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PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITY AT NTPC LTD. TANDA THERMAL POWER STATION
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ABSTRACT
Corporate Social Responsibility (CSR) has been attracting attention recently by the corporate world worldwide. The corporations discharge their CSR through social development in various ways in varying degree. However the practice of CSR has also attracted controversy and criticism. There are two opposing arguments namely (i) the corporations profit in manifold ways by spending on CSR projects; and (ii) CSR is criticized and opposed in that it makes the corporations deviate from their primary economic roles in doing business. This debate and criticism revolve around the basic objective of the firm. Modern scholars have proposed many different objectives for firms which again are also abound with raging controversy and criticism. This paper attempts to identify the primary objective of a firm from the primary objective of an economy and synthesizes the hitherto different objectives with CSR to get a holistic view. This will not only put the controversy regarding the objectives of the firm to rest but also has interesting implications for the recent corporate social responsibility of business, environmental concerns, and questions the need for a separate theory of public firm as well.
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PREFACE
A debt of gratitude is owed to the employee of CSR department of NTPC who provided invaluable advice and input to prepare this report. In this project I have tried to analyze the policies and practices adopted by the NTPC, Tanda for fulfilling the requirements of the corporate Social Responsibility and have suggested that in which areas of CSR NTPC needs to work. Corporate social responsibility (CSR) as both practice and theory spans a wide variety of issues, depending on what entities are perceived as being stakeholders. One organization may address CSR solely by providing day care facilities for working mothers, while the business down the street has an institutionalized CSR program designed to meet at least some of the most pressing business-related needs of shareholders, suppliers, customers, employees, the environment, and local community groups. Of particular contemporary interest are corporations whose global reach extends from well-heeled shareholders to local settlements in the Third World. The goal is to find the "fitting response" to business responsibility dilemmas through ongoing cultural learning and awareness of the many potential impacts of business decisions on a variety of stakeholders. Businesspersons should "co-create responsibility not by drowning out other sources of light with their own, but by reading wisely, adding their illumination to the wisdom of the community" As well, firms that choose to implement a corporate social responsibility approach should note that this will involve a dynamic learning process, for which this guide is merely one source of information and assistance. Corporate social responsibility is a moving target that cannot be fully "achieved" by one-time activities and decisions. Thus, businesses should approach corporate social responsibility with a view to continual improvement, being alert to new issues and considerations. It is very possible that a firm could adopt the approaches described in this guide today and find itself facing new corporate social responsibility challenges and opportunities tomorrow.
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CONTENTS
SI. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Topic Acknowledgement Abbreviation NTPC An overview NTPC in Indian Power Sector SWOT- Analysis of NTPC Major Highlights of NTPC Awards received by NTPC NTPC TANDA An overview Operational Structure of NTPC HR Vision Corporate Social Responsibility CSR Main Components Benefits of CSR CSR-CD Policy of NTPC NTPCs integrated approach towards CSR NTPCs approach towards Community Development CSR CD programme at national level Objective Of Study Research Methodology Analysis Of Data Graphical Analysis Of Data Findings Limitation of study Suggestion Conclusion Questionnaire Bibliography Page No. 5 6 7 11 15 18 19 20 25 34 45 56 59 70 70 71 72 81 82 84 86 93 94 95 97 98 101
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ACKNOWLEDGEMENT
A project can never exist and thrive in solitude. Project work is never the work of an individual. It is more a combination of use, suggestions and contributions and work involving many individuals. This project also bears the impact of many people. Thus one of the Words often fail to express ones inner feelings of gratitude and indebtedness to ones benefactors, but then it is the only readily available medium through which the undersigned can express their sincere thanks to all those who are associated with the work in one way or the other. Most pleasant parts of writing this report is the opportunity to thank all those who have contributed towards it. The project as it stands today is the sincere contributions of a few spirited individuals and the help of some of my friends. I take this opportunity to express my sincere gratitude to respected Mr. P.Choudhary Sr. Officer (HR-Establishment) who provided me the opportunity to work on this project. I am sincerely indebted to my mentor Mr. Omprakash (Sr Asst Officer, HRCSR/Rajbhasha) for his outstanding and undeniable considerations. It was he, who always motivated me to give my best to this cause and was always present with the expert guidance and disciplined ideas. I would further like to thank Mr. Pankaj Goyal, Eng.(HR-EDC) for his immense support during my project and for providing me guidance at each stage, full cooperation and encouragement. I would also like to extend my sincere gratitude towards all the staff members of NTPC Ltd., who cooperated with me, at all level during my assigned project. I also show my indebtedness to my institute, LAL BHADHUR SHASTRI MANAGEMENT & DEVELOPMENT STUDIES, Lucknow to give such an opportunity to take up this project and my parents, teachers and friends for their unconditional support.
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ABBREVIATIONS
AUD BOD CC CD CENPEEP CII CORE Ash Utilization Division Board of Directors Corporate Centre Community Development Centre of power Efficiency and Environmental Protection Confederation of Indian Industries Corporate Roundtable on Development of Strategies for Environment CSR CSR-CD DDGS EEG EIA EMG MV NAS NGO NTPC RAP RHQ R&R SPV-A TERI TQM Corporate Social Responsibility Corporate Social Responsibility Community Development Decentralized Distributed Generation and Supply of Power Environment Engineering Group Environmental Impact Assessment Environmental Management Group Mega watt Need Assessment Survey Non Government Organization National Thermal Power Corporation Rehabilitation Action Plan Regional Headquarter Resettlement and Rehabilitation Special Purpose Vehicle for Afforestation The Energy and Resources Institute Total Quality Management
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NTPC
An Overview
National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating company of India. A public sector company incorporated in the year 7th November 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by Domestic Banks, Public and others. Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 2009 data, NTPC is ranked No. 1 Independent Power
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Producer in Asia and 2nd in the world in the Platts Top 250 Global Energy Company list for 2009.
Genesis of NTPC
The Electricity (Supply) Act of 1948 provided for, among other things, setting up of State Electricity Boards (SEBs) in each State, with the responsibility for generation transmission and distribution of Electric Power. In 1975, the above act was amended and the National Thermal Power Corporation Limited (NTPC) for formed. This was done with a view to supplement the efforts of the States for quicker and greater capacity addition. The mandate given to this new entity was planning, promoting and organizing integrated development of Thermal Power (including Associated Transmission Systems) in the country. The transmission business was transferred from NTPC to POWERGRID, a Govt. of India Enterprise. POWERGRID was established in the year 1989 under the Indian Companies Act 1956 with an initial authorized share capital of Rs.50, 000 million.
The Company
NTPC, the largest power Company in India, was setup in 1975 to accelerate power development in the country. It is among the worlds largest and most efficient power generation companies. In Forbes list of Worlds 2000 Largest Companies for the year 2007, NTPC occupies 411th place.
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Core Values of NTPC ( BCOMIT ) Business Ethics Customer Focus Organizational & Profeessional Pride Mutual Respect & Trust Innovation & Speed Total Quality for Excellence
NTPC VISION
To be the worlds largest and best power producer,powering Indias growth.
NTPC MISSION
Develop and provide reliable power,related products and services at compettive prices,integrating multiple energy souces with innovative and eco-friendly technologies and contribute to society.
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Growth Of NTPC
NTPC's core business is engineering, construction and operation of power generating plants and also providing consultancy to power utilities in India and abroad. NTPC has installed capacity of 31704MW. It has 15 coal based power stations (23,395 MW), 7 gas based power stations (3,955 MW) and 4 power stations in Joint Ventures (1,794 MW). The company has power generating facilities in all major regions of the country. It plans to be a 75,000 MW company by 2017.NTPC has gone beyond the thermal power generation. It has diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. NTPC is now in the entire power value chain and is poised to become an Integrated Power Major. NTPCs share on 31 Mar 2011 in the total installed capacity of the country was 19.1% and it contributed 28.6% of the total power generation of the country during 2010-11. Today NTPC is genera t
The table below shows that while the installed capacity has increased by 73.33% in the last twelve years the generation has increased by 101.39%.
DESCRIPTION
UNIT
1998-99
2010-11
% OF INCREASE
MW MUs
17,786 1,09,505
30,830 2,20,540
73.33 101.39
ting 30,000 MW mark. [34,854 MW] with plans to generate 218 billion units of electricity during the financial year 2010 -11. 10
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TOTAL CAPACITY
NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organizations in the power business .
