Sustainable Operations and Computers: Dr. Monica Singhania, Dr. Neha Saini

Sustainable Operations and Computers 3 (2022) 103–117
Contents lists available at ScienceDirect
Sustainable Operations and Computers

journal homepage:
http://www.keaipublishing.com/en/journals/sustainable-operations-and-computers/
Systems approach to environment, social and governance (ESG): Case of

Reliance industries
Dr. Monica Singhania a, Dr. Neha Saini b,∗
a
Faculty of Management Studies, University of Delhi
b
Netaji Subhas University of Technology, Dwarka, Delhi
a r t i c l e i n f o a b s t r a c t
Keywords: In the 21st Century, societal welfare has captured global imagination and companies are encouraged to participate
Environment in this process. The paper aims to study how professional acculturation and appropriate capital is leading to the
Stakeholder advance agenda of sustainability through the actions and initiatives of corporates considering the ESG initiatives
Governance
and gauge the effectiveness of resulting responsible actions by all social actors through an assessment based on
Management
national ranking system for ESG disclosures and sustainability in Indian context. Reliance industries Limited (RIL)
CSR
ESG has been chosen to study system approach because it has been aligning its initiatives with regulations on ESG
SDGs and such investments made by the companies attract socially conscious investors and create value within their
portfolios. Systems approach has been adopted to highlight environmental and socially responsible initiatives
undertaken by Reliance Industries, a large Indian multinational. Considering the ESG structure as a processing
framework, we have tried to propose how an initiative (input) can be turned as an outcome (output) to benefit
the society at large, through a case study. We propose system input and output methodology through efficient
strategies to conquer good health, education, development, safety, energy, environment and climate protection.
RIL has undertaken various ESG initiatives such as energy and water conservation, upliftment of community
and initializing educational programs, adhering to various legal compliance and health and safety measures. On
comparing RIL performance with top ten companies highlights that RIL has to go a long way in terms of envi-
ronmental performance. Adopting system approach using ESG structures will serve RIL as a potential benchmark
to the Indian corporate sector and emerging world towards spreading awareness and achievement of sustainable
development goals (SDGs).
1. Introduction However, several industries particularly refineries and manufactur-

