l i t ies include 478 Anganwadi bui ldings , 58 Cement Concrete Roads, 61 underground RCC sumps and 05 Check Dams and 06 other works wi th the total expendi ture of Rs. 24 Crore in FY 2010-11. The Check Dams completed in FY 2010 -11, wi l l have total water storage capaci ty of 8.7 mcf t and would cater to about 1,065 Hectares of rural land. RRDT, since i ts incept ion in 2001 t i l l March 31, 2011 , across the State of Gujarat , has completed 7,306 var ious rural inf rast ructure faci l i t ies wi th an expendi ture of more than Rs. 270 crore. Fur ther , RIL's manufactur ing divisions supply f ree potable water to the neighbour ing vi l lages especial ly dur ing water shor tage per iods. They also cont r ibute to the development of var ious vi l lage inf rast ructure such as developing, bus sheds, roads, st reet l ights, instal lat ion of solar st reet l ight s in number of vi l lages, f ree supply of blankets etc. Livel ihood Support Programmes RIL has always been at the foref ront in implement ing ini t iat ives especial ly for the wel fare of rural women and youth of sur rounding vi l lages through var ious sel f -help groups (SHG) . Cont inuing wi th the services and keeping up the t radi t ion, Hazi r a, Vadodra, Nagothane, Gadimoga and many other manufactur ing divisions of fer t raining programmes through var ious SHGs help the rural women and youth to be "sel f sustaining" and generat ing income for themselves and suppor t ing thei r fami l ies. It is a mat ter of great pr ide that many of the benef iciar ies of these t raining programmes are earning a decent amount of l ivel ihood and are f inancial ly suppor t ing thei r fami l ies. For the womenfolk, courses are of fered for dress making and designing, beauty cul ture and heal th care, hospi tal at tendant (Helpers for Hospi tal and Nursing Homes) ; whi le for the youth of the sur rounding communi t ies, courses such as plumbing and hand pump repai r ing t raining, computer hardware repai r , motor vehicle dr iving, mobi le repai r ing and doormat making etc. Fur ther , t raining in hor t icul ture cul t ivat ion and f rui t sapl ings are also given to the farmers of the adjoining vi l lages. Jamnagar Manufactur ing Division cont inues to serve the vi l lages around the ref inery complex, the ci ty of Jamnagar an d the communi ty at large. RIL's local communi ty wel fare cel l constant ly remains in close touch wi th the vi l lagers. Numerous inf rast ructure developments in vi l lages adjoining and neighbour ing the Jamangar Manufactur ing Division such as development of ceme nt concrete roads, drainage, cremator ium and also supply of water const ruct ion of Haja Dada temple at a neighbour ing vi l lage, Sikka were under taken in FY 2010 -11. Fodder for cows of neighbour ing vi l lages was suppl ied by RIL's CSR team working at Jamnagar . In FY 2010-11, RIL ini t iated several vi l lage inf rast ructure development projects such as const ruct ion and renovat ion of communi ty hal ls, bur ial ground and school compound wal l in Gadimoga Panchayat . RIL promoted Organic Aqua cul ture wi th the technical guidance of Nat ional Center for Sustainable Aqua cul ture (a sister concern of MPEDA) . Around RIL's on-land operat ions in the Coal Bed Methane project areas in Madhya Pradesh, the Company cont inues to give medical suppor t to the vi l lagers through a Page 40