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A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in NTPC with the assistance of United States Agency for International Development. (USAID). Compeer is an efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India.. . Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector Maharatna- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize its vision of being one of the worlds largest and best power utilities, powering Indias growth. In November 2004, NTPC came out with its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company with Government holding 89.5% of the equity share capital and rest held by Institutional Investors and Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalization.
Maharatna Status
In May 2010, the Government Of India granted Maharatna status from Navratna status with autonomy to the boards of nine PSEs (later extended to level PSEs) including NTPC. The objective was to turn these selected public sector enterprises into global giants. This status has helped NTPC with the power of 5000 Crore in speed of implementation of power projects, absorption of new technologies and formation of JVs in the core generation as well as support service business. Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector 'Maharatna'- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize its
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Installed Capacity
During the year, a total installed capacity of 34,584 MW in NTPC. In addition, 1794 MW was added through its Joint Venture. Further, one 250 MW unit at Bhilai Expansion Project was commissioned on April 20, 2008 through its Joint Venture Company, NTPC-SAIL Power Company Pvt. Ltd (NSPCL). Thus, the total installed capacity of the NTPC Group has increased from 29,394 MW to 34,584 MW.
7 GAS BASED3,955 MW
15 COAL BASED27,535 MW
6 JV'S3,364MW
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JOINT VENTURES
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WEAKNESS Limited clarity in reporting relationships. Multi layered structured delaying decision making. Essentially functional in nature each working silos leading to resistance to cross functional team work. Risk awareness leading to low level of innovation.
OPPORTUNITIES Aggressive capacity expansion To anticipate competition. Expand generation capacities by putting up thermal and hydro capacities, maintaining the position of a domination generating utility in the Indian power sector. Securing ultra and mega power projects. Broad base fuel mix by considering imported coal, gas, nuclear power, etc. ,with a view to mitigate fuel risks and maintain long run competitiveness. Expand services of EPC, R&M, and O&M activities in domestic as well as international markets. Backward integrate into coal mining and secure long- term sources both in India and abroad. Improve collections by trading, direct sale to bulk customer and active role in capacity allocation in new plants. Forward integrate into the distribution business in India. Development of new businesses:Forming JVs for oil and gas exploration for having full control of fuel supplies. Ash business ventures exploiting domestic market and export potential.
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THREATS
Delayed SEB reforms and continuing financial ill-health. Infrastructural bottlenecks in the form of delays in inter-regional connectivity. Regular pressures on tariffs. Increase in competition in core business from SEB plants and IPPs\CPPs. Mismatch in fuel supply linkages for existing and future power stations. Uncertainties arising out of changes in Government policies. Rising environmental concerns such as emission of Green House Gases, Stack emission and ash disposal. Uncertainty in capitalization of R&D expenditures.
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Global Footprints Bangladesh (1320 MW Project in JV): Feasibility Report for the site at Khulna has been prepared by NTPC and sent to Bangladesh Power Development Board. Sri Lanka (500 MW Project in JV): Joint Venture Agreement (JVA), Power Purchase Agreement and Board of Investment (BOI) agreement has been finalized. JVA will be signed after clearance from Sri Lankan authorities. Bhutan (620 MW Project): NTPC is preparing the Detailed Project Report for Amochhu HEP in Bhutan (620 MW).
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N.T.P.C TANDA
NTPC was set up in the central sector in the year 1975 in response to widening demand and supply gap of electricity with the main objective of planning promoting and organizing an integrated development of Thermal power in India. The stations were initially identified in various pithead locations to achieve the minimum cost in generation and thereby supply electricity to the customers at a nominal cost. Also to realize its vision to become one of the worlds largest power plant and with the discovery of natural gas in various parts of India, NTPC also came up with few gas plants in the country. With the dues of UP electricity board to NTPC increasing every year NTPC came out with the option of taking over poorly performing plants in support of its vision which was the main reason of this plant being a part of NTPC. Originally known as Uttar Pradesh Electricity Board Tanda Thermal Power Project, The foundation stone was laid by,late Smt. Indira Ghandhi,the Prime Minister of India on 21.02.1982. Tanda project was takenover by NTPC from UP State Electricity Board on 14 jan 2000. The plant comprises of Four units of 110 MW each. After the take over the plant load factor (PLF) has raised steadily from 18% to presentlly 92.24%.Tanda is a very old 20
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plant with its first unit commisioned in 21 march 1980 and began its commercial operation in 1jan1990.Now the Stage -2 is to be setup of 840 MW. In line with the HR Strategy of NTPC, the project believes that for achieving top class performance people management and continuous development of its human resources is an imperative. NTPC Tanda is also committed to protect environment through afforestation, emission & efficient control and maximum ash utilization.
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Approach
Tanda is situated at the bank of River Saryu/Ghaghra. 55 Km from Faizabad. 22 Km from Ambedkar Nagar.. 180 Km from Lucknow
For Stage-I : 1953 Acres , For Stage-II : 244.92 Acres Stage IUnit 1 commisioned on 21 March 1980 and commercialized on 1 Jan 1990. Unit 2 commisioned on 11 March 1989 and commercialized on 1 April 1991. Unit 3 commisioned on 28 March 1990 and commercialized on 1 Oct 1993. Unit 4 commisioned on 20 Feb 1998 and commercialized on 1 July 1998
Stage II- It is under process(840MW). Coal Source Fuel requirement Water Source Bharat Cocking Coal Limited (BCCL) Central Coal Field Limited (CCL) Around 7,000 MT per day for stage-I s. GHAGHRA/SARYU River .
Uttar Pradesh, Uttaranchal, Haryana, Himachal Pradesh, J&K, Punjab, Chandigarh, Rajasthan, Delhi.s Tanda Sultanpur Line 1 , 2 & 3 (PGCIL) Tanda Gorakhpur- Line 1 & 2 (PGCIL) Tanda Basti Line 1 & 2 (PGCIL)
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1912.08
2205.73
2516.72
2008-2009
2009-2010
2010-2011
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Total capitalization broken down in terms of debt and equity (Cores of Indian Rupees) for Tanda are presented for the three years in the table below:-
2500 2000 1500 1000 1044.54 500 0 2006-2007 2007-2008 903.55 862.28 1034.05
2056.29
1937.6
2008-2009
The quantity of net energy exported (MU) is presented in the table below for three years:2006-2007 6444.001968 2007-2008 6844.724581 2008-2009 8285.08774
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NET ENERGY
10000 8000 6000 4000 2000 0 2006-2007 2007-2008 2008-2009 6444.001968 6844.724581 8285.08774 NET ENERGY
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Organizational Culture
NTPC TANDA has successfully transformed the working culture of employees who were under electricity boards to adopt a culture of Quality, Safety and Eco-friendly generation and providing healthy and stimulating environment after takeover. NTPC Flag, NTPC Geet, Vision, Mission and Core Values are driving force in entire endeavor to produce and deliver quality power at optimum cost and eco-friendly manner through dedicated team effort and effective systems. NTPC journey on the TQM road is an effort in that direction and quite a few landmark of ISO certification for Quality system, Environment management, Occupational Health and Safety, Health Services, Work place management have been achieved towards over all goal of excellence in business.
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NTPCS MISSION
Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco- friendly technologies and contribute to society.
Make available reliable and quality power in increasingly large quantities at competitive prices and ensure timely realization of revenues. Adopt a broad based capacit y portfolio including hydro power, LNG, nuclear power and non -conventional and eco -friendl y fuels. Plan and speedil y implement power projec ts using state-of-the-art
technologies. Be an integrated utilit y by implementing strategic diversifications in areas such as power trading, distribution, transmission, coal mining, coal beneficiation, etc. Develop a strong portfolio of profitable busines ses in overseas markets including technical services, generation assets, etc. Continuousl y attract and develop competent and committed human
resources to match world standards. Lead fundamental and applied research for adoption of state -of-the-art technologies, breakthrough efficiency improvements and new fuels. Lead developmental efforts in the Indian power sector including assisting state utilit y reforms, policy advocacy, etc. Be a sociall y responsible corporate entit y with thrust on environment protection, conservation. ash utilization, community development, and energy
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ORGANIZATION STRUCTURE
NTPC Ltd. has a 3 tier structure comprising Corporate Centre (CC), Regional Headquarter (five in numbers NCR, NR, SR, and ER & WR) and Stations/Projects. The Board of Director is headed by the Chairman and Managing Director (CMD) and there are six functional Directors, two independent Directors and four Independent Directors. The functional heads at Tanda report to the GM. The detailed organization structure is shown below:
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NTPC Plants
Thermal-Coal based
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 13 14 15 City Singrauli Korba Ramagundam Farakka Vindhyachal Rihand Kahalgaon Dadri Talcher Kaniha Unchahar Talcher Thermal Tanda Badarpur Sipat Total State Uttar Pradesh Chhattisgarh Andhra Pradesh West Bengal Madhya Pradesh Uttar Pradesh Bihar Uttar Pradesh Orissa Uttar Pradesh Orissa Uttar Pradesh Delhi Chhattisgarh Inst.Capacity 2,000 2,600 2,600 2,100 3,260 2,000 2,340 2,310 3,000 1,050 460 440 705 1660 27,535
GAS based
Sr. No. 1 2 3 City Anta Auraiya Kawas State Rajasthan Inst.Capacity 413
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4 5 6 7
Dadri Jhanor
HR VISION
To enable our people to be a family of committed world class professionals, making NTPC a learning organization.