ing establishments, have a tremendous role to play in climate change,
Business sustainability has become a popular idea since the evolution global warming and environmental degradation owing to their emis-
of stakeholder theory [47]. The concept has evolved from a mere defini- sions and resource consumption patterns. There is an emergent need
tion of “Sustainable Development” by World Commission of Environment for concerted thought and action to minimise the detrimental effects on
and Development [140], as the kind of development which accounts for environment caused by reckless use of natural resources [110]. Exist-
needs of millennials along with preserving for Gen Z to the concept of ing literature indicate the steps targeted by the corporates towards the
Corporate Social Responsibility (CSR). CSR is about the continuous com- environmental upgradation which fosters the competitiveness amongst
mitment of the company towards the idea of responsible business con- corporates to confer on the corporates’ environmental behavioural stan-
duct including areas such as: healthy competition, social policy, anti- dards [121,112]. In accordance with the evolving pattern in academic
corruption governance system, fair trading and consumer protection, studies, attention has been placed onto extending the base of CSR to in-
human rights, science and technology [130]. CSR aims at providing so- corporate environmental, social and governance (ESG) dimensions sep-
lutions towards guaranteeing equilibrium between economic and social arately alongside the investment decision process as per definition of
performance for more than four decades offering vital implications for Modern Index Strategy Indexes (MSCI). The concern for the companies
policy makers, business practitioners, academic scholars and community to take into account for the social and environmental aspect of their op-
at large [24]. erations has been growing. Consequently, they are expected to keep a
∗
Corresponding author at: Netaji Subhas University of Technology, Dwarka, Delhi, India.
E-mail address: [email protected] (Dr.N. Saini).
https://doi.org/10.1016/j.susoc.2021.11.003
Received 23 July 2021; Received in revised form 21 October 2021; Accepted 19 November 2021
Available online 25 November 2021
2666-4127/© 2021 The Author(s). Published by Elsevier B.V. on behalf of KeAi Communications Co., Ltd. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/)
Dr.M. Singhania and Dr.N. Saini Sustainable Operations and Computers 3 (2022) 103–117
congruence between their operations and society [29]. It has then been
opined by Li et al. [76] that ESG factors stimulates the investment re-
turns. Also, several social factors have also garnered significance over
the last two decades. Post 2008, financial crisis, the pubic undertakings
have increased their concern for stakeholder and sustainability man-
agement aspects with the objective of fostering ESG performance [135].
Companies actively engage in ESG development considering it to be the
correct choice [31] since research indicates that if they keep anti-social
behaviour, it will deteriorate the value of business and property [52].
Studies like Martinez-Ferrero and Garcia-Sanchez (2013); Martinez- Fer-
rero et al. [[90]a] Martinez-Ferrero et al. [[89]b] have studied the re-
lation between earnings and CSR and exhibit positive relationship [53]
which was in accordance with the stakeholder theory [141,18,87].
Indian Companies too, have become increasingly aware of their so-
cietal responsibilities and are associating with ESG activities. A pressing
need was felt at the time of corporate disclosure to consider the ESG di-
mensions as part of non-financial reporting. This has become a dire need
as the stakeholders are demanding the non-financial reporting consider-
ing all three dimensions (; O’Dwyer et al., 2005; [111]). As a result, the
various stakeholders grabbed the attention of top managers to produce
a long-term positive impact and ensure their profitability [74,132]. In
2017, the Securities and Exchange Board of India (SEBI) encouraged
Fig. 1. The areas of initiatives by RIL.
voluntary adoption of integrated reporting which resulted in adoption
if integrated reporting practice over 30 companies by 2019.1 Around
225 Indian companies for 18 sectors undertook survey by Credit Rating ESG efforts are contributing to community at large in positive manner
Information Services of India Limited (CRISIL) on ESG ranking in 20212 or not.
as a way to manage risk for sustainable value creation and aligning in-
stitutional investor’s expectation in their decision making. 2. Research methodology
The objective of current study is to analyse the evolution of ESG
disclosure practises in Indian company and gauge the effectiveness of In order to gauge the effectiveness of Indian corporates towards ad-
resulting responsible actions by all social actors from such practices, vancing the sustainability agenda via ESG and CSR practices, we fol-
through an assessment, accreditation, and national ranking system for low a case study methodology and a system approach to understand
ESG disclosures and sustainability. The rankings provided by CRISIL and ESG framework at RIL. The integrated reports and corporate sustain-
Ministry of Corporate Affairs have been adopted. We follow a case study ability reports of RIL spanning over fifteen years have been investigated
methodology and a system approach to understand ESG framework at thoroughly along with supplemental articles. Sustainability reports com-
RIL. The concept of environmental process and outcome approach is municate a holistic picture of both the economic and ESG dimensions
the grey area where most studies need to focus so as to reach to better and their relative effect on the firm’s performance (grey et al., 1995;
conclusions towards sustainability. Process includes firms’ initiative to [96,123]). Lindgreen et al. (2009) & Maignan and Ferrell (2001) & Or-
address sustainability issues, whereas the outcome captures the firms’ litzky et al. [107] opined that via sustainability reporting firms can
impact on economic and natural environment [95,39]. It has been re- achieve higher revenues and lower the costs. A systems approach is
ported that even though the companies maintain their ESG performance, a holistic approach to problem solving that involves formal consider-
they may still add substantial pollution to environment (Delmas et al., ation of select parameters. The total system objectives are to measure
2013). the whole systems’ performance. Along with the overall performance, it
Our study expands the literature of ESG transparency along with the factors the environment or fixed constraints, system wide components,
outcome using a system approach ([85]; Yu et al., 2015). It is now con- inputs to the system and its management, objectives, means and mea-
ventional wisdom in literature to identify CSR with good or bad ESG sures of performance, or the organization of various components (and
practices (Crifo et al. 2014). Firms are expected to disclose their ESG their interactions) so as to achieve the total system objectives. As we
practices (Said, Hj Zainuddin, & Haron 2009) through increased trans- progress, we look at how RIL aligns itself with the guidelines laid down
parency and thereby enhance the corporate image in the eyes of stake- by institutions, finally followed by the system approach analysis which
holders and increase its competitive advantage [37,50,124]. Equally gives a holistic view of the company’s engagement and commitment
cynically, Brammer and Pavelin [19] states that corporate disclosures to ESG. In system approach, we describe and identify each one of the
are made with the purpose of morphing the minds of stakeholders for System Inputs, Outputs, Environment, Design Parameters Components,
exacerbating the possible profitability of the firm rather than putting and Criteria for Evaluation. Consequently, we fill in the appropriate
in honest efforts to minimise environmental or social damage [48]. Im- Item Descriptions and Constraints identified in the System Identifica-
plicitly, it has become imperative to analyse the motivation behind a tion Table 1. The initiatives adopted by RIL is presented in Fig. 1. These
company’s ESG investments, which may be divided into three broad initiatives have been bifurcated into Environmental (including initia-
buckets namely environmental (E), social and governance factors. Thus, tives in energy sector, water, biodiversity), Social (including initiatives
providing a ground for examining the evolution of ESG in the context of in health, education, rural infrastructure, disaster management, skill de-
Indian Company, RIL and consequently delve into the fact that whether velopment) and overall Governance disclosures.
3. Results
1
https://www.integratedreporting.org/news/india-adopts-integrated- 3.1. Reliance industries & the planet: environmental criterion
reporting/
2
https://www.crisil.com/en/home/newsroom/press- As has been postulated by Branco and Rodrigues [22] that the com-
releases/2021/06/crisil-launches-esg-scores-of-225-companies.html panies in industries which operate with the objective of creating a
104
Table 1
The General Systems Model for ESG Disclosures and Sustainability.
SYSTEM INPUTS ESG FRAMEWORKDESIGN PARAMETERS COMPONENTS OUTPUTS
Initiatives taken Environmental Factors: (Green House Gas Emissions, Benefits in terms of1. Profitability/Savings2. Different Awards
Environmental Protection Expenses, Waste Management,
5 R’s principles)
Policy and Principles for Responsible Investment Social Factors: (Labour Practices, Human Rights, Societal Strategies
and Product Liability)
Governance and mandatory disclosures Corporate Governance Factors: (Processes, Structures, Operational(Financial) Performance
Profiles, Competences, Culture, Behaviour, Team
Dynamics)
Source: Author own compilations.
Table 2
Energy Conservation Initiatives undertaken by RIL under Environmental Criterion.
Energy Conservation at Hazira Plant, Gujrat, India Overview With the objective of process upgradation and efficient energy system, more than 40 projects were
executed. The heat generated form gas turbine is retrieved thus reducing GHG emissions from
the plant.
Investment INR 32.9 million
Benefits INR 57.9 million per annum.
Energy Conservation at Patalganga Manufacturing Overview A generator for recovering the heat produced by steam engine was set up which would assist in
Unit, Maharashtra, India treatment of harmful gases, drying of the silt, advancement of treatment structure and adoption
of biogas.
Saving Approximately INR 49.8 million (USD 1.13 million) per annum
Energy Conservation at Naroda Complex, Overview Cutting of energy costs through running the captive power and steam generation on natural gas
Ahmedabad, India rather than conventional fuel. Via modifying the Gas Turbine, fixing the leakages and utilizing
the value to the optimal, demineralized water consumption was brought down by 10%. Steam
generators were insulated with double protection layer to facilitate turbine operations with lesser
loads.
Investment INR 3 million
Benefits INR 80.4 million per annum
Energy Conservation at Kurkumbh, Pune, India Overview In order to retrieve the excess heat through the dehydration section, various initiatives were
executed. The steam utilization were tamed by 4 t per hour in plants.
Investment INR 23 million
Benefits INR 50 million per annum
substantial environmental influence face enormous external pressures tion of the ownership concept under TOM and was all set to reap ben-
than those industries with trivial environmental influence. In the long efits in terms of overall reduction in energy consumption. Some of the
run the shareholder wealth may be adversely influenced for those firms energy conservation measures were planned keeping in mind the Clean
ignoring environmental policies (Marie-Louise and Salzmann, 2017; Development Mechanism (CDM).
Ming-Te, 2016). This is also evident from the firm CSR Policies of India
laid down for the bigger companies of the economy. It has been a well-
established fact that water and energy conservation could be achieved 3.1.1.1. Waste gas management. As an energy conservation initiative,
for the firms adopting green strategies [20]. The 6th CSR Policy of In- they started utilizing waste gases generated from their processes. The en-
dia demands that companies must ensure environmental sustainability ergy performance of Patalganga and Hazira was expressed as the Energy
through various initiatives. In taking these initiatives, RIL also acknowl- Index which is the ratio of total energy (including power generation and
edges the 7th and 8th UNGC guidelines that state Businesses should un- processes) and total production. The following year, RIL achieved reduc-
dertake initiatives to promote greater environmental responsibility. In tion in greenhouse gas emissions by 629,073 tons [4%] of CO equivalent
accordance with the same, RIL promotes environmental sustainability along with the energy reduction, energy conservation has also grown to
with its main focus on the following aspects: 4.5 times in comparison with the previous year, which was followed by
a 25% rise in utilisation of renewable energy and a resulting declining
a) Sustenance of the ecological balance of sulphur emissions by 3%. In 2008, in addition to the existing initia-
b) Encouraging biodiversity tives, ‘Efficient lighting initiatives’ programme was launched with the
c) Preservation of the natural resources objective of advancing compact fluorescent lamp (CFL) lightings to re-
d) Conserving renewable resources like air, water and soil place incandescent lamps. The project was initiated in two districts Surat
e) Stimulating clean energy and Choryasi Taluka with 7 villages like Bhatlai, Damka, Vasava, Mora,
f) Spreading water and green covers Rajgiri, Suvali and Junagam.
3.1.1.1A. Initiative undertaken (Inputs). As in energy conservation
3.1.1. Energy management section, RIL implemented four major plants to minimise the wastage
Energy forms the base of production activities and hence the foun- and harmful emissions as summarized in Table 2. These plants actively
dation of a society ([139], Correa et al., 2017). On one hand, energy participated in environmental sustainability and acted as a source eco-
forms the structural basis of its business, on the other hand, its culture nomic profitability.
promotes energy conservation. As the efforts were targeted towards en- 3.1.1.1B. Outcomes of the initiative. According to the survey, the
hancing productivity, efficient consumption of energy was possible. In major bottleneck for large scale switching over to renewable energy
terms of conservation plans, the RIL focussed on fostering fuel and pro- methods was the cost difference between the CFLs and primitive incan-
cess efficiency with substantial curb on emissions of greenhouse gases descent lamps. The difference was controlled through an analysis based
(GHGs). If one focusses on the environment, the economic gains are the on life cycle cost of both the CFL and incandescent lamps.
consequences. This is due to the fact that dearth of fossil energy sources B.1 Electricity saving. At the state scale, CFL replaced about 0.50
creates economic pressures [64]. In 2005, RIL began with the introduc- million incandescent bulbs with a annual 2000 MWH energy saving.
105
Table 3
Water Management Initiatives by RIL under Environmental Criterion.
Water treatment plant, Jamnagar, Gujrat, India The effluent after being treated has been used for crop related activities like horticulture without being
discharged at rivers and no surface or ground water is used. Desalination of sea water with retrieved steam
was used as the measure for purifying the water.
RO plant, Hazira, Gujrat, India In order to control usage of water and proportion of carbon in boilers, an RO system was introduced in plant.
Water treatment plant, Patalganga, Maharashtra, India The industrial effluents are treated using primitive efforts on anaerobic process which resulted in INR 20
million (USD 0.45 million) per annum in fuel savings.
Recycling Project for LTDS (Low Total Dissolved Solids) A rain water harvesting technique was adopted to achieve the target of reduced water usage by 12,000 m3 .
Through this 50-kilolitre annual recharge of water reservoir was possible.
B.2 biogas generation. Biogas generation of around 23 to 25 several SBI (In Side Battery Limit) measures were taken which included
m<sup>3<sup>s per day which acted as an LPG substitute and resulted reduction in consumption of Spin Push by improving draw line opera-
in savings of approximately INR 0.18 million per annum. In 2009, a tion. Sophisticated anaerobic wastewater treatment was also done for
clean boiler made up of rice husk was instituted by RIL for which a total PTA wastewater, using a technology that was imported from Canada.
expenditure (including purchase and construction) of INR 66.5 million
was done. The biomass-fired boiler reduced the GHG emission by 20,404 3.1.2A. Initiative undertaken (Inputs). Some of RIL’s major initiatives
tonnes. with respect to water conservation have been summarised in Table 3.
B.3 GHG emission reduction. These resulted in the reduction of cu-
mulative absolute GHG emission of 613,560 tonnes of CO2 . In the man- 3.1.2B. Outcome of initiatives. The manufacturing utilities showed a
ufacturing locations, a reduction of around 0.0058 tonnes was achieved. progressive rise in trend for consumption of water. The consumption
B.4 Energy efficiency. To increase energy efficiency, in 2014, at trend was marked as follows: FY 2012–13, 2013–14, 2014–15, 2015–
Hazira they re-engineered the existing gas turbine. The focus was not 16 saw consumption of 118.88, 121.29, 136.933, 140.711 million cubic
only on achieving efficient fuel usage via load control but also on sus- meters respectively. RIL also took number of ways to reutilise the wa-
tainable usage with reliable system backed by spinning reserve. ter via reuse and recycle water at different manufacturing sites. From
B.5 Paperless channels of communication. In most of their operations, FY 2013–14 to 2016–17, the percentage of water reutilised was around
they started opting for paperless documentation and electronics chan- 52% to 45.34%. For their E&P operations, RIL could progressively gen-
nels are preferred which in turn increases the overall process efficiency. erate water at around 0.936, 1.2, 3.89 million cubic meters produced
Additionally, the digital space has been morphed by operations carried for 2015–16, 2016–17 and 2017–18. Some of their manufacturing sites
by Jio facilitating the flow of information via quality video conferencing were already become effluent free sites by 2018 and they aimed for
across the globe at cheaper rates thereby controlling transport emissions making all the sites as effluent free sites.
that would otherwise happen.
3.1.2C. Awards. C.1 Excellent Water Efficient Unit: Progressively, in
3.1.1.1C. Awards for initiatives. C.1 Certified Emission Reduc-
FY 2005–2006, RIL found a Reverse Osmosis Jamnagar plant to be in-
tions (CERs) In FY 2008–09, RIL received 11,938 CERs to United Na-
effective as it could treat lesser proportion of dissolved solids wastew-
tions Framework Convention on Climate Change (UNFCCC). By March
ater coming from the cooling plants while a larger proportion of solids
2009, the total CERs with RIL reached a count of 112,968. Accordingly,
emanating from hot streams of main effluent. Thus, the plant was sub-
they were entrusted with five UNFCCC CDM projects and two Chicago
sequently deactivated. This step reduced the water consumption by 3%.
Climate Exchange CDM projects by the same year. The two projects were
The plant won the award of “Excellent Water Efficient Unit” for excel-
expected to reduce GHG reduction levels to about 88,360 tonnes and
lency in waste management.
71,732 tonnes CO per annum respectively.
The water recycling rose by 13% and 3% reduction in specific water
C.2 Certified Emission Reductions on cumulative basis Two ma-
consumption as compared to the previous year. Starting in 2008, they
jor breakthrough projects were initiated in 2010 by Reliance Solar group
adopted a "reduce-recycle-reuse" strategy to preserve water. The water
with MW capacity at Khimsar Village, Rajasthan and Thyagaraj Stadium,
withdrawal level was less than previous one by 0.1 m<sup>3<sup> per
Delhi. These projects were installed with the view to bridge energy gap
ton. They fulfilled their water requirement by recycling and reusing the
in scare energy areas and in energy intensive areas. By 2010, the com-
leftover water after treatment. It increased the level of water recycling
pany had 212,425 CERs issued by UNFCCC with five registered CDM
to 2.23% in 2019–2020.
projects.
C.3 Best Energy Efficient Project Award In gas turbine project, a 3.1.3. Biodiversity
major upgradation in 7 turbines was taken place with the capacity of With the sustainability reporting, their initiatives for biodiversity be-
2.5 MW. In the 14th National Awards for Energy Management (CII sum- gan in 2005 with measures to minimise the impact that their activities
mit) it was awarded as ‘Best Energy Efficient Project Award’. In 2015, had on biodiversity.
RIL targeted to control the emission levels from its operations to the
minimal. 3.1.3A. Initiative undertaken (Inputs). A.1 Hazira covered an area of
RIL in FY 2018–2019, could reduce its GHG emissions by 5.18%. 284 hectares of which the green cover constituting about 64 hectares.
Recently, RIL initiated eight UNFCCC based CMD projects. Reliance di- 40% of the green belt was covered under drip irrigation while 20%of the
rected its committed efforts to strengthen the disclosures based on cli- lawn area was covered under sprinkler irrigation. About 10,000 trees
mate change. and 1000 shrubs and ornamental plants are propagated annually in the
nursery at Hazira.
3.1.2. Water management A.2 In and around the Jamnagar refinery site, they transformed
The goal of RIL for all its location has been to accomplish effluent the arid land into a green belt. Dhirubhai Ambani Lakhi Bagh housed
free emissions. Most of their processes are water-intensive and RIL has Asia’s largest mango plantation with a concentration of 593 trees per
been striving towards conserving and reducing water consumption. This hectare. This green belt also housed medicinal and aromatic plants cov-
began in 2005 with a Six Sigma initiative which aimed to help reduce ering an area of 31 hectares.
water consumption by 13.74 percent by increasing the output between A.3 At Jamnagar they created an area of 1850 acres which is eco-
regeneration of the DM plant and increasing the cycle of concentration nomical green belt and is self-sustainable. This area created is three
in the cooling towers. Further to reduce the COD of influent streams times the limit specified under law.
106
Table 4
Biodiversity initiatives by RIL under Environment Criterion.
RIL’s biodiversity preservation at Jamnagar, Gujarat, India The Jamnagar refineries pipelines and marine provisions are positioned between inter-tidal mud flats. Water
discharge takes place through a diffuser in the sea way after it is desalinated into brine at appropriate
temperature. The brine is kept at 50 m away from diffuser. The trading in the marine terminal takes place
via segregated basalt vessels. Any kind of dispersal of blige water is permitted on during ship loading
activities.
Mango Orchard Initiative, Jamnagar, Gujarat, India In 1997, to control pollution all the wastelands near Jamnagar plant were being transformed into mango
orchards and named as “Dhirubhai Ambani Lakhibag Amrayee”. It is till date the Asia’s superior mango
orchard. It is spread across 600 acres with 200 mango species at Jamnagar complex. It is unique of its kind.
Table 5
GENERAL SYSTEMS MODEL: ENVIRONMENT.
INVESTMENT MADE AND SPECIFIC POLICY IN THIS

STRATEGY OUTPUTS IMPACT CREATED CONTEXT
Clean Development Mechanism (CDM) RIL took up 8 CDM based UNFCCC projects to be Capital investments of INR 86.3 The Air (Prevention and
initiatives for energy conservation, efficient executed in the year 2018–2019. The scope of million were made with a Control of Pollution) Act
lighting initiatives were adopted, focus was these projects was to bring down the carbon financial and fuel savings as 1981
on renewable sources of energy as well, emissions to 29.36 million tonnes and 1.15 million INR 21.8 million and 1.1
reduction in GHG emissions tonnes. The total emissions during the FY 2018–19 Gcal/hr respectively. The
marked a decline by 5.18%. expenditure for acquiring
and installing energy saving
equipment for INR 2.228
billion. .
Increasing Green Belt Cover and Sapling More than 2.1 crore saplings have been planted and The total cost incurred towards Biological Diversity Act, 2002
Plantation, reducing waste and increasing use 6151 acres of green belt has been added, E-waste usage of high strength paper The Environment
of sustainable materials, proper management is collected, segregated and decided whether it tube was INR 0.90 million (Protection) Act, 1986
of E-waste, Greening of Supply Chain should be reused or recycled and accordingly per year while the savings
processed further through recyclers, Adoption and were to the tune of INR 2.50
implementation of P2P cycle for efficient million per year. Other costs
operations, Utilisation of paper tubes in order to have not been disclosed by
reduce wastage, the company
Reducing Water Consumption, Wastewater For the withdrawal of sea water by all plants, In FY A fuel saving of not less than The Water (Prevention and
treatment undertaken, Usage of Recycled 2018–19 Reverse Osmosis was built in which INR 20 million p.a. was Control of Pollution) Act,
Water, Minimising discharge of effluent could provide sea water after processing for possible after creating a 1974
manufacturing activities or industrial use. anaerobic digestion process.
Sophisticated anaerobic wastewater treatment was Other costs have not been
also done for PTA wastewater, using a technology disclosed by the firm
that was imported from Canada. RIL
decommissioned a Reverse Osmosis (R.O) Plant at
the Jamnagar refinery treated solid wastewater
and dissolved solids through cooling towers. They
adopted a "reduce-recycle-reuse" approach and Six
Sigma initiative to conserve water
A.4 The green belt at Naroda Complex stood at 19 acres. sumed in operations. They segregate office waste for recycle and have
A.5 At the Kurkumbh complex, they planted 14,000 trees during reduced consumption of paper in paper tube by optimising specification
this reporting period. In FY 2007–08, in order to reduce wastage, paper & by alternate product development. Packaging Materials are used for
tubes were reused on POY winders after thorough trials and modifica- multiple cycles. Waste / reprocessed material is used for manufactur-
tions. ing packaging product. They have put in systems to monitor disposal of
As a systematic measure of waste disposal, an E-waste recycler in- scraps by vendors to ensure their responsible disposal.
dustry was established. The first being the Hazira manufacturing unit at The assessment of environmental performance takes place via rat-
Gujarat and the other one is M/s E Parisara at Bangalore. ings of firms Delmas and Blass [38] that are used as indicators. Often
these indicators are criticized for its lack of timely evaluation and trans-
3.1..3B. Output of the initiatives. All manufacturing units were aided parency [30]. Scalet and Kelly [120]. The general systems model for
with 6151 acres of green belt. By 2018–2019, RIL was the pioneer in es- environmental criterion has been summarized in Table 5.
tablishing National Centre for Marine Biodiversity in Jamnagar. This ini-
tiative was a Public Private Partnership of RIL with Government of India, 3.2. Reliance industries & the stakeholders: social criterion
Gujarat Ecological Commission and Ministry of Environment, Forests
and Climate Change. According to Azapagic and Perdan , Lokuwaduge and Heenetigala
Two of the biggest biodiversity promotion activities undertaken by (2017), the company’s community responsibilities depend on the key
RIL are as listed in Table 4. social indicators like human rights, inclusive growth of society, em-
RIL has adopted the RC-14001 responsible care management sys- ployee welfare and health and safety measures. In view of this, it can
tem which focus on effective management of manufacturing cum dis- be oserved that RIL has a sharp and focused dialogue with key stake-
tribution with adequate use of chemicals. As a measure coupled with holders. In views of Freeman and McVea [45]; De Silva Lokuwaduge
safeguarding environment and human health, RIL have adopted REACH (2011), a stakeholder is defined as an individual or group who strives
(Registration, Evaluation, Authorisation and Restriction of Chemical’s) to achieve the objectives of the firm and in the process gets affected
compliant materials. They are committed to local suppliers and their by its activities. It is not possible to run a business effectively without
commitment gets noted as they acquired the goods and services worth the assistance of the stakeholders. Primary stakeholders are vital for
over Rs25,000 crore from indigenous suppliers at all manufacturing and each and every class of industry [44]. RIL considers customers, employ-
E&P locations, which is nearly 9.8% of the total cost of materials con- ees, trade unions, regulatory authorities, NGOs, investors, local com-
107
Table 6
Healthcare Initiatives by RIL under Social Criterion.
Community Medical Centres at Hazira Therapy and microscopy centres catering to a total population of approximately 150,000 every year.
For detection and control of Tuberculosis and HIV/AIDS, the centres concentrate on the workplace
Community Medical Centres at Jamnagar Therapy and microscopy centres catering to a total population of approximately 150,000 every year.
The Dhirubhai Ambani Hospital, Lodhivli on the Mumbai-Pune The hospital is catering to the principal and ancillary health care facilities for its township residents.
Highway
The Drishti Project . It screened 8838 students of the age group 7–14 years to detect and prevent blindness at an early age
and provided 401 pairs of spectacles by 2005.
Hurkisondas Charitable Hospital RIL granted INR 82.80 million and INR 1297 million for education and health care and social
infrastructure needs in the FY- 2018–19. This amount contributed was 50% more than the amount
contributed in the previous year.
Project ASMAN They were working in Rajasthan and Madhya Pradesh to bolster health structure in maternal and
neonatal care. Such public services are aided via technological solutions along with supervisory and
surveillance mechanism during two critical phases of initial and postpartum care.
Reliance Veterinary Hospital in Padana This hospital treated over 15,000 animals per year to give the appropriate medication for better life.
munity, shareholders, suppliers and contractors as their key stakehold- increased outreach mobile medical services, vaccination centres and po-
ers. If the managers follow the CSR practices and create an environ- lio camps, school health check-ups and HIV AIDS awareness drives. The
ment for the same, it ensures their job protection and boost stakeholder count of patients who received indoor medical assistance were 9000; the
relationships [98,113]. As it was identified by Hillman & Keim [60]; count of yearly surgeries was exceeding 4000 which included major and
Krüger [71], Oikonomou et al. [104] that due importance should be pro- supra-major surgeries. Around 50,000 were the OPD service receivers at
vided to issues like employee’s treatment, environmental sustainability, P.T. Dispensaries.
compassion for community, workplace diversity, product standard and B.1.2. In 2009, Drishti had successfully done 7000 surgeries and
safety. Firms adopt statutory mechanisms and strategies for eliciting en- helped the unsighted to view the glory of world particularly for the un-
dorsement by stakeholders by maintaining legitimacy in their operations derprivileged sections, followed by 8000 in the next year. In FY 2010–
([55] [69,86,105]). 11, RIL introduced 11 features operational support to be carried out in
To ensure a better CSR performance, perfect stakeholder manage- 6 manufacturing locations. Out of this, the count for free corneal trans-
ment is the key. It not only serves as an efficient marketing tool (“green plants reached to 9000 under Project Drishti this year.
washing”), but as a trustworthy information tool (Patrick [134]). Var- B.1.3. In FY 2010–11, an awareness campaign related to HIV/AIDS
ious stakeholders can be identified as a social capital and building an were designed for the housekeeping staffs working in the transport de-
overtime valuable relation with them enables sustainable growth and partments across all locations. a. With 85 projects undertaken across the
long-run financial performance of the firm [41]. [46,67,100]. In order country level, the financial benefit accumulated to INR 260 pertaining
to foster the relation with various stakeholders, RIL has initiated various to FY 2010–11. By 2012–13, RIL established HIV & TB control centres
engagement strategies with the stakeholders. It incorporated a two-way at Hazira which treated over 78,000 people along with providing DOT
consultation process for a long-term sustainable relationship. This pro- therapy to 525 patients.
cess clarified various risks associated, threats and opportunities present B.1.4. The ASMAN initiative focussed on training of 80 medical offi-
in the entire value chain. Proper reporting of the different ESG activ- cers and 338 nurses at 81 health centres on health care to be provided
ities undertaken by the firm reflects its commitment and fulfilment of for new born and obstetric. The initiative was successful in terms of
its responsibilities towards the society, which propagates stakeholder benefitting more than half million mothers and new born. According to
engagement and boosts financial performance [125,68]. the latest reporting, this year marked over 0.15 million consultations
including premium consultations.
3.2.1. Healthcare B.1.5. A Veterinary hospital established in Padana treated over
India’s health care facilities need improvement and change in the at- 15,000 animals annually. Along with the preliminary treatment, 376
titude towards health seeing behaviour. RIL through its initiatives aims of the affected animals are operated and 1298 of them have been han-
to achieve affordable and accessible health facilities and it has been cen- dled for gynaecology related issues. For outreach initiatives, RIL started
tred around: five Mobile and three Medical Units which covered 11 awards and 74
slum sites in Mumbai. About 800 cases under artificial insemination was
a) Principal and ancillary health carefacilities handled with a great success in a campaign initiated in August 2018.
b) Requisite health camps aided with consultation, medicines etc.
c) Improving reproductive and child care facilities.
3.2.2. Education
d) Conducting awareness campaigns and shaping behaviour for mother
Aligning itself with the 2nd CSR Policy of India, that is promoting
and child care.
education, including special education & employment enhancing voca-
e) Innovating in healthcare delivery programmes
tion skills & livelihood enhancement projects, RIL also put in efforts for
f) Helping the unsighted people
building up pillars of future generation through adequate skill develop-
g) Curbing the incidence of contagious and non-infectious diseases.
ment and education facilities. This helps in uplifting the quality of life.
h) Advancing the healthcare quality through technology aided training
Initiatives are aimed at:
and evaluation programmes and assistance in clinical decisions.
a) Upgrading elementary and high school education
A.1) Initiatives undertaken. The 5th CSR policy of providing with hospi- b) Supporting secondary education via scholarships even for differently
tal and dispensary facilities is catered to, through this bucket of initia- abled sections stature
tives summarized in Table 6 c) Encouraging participation in sports as a measure for development of
students
B.1) Output of initiatives taken. B.1.1. Blanket healthcare to all infected d) Providing adequate assistance to universities and setting up new
people who were transmitted via intercessions like counselling, educa- ones as a measure for fostering higher education
tion, training, social and unconfined medical assistance in local areas.It e) Measures for vocational education along with skill advancement
108
Table 7
Initiatives for Education by RIL under Social Criterion.
The Dhirubhai Ambani SSC Merit Reward Scheme Therapy and microscopy centres catering to a total population of approximately 150,000 every year.
Dhirubhai Ambani Undergraduate Scholarship Scheme These schemes targeted the meritorious students and female child to go for higher education. These also
widen the scope for the differently abled students into the mainstream.
RIL Summer training camps Providing training cum employment opportunities for students from the nearby and local areas along with
tie-ups at distant learning institutes.
Anand Dayee Shikshan Project RIL spent INR 82.80 million in 2007 on two sectors i.e., education and health. It flagged off Rewards and
Scholarship Schemes extended to meritorious students along with top five differently abled students
country-wide.
’Vacation Trainees’ in the Vadodara manufacturing division A unique training programme particularly centred to this division where students are motivated to take up
short term courses and projects during their vacations.
girls’ primary school at the Moti Khavdi village, Jamnagar, Along with the Government of Gujarat’s support, 1500 kits were distributed in 42 villages of Jamnagar and
Lalpur Talukas under the initiative of promoting education of girl child.
Reliance Veterinary Hospital in Padana This hospital attended to more than 15,000 animals per year to give the appropriate medication for better life.
Table 8
Skill Development Initiative by RIL under Social Criterion.
Nagothane Manufacturing Division In this division different set of training programmes are being conducted for upliftment of women and for their skill development.
These areas include fashion designing courses, computer skills and nursing training programmes. Further, they train the youth in
driving programmes to help them earn a living.
Polymer business division In order to train the plumbers with advanced skills and techniques in plumbing with PPR pipes, training programmes at 50 Industrial
Training Institutes (ITIs) were organised. They have extended sponsorship to different self-help groups forming the underprivileged
sections via training and skill upgradation for making the women employable. Training programmes like nursing, basket making,
motor driving are provided.
RIL Summer training camps Students from local areas are extended the training facilities at industrial institutes along with the provision of distant learning to make
them employable.
Sustainable agricultural practices They directly engage with minor farmers and educate them in using agricultural practices that are sustainable.
A.3.2. Initiatives undertaken and learning experience which will prepare the next generation leaders.
Initiatives undertaken by RIL for fostering education and employ- It is currently engaged with academic set up, research and development
ment avenues and building up the nations’ future pillars has been sum- centre and campus development.
marized in Table 7.
3.2.3. Skill development
B.3.2.1 Outcome of the initiatives. B.3.1. In 2005, the number of scholar- To cater to the 7th CSR policy, i.e., employment enhancing through
ships has been awarded. Of them, 575 were awarded to meritorious stu- vocational skills, whereby training programmes are executed for instill-
dents. Total scholarships been awarded so far reached a count of 4234. ing the skill set in youth of villages for ensuring minimum livelihood.
It also benefitted 314 differently abled citizens. To benefit the children
of RIL employees, Reliance Kargil Scholarship Scheme was undertaken A.3.3. Initiatives undertaken. The initiatives undertaken by RIL for the
which benefitted 383 children from the families of martyrs and disabled skill development to fulfil its 7th CSR policy are summarized in Table 8.
warriors of the war of Kargil.
B.3.2. The vacation-based training received by students from Var- B.3.3. Outcome of the initiative. B.3.3.1. They have helped enrich and
odara manufacting unit by plant supervisors and Heads of various de- increase the produce through practices like mixed cropping, manure
partments have helped them immensely in shaping ideas and creativity. farming, conservative irrigation system and pest control. Reliance Nu-
About 430 students were registered in the vacation programme from 2 trition Gardens were made in rural areas which remains open for them
weeks to 6 months duration in FY 2010–11. It offered additional bene- to fulfil their nutritional value. In 2018–2019, the nutritional intake in
fits in terms of scholarships to meritorious students and free education children of anganwadis rose to 80% under the Nutritive Mission under-
from colleges for those who scored high marks in SSC exams. taken in Maharashtra.
B.3.3. NGOs (70,000 students) and 13 Reliance Foundation Schools
(RFS) collaborated towards providing quality education under “Educa-