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FUNCTIONS
Employee
relation
section:
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Objectives
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Legal Section
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1.
ORGANISATION CULTURE Organization culture is a unique characteristic of any organization. It can be defined as the shared philosophies, values, assumptions, beliefs, expectations, attitudes, and norms that bind an organization together.
Every individual has some cultural background and when he joins any organization, socialization process takes some time depending upon his agility. Organization also puts efforts to align cultures of individuals with the company. NTPC has taken up several initiatives to address the key cultural issues in the company like NTPC Geet, Logo, and Flag etc. to improve belongingness. Some of the cultural strengths identified in NTPC are: Employees are aware of NTPCs vision and core values There is high organization pride among NTPC employees employees are satisfied with the pay, job content, and job security and employee welfare facilities.
NTPC faces some challenges to overcome cultural barriers that stand in its way for achieving its strategic objectives. The culture barriers like shared values and purposes, information capitalization etc. should be addressed and acted upon.
For nurturing an enabling organizational culture, top people should play the role model for all the employees for actualization of core values. Enablers must have an environment to flourish while disablers must be perished away. Because enablers can create a high-energy organization where sleeping cows can be converted into galloping horse. One should have smell of vibrant atmosphere as soon as he enters the premise of the company. 43
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People come and go, but organization culture once established prevails for very long time. Healthy organization culture always protects whistle blowers and re-aligns the system as soon as a weed starts growing. Organization culture should have a scope to protect the existing one and simultaneously to assimilate new cultural advancement.
2.
PERFORMANCE MANAGEMENT SYSTEM (PMS) (HRMS) can be effectively used to convey such information. There should always be scope of incorporation of suggestions given by different strata of the organization. Existing PMS is not addressing performance orientation and employee development. There was lack of objectivity and transparency in the assessment of performance. So, PMS has been redesigned after exhaustive study conducted by experts. If we are going to become a global company, its value system will play more predominant role. Simultaneously, complacency should also not prevail and constructive competitive environment must be cultivated. Everyone should know that where he stands. Human Resource Management System
3.
REWARDS AND RECOGNITION Rewards and incentives are used by organizations to reinforce desired behavior and performance levels through. The rewards and incentives vary from monetary to non-monetary depending upon the culture and environmental constraints of the organization. In NTPC, generally only promotions have been viewed as reward mechanism. So, NTPC has taken various initiatives to evolve a comprehensive reward and incentive mechanism that is equitable for all employees and includes rewards other than promotions. It has created a separate cell (CARE: Cell for Awards and Rewards for Excellence) to encourage and actualize true spirit of the same. Since most of the employees of NTPC lie in Ego need level in Maslows hierarchy. So, there is a pressing need to properly recognize through appreciation, personal greetings etc. because a pat on the back by senior executive will much more motivate employees.
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4.
CAREER DEVELOPMENT SYSTEM NTPC has taken several initiatives for career development by actualizing job rotation, job enrichment, succession planning etc. While carrying out job rotation and job enrichment, stress should be given to create separate groups of Specialist and Generalist. Career development planning should be done separately for both the groups of specialists and generalists. Group of Specialists should be developed to enhance in depth knowledge of the system, equipment and new technology in their areas. They will be utilized to make effective use of their knowledge to improve the various activities of NTPC. They will be using information technology to share their wealth of knowledge among different projects. They will work as facilitator and promoter of new system rather than working as a technical auditor. Group of Generalists should be developed to explore new markets and how to make effective use of existing infrastructure and other facilities to ensure overall development of different business entities on sustainable basis.
5. KNOWLEDGE MANAGEMENT NTPC has already started working to institutionalize the Knowledge management Function: Knowledge Management process will include creation of Knowledge domain, domain leaders and affinity groups to: Create knowledge categories Capturing & assimilation of knowledge Uploading of knowledge Access to knowledge elements Updating of knowledge database.
6. TRAINING AND DEVELOPMENT NTPC has its HR vision to enable our people to be a family of committed world class professionals, making NTPC a learning organization. In order to actualize our HR vision, training is must for employees at all the levels to sharpen their axe and to acquaint themselves with the latest development in the respective areas. High priority to be given for careful 45
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selection of the participants and it should be ensured that all the nominated members must attend the programmers. With a view to serve the above objectives, NTPC has evolved a comprehensive training infrastructure. If an employee has Will and Skill, he can do any wonder. Normally more stress is given to develop skill through a training programme. So, if the Will is not properly cultivated, skill remains unused and gradually knowledge gained during training, gets fade away. So, NTPC has also started to nourish Will through various attitudinal trainings. 7. MAN POWER PLANNING AND RECRUITMENT: The manpower planning process is a critical input to the recruitment process, manpower placement, redeployment, transfers, career development and promotions etc. In a major shift in new mission statement, NTPC is not only determined to develop its own manpower, it will also put its effort to attract competent and committed human resource to match world standard. NTPC has one of best Man / MW ratio in India and is striving hard to improve it further to attain worlds best standard. Based on various studies conducted, NTPC has achieved man/MW ratio to the extent of 1:1.06 and has plan to reduce it further. There are constant efforts to continuously improve upon this benchmark by undertaking manpower planning exercises and other related practices. To further improve the ratio, there is a need to look at global benchmarks and accordingly macro level benchmarking exercise can be conducted for three categories: Operations, Maintenance and Overheads.
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world withdraw from operating business enterprises, private sector corporations are increasingly under pressure to take a more active role in society, to be good 'corporate citizens'. Despite the currently high profile of the call for corporate citizenship, this is not a new phenomenon. At the end of the 1960s, similar pressure was mounting. In the United States, the Committee for Economic Development went so far as to assert that business has an obligation to help alleviate social problems and meet social needs. But not everyone agrees with this sentiment. Many would avow that solving social problems is the role of government, not the private sector, and that the responsibility of corporations is bounded by the business mission. Social standards change and society expresses these changing
standards in new laws and regulations. In the 1970s, the desire to end discrimination against women and minorities led to various anti-discrimination, equal opportunity and affirmative action laws; the desire to curb pollution and environmental damage led to environmental laws and the establishment of environment protection agencies. So far there has been no similar move to introduce new laws to institutionalize societys contemporary concern with responsible corporate behavior. But a number of government reviews are underway. 47
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Department of Trade and Industry.In general we can project CSR as about how companies manage the business processes to produce an overall positive impact on society.
Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or 48
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Articulating a relevant organizational philosophy and incorporating it into an existing mission, vision and values statements.
Designing an organizational structure with relevant roles to assure the necessary work gets done. The responsibility to keep employees from harm, for example, can be facilitated by occupational health and safety managers; the responsibility to prevent harm to the environment can be facilitated by environmental managers.
Developing and implementing appropriate organizational systems to assure socially responsible outcomes. The responsibility to assure public safety or minimize environmental pollution and waste, for example, can be supported through using a lifecycle product design system; the responsibility to assure ethical behavior can be supported through implementation of relevant audit systems.
Constantly communicating with various public groups to ensure up-to-date knowledge of key social issues. This should include engaging with key stakeholder groups; reporting on social and environmental aims, programs and outcomes as well as financial results; discussing uncertainties as well as stating facts.
Partnering with community sector organizations to further socially desirable goals. For example, the Earthwatch Institute partners with corporations to give managers personal experience of ecosystems operating in field conditions. This experience not only increases understanding of the imperative of good environmental practices but is an excellent example of best practice in management development.