A.3.4 Rural infrastructure development. Projects that are focussed to fos-
tion for All” programme. In FY 2016–17, Shiksha Protsahan Kendras
ter the development in the local area with the result of social inclusion
(SPKs) were established to enhance the learning skills of the children in
and employment generation are initiated. RIL works in terms of address-
collaboration with Eklavya Foundation. In FY 2017–18 though the col-
ing the bottlenecks to the growth of urban India like poverty, malnutri-
laboration of 14 Reliance Foundation Schools, 16,000 students received
tion and hunger. For which key initiatives taken are included like:
quality education with higher education opportunity to 713 talented
students. a) Supplementing livelihoods with both Farm and non-farm produce.
B.3.4. The material impact created by RIL in the education sector by b) Steps towards conserving and harvesting rain water
2018–2019 may be quantitatively summed as follows. 12,285 Dhirubhai c) Ensuring community-based sustainability by developing producer
Ambani scholarships have been disbursed. 14 Schools have been set-up companies
with 16,000 students enroled. The proportion of students in Classes 10 d) Adoption of technology according to the needs for uplifting quality
and Class 12 in RF schools for this year was 98%. of life
As a part of RIL’s latest development in the Education sector, Re- e) Ensuring food reservoir and quality for providing nutrition
liance was rewarded with letter of intent for establishment of Jio Insti- f) Advancement in Community Infrastructure
tute by University Grant Commission (UGC) in 2017. This institute was g) A summary of the developmental work undertaken by RIL in rural
established with a vision of offering world class research cum teaching areas has been presented in Table 9.
109
Table 9
Rural Infrastructure Development Initiatives by RIL under Social Criterion.
Gokul Gram Yojana, Reliance Rural Development Trust (RRDT) This Yojana was initiated under RRDT with a coverage of 23 districts. Major construction work was
undertaken which included 151 common halls, 44 accessible and well-connected village roads, 63 shelters
for panchayats and 16 play schools for anganwadis. During the FY 2007–08, 760 facilities were constructed
with an expenditure of INR 2407 million.
MADER Foundation’s In 2006–07, through an educational programme the foundation assisted the farmers to buy high yield and
good variety seeds. A loan of INR 10 million was provided to the women under MADER scheme- a RIL
managed trust. The costs of such investments went up by INR 193 million as compared to the previous year.
In partnership with Parivartan RIL have initiated substantial community upliftment schemes in collaboration with Parivartan, Gujarat based
NGO licensed under UN. They have aided many schools and charitable club.
Providing face-lift to Moti Khavdi The Jamnagar division contributed for face-lift of a village, Moti Khavdi. They helped Sandipani Rachnatmak
Abhigam Trust for upliftment of Gujarat in terms of culture, progress and business. .
For the fishermen Construction of fishing platform near Darialathippa for sustaining families of nearly 500 fishermen.
Table 10
Disaster Management Initiatives by RIL under Social Criterion.
Assam Floods, August 2017 RIL identified 22 villages & undertook steps to sustain 10,000 or more people for a period of 15 days.
Gujarat Floods For ensuring protection to flood victims from long- and medium-term health risks steps like health camps and relief kits were
distributed to 0.15 million people.
Cyclone Ockhi Timely information transmission was stacked in place to provide cyclone warnings in Tamil Nadu and Kerela regions. More
than 27,000 fishermen and 35 boats were rescued with the help of this system.
‘Indian Ocean-wide 18 Tsunami Mock Exercise’ RIL jointly with INCOIS organised “Indian Ocean wide 18 Mock Exercise” in tsunami areas in September 2018 in states like
Maharashtra, Gujarat and Orissa. The focus was on minimising the disaster caused by tsunami and saving the lives of
fishermen.
B.3.4. Outcome of the initiative. B.3.1 In 2008–09, RRDT being a corpo- 3.3. Reliance industries & the management: governance criterion
rate NGO, carried on with its construction activities of 14 check dams.
Drinking water facilities were instilled in 4 different villages including Husted and Sousa-Filho [62], pointed if the company is considering
Porbandar, Junagadh, Rajkot and Patna with a cost of INR 197.4 mil- sustainable governance mechanism, then its ESG performance is likely to
lion. RRDT has successfully instilled 5725 facilities across the length and get boosted. [9,68]. Following this, RIL is instilled with corporate gover-
width of Gujarat state. nance framework including accountability, fairness and transparency in
B.3.2. In FY 2009–2010, RRDT undertook a massive infrastructural its operations. To keep the corporate governance values intact, a defined
project. The first set consists of creation of village infrastructural facili- structure has been put in place encompassing ethical issues in business
ties in 1390 villages across 166 talukas in 25 districts of the state. The policies and practice, honouring values and commitments, prohibit in-
second set includes creation of 971 facilities including 879 anganwadis, sider trading, thus also upholding the 10th UNGC guideline which states
61 concrete roads, 21 underground water storage pits, 9 check dams that businesses should work against corruption in all forms. The onus
holding water capacity of 12.58 million cubic feet for irrigation to 1750 of corporate disclosure and fulfilment of CSR of the firm lies with the
hectares farming land. board of directors [56,66]. It is also true that all directors are not equally
B.3.3. In 2010–11, they attempted to strengthen the economic con- competent in handling CSR issues [108]. The company, thus, believes
dition of rag pickers particularly women by reducing plastic waste and that for ensuring long term sustainability, an independent board is vital.
direct channel of sale of PET bottles in collaboration with NGO. The onus of overall responsibility of the firm lies with the management
B.3.4. In 2013, RIL started several initiatives such as couple coun- board. While the supervisory board only performs an advisory function
selling that imparted awareness on family planning; counselling for for the management and aid in their workings [133,25]. In accordance
mothers-in-law to give them an understanding of gender equality with the previous literature, ethical leadership aspect positively influ-
B.3.5. Livelihoods of more than 19 lakh farmers and fisher folks were ences its cultural and environmental domain [26,40,80,122]. It is the
enhanced through programmes on health, agriculture and livelihood. To responsibility of the Board of RIL that minimum proportion of profits
imbibe greater cooperation 31 Village Farmer Associations were formed i.e., 2% has been achieved in preceding 3 years. Evidences relating to
in which 3000 marginal farmers were enroled in FY 2015–16. the expenditure targeted for ensuring CSR norms has to be reported
By FY 2018–2019, RIL has augmented 7.2+ million Livelihoods, from which if the company fails to spent the minimum 2% of the last three
inception. 434 villages have been made water-secured, 73% Families year’s average net profit, then the report must contain the reasons. In
have been made food secure and 77% of farmers reported enhancement accordance with the previous studies evidence in favour of linking be-
in income levels. Through these initiatives, RIL also ensures fulfilment tween good CG and CSR has been noted [109,127]. They began in 2005
of the last 2 CSR policies, rural development projects and slum area with An Ethics Management Organisation set up as a corporate initia-
development. tive to promote a generative and ethical work environment. In order to
develop core values, Management made it mandatory for senior execu-
3.2.4. Disaster management tives to submit an Ethics Compliance Statement every year. RIL mapped
RIL has historically worked towards relief and rehabilitation to the their employees’ concerns both informally and systematically - infor-
people affected by adverse effects of nature. They focussed on empow- mally through one-to-one interaction with the immediate superior and
ering local communities with resources and capacities to deal with dis- systematically through a grievance redressal practice. In the year 2003–
asters. During FY 2018–19, Kerela flood relief programme was initiated 04, they engaged Hewitt Associates to develop the baseline for employee
which could aid over 74,000 flood hit families in addition to the activi- satisfaction. Priority was given to generate local employment.
ties mentioned in Table 10. In FY 2009–10, A committed Legal Compliance Audit Cell which is
An overview of the general system model on social criterion has been a part of Management Audit Cell ensured that RIL maintained all the
presented in Table 11. compliance in the nature of statutory or regulatory. In accordance with
110
the international standards, a quality regulatory compliance has been for Non-Supervisory Staff and 50% of their employees represented local
instilled. The compliance programmes were instilled in all units be it population. In FY 2008–09, the attrition rate stood at 10.03%.
manufacturing or subsidiary. The system is encompassed with all types In FY 2009–10, talent base stood at 23,365 people. There was a split
of laws and statutes for labourers, industry and taxation. in the workforce i.e., 95.24% were male and 4.76% were female employ-
FY 2009–10 was marked as a year with 105 six-sigma projects with ees in the FY 2012. Eventually At Reliance Group, they had employed
INR 550 million financial benefits. Further, 9 groups were formed for 1,40,483∗ people as on 31st March 2017 comprising of 16,889∗ female
overseeing the environmental aspects. Operational discipline was con- employees. At group level, we have employed 541∗ differently abled
sidered as an intrinsic criterion for all manufacturing units. For ensur- employees. The total strength of employees across Reliance Group as on
ing culture of safety and security, “Life Protection Rules” were being 31st March 2018 was 1, 87,729 of which 22,229 were women and 827
implemented in FY 2010–11. The LPR focussed on 10 high risk activi- differently abled persons. To develop a truly global culture, they on-
ties. In the reporting period, an intensive Six Sigma Green Belt training boarded highly-skilled people from over 15 nationalities. As of March
programmes with 102 employees and awareness programmes with 25% 31, 2019, the participation of women in Reliance Retail was 22% all
of supervisors were undertaken. In FY 2011–12, of the 23 Six Sigma over India including more than 1000 PwD employees. In FY 2018–19
Black Belts and 115 Black Belts and Green Belts projects, 102 six sigma they extended employment benefits to 40,000 unskilled women work-
projects were successfully being completed with a cost saving of INR 360 ers 24 women have taken over store leadership role in Reliance Fresh,
million. In FY 2012–13, a campaign on nutrition and heart health was leading to Attrition dropping by 33% and customer complaints reduc-
undertaken considering the women and children. The initiatives were ing by 50%. Women on corporate board are acting as an asset for the
recognised country wide by Joint Commission International, National organisation as they believe and can empathetically bring the idea of
Accreditation Board of Hospitals, and National Accreditation Board for a “business case for diversity” as suggested by Robinson and Dechant
Laboratories etc. During the FY 2015–16, they spent Rs 3.37 billion on [117], Arayssi et al. ). This caters to the 6th UNGC guideline that busi-
health, safety and environmental initiatives. In 2017, RIL executed an nesses should eliminate discrimination of employment and occupation.
Operating Management System (OMS) in an effort to provide a single With the rise in the number of women on board, decision making is
framework which extends to all operations, people, plants, processes based on valuable opinions and quality.This helps to foster the finan-
and performance. Various aspects like safety, health, social responsibil- cial performance of the company with the improved quality of decisions
ity was regulated. The organisational learning, cooperation with work- (; Giannarakis et al., 2014; and Husted and Sousa-Filho, 2018). It has
ers and contractors were also managed. The OMS provided a consistent been proposed by [16] that without at least 3 women on board, the de-
approach to ensure the following: cision making is constricted not diverse. They have undertaken various
pro-active measures such as flexi-work hours for women post mater-
1 Limiting the operational risks associated with safety, security, health
nity leave, 24 × 7 toll-free helpline for women, etc. in addition to the
and environment
statutory policies like prevention of sexual harassment at workplace and
2 Uplifting the operational quality
the Diversity and Inclusion policy. They have also introduced R-Aadya,
3 Implementing performance of the company.
a common platform for women to connect, converse and collaborate.
The manufacturing units were working under the ISO 14001 envi- They also give preference to ex-servicemen in security services, align-
ronment certification which ensures quality and secure performance of ing with another CSR policy of India that mandates giving preference
the management. All the manufacturing sites received five start audit to veteran army men. Both published studies (Davis and Minnis 2017;
report by the British safety council of UK. These audits are periodically [128]) and anecdotal evidence [97] proposed that firms do face glitches
conducted to identify the early signals of political and environmental in instilling a military veteran programs even if they strive for it, which
risks at the site of operations. In 2018, RIL started using data analytics has also hindered RIL from providing more noticeable representation
to make informed decisions on corrective and preventive actions. Their to ex-servicemen. An overview of the general system of governance has
third-party service providers who were responsible for patrolling the been presented in Table 12.
network assets were also required to adhere to their Health, Safety &
Environment policy. During the reporting period they carried out train- 3.4. A way forward for RIL
ings in order to implement a strong HSE culture by mitigating the risk
of occupational injury and illness. Mandatory certification training for 3.4.1. RIL: reaction to COVID-19
working at height for Riggers by approved third party training institute RIL’s response to aid the government to fight the pandemic were
before deployment on job. proactive. They established the fastest and first 100 bed COVID 19 hos-
Study done by Costa et al. [34] and Herrera [58], opined that the pitals in Mumbai. In no time they could produce more than 0.1 million
best role played by management is of identifying and responding to PPEs and N95 masks at a reasonable price. This activity highlights their
the possible opportunities and threats while considering CSR activities. intention and commitment to ‘Make in India” mission. Sir H.N. Reliance
They are also entrusted with the role to look up for various stakeholders Foundation Hospital and Research Centre organised separate quarantine
and consider their expectations. Majumder, Akter, and Li [84] revealed facilities for the suspected foreign travellers. Home quarantine services
that the best drivers of corporate social disclosures are the six of the were also provided including services of medicines, home sample collec-
board, recurrence of meetings and auditor’s integrity. However, study tion and nursing facilities, vitals regulating devices, online doctor con-
done by Giannarakis et al. (2014); Orazalin [106] found that board size sultation and home disinfectants. It was one of the pioneers institutes
was not relevant for ensuring CSR disclosure. An additional dimension for testing the efficacy of plasma therapy. Apart from these, essentials
was found by Volberda et al. [136] and Walker et al. [137] in terms of were supplied to families on daily frequency across 200 cities. Jio em-
management innovation. Following committees presented in Table 11. powered the digital competence and work from home culture to over 0.4
have been inducted for specific purposes to ensure ethical corporate billion individuals and 30,000 organizations. Jio has been offering emer-
governance practices. gency service vehicles nation-wide. It offered more than 5.5 litres of free
According to Adams et al. (2010) advocated that it is the man- fuel with 14,000 ambulances operating across 18 states. They provided
agement board that ensures firm’s governance system. Rodrigue et al. 6.57 million free meals across the nation. This programme supported
(2013) felt that the management board could effectively manage a firm’s factory workers, old age homes, slum and daily wage earners. Reliance
CSR. Life Sciences unit strengthened the testing infrastructure by expanding
To align with the 3rd CSR policy of India, they also recognise and the existing ones and establishing a new one. Reliance foundation has
respect different cultures, nationalities, race, religion and sexual orien- generously donated to PM Care and CM’s relief funds a sum of money
tation. In 2005, they increased employment generation by 42 percent INR 5.35 billion and INR 1 million respectively. It played a key role in
111
Table 11
GENERAL SYSTEMS MODEL: SOCIAL.
OBJECTIVE INPUTS STRATEGY OUTPUTS INVESTMENT MADE AND