The table below provides a useful model of the why, the how and what of corporate social responsibility:
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Principles
of
corporate Processes
of
of
corporate
social responsiveness
of
scanning environment,
the gathering
companies
are
responsible for earning and maintaining a 'licence to operate' granted by society Principle responsibility:
of
Social programs: formal policies that guide company behaviour and legal compliance, informal company values culture and
companies
are
responsible for solving the problems they cause, and for helping with
corporate partnerships
of
responsible outcomes Source: D. Wood, Business and Society, Harper Collins, New York, 1994
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The power of triple bottom line thinking has even touched traditional market analysts. Late in 1999, the global market analyst firm Dow Jones introduced its new Sustainability Index, which tracks the share market performance of the worlds top 200 sustainability-driven companies. These companies are chosen by assessing their performance on the triple bottom line of economic viability, environmental quality and social equity.
While measures of sustainability are still evolving, the model gaining most adherents is the Global Reporting Index. This joint effort, involving groups ranging from the United Nations to Greenpeace to Amnesty International, has developed a set of measures corporations can use to test their own performance and standards.
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2. The commitment of business to contribute to sustainable development, commonly understood as sustainable development is the ability of the current generation to meet its needs without compromising the ability of future generations to meet theirs. Corporate Citizenship which is based on the concept of the corporation as a citizen, is also frequently used while referring to CSR, and is sometimes interchangeably used.
The interpretation of CSR one makes influences the dialogue between governments, private sector and civil society. This results in different implications among various parties regarding the legitimacy, obligations and impact of corporate social responsibility standards. For example, one has to be careful in understanding and defining the term CSR because it is sometimes mistakenly equated with either corporate philanthropy or simply compliance with law. Since mid-90 the business sector has gradually engaged into many actions, which have been traditionally assigned to the sphere of responsibility of the government, yet due to its 52
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incapacity, business has taken the lead. Participation in such projects has revealed business as a strategic partner in the process of development, in close cooperation with the government and international institutions. In the era of economic globalization, political transition and technological transformation, rapid changes are taking place which are bringing more than three billion people into economies operating on market principles. The private sector has become the main engine of growth and development, something which has raised a number of new and fundamental questions about the role of the private sector in sustainable development, in particular for multinational companies: Can profit-driven companies be expected to play a leadership role in sustainable development? What is the role and interest of business in facilitating greater economic and interest of business in facilitating greater economic participation by people on the margins of society? How can business contribute to improve the quality of, and participation in, child-care, education, health care, training and environmental protection? What is expected of business in setting ethical standards, enforcing laws, tackling crime and corruption and building good governance, all of which can contribute to successful business? . The subject of corporate leadership and reputation in a global economy is in the spotlight as never before. The role of private enterprises and their leaders will pay an increasingly pivotal role in shaping economic, social and environmental progress around the globe. The way in which these enterprises and their leaders will approach this role will have important implications for everyone. What is becoming clear is that the leadership companies of the future will be those that base their missions and corporate strategies around measuring and managing value. Not only building shareholder value-added but as an integral part of that same process also recognizing the potential for building societal value-added. This publication takes an in-depth look at how companies are managing this process of creating share-holder and societal value.
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Business as Partners in Development: Creating Wealth for Countries, Companies and Communities
In the era of economic globalization, political transition and technological transformation, rapid changes are taking place which are bringing more than three billion people into economies operating on market principles. The private sector has become the main engine of growth and development, something which has raised a number of new and fundamental questions about the role of the private sector in sustainable development, in particular for multinational companies: Can profit-driven companies be expected to play a leadership role in sustainable development? What is the role and interest of business in facilitating greater economic and interest of business in facilitating greater economic participation by people on the margins of society? How can business contribute to improve the quality of, and participation in, child-care, education, health care, training and environmental protection? What is expected of business in setting ethical standards, enforcing laws, tackling crime and corruption and building good governance, all of which can contribute to successful business?
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Building Competitiveness and Communities: How World Class Companies are Creating Shareholder Value and Societal Value
The subject of corporate leadership and reputation in a global economy is in the spotlight as never before. The role of private enterprises and their leaders will pay an increasingly pivotal role in shaping economic, social and environmental progress around the globe. The way in which these enterprises and their leaders will approach this role will have important implications for everyone. What is becoming clear is that the leadership companies of the future will be those that base their missions and corporate strategies around measuring and managing value. Not only building shareholder value-added but as an integral part of that same process also recognizing the potential for building societal value-added. This publication takes an in-depth look at how companies are managing this process of creating share-holder and societal value.
Creating the Enabling Environment for Public-private Partnerships and Global Corporate Citizenship
As the role of the private sector becomes increasingly central to global growth, governance and development there is a strong need to ensure that private interest is matched with public good. But neither global corporate citizenship nor public-private partnerships are easy to achieve. One of the main challenges is to create an enabling environment within which these two inter-related activities can flourish.
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single, commonly accepted definition of CSR, there is also no commonly accepted classification of the main components of CSR. Often, CSR is related to:
Labor Security - It includes freedom of association and the effective recognition of the
right to collective bargaining; the elimination of all forms of forced and compulsory labor; the effective abolition of child labor; and the elimination of discrimination in respect of employment and occupation.
Human rights Business practices can profoundly effect the rights and dignity of
employees and communities. The main focus is on developing workplaces free from discrimination where creativity and learning can flourish decent codes of professional conduct, and where a proper balance can be maintained between work and other aspects of our lives. Behaving irresponsibly on the issue of human rights could be costly because their reputation and bottom line is at stake. This is also related to globalization and increasing international trade and the challenge of findings ways of doing business world-wide that respect human rights and social justice and facilitate the appropriate development of the emerging economies. Countries are expected to support and respect the protection of international human rights within their sphere of influence; and sure their own corporations are not complicit in human rights abuses. Paying workers a living wage and protecting them from harassment may cost a little more in the short run, but if it improves morale and reduces turnover then it may still be good for profits after a few years. So socially responsible management practices may contribute directly to profits. 56
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Business standards cover a broad area of corporate activities such as ethics, financial returns, environmental protection, human rights and labor standards. The standards are usually accepted at corporate, business association, industry or country level. The rise of international trade, globalization, and instant communication has led to increasing pressure from various groups for the formation of global business conduct standards. In response to their concerns, different standards have been proposed and created. This has led to many different questions: which standard is the "best" are there any real benefits to compliance with a global standards can a global standard be universal; can compliance with a global standard be audited and if so, who, if anyone, should monitor compliance?
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enabling business framework can be developed to fuel domestic entrepreneurial efforts. Business involvement in community economic development (CED) is the application of a company's core business functions, as well as foundation and contribution dollars, to business endeavors in low-income and underserved communities for the mutual economic benefit of community and company.
Health promotion - The workplace is now recognized as an important setting for health
promotion in industrialized countries, and interest is growing in the wider role that business can play as a partner in health development. Private sector business plays a dominant role as the driver of current global economic development, and globalization is bringing new social and economic challenges. For those concerned with promoting well-being, it is essential that policies and programs are adjusted to address this new reality and that the business community is, as far as possible, engaged as a partner in the promotion of well-being. WHO Director General to the 51st World Health Assembly in 1998, Gro Harlem Brundtland indicated a significant shift in WHO policy towards engaging the private sector when she said: "We must reach out to the private sector... the private sector has an important role to play both in technology development and the provision of services. We need open and constructive relations with the private sector and industry, knowing where our roles differ and where they may complement each other. I invite industry to join in a dialogue on the key issues facing us".
Human Disaster Relief - Companies, in cooperation with public sector, civil society,
and international organizations, have played an important role in supporting humanitarian relief operations. Due to the rising cost, threat and complexity of the consequences of major disasters on society, the key challenge is to go beyond proactive response and to focus on 58
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prevention where CSR framework can help the key players to utilize more development oriented approach.
BENEFITS OF CSR
There are many reasons why it pays for companies, both big business and SMEs (small and medium enterprises) to be socially responsible and be conscious about the interest of the key stakeholders. Companies are now recognizing that dealing with environment and social issues can provide business benefits when reputational risk is high and sustainable competitiveness and development becomes a key strategy. Susan Ariel Aaronson, Senior Fellow, National Policy Association. Examples include:
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In a situation where about half of the worlds 500 biggest economies are corporations, often answerable only to themselves and effectively stateless, then citizens have to rely on corporations own internal values and policies to keep them socially responsible. The critical challenge is to make sure that those values are focused on what is best for the key stakeholders, not just shareholders. The increased power of companies and thus, business leaders leads to ever growing expectations from society in large, that company needs license from society to operate. With the increased power of companies and the spread of privatization, the private sector is gaining a much bigger role and responsibility for economic development. In this context, the bigger the private sector is, the higher societal expectations and responsibility are. This responsibility is not limited to economic issues but must also include social and environmental progress. The key challenge, particularly for companies in transitional and developing countries is the change in the survival mentality and the culture that emphasizes short-term gains at the expense of moral and societal values. Providing products and services ethically and in a socially responsible manner requires a different mind-set. A mind set that puts emphasis on doing things because they are right and not only because they maximize shareholder value.