IMPACT CREATED
To monitor the impact of their Economical and attainable Projects like ASMAN initiated 6+ million Health consultations INR 6082 was soent on health in
operation on biodiversity healthcare facilities with with the vision for providing have been provided since the year 2015. No information
changing attitude through maternal and neonatal care, inception. 1700 Individuals has been made available post
creating awareness for seeking and Project Drishti for from underprivileged segments that
healthcare services. Primary, promoting awareness towards have been provided with sight
secondary and tertiary care HIV/AIDS. Hospitals being and livelihood. 18,000+
facilities were offered established in urban and rural Corneal transplants for vision
areas. care have been done, since
inception. The health
programmes have reached out
to 2.5 million people. During
the project cycle of ASMAN,
the programme has benefited
at least 0.5 million mothers
and newborns
Zero Effluent Discharge Mission Efforts are being directed at Several scholarship programs In FY 2017–18, RIL aimed at As disclosed by RIL, they spent
at all sites uplifting the educational constituted under the DAF, providing best education to INR 218 crores on education in
stature by training, skill including the Reliance Kargil 16,000 students via 14 RFS. 2015. The information for thw
development and good quality Scholarship Scheme. A network Over 713 were provided with following years has not been
life. of schools was established all scholarships for higher made available.
across the country. Vacation education. 12,285 Dhirubhai
training programmes were also Ambani scholarships have been
launched in FY 2010–11. disbursed. 14 Schools have
Promoted girls’ education by been set-up with 16,000
developing schools for girls. students enroled. The
Promoted sports by launching proportion of successfully
various programs to enable completing Classes 10 and
children inclined towards Class 12 in RF schools for this
sports. year was 98%.
Energy preservation and attaining Projects targeted towards Construction of roads, dams, By FY 2018–19, RIL has INR 1263 crores were spent in
efficiency in the process to covering the space between halls, etc. for rural augmented 7.2+ million 2015 on community
minimise CO2 emissions. urban and rural Bharat. A infrastructure development. Livelihoods, from inception. development, however no
vision for a developed, Complete preservation and 434 villages have been made information post that is
inclusive and quality society responsibility of the heritage water-secured, 73% Families available.
has been sought which is town of Dwarka. Commitment have been made food secure
sought to be achieved by to preservation of culture and and 77% Of farmers reported
uplifting the livelihood, solving heritage. Setting up of MADER enhancement in income levels.
problems related to hunger, foundation for upliftment of
poverty and insufficient women and farmers. SVADES
nutrition. was another initiative with the
same objective. Initiative for
the safety of truck drivers and
also for augmenting the
livelihood of fishermen. They
have also participated actively
in disaster management.
Table 11
List of Committees formed by RIL as part of Governance Criterion.
Remuneration Committee Recommends and reviews induction of the MDs and WDs, based on performance and other pre-defined
criteria.
Finance Committee Advices to the Board on issues of management of banking and cash-, securities issuance-, short- and long-term
loans.
Corporate Governance and Stakeholders’ Interface Committee Observance of governance practices and offers remedial measures whenever required. Information
transmission to various stakeholders and attracting FIIs and interacting with rating agencies.
Shareholders’ Grievance committee Addresses any matters connected with transfer and issue of duplicate certificates, shareholders complaints,
declaring benefits the form of dividends, etc. Regulates the execution of code of conduct instituted by the
company for Prohibition of Insider Trading in pursuance of SEBI Regulations, 1992
Health & Safety Committee Keep a track on environmental and health standards and ensuring compliance to fulfil the statutory
requirements and improving the manufacturing divisions.
dissipating knowledge and awareness about the pandemic and dos and spread its coverage to daily workers including urban service workers and
don’ts at the Gram Panchayat level. Community help was solicited for factory workers, inhabitants in the slums, old-age and orphanage resi-
stitching masks to be dispensed off for the frontline workers. Farmers dents, frontline workers including hospital staffs and security personnel.
were encouraged to continue harvesting and selling their produce with The employees of RIL compassionately contributed for the cause by dis-
ensured fair price during lockdown which was assured by 26 Farmer tributing cost-free meals to the deprived sections of 12 major districts
Producer Organisation guided by RIL. of the country. The service was extended to truck drivers who halted
During the nation-wide lockdown, RIL initiated “Mission Anna Seva” in RIL petrol station in states of Kerala, Odisha and West Bengal. Due
to offer food to the indigent poor. It was organised on a wide scale. It attention was paid for feeding stray animals and grains for birds.
112
Table 12
GENERAL SYSTEMS MODEL: GOVERNANCE.
INPUTS STRATEGY OUTPUTS INVESTMENT MADE AND SPECIFIC POLICY IN THIS

IMPACT CREATED CONTEXT
1. RIL follows transparency, 1. The RIL Board periodically 1. In FY 2009–10, financial No specific information has been 1. It has been mandated by the
responsibility and justice in its invests at least 2% of its last 3 profits reached to INR 550 disclosed in this context. government of India that all
operations. years average profits on CSR million for carrying out 105 Six No specific information has been expenditure towards ESG
2. Policy pertaining to the activities. Sigma projects. disclosed in this context. should be recorded and if the
companies’ value system, code 2. In FY 2009–10, for ensuring 2. 24 women have taken over statutory requirement of
of ethics, policies regarding that the company maintain its store leadership role in undertaking CSR initiatives for
insider trading and ethics statutory regulations and Reliance Fresh, which lead to the average three-year profits
management. maintain quality for its the drop of employee turnover is not undertaken, a due
3. In 2017, a system of tackling operations, a Legal Compliance rate by 33%. statement specifying the
unethical behaviour was Audit Cell has been established. 3. Reduction of customer reasons shall be specified.
instilled. 3. In 2010–11, Life Protection grievances by 50%. 2. Monopolies and Restrictive
4. In case of violations of rules Rules were initiated. Through OHCs, a well- Trade Practices Act, 1969,
and Code of Conduct, 4. Training to both employees established routine health 3. Foreign Exchange Regulation
mechanism for Whistle Blower and contractors is imparted. In check-up facility were Act, 1973 the Industries Act,
Policy were instilled for the 2006, Occupational Health introduced. Vitals monitoring 1951 and other legislations
betterment of employees. Centres (OHCs) were instilled tests were conducted. RIL also have a bearing on the
5. RIL considers it a top priority at locations for manufacturing successfully could bring down corporate governance
to protect the interests and for employee safety and health. the injury rate by 35.09% and principles, Companies Act,
ensure the well-being of its 5. In 2006, for ensuring health, lost day rate by 18.87%. 1956.
workforce. Through three compliance and statutory According to the national safety,
major areas of safety viz. fulfilment in all the health and environment policy
behavioural safety, process manufacturing sites, a a well- written citizen rights
safety and construction safety. committee was set up. has been framed by the
6. E-learning was introduced in constitution: for securing the
collaboration with Harvard health and strength of
with 42 modules in FY employees, men and women;
2008–09. In 2008, Reliance just and humane conditions of
Safety Observation was work and maternity relief are
initiated to discuss the on-job provided.
safety measures for the
employees and contractors.
3.4.2. Technology: a solid pillar of RIL’s ESG in the existing supply chains ([115], Walker et al., 2015, [144]). Green
Information and communication technology (ICT) has significant supply management principles and practices were followed by many
positive impact on economic growth and detrimental effect on environ- studies [126,129]. As of 2018–2019, the smart devices with installed
ment, the innovative environmental technological move with regulatory Warehouse Management (EWM) rationalized cumbersome logistics and
practices might lower down this degradation, [114]. Since the launch distribution operations, enabled real time inventory tracking systems.
of the Digital India Mission in 2015 by the Indian Government, RIL has The distribution safety has been compiled with IoT based biometrics
been on the lookout for developing and integrating more and more tech- and voice box security features.
nologically innovative solutions in its ESG initiatives. RIL provides sus-
tainable solution via connecting groups on various platforms to enable 4. Discussion
resource utilisation, enlightened decision making and building adequate
capacity. They started with the launch of digital classrooms in 2015 ESG has attracted the attention of many scholars as it became the
and have collaborated with local government for building up digital integral part of firm’s strategy for ensuring reasonable financial per-
classrooms across 5 cities in 129 government establishments till 2019. formance ([43]; El Ghoul et al., 2017; [7,11,16,99]). The literature is
They also launched ‘Digital Learning Van’ for underprivileged children deeply enriched in listing the motivational intent of the companies to-
in 2017. The initiative uplifted the status of about 0.1 million deprived wards ESG reporting, ways through which companies strive for meet-
children. Digital literacy was promoted in rural areas through distribu- ing regulatory standards and meet statutory compliance and the means
tion of computers across 48 schools in three districts of Gujarat in 2017. to achieve stakeholder’s support [11,142]. Our case provides insights
With the onset of Jio, Video conferencing has become an effective covering all dimensions of ESG, as viewed from the lens of Indian con-
way of communication which has helped to reduce travel, contributing glomerate, Reliance Industries Ltd. One key finding in this case is as
to lower carbon footprints and helping the nation to achieve its NDC years have progressed, RIL has become more inclusive and has evolved
target of reducing GHG emissions per unit of GDP by 33–35% below to increasingly invest in activities more relevant with progressive times.
2005 levels by the year 2030. ESG has evolved through asymmetric in- Any company targeting for continual improvement via controlling its
formation which served to be useful and controller of various external- cost ought to publish social and environmental reports . The study high-
ities [102]. This is disseminated via digital and community level inter- lights the role of disclosure is vital as it supplements the manager’s deci-
actions on topics related to schemes and subsidies, crop management, sion making along with providing authentic information to the external
healthcare and livestock services, etc. Knowledge and information shar- parties [102]. Due to this, RIL has continuously released sustainability
ing takes place from more than 1000 partners like research institutions, reports in addition to the traditional annual reports over the last 15
NGOs, thematic experts, government undertakings. More than 16,000 years and presented with utmost sincerity the initiatives undertaken.
villages were benefitted by this scheme in 2019. The disclosures based A typical character of the Indian firms is that the management is di-
on sustainability is based on bridging the gap in terms of asymmetry be- rected by the founders who own a sustainable share and exercise control
tween company and various stakeholders [32]. With the growing age of through organisational framework, providing greater will to accommo-
digitisation, RIL has also incorporated digital facilities in its supply chain date interests of various stakeholders especially the minority sharehold-
to ensure a more efficient material and information flow. The concept of ers (Classens et al., 2002). Especially in the case of RIL, the manage-
sustainable supply chains evolved through the conduct of sustainability ment’s vision to drive sustainability was exceptional and has been im-
113
Fig. 2. CSR Spending by Top Indian Companies in INR