2. Sustainable Competitiveness
The impact of CSR on sustainable competitiveness can be unbundled in five overlapping elements: A. Enhancing reputation and brands B. More efficient operations C. Improved financial performance D. Increased sales and consumer loyalty E. Increased ability to attract and retain quality employees
To remain competitive, firms, big and small, realize that they must take CSR into consideration, thereby meeting the expectations of the investors, employees, consumers, business partners, and communities. This is particularly challenging for firms in transitional and developing countries. With a broader introduction of CSR and business ethics concepts and its relevance for staying competitive in the global knowledge based economy, there is a real danger that transitional economies and developing countries, unless they address these 60
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issues in a timely and systematic way, could face the risk of social and political unrest thus jeopardizing the development of a market economy and even democracy. CSR must be conceived as an ongoing long-term undertaking; an integral part of corporate competitiveness. The real challenge is how to make CSR a competitive asset. The Turnbull Report, which forms part of the UKs corporate governance guidelines, advises companies to treat reputation in the same way as all other assets. Companies cannot sustain their competitive advantage unless they care for their customers, their products, the environment, and the communities in which they operate. Many companies are adopting CSR practices out of a hardheaded appreciation of their corporate self-interest. It should not be confused with short-term crisis management. For more detail discussion, please see Module 4: Building Sustainable Competitiveness through CSR A. Enhancing Reputations and Brands The business environment is more and more sensitive to firms social, ethical, and environmental performances due to globalization, the communication revolution, knowledge based economy, and mobility of customers and suppliers. Branding and customers loyalty become more critical in Globalized economies, putting additional pressure on careful selection of strategic partners and participants in the global supply and distributing channels. With e-economy, brand loyalty and reputation become even more important. This is probably the single most important and advantageous way for the manufacturers to strengthen their position towards the e-based retails. This makes reputation increasingly central to all the businesses and an important competitive asset whether expressed in the brand value of a large multinational or a local shops reputation for customer service. Stakeholder reputation can be more valuable than brand, because it is more difficult and time-consuming to develop, thus, more sustainable competitors cannot easily mimic this.
B. More Efficient Operations Utilization of CSR framework in corporate business strategy can result in high efficiency in operations, for instance, improved efficiency in the use of energy and natural resources; reduced waste such as reducing emissions of gases; and selling recycling materials. Business 61
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operation also benefits from better human resources. In the human resources arena, work-life programs that result in reduced absenteeism and increased retention of employees often save companies money through increased productivity and by a reduction in hiring and training costs. For example, companies that improve working conditions and labor practices among their offshore suppliers often experience a decrease in defective or unsalable merchandise. A study of 15 large employers conducted by the Medstat Group and the American Productivity and Quality Center found that health benefit programs can increase productivity and decrease company costs related to absenteeism, turnover, disability and health-care claims by 30 percent. C. Improved Financial Performance Business and investment communities have long debated whether there is a positive correlation between socially responsible business practices and better financial performance. Although it is impossible to give a final answer to this dilemma, various surveys and several academic studies have proved the positive correlation. D. Increased Sales and Customer Loyalty A number of surveys and studies have concluded a larger and growing market for the products and services produced by socially responsible companies. While businesses must first satisfy customers key buying criteria such as price, quality, appearance, taste, availability, safety and convenience studies also show a growing desire to buy based on other values-based criteria, such as sweatshop-free and child-labor-free clothing, smaller environmental impact, and absence of genetically-modified materials or ingredients. CSR concerned consumers will probably do better to buy products produced by reputational companies with manufacturing facilities in developing countries which, in order to protect their reputation, have started to use independent monitors in these countries than to purchase a no-name brand.
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Greater job mobility means that attracting and retaining a committed and skilled workforce is vital to business success and there is powerful evidence that a strong track record on social responsibility can help in this.
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risks, such as good corporate governance, business ethics and corporate social responsibility policies and practices. Many countries were able to attract foreign investment and other forms of partnership by offering low cost labor. However, there are cases when this cost saving was achieved through hiring defenseless children, impoverished adults, and other powerless hourly workers. Thus cost saving became a high risk, damage on reputation, and thus eventually a high cost. Reputational risk that arises from irresponsible social and environmental business practices for instance, environmental damages, violation of human rights, and child labor is an additional risk, and doing business with socially and environmentally irresponsible partner brings reputational risk to the company. Therefore, world-class companies started helping their suppliers to adapt similar CSR practices thus reducing reputational and other forms of risk. The UK Ethical Trading Initiative for example aims to ensure that goods are out sourced from supplier in the countries, which respect human rights and provide safe working conditions.
6. Government Support
Many governments give financial incentives for sound CSR initiatives, including environmentally friendly innovations. Companies that demonstrate they are engaging in practices that satisfy and go beyond regulatory compliance requirements are being given less scrutiny and freer reign by both national and local government entities.GOVT.OF INDIA made it mandatory for companies practicing CSR to give 2%-5% in CSR their NET Profit.
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Addressing CSR issues provides a chance to build political capital: to improve the relationship with government and political leaders and officials, to influence regulations, to reshape public institutions on which the company depends, and to improve public image. In order to fully understand the benefits of incorporating CSR guidelines in corporate and national development strategy, it is critical to understand the difference between CSR and narrow philanthropic motives and social services that were traditionally provided by stateowned companies. Another important issue that requires particular attention is the complexity of measuring the benefit and impact of CSR, particularly when the triple bottom line concept is to be implemented.
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NTPC Mission statement on CSR states Be a socially responsible corporate entity with thrust on environment protection, ash utilization, community development, and energy conservation. NTPCs approach towards CSR has also been articulated in the corporate objectives on sustainable power development as stated below: To contribute to sustainable power development by discharging corporate social responsibilities. To lead the sector in the areas of resettlement and rehabilitation and environment protection including effective ash-utilization, peripheral development and energy conservation practices. NTPC is a member of Global Compact, a UN initiative launched by its Secretary General Mr. Kofi Annan and is committed to adhere to its ten principles in the areas of Human Rights, Labor, Environment and Anti-corruption.
NTPC is also a member of Corporate Roundtable on Development of Strategies for Environment (Core) initiated by TERI and confirmed its support for the principles outlined in the Core Sustainability Charter drawn from International Chamber of Commerces Business Charter for Sustainable Development.
NTPC has also adopted the Social Code framed by India Partnership Forum promoted by Confederation of Indian Industries (CII) and UNDP.
NTPC thus follows the global practice of addressing the CSR issue in an integrated multistakeholder approach covering the environment and social aspects.
The environmental concerns include: Environment Impact Assessment, Environment Management Plans, Ash Utilization, Energy Efficiency, A forestation, Decentralized Distributed Generation and supply of power, Rain water harvesting, Energy Conservation and adoption of international standards like ISO-14000. These are administered through specific policy frameworks and dedicated institutional set up like Environment Engineering Group (EEG), Environmental Management Group (EMG), Ash Utilization Department (AUD), CENPEEP, SPV-A, Non-conventional Energy Sources Group etc. 66
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Development, Safety, Adoption of International Standards like OHSAS-18000, Social Security for Old Age, Health, Education, Gender Equality, National Calamity, and special focus on the marginalized section of society during recruitment etc. These are administered through specific policy framework and dedicated institutional set up like R&R cell, Safety Department and respective sections of HR Department.
a)
To promote DDGS through covering the initial risks like cost of feasibility studies for
the entrepreneur/ local communities, b) To facilitate economic self- reliance of physically challenged persons, through
establishing a development centre for physically challenged persons as national resource and development centre c) To organize conservation of the national monuments and cultural heritage sites on
selective basis d) e) To provide relief and assistance during national calamities etc. To facilitate unemployed people in and around the new projects/ old stations in self-
employment through co-operatives / self-help groups f) Any other program/ activity as deemed appropriate by the Foundation.