(millions)
Source: Author’s Compilation based on Ministry of Cor-
porate Affairs Report.
Fig. 3. ESG Score of top 10 Indian Companies by CRISIL

Source: Author’s Compilation on the basis of CRISIL ESG Compendium, 2021.
plemented with great vigour since inception. Lam et al. [73] alleged that ability performances [65,88,28]. Galema et al. [49] that a number of
companies that are large have substantial resources for continuing their dimensions are considered while determining the ESG score. Some ini-
operations and direct their performances towards attaining ESG goals, tiatives towards ESG might boost the value of the firm while some might
so investors, who are socially responsible, tend to prefer companies with plummet its value.
a larger market capitalization. If we compare the average of ESG, Environmental, Social and Gov-
Via an assessment, accreditation, and national ranking system for ernance scores, to judge the comparative performance of RIL, with that
ESG disclosures and sustainability, it may be noted from the above study of top 10 companies (as in Fig. 4), it comes out to be 72.4, 71.6, 64.7
that RIL aligns its CSR policies with 10 standards laid down by the gov- and 78 respectively. However, it has been reported that the ESG score of
ernment of India and even aligns with 5/10 UNGC guidelines, in spite RIL actually stands at 64, with 49 in environment, 64 in social and 77
of them being involuntary. This study reflects the real-time implementa- in governance dimensions, which is lesser than the highest performer
tion of ESG initiatives by RIL and how those are received by the society. average of 72.4. It may be concluded that in spite of the intensive ESG
In accordance with the data on various companies spending on CSR ac- activities undertaken by RIL, there is still a long way to go before it
tivities published by the Ministry of Corporate Affairs, RIL spent the can compete with the top ESG players in the country, particularly in the
maximum i.e., INR 6400 (in millions) in 2017–18. A comparative anal- environmental domain. To reach the top performers in ESG, RIL would
ysis is presented in Fig. 2 indicating CSR spending by top 9 companies.3 need to accelerate its environmental performance by more than 100%.
Fig. 3 presents the top 10 Indian companies in terms of ESG scores
given by CRISIL ranking 2021. ESG scores are an indicator of sustain- 5. Conclusion
3
https://economictimes.indiatimes.com/magazines/panache/whichs-the- Carroll and Shabana [27] recommended that the mere responsibility
most-philanthropic-of-em-all-ril-tops-list-with-rs-640-cr-csr-spend-psus-ntpc- of any company is not only profit maximisation but also towards society
ongc-follow-next/articleshow/70676782.cms?from=mdr and environment at large. It is only then the company will enjoy wide
114
Fig. 4. Comparative Sustainability Performance of RIL vis-à-vis top 10 companies