NTPC also recognizes that generation of power is key to development, particularly in the remote and far-flung places where the power is either not available or is in acute shortage. 67
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The decentralized distributed generation and supply (DDGS) of power could be a plausible solution though it involves initial risk while formulating the project proposal. NTPC has the wherewithal of providing requisite technical support, formulating the project proposal and establishing the feasibility of DDGS on the specific request of an entrepreneur. Yet additional resources will be required to provide risk cover during the formulation of project proposal and establishing feasibility.
NTPC recognizes that in the changing environment of liberalization and globalization, the job opportunities are getting restricted. Thus, in future, the opportunities will depend on the entrepreneur skills and attitude of the individuals. This is more applicable to the section of disabled persons. Hence development of entrepreneurship among disabled persons is key issue for promoting economic self-reliance. Further, additional resources and support will be needed to fructify the entrepreneurship of this marginalized section of society.
NTPC also recognizes the need for conserving national monuments and cultural heritage sites and providing relief in case of national calamities.
The programme of facilitating the unemployed people in and around the new projects / old operating stations, in self-employment through co-operatives / self-help groups may be considered under the national programme. The programme may include provisions for the enabling mechanism such as backward linkage like tying up the input resources and forward linkage like marketing etc. Similar programme may also be included in unit level CD programme.
NTPC proposes to fill this gap through its community development policy at national level by addressing the issue of promoting economic self reliance among the physically challenged persons, covering initial risk at the feasibility study stage for the decentralized distributed generation of power, supporting conservation of national monuments and cultural heritage sites, providing relief during national calamities and any other program as deemed appropriate by the Foundation.
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It should be ensured that the efforts of government were not duplicated and sustainability was maintained. The approach would be towards filling the gaps in the existing governmental programmers and the local needs. The annual plan of action would be formulated after appropriate consultation with the local government officials of the State.
with various stakeholders, receive funds from national and international agencies etc. The Foundation will be the nodal agency for implementing the national level programmers as per the CSR-CD policy of NTPC. The following niche domains of socio-economic development will be covered by the NTPC foundation. 69
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To promote DDGS through covering the initial risks like cost of feasibility studies for the entrepreneur/ local communities, To facilitate economic self- reliance of physically challenged persons, through establishing a development centre for physically challenged persons as national resource and development centre
To organize conservation of the national monuments and cultural heritage sites on selective basis To provide relief and assistance during national calamities etc. To facilitate unemployed people in and around the new projects/ old stations in selfemployment through co-operatives / self-help groups Any other program/ activity related to social upliftment as deemed appropriate by he Foundation.
3. To facilitate the disabled persons in improving the economic and employment opportunities. For this, the foundation will establish an a development centre for physically challenged persons as national resource and development centre for enhancing the economic opportunities through strategic interventions such as
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Extending cover for initial risks like conducting the feasibility studies, market research etc., in case the project is found un-viable. Facilitating micro-financing and/or venture/seed capital for project of economic self reliance and mentoring. Providing requisite support from initial phase of identification of livelihood opportunity till achieving the level of self sustenance. Conducting advocacy and awareness programs for identification of appropriate economic and employment opportunities Identifying and administering the need based vocational/ managerial training programs with clear linkage to livelihood opportunity. Giving preference to small and medium projects covering a group of persons
4. To organize conservation of national monuments and cultural heritage sites on selective basis.
5. To provide appropriate assistance and send volunteers and resources for relief and restoration in the times of national calamities.
6. To facilitate the unemployed people in and around the new projects / old operating stations, in self-employment through co-operatives / self-help groups. The programme may include provisions for the enabling mechanism such as backward linkage like tying up the input resources and forward linkage like marketing etc.
7. To take up or support any other social upliftment programme (in addition to the programmers stated above) at national level as deemed appropriate.
8. To develop and undertake advocacy, awareness campaigns and community outreach programmers in the above areas. To interact with policy makers, regulatory bodies and responding to issues initiated by them.
9. To organize workshops/ conferences/ symposia on the above areas and the related areas.
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10. To interact collaborate and promote partnership with other related national and international agencies/ organization and seek funds/ grants for specific programmers/ projects.
INSTITUTIONAL SET UP
NTPC Foundation
The NTPC Foundation will be governed by The Board of Trustees, details of which are given below: CMD Dir (HR) Dir (Fin) Independent Director Professional with required experience and/ Chairman of Board of Trustee Trustee Trustee Trustee Secretary to the Trust
or with right aptitude and full commitment on an Or Director General honorary basis
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The Development Centre will be located in its own building where, it will develop and maintain basic infrastructure facilities for providing supports like counseling, documentation centre, placement services, vocational training, market research etc. The Development Centre will also consider establishing sub-centers at regional / local level.
Implementation mechanism
Planning & Co-ordination
The NTPC Foundation will be responsible for the overall planning and coordination of CD programmers at national level. The Corporate CSR Group will coordinate with the NTPC Foundation for all related activities.
Reporting
The NTPC Foundation will prepare its annual report. The summary of the report will also be posted on the NTPC website under a dedicated section on CSR. The website will include the policy and the details of CD programmers undertaken etc.
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This part of policy addresses the issue of Community Development in the neighborhood area of operating stations where the same have been completed and closed as per the R&R policy of NTPC. The operating stations include the take over stations. The policy will also be applicable to NTPC managed stations for which the funds will be provided under the station expenses.
Education
To organise Skill Development / Vocational Training and other training programmes to improve the skills and employability of the people, or for enabling people to start IGS. It will include sponsoring people for vocational training, ITI training, computer training etc. Scholarships for the selected local children for studying in schools in NTPC township equivalent to fees charged by schools. Preference may be given to girl child. Supply of Study material like bags, books, stationary etc. Implementation of Quality Circle and 5S in schools, villages, panchayats 74
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Health
To conduct health surveys, identification of health concern, awareness campaigns, publicity printed material / films etc To organize regular immunization programme for children and medical checkup in schools To organise regular health camps like family planning, medical checkup for eye and heart etc. with particular focus on women, children, disabled persons and old age persons.
Peripheral Development:
To augment basic infrastructure facilities like area electrification, community centre, panchayat ghar, water drains, roads etc. as per the need and requirement of local administration based on the need assessment survey to be carried out by the NTPC. To facilitate the creation / up gradation of community health / educational facilities in partnership with the concerned government agencies and the local community. Priority may be given to those schools / primary health centre which are operating but do not have facilities like building, equipments etc. The programmes for providing community infrastructure will be on the basis of bearing one time capital cost for creating such infrastructure and on the basis of written assurance that the operational and maintenance cost of such infrastructure will be borne by the concerned stakeholder like the Government Department / Agency or the Panchayat/ local authority or the community based organizations/ non governmental organizations etc.
Others
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To promote rural sports and organise annual sports meet etc. in the villages by providing the equipments and other facilities. Each station will compulsorily identify a specific day/ week for organising annual rural sports meet.
Sponsoring deserving local sportsman for training and development at national sports institutes. To organize Veterinary camp for the cattle stock. To promote community plantation and forestry programmes. To facilitate the unemployed people in and around the new projects / old operating stations, in self-employment through co-operatives / self-help groups. The programme may include provisions for the enabling mechanism such as backward linkage like tying up the input resources and forward linkage like marketing etc.
In addition, any other programme will be considered under this policy as deemed appropriate by the Head of the Station.
INSTITUTIONAL SET UP
Corporate Centre: The Corporate CSR Group will be responsible for policy matters, and
compilation of information and annual reports. The Corporate CSR Group will also be responsible for designing the training programmes for CSR-CD staff, organising annual CSRCD meet and facilitating the processing of allocation of funds to stations.
Operating Stations: The CSR-CD policy will be implemented through dedicated CSR
Cell under the HR Department. The Head of HR will be over all responsible at Stations.
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population, volunteer with the NTPC Foundation and participate in the relief work in cases of national calamities.
Implementation mechanism
Planning & Co-ordination
The specific programmes will be identified based on the need of communities, which will change from time to time and location to location. The CD Programme will, therefore, be formulated based on Need Assessment Surveys (NAS) for identifying the specific areas of concern. Based on the survey, a detailed programme report will be prepared detailing the need for a CD programme, time frame of implementation and budget. The HR Department at Stations will prepare annual plan for each year. Preference will be given to those activities, for which the State Government/ Local Administration/ Panchayat provides matching budget/ grant. The head of HR at operating stations will be responsible for overall planning and coordination.
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the VDAC. The views of VDAC will be considered subject to provisions of NTPC policy and availability of budget.
regional ED will review the progress of Stations in that region on six monthly basis in RMC. At corporate level, the outcome of the meeting of regional Head of HR will be deliberated for suggesting suitable policy interventions. The Dir (HR) will review the progress on half yearly basis. The details will be presented to the NTPC management regularly. The effectiveness of CD programme will be evaluated through external agencies for providing required feedback and inputs to formulate and improve the programmes in future.
Reporting
Each station will prepare an annual report of community development activities delineating the activities identified, benefits accrued to neighbouring communities and the number of people benefited. The regional HQ will compile and prepare an annual report of the CD activities carried out in the operating stations of that region. The Corporate CSR Department will compile and prepare an annual report for the Corporation. The summary of the report will be published in print and also posted on the NTPC website under a separate dedicated section on CSR. The website will include the policy, the details of CD programmes undertaken and other details.
Allocation of funds
An amount of up to Rs. 17 cores will be earmarked every year for implementation of CSR CD programs as per this policy. The allocation of funds may vary depending on the need and requirement of NTPC operating stations, NTPC foundation and provision for the national calamity in the respective year and 78
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therefore, will be decided on year to year basis. The broad allocation will likely be as follows:
SN 1 2 3
Allocation of funds for the operating stations will be based on the proposals submitted by these stations and the overall allocation of funds. The unutilized amount if any will be carried over to next year under the respective allocated area.
S.NO.
FINANCIAL YEAR
01. 02 03 04 05
BUDGET FOR CSR (Rs.In Lacs) 11.15 14.15 17.00 25.50 30.00
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VILLAGES COVERED UNDER CSR ACTIVITIES 1. Tanda 2. Karim patti 3. Katariya 4. Fathepur 5. Iltifatganj 6. Makhdoom Nagar 7. Bhattpurwa 8. Purwara 9. Puraowa 10. Khairpur 11. Rajaur 12. Rustampur 13. Kakrahi 14. Bhadurpur 15. Hussainpur 16. Sudhana 17. Jaganpur 18. Bewana 19. Gokula 20. Kannora 21. Samhariya 22. Vihara 23. Aasopur 24. Ainwaa chowki 25. Jhagirganj 26. Aalapur 27. Faridpur 28. Ftahegaon 29. Aznaura 80
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RESEARCH METHODOLOGY
RESEARCH:
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. According to Advanced Learners Dictionary of Current English research A careful investigation or enquiry especially through search for new facts in any branch of knowledge.
METHODOLOGY:
The present research work is stratified in nature is based on mainly primary source of data. Therefore following methodology will be adopted to carry out the proposed study.
RESEARCH PROBLEM:
To assess the satisfaction level of villagers of different villages regarding the corporate social responsibility and community development activities done by the NTPC project a Tanda. Type of Research: Type of Data Collected: Data Collection Method: Descriptive Research. Primary Data. Survey.
Data Collection Technique: Structured Questionnaire Universe Of The Study: Sample Unit: Sample Technique: Sample Size: Statistical Tools Used: Sources of data Villages Around The NTPC Project Villagers of Different Villages around the NTPC Project. Convenient Sampling. 60 Bar Diagrams Data have been collected through Employee handbook NTPC Intranet 82
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Methods of data collection Primary method of data collection -Structured questionnaire. Secondary method of data collection -NTPC Intranet, & Employee Handbook. I have done my research, using three types of sources. They are: Survey through questionnaire Referring to books, internet, intranet and study of the various records available in the department Interaction with HR-CSR/RAJBHASHA (Sr.officer) Mr.Omprakash.
SURVEY
I asked villagers of different villages of Tanda through the questionnaire to assess the CSR-CD activities carried out by NTPC Project. The total numbers of sample covered for administration of questionnaire are 60. These numbers are bifurcated as below. Within 4 km Within 8 km Within 12 km83 20 20 20
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ANALYSIS OF DATA
Sample size (60)
S.NO. PARAMETER WITHIN 4 Km 20 1. The surrounding areas have developed due to construction of NTPC Project. 71% Strongly Agree 13% Agree 8% Disagree 7% Strongly Disagree 1% Not Sure 2. The employment opportunities have increased due to the coming of NTPC Project. 74% Strongly Agree 12% Agree 6% Disagree 8% Strongly Disagree 0% Not Sure 3. The Literacy level/Educational level has increased due to the coming of NTPC Project. 63% Strongly Agree 19% Agree 13% Disagree 2%Strongly Disagree 3% Not Sure 4. The Income opportunities have increased due to the coming of NTPC Project. 52% Strongly Agree 13% Agree 14% Disagree 11% Strongly Disagree 10% Not Sure 5. The standard of living of people has increased due to the coming of NTPC Project. 72% Strongly Agree 11% Agree 7% Disagree 4% Strongly Disagree 6% Not Sure 6. The village infrastructure has been developed up to a large 82% Strongly Agree 10% Agree WITHIN 8 Km 20 63% Strongly Agree 22% Agree 8% Disagree 5% Strongly Disagree 2% Not Sure 75% Strongly Agree 10% Agree 7% Disagree 6% Strongly Disagree 2% Not Sure 57% Strongly Agree 21% Agree 17% Disagree 1% Strongly Disagree 4% Not Sure 43% Strongly Agree 15% Agree 18% Disagree 14% Strongly Disagree 10% Not Sure 75% Strongly Agree 13% Agree 8% Disagree 4% Strongly Disagree 0% Not Sure 80% Strongly Agree 12% Agree WITHIN 12 Km 20 51% Strongly Agree 27% Agree 13% Disagree 4% Strongly Disagree 5% Not Sure 64% Strongly Agree 14% Agree 11% Disagree 4% Strongly Disagree 7% Not Sure 59% Strongly Agree 20% Agree 8% Disagree 11% Strongly Disagree 2% Not Sure 39% Strongly Agree 14% Agree 21% Disagree 17% Strongly Disagree 9% Not Sure 61% Strongly Agree 18% Agree 11% Disagree 6% Strongly Disagree 4% Not Sure 74% Strongly Agree 14% Agree
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GRAPHICAL ANALYSIS OF DATA 1. The surrounding areas have developed due to construction of NTPC Project.
1% 7% 8% 13%
2% 5% 8% 22%
5% 4% 13% 27%
71%
63%
51%
within 4km
The above analysis revealed that the surrounding areas have developed, and the people are highly satisfied.
2. The employment opportunities have increased due to the coming of NTPC Project.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
8% 12%
0% 6%
6%
2% 7% 10% 4%
74%
75%
64%
within 4 Km
within 8 Km
within 12 Km
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The outcome of the graph is mostly villagers accept that NTPC project has provided job opportunities to the people of locality and their satisfaction level is high, except a few.
3. The Literacy level/Educational level has increased due to the coming of NTPC 2% Project. 11%
8% within 12Km 20% 59% 4% within 8 Km 1% 17% 21% not sure 57% strongly disagree disagree 2% 3% within 4 Km 13% 19% 63% 30% 40% 50% 60% 70% agree strongly agree
0%
10%
20%
The literacy level/educational level has increased but impact is approx in 6km radius of NTPC Project. Through the data it has been found that few people are not satisfied, while some are confused.
4. The Income opportunities have increased due to the coming of NTPC Project.
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120% 100% 80% 60% 40% 20% 0% within 4 Km within 8 Km within 12 Km 10% 11% 14% 13% 52% 10% 14% 18% 15% 43% 9% 17% not sure 21% 14% 39% strongly disagre disagree agree strongly agree
The response of the villagers shows that maximum people accept that income opportunities have increased, while few are negative respondent, and a few of them not certain about the statement.
5. The standard of living of people has increased due to the coming of NTPC Project.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
6% 4% 7% 11%
4% 0% 8% 13%
72%
75% 61%
within 4 Km
within 8 Km
within 12 Km
The graphical representation reveals that people highly accept that the standard of living has increased due to NTPC project.
6. The village infrastructure has been developed up to a large extent due to the coming of NTPC Project.
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2% 2% within 12 Km 8% 14% 74% 0% 4% 4% 12% 80% 0% 3% 5% 10% 82% 0% 20% 40% 60% 80% 100% not sure strongly disagree disagree agree strongly agree
within 8 Km
within 4 Km
Villagers responses show that infrastructure has developed and people are highly satisfied with the above statement.