Source: Author’s Compilation on the basis of CRISIL ESG Compendium, 2021.
acceptability and long-term sustainability. However, in order to boost oped markets [57], but as observed in the case of RIL, effort has been
financial performance and ensure long-term sustainability, ESG is the made to establish transparent dialogue with the stakeholders. ESG di-
key tool [75,72,112,93,70] for a company as well. Big companies such mension focusses on the non-financial aspects of the business operations
as Reliance Industries Limited have been indulging in such sustainable but it offers a stock selection screen to prospective investors [131]. The
activities and been reporting their performance on an annual basis. If a results offer a valuable insight for investors who wish for responsible
firm periodically evaluates its sustainable performance, it creates a way investing or for foreign institutional investors who by statutory require-
for ensuring a long-run competitive advantage (Rajesh R, 2020). Their ments are obligated to undertake investments after due consideration for
activities as observed cover all dimensions of social and environmental ESG factors [61]. We propose system approach by Hervieux and Volten
welfare and investments have been made in the correct directions to ef- [59] as a future perspective to look at future and sustainability. Unlike
fect the envisioned change. A few studies have pointed out that those the primitive form of Socially Responsible Investing, the focus of cur-
companies which ignore the CSR initiatives find themselves in a fix to rent responsible investing is based on research techniques that focuses
innovate and eventually perish ([81]; Mac Gregor, [82]). The objective on environmental, social and governance indicators which is potentially
of this paper was to analyse the evolution of ESG disclosure practises in reflected in this study.
RIL and gauge resulting responsible actions by all social actors. For the
purpose system approach was carried out by in-depth analysis of RIL’s Funding
integrated and sustainability reports for a span of fifteen years. This pa-
per has focused on each initiative related to ESG taken by RIL at their The research is funded by ICSSR under the project scheme IMPRESS
manufacturing sites, for each stakeholder and each operating activity to 1492.
ensure a responsible attitude and reaction. RIL has recently been taking
up various initiatives in environmental domain particularly focussing on Declaration of Competing Interest
energy and water conservation. Three plants have been constructed for
reducing the GHG emission to a substantially lower level. Apart from The authors declare that they have no known competing financial
this, wastelands have been converted into mango orchards. Various so- interests or personal relationships that could have appeared to influence
cial initiatives taken up such as introducing summer training camps, vo- the work reported in this paper.
cational training programs, scholarship schemes for the children of RIL
workers, setting up of industrial training institutes, actively construct- References
ing infrastructural facilities for the development of the village. Finally,
[7] Aouadi, S. Marsat, Do ESG Controversies Matter for Firm Value? Evidence from
several initiatives were taken up for the governance sphere such as es- International Data, J. Bus. Ethics 151 (4) (2018) 1027–1047.
tablishing various committees for assessing performance from time to [9] S. Arvidsson, Communication of Corporate Social Responsibility: a Study of the
time, on the job safety measures, legal compliance cell, whistle blower Views of Management Teams in Large Companies, J. Bus. Ethics 96 (3) (2010)
339–354.
policy, CSR policy. From this case of Reliance Industries Limited, we can [11] M. Azizul Islam, C Deegan, Motivations for an organisation within a developing
safely say that all strategies should be designed and executed containing country to report social responsibility information, Accounting, Auditing & Ac-
the pillars of corporate sustainability so as to take advantages of syner- countability Journal 21 (6) (2008) 850–874.
[16] S. Bear, N. Rahman, C. Post, The Impact of Board Diversity and Gender Composi-
gies [27]). On assessing the ESG initiatives taken up by RIL and com- tion on Corporate Social Responsibility and Firm Reputation, J. Bus. Ethics 97 (2)
paring it with the national ranking system proposed by CRISIL (2021), (2011) 207–221.
it has been observed that RIL’s ESG score is 64 which is below than [18] P. Beurden, T. Goessling, The worth of values - A literature review on the relation
between corporate social and financial performance, J. Bus. Ethics 82 (2) (2008)
the average performance of top 10 companies in India. This indicates 407–424.
that RIL still needs to achieve long way towards advancing sustainable [19] S.J. Brammer, S. Pavelin, Corporate Reputation and Social Performance: the Im-
performance. It has been noted that in emerging markets like India, the portance of Fit, Journal of Management Studies 43 (3) (2006) 435–455.
[20] S. Brammer, G. Jackson, D. Matten, Corporate Social Responsibility and institu-
degree of transparency for corporate governance and environmental and tional theory: new perspectives on private governance, Socioecon Rev 10 (1) (2012)
labour standards are at sub-standard levels in comparison with devel- 3–28.
115
[22] M.C. Branco, L.L. Rodrigues, Factors Influencing Social Responsibility Disclosure [62] B.W. Husted, J.M.de. Sousa-Filho, The impact of sustainability governance, country
by Portuguese Companies, J. Bus. Ethics 83 (4) (2008) 685–701. stakeholder orientation, and country risk on environmental, social, and governance
[24] C. Brooks, I. Oikonomou, The effects of environmental, social and governance dis- performance, J Clean Prod 155 (2) (2017) 93–102.
closures and performance on firm value: a review of the literature in accounting [64] IEA, World Energy Outlook Analysis (2019) Retrieved from
and finance, The British Accounting Review 50 (1) (2017) 1–15. https://www.iea.org/reports/world-energy-outlook-2019 .
[25] U. Butt, Profits, financial leverage and corporate governance, International Journal [65] Ignacio Tamayo-Torres, Leopoldo Gutierrez-Gutierrez, Antonia Ruiz Moreno,
of Managerial Finance 16 (2) (2019) 203–223. Boosting sustainability and financial performance: the role of supply chain con-
[26] D.S. Carlson, P.L. Perrewé, The Role of Social Support in the Stressor-Strain Re- troversies, Int. J. Prod. Res. 57 (11) (2018) 3719–3734.
lationship: an Examination of Work-Family Conflict, J Manage 25 (4) (1999) [66] T. Jain, D. Jamali, Looking Inside the Black Box: the Effect of Corporate Gover-
513–540. nance on Corporate Social Responsibility, Corporate Governance: An International
[27] A.B. Carroll, K.M. Shabana, The Business Case for Corporate Social Responsibility: Review 24 (3) (2016) 253–273.
a Review of Concepts, Research and Practice, International Journal of Management [67] M.C. Jensen, Value maximization, stakeholder theory, and the corporate objective
Reviews 12 (1) (2010) 85–105. function, Journal of Applied Corporate Finance 14 (3) (2001) 8–21.
[28] V.E. Castillo, D.A. Mollenkopf, J.A. Bell, H Bozdogan, Supply Chain Integrity: a [68] M.I. Jizi, A. Salama, R. Dixon, R. Stratling, Corporate Governance and Corporate So-
Key to Sustainable Supply Chain Management, Journal of Business Logistics 39 (1) cial Responsibility Disclosure: evidence from the US Banking Sector, J. Bus. Ethics
(2018) 38–56. 125 (4) (2014) 601–615.
[29] W. Chapple, J. Moon, Corporate Social Responsibility (CSR) in Asia, Business & [69] T. Kostova, K. Roth, M.T. Dacin, Institutional Theory in the Study of Multinational
Society 44 (4) (2005) 415–441. Corporations: a Critique and New Directions, Acad. Manage. Rev. 33 (4) (2008)
[30] A.K. Chatterji, D.I. Levine, M.W. Toffel, How Well Do Social Ratings Actually 994–1006.
Measure Corporate Social Responsibility, J Econ Manag Strategy 18 (1) (2009) [70] M.P. Kramer, Strategy and society: the link between competitive advantage and
125–169. corporate social responsibility, Harv Bus Rev 80 (2) (2001) 57–68.
[31] N. Chevrollier, J. Zhang, T. van Leeuwen, A. Nijhof, The predictive value of strate- [71] P. Krüger, Corporate goodness and shareholder wealth, J financ econ 115 (2)
gic orientation for ESG performance over time, Corporate Governance 20 (1) (2019) (2015) 304–329.
123–142. [72] C. Kuzey, A. Uyar, Determinants of sustainability reporting and its impact on firm
[32] T.-K. Chiu, Y.-H. Wang, Determinants of Social Disclosure Quality in Taiwan: an value: evidence from the emerging market of Turkey, J Clean Prod 143 (2) (2017)
Application of Stakeholder Theory, J. Bus. Ethics 129 (2) (2015) 379–398. 27–39.
[34] C. Costa, L.F. Lage, P. Hortinha, The bright and dark side of CSR in export markets: [73] S. Lam, G.H. Jacob, A.T.S. Yee, Socially Responsible Investment styles:
its impact on innovation and performance, International Business Review 24 (5) Equity risk, Return and valuation. Unpublished working Paper, National
(2015) 749–757. University of Singapore, 2012 http://www.cbern.ca/UserFiles/Servers/Server_
[37] S. Dellaportas, J. Langton, B. West, Governance and accountability in Australian 625664/Image/CBERN%20Events/PRI2012/Papers/Jacob.pdf.
charitable organisations: perceptions from CFOs, International Journal of Account- [74] G. Landi, M. Sciarelli, Towards a more ethical market: the impact of ESG rating
ing & Information Management 20 (3) (2012) 238–254. on corporate financial performance, Social Responsibility Journal 15 (1) (2018)
[38] M. Delmas, V.D. Blass, Measuring corporate environmental performance: the 11–27.
trade-offs of sustainability ratings, Business Strategy and the Environment 19 (4) [75] N. Laskar, Does sustainability reporting enhance firms profitability? A study on
(2010) 245–260. select companies from India and South Korea, Indian Journal of Corporate Gover-
[39] M. Delmas, N. Nairn-Brich, J. Lim, Dynamics of environmental and financial per- nance 12 (1) (2019) 2–20.
formance: the case of greenhouse gas emissions, Organ Environ 28 (4) (2015) [76] Y. Li, M. Gong, X. Zhang, The impact of environmental, social, and governance
374–393. disclosure on firm value: the role of CEO power, The British Accounting Review 50
[40] M.W. Dickson, D.B. Smith, M.W. Grojean, M. Ehrhart, An organizational climate (1) (2018) 60–75.
regarding ethics: the outcome of leader values and the practices that reflect them, [80] C.-S. Lu, C.-C. Lin, The Effects of Ethical Leadership and Ethical Climate on Em-
Leadersh Q 12 (2) (2001) 197–217. ployee Ethical Behavior in the International Port Context, J. Bus. Ethics 124 (2)
[41] T. Donaldson, L.E. Preston, The Stakeholder Theory of the Corporation: concepts, (2014) 209–223.
Evidence, and Implications, The Academy of Management Review 20 (1) (1995) [81] S. Macgregor, M. Bianchi, J.L. Hernandez, K. Mendibil, “Towards the tipping point
65–91. for social innovation”, Response Project (2007) working paper.
[43] Ali A. Fatemi, Martin M. Glaum, StefanieS. Kaiser, ESG performance and firm value: [82] S. Macgregor, X. Espinach, J. Fontrodona, Social innovation: using design to gen-
the moderating role of disclosure, Global Finance Journal 38 (C) (2017) 45–64. erate business value through corporate social responsibility, in: International Con-
[44] B. Fernandez-Feijoo, S. Romero, S. Ruiz-Blanco, Women on Boards: do They Af- ference on Engineering Design, Cité des Sciences et de l’Industrie, Paris, France,
fect Sustainability Reporting? Corporate Social Responsibility and Environmental 2007.
Management 21 (6) (2013) 351–364. [84] M.T.H. Majumder, A. Akter, X. Li, Corporate governance and corporate social dis-
[45] E. Freeman, J McVea, A stakeholder approach to strategic management, in: M. Hitt, closures: a meta-analytical review, International Journal of Accounting & Informa-
E. Freeman, J. Harrison (Eds.), Handbook of Strategic Management, Blackwell Pub- tion Management 25 (4) (2017) 434–458.
lishing, Oxford, 2001. [85] R. Manita, M.G. Bruna, R. Dang, L. Houanti, Board gender diversity and ESG dis-
[46] R.E. Freeman, Strategic Management, A stakeholder Approach, Pitman, Boston, closure: evidence from the USA, Journal of Applied Accounting Research 19 (2)
1984. (2018) 206–224.
[47] R.E. Freeman, Strategic management: a stakeholder approach, Advances in Strate- [86] V. Marano, P. Tashman, MNE/NGO partnerships and the legitimacy of the firm,
gic Management 1 (1) (1983) 31–60. International Business Review 21 (6) (2012) 1122–1130.
[48] N. Frost, M. Robinson, A. Anning, Social workers in multidisciplinary teams: issues [87] J.D. Margolis, J.P. Walsh, Misery Loves Companies: rethinking Social Initiatives by
and dilemmas for professional practice, Child Family Social Work 10 (3) (2005) Business, Adm Sci Q 48 (2) (2003) 268.
187–196. [88] María Jesús Muñoz-Torres, María Ángeles Fernández-Izquierdo, Juana J.M. River-
[49] R. Galema, A. Plantinga, B. Scholtens, The stocks at stake: return and risk in socially a-Lirio, Elena E. Escrig-Olmedo, Can environmental, social, and governance rat-
responsible investment, J Bank Financ 32 (12) (2008) 2646–2654. ing agencies favor business models that promote a more sustainable development?
[50] Naomi &. Gardberg, Charles. Fombrun, Corporate citizenship: creating intangi- Corporate Social Responsibility and Environmental Management 26 (2) (2019)
ble assets across institutional environments, Acad. Manage. Rev. 31 (2) (2006) 439–452.
329–346. [89] J. Martínez-Ferrero, J.V. Frias-Aceituno, Relationship Between Sustainable Devel-
[52] R. Gibbons, M. Waldman, Task-Specific Human Capital, Am. Econ. Rev. 94 (2) opment and Financial Performance: international Empirical Research, Business
(2004) 203–207. Strategy and Environment 24 (1) (2015) 20–39.
[53] P.C. Godfrey, C.B. Merrill, J.M. Hansen, The relationship between corporate social [90] J. Martinez-Ferrero, I. Gallego-Alvarez, I.M. Garcia-Sanchez, A bidirectional anal-
responsibility and shareholder value: an empirical test of the risk management ysis of earnings management and corporate social responsibility: the moderating
hypothesis, Strategic Management Journal 30 (4) (2009) 425–445. effect of stakeholder and investor protection, Australian Accounting Review 25 (4)
[55] R. Greenwood, M. Raynard, F. Kodeih, E.R. Micelotta, M. Lounsbury, Institutional (2015) 359–371.
Complexity and Organizational Responses, Acad Manag Ann 5 (1) (2011) 317–371. [93] A. McWilliams, D.S. Siegel, P.M. Wright, Corporate Social Responsibility: strategic
[56] M. Harjoto, I. Laksmana, R. Lee, Board Diversity and Corporate Social Responsibil- Implications, Journal of Management Studies 43 (1) (2006) 1–18.
ity, J. Bus. Ethics 132 (4) (2015) 641–660. [95] N. Misani, S. Pogutz, Unraveling the effects of environmental outcomes and pro-
[57] P.M. Healy, A.P. Hutton, K.G. Palepu, Stock Performance and Intermediation cesses on financial performance: a non-linear approach, Ecol. Econ. 109 (1) (2015)
Changes Surrounding Sustained Increases in Disclosure, Contemporary Account- 150–160.
ing Research 16 (3) (1999) 485–520. [96] V. Mistry, U. Sharma, M. Low, Management accountants’ perception of their role
[58] M.E.B. Herrera, Creating competitive advantage by institutionalizing corporate so- in accounting for sustainable development, Pacific Accounting Review 26 (1/2)
cial innovation, J Bus Res 68 (2015) 1468–1474. (2014) 112–133.
[59] C. Hervieux, A. Voltan, Toward a systems approach to social impact assessment, [97] A. Moran, Multiculturalism as nation-building in Australia: inclusive national iden-
Social Enterprise Journal 15 (2) (2019) 264–286. tity and the embrace of diversity, Ethn Racial Stud 34 (12) (2011) 2153–2172.
[60] A. Hillman, G. Keim, Shareholder Value, Stakeholder Management, and Social [98] M.B. Muttakin, A. Khan, N. Subramaniam, Firm characteristics, board diversity and
Issues: what’s the Bottom Line? Strategic Management Journal 22 (2) (2001) corporate social responsibility, Pacific Accounting Review 27 (3) (2015) 353–372.
125–139. [99] M. Nekhili, H. Nagati, T. Chtioui, C. Rebolledo, Corporate social responsibility dis-
[61] J.E. Humphrey, D.D. Lee, Y. Shen, The independent effects of environmental, social closure and market value: family versus nonfamily firms, J Bus Res 77 (C) (2017)
and governance initiatives on the performance of UK firms, Australian Journal of 41–52.
Management 37 (2) (2011) 135–151.
116
[100] A.C. Ng, Z. Rezaee, Business sustainability performance and cost of equity capital, [124] R. Simnett, A. Vanstraelen, W.F. Chua, Assurance on Sustainability Reports: an
Journal of Corporate Finance 34 (10) (2015) 128–149. International Comparison, The Accounting Review 84 (3) (2009) 937–967.
[102] N. Ochi, Reporting of Real Option Value Related to ESG: including Complementary [125] W.G. Simpson, T. Kohers, The Link Between Corporate Social and Financial Perfor-
Systems for Disclosure Incentives, International Journal of Financial Research 9 (4) mance: evidence from the Banking Industry, J. Bus. Ethics 35 (2) (2002) 97–109.
(2018) 19–34. [126] S.K. Srivastava, Green supply-chain management: a state-of-the-art literature re-
[104] I. Oikonomou, C. Brooks, S. Pavelin, The Impact of Corporate Social Performance view, International Journal of Management Reviews 9 (1) (2007) 53–80.
on Financial Risk and Utility: a Longitudinal Analysis, Financ Manage 41 (2) (2012) [127] S.D. Stanwick, P.A. Stanwick, The Relationship Between Corporate Social Perfor-
483–515. mance, and Organizational Size, Financial Performance, and Environmental Per-
[105] C. Oliver, Strategic Responses to Institutional Processes, The Academy of Manage- formance: an Empirical Examination, J. Bus. Ethics 17 (2) (1998) 195–204.
ment Review 16 (1) (1991) 145. [128] C. STONE, D.L. STONE, Factors affecting hiring decisions about veterans, Human
[106] N. Orazalin, Corporate governance and corporate social responsibility (CSR) dis- Resource Management Review 25 (1) (2015) 68–79.
closure in an emerging economy: evidence from commercial banks of Kazakhstan. [129] S. Swami, J. Shah, Channel coordination in green supply chain management, J.
Corporate Governance, International Journal of Business in Society 19 (3) (2019) Oper. Res. Soc. 64 (3) (2013) 336–351.
490–507. [130] N.H. Tien, Leadership in Socially Responsible Enterprises, Ementon Publishing,
[107] M. Orlitzky, F.L. Schmidt, S.L. Rynes, Corporate Social and Financial Performance: Warsaw, 2015.
a Meta-Analysis, Organization Studies 24 (3) (2003) 403–441. [131] E. Van Duuren, A. Plantinga, B. Scholtens, ESG Integration and the Investment
[108] L.S. Paine, Sustainability in the boardroom, Harv Bus Rev 92 (7–8) (2014) 87–94. Management Process: fundamental Investing Reinvented, J. Bus. Ethics 138 (3)
[109] M.L. Pava, J. Krausz, The association between corporate social-responsibility and (2016) 525–533.
financial performance: the paradox of social cost, J. Bus. Ethics 15 (3) (1996) [132] M. Varsei, C. Soosay, B. Fahimnia, J. Sarkis, Framing sustainability performance
321–357. of supply chains with multidimensional indicators, Supply Chain Management: An
[110] G. Pivo, Environment Programme Finance Initi, U, Responsible property investing: International Journal 19 (3) (2014) 242–257.
what the leaders are doing, Journal of Property Investment & Finance 26 (6) (2008) [133] P. Velte, Women on management board and ESG performance, Journal of Global
562–576. Responsibility 7 (1) (2016) 98–109.
[111] Pleon, Accounting for Good: the Global Stakeholder Report 2005, The Sec- [134] P. Velte, Does ESG performance have an impact on financial performance? Evi-
ond World-wide Survey on Stakeholder Attitudes to CSR Reporting (2005) dence from Germany, Journal of Global Responsibility 8 (2) (2017) 169–178.
http://www.pleon.com/fileadmin/downloads/Pleon_GSR05_en.pdf. [135] P. Velte, Does CEO power moderate the link between ESG performance and finan-
[112] M.E. Porter, C.van V.derD. Linde, Toward a New Conception of the Environment– cial performance? A focus on the German two-tier system, Management Research
Competitiveness Relationship, J. Econ. Perspect. 9 (4) (1995) 97–118. Review 43 (5) (2019) 497–520.
[113] D. Prior, J. Surroca, J.A. Tribo, Exploring the relationship between earnings man- [136] W.H. Volberda, F. Van Den Bosch, C. Heij, Management Innovation: management
agement and corporate social responsibility, Corporate Governance: An Interna- as Fertile Ground for Innovation, European Management Review 10 (1) (2013)
tional Review 16 (3) (2008) 160–177. 1–15.
[114] I.D. Raheem, A.K. Tiwari, D. Balsalobre-Lorente, The role of ICT and financial de- [137] R.M. Walker, J. Chen, D. Aravind, Management innovation and firm performance:
velopment in CO 2 emissions and economic growth, Environmental Science and an integration of research findings, European Management Journal 33 (5) (2015)
Pollution Research 27 (2) (2020) 1912–1922. 407–422.
[115] A. Rajeev, R.K. Pati, S.S. Padhi, K. Govindan, Evolution of sustainability in supply [139] Z.DanishD. Wang, B. Zhang, B. Wang, Renewable energy consumption, economic
chain management: a literature review, J Clean Prod 162 (2017) 299–314. growth and human development index in Pakistan: evidence form simultaneous
[117] D. Robinson, K. Dechant, Building a Business Case for Diversity, The Academy of equation model, J Clean Prod 184 (4) (2018) 1081–1090.
Management 11 (3) (1997) 21–31. [140] World Commission on Environment and DevelopmentOur Common future: Brundt-
[120] S. Scalet, T.F. Kelly, CSR rating agencies: what is their global impact? J. Bus. Ethics land report, Oxford University Press, New York, 1987.
94 (1) (2010) 69–88. [141] M. Wu, Corporate Social Performance, Corporate Financial Performance, and Firm
[121] S. Schmidheiny, Changing Course: A Global Business Perspective On Development Size: a Meta-Analysis, Journal of American Academy of Business 8 (1) (2006)
and the Environment, MIT Press, Cambridge, 1992. 163–171.
[122] M. Schminke, M. Ambrose, D. Neubaum, The Effect of Leader Moral Development [142] S. Yeung, D. Chui, Commitment for sustainable development and UN initiatives - re-
on Ethical Climate and Employee Attitudes, Organ Behav Hum Decis Process 97 turns and performance shown, Corporate Ownership & Control 15 (2017) 360–369.
(2) (2005) 135–151. [144] Q. Zhu, J. Sarkis, Green marketing and consumerism as social change in China:
[123] U. Sharma, M. Kelly, Students’ perceptions of education for sustainable devel- analyzing the literature, Int. J. Prod. Econ. 181 (2016) 289–302.
opment in the accounting and business curriculum at a business school in New
Zealand, Meditari Accountancy Research 22 (2) (2014) 130–148.
117

Sustainable Operations and Computers: Dr. Monica Singhania, Dr. Neha Saini

Uploaded by

Copyright:

Available Formats

Sustainable Operations and Computers: Dr. Monica Singhania, Dr. Neha Saini

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sustainable Operations and Computers: Dr. Monica Singhania, Dr. Neha Saini

Uploaded by

Copyright:

Available Formats

Sustainable Operations and Computers 3 (2022) 103–117

Contents lists available at ScienceDirect

Sustainable Operations and Computers

Systems approach to environment, social and governance (ESG): Case of

1. Introduction However, several industries particularly reﬁneries and manufactur-

SYSTEM INPUTS ESG FRAMEWORKDESIGN PARAMETERS COMPONENTS OUTPUTS

INVESTMENT MADE AND SPECIFIC POLICY IN THIS

OBJECTIVE INPUTS STRATEGY OUTPUTS INVESTMENT MADE AND

INPUTS STRATEGY OUTPUTS INVESTMENT MADE AND SPECIFIC POLICY IN THIS

Fig. 2. CSR Spending by Top Indian Companies in INR

Fig. 3. ESG Score of top 10 Indian Companies by CRISIL

Fig. 4. Comparative Sustainability Performance of RIL vis-à-vis top 10 companies

You might also like