7. The Awareness level of the villagers has increased after coming of NTPC Project.
ssssss
100% 80% 60% 40% 20% 0% Category 1 Category 2 Category 3 2.4 4.3 4.4 2.5 0 2 2% 0 2 2% 5% 3 1.8 3.5 7%
According to responses of villagers graph shows that awareness level of the locality has increased up to a large extent after coming of NTPC project. 89
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8. The skills of the local villagers have increased due to the coming of NTPC Project.
within 12km
38%
30%
21%
7% 4% strongly agree
within 8km
46%
31%
10% 13% 0%
within 4km
53%
29%
15% 2% 1%
0%
20%
40%
60%
80%
100%
Graphical analysis reveals that maximum people agree that skills of local community has increased, they are satisfied with the above statement, which is within 4 km area and few do not agree with the statement
9. The health conditions of the villagers have improved after coming of NTPC Project.
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within 12km
59%
17%
19%
2% 3%
strongly agree within 8km 54% 23% 15% agree 7% 1% disagree strongly disagree not sure within 4km 57% 25% 13% 4% 1%
0% 50% 100%
The above analysis represents that health condition of the villagers has increased after coming of NTPC project.
10. The living conditions of the physically challenged persons have improved after coming of NTPC Project.
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within 12km
39%
34%
14% 9% 4%
strongly agree agree within 8km 47% 29% 16% 5% 3% disagree strongly disagree not sure
within 4km
44%
31%
17% 5%
3%
0%
20%
40%
60%
80%
100%
According to the analysis people of villages are less satisfied in comparison to other facilities, and some of them do not agree with this statement, while a few are not sure about it.
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FINDINGS
On the basis of the questionnaire the findings on the above observations are given hereunder:1. Community Development: According to survey almost 77% villagers are satisfied that the locality has been developed and some development activities are still continue so this is the best result for the NTPC Project and company needs to maintain the development level.
2. Employment Opportunity: Through the findings it is revealed that a huge part of the community accept that due to NTPC Project employment opportunities have increased but beyond 8km and up to 12km satisfaction level declines while a few do not agree with the employment opportunities due to NTPC Project.
3. Literacy Level From various villagers of various villages it has been found that the literacy level has been increased due to coming of NTPC Project but mostly in upper class and middle class family so NTPC needs to work on lower class family.
4. Village Infrastructure: Villages infrastructure has been developed upto large extent and the surrounding environment has been developed through NTPC Project and the scenario of locality has almost been changed. Almost 100% respondents accepted this while a quite few do not agree with this.
5. Health Condition: NTPC Project is providing health camp in surrounding villages which is 100% free of cost. The aim is that keep the scenario healthy but due to less awareness about health people are not careful about this. So at every village of our sample it has been extracted that some people are not aware with these programme.
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Limitations of Study
I have sincerely tried my best to prepare this project report in precise manner with accuracy. During the completion of the project the limitation faced by me are as under. As the duration of the summer training was six weeks and the times was the major constraint for carry out study and complete the project on time. As the project required the surveys, interviews, and necessary advice of the executives/ non-executives, the busy schedule of the employees was also constraint for completing the project in the given time frame. The survey of the villagers was to be conducted in different villages and which were geographically separated. The major problem was of language. As the questionnaire was in English, so people were not interested in filling it. In some cases meaning of the question had to be explained to the respondents. People were not willing to give their suggestions on the given topic.
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SUGGESTIONS
As per the above findings it is clear that the NTPC Tanda being a reputed organization is implementing all the applicable CSR-CD Policies and besides that special care is being taken by the NTPC project for protecting the surroundings from pollution. Though NTPC Tanda is managing things up to the mark but still there is scope of improvement in the following areas:
NTPC Tanda is undertaking various Infrastructural developmental works in the surrounding villages and the same is being Handed Over to Gram Panchayat for taking care of those in future. However it is observed that proper care of the Infrastructure is not being taken into account by respective Gram Panchayat and in long turn these may not be of use. Hence the above may be taken up with State Govt. Officials for taking suitable provisions for taking care of the Infrastructure.
It has been observed that Vocational Training was given by NTPC Tanda to many village students in various trades in order to develop skills of the villagers. However after training it is observed that only a few numbers of these persons can only use their skills by engaging themselves in some activities. But the others could not. Hence these students may be given opportunities by engaging them with Contracting Agencies working inside Project area.
Although Awareness level has increased among the villagers of the surrounding areas after the coming of the NTPC Project, however more of it is essential to make the villagers aware of various things particularly in the field of Health care and Sanitation. In spite of these regular diseases are observed among the villagers frequently.
In the area of Education the facilities for preliminary education is found to be satisfactory. However the Higher Educational facilities are not found satisfactory. Hence matter should be taken up with District Officials for developing Higher Education opportunities in the surrounding areas for betterment of Higher Education/Technical Education in the surrounding area. 95
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Also the Physically Challenged Persons of the surrounding areas are seen to be less beneficial in terms of their self development. Although Tri-Cycles, Surgical Operations etc. like facilities are being provided to them from NTPC Tanda, some Income Generating / Self employment Schemes shall also be arranged for these Physically Challenged Persons to make them Self-dependant and will increase their employability. Also considering the large number of PCPs in the surrounding areas, a Rehabilitation Centre may also be opened in the nearby locality.
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CONCLUSION
Under the present global environment, companies are constantly striving to set themselves as globally competitive company. In order to meet the global world standards, the organizations are adopting various methods to make good repute and achieve good standards of recognition. As CSR is acquiring much significance now a days for identifying the companies a good image, NTPC Tanda as a responsible Corporate Citizen has worked upto a well achieved standard for the all round development of the surrounding community. Although these activities have started here recently a few years back, things are getting pace day to day. Presently CSR awareness has not only developed among the employees but also the villagers are also becoming much aware of the circumstances to bring a change in the community life. The Branding concepts are also gaining importance with the changes. In order to bring changes with time, Need Assessment Study is being carried out in a span of 3 years and Impact assessment study is also carried out to assess the impact of the activities being done in the surrounding villages. Such standards not only improve the working of the organization but also help to develop a performing culture in organization. The Social Accountability Standards/norms, which are based on the International Standards set through conventions/universal declaration and International Treaties etc. are also gaining importance now a days and the Standards are very difficult to implement. These Standards are very essential and important for the efficient running of any business firm which is based on Human Resource. The SA 8000 Standard clearly describes not just the accelerating pattern of hostile events but also the basic causes and what has to be done to solve the problem, to ensure that the planetary environment remains habitable for human beings. The above study is the efforts to visualize various aspects of CSR and various CSR initiatives taken by NTPC Tanda in the surrounding areas to bring in a change in social life and improve the life standards o the people. On the basis of the study of the policies of the organization and views taken from the various stake holders including the beneficiary population, it can be very well said that the policies and the practices of NTPC, Tanda is in line with the Standards followed by other contemporary organizations and also the Government of India.
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QUESTIONNAIRE
Respected Sir/Madam,
I am AMBERISH KUMAR TIWARI, a student of MBA (HR) IIIrd Semester of LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT & DEVELOPMENT STUDIES, LUCKNOW. I am conducting a research survey to assess the satisfaction level of villagers of different villages regarding corporate social responsibility or community development activities done by the NTPC project at TANDA. The collected information shall be kept confidential and will be used in the form of statistics and for the academic purpose only. ______________________________________________________________________________
NAME OF PROJECT: 1. NAME OF PERSON: ______________________ 2. FATHER/HUSBANDS NAME: ______________ 3. VILLAGE: _____________________ 4. AGE:__________________________ 5. GENDER: M/F 6. CATEGORY: GENERAL/OBC/SC/ST/OTHERS. 7. QUALIFICATION: ____________________ 8. OCCUPATION: ___________________
DATE:
FAMILY DETAIL:
S.NO 1. 2. 3. 4. 5. 6.
NAME&RELATION
GENDER(M/F)
AGE
QUALIFICATION
JOB
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S.NO. 1. 2. 3. 4.
INCOME
TYPE OF LAND OWNED: Ownership/Leased/Government Patta/Others. HAVE YOU GIVEN YOUR LAND FOR THE CONSTRUCTION OF THE NTPC PROJECT: Yes/No a). If yes, how much land? b). Amount of compensation received in lieu of acquisition of land? c). any benefits received in lieu of the acquisition of land? TYPE OF VOCATIONAL TRAINING ANY OF YOUR FAMILY MEMBER RECEIVE FROM NTPC: Yes /No. a). if yes, then name the trade. TYPE OF COMMUNITY DEVELOPMENTAL ACTIVITIES CARRIED OUT BY NTPC IN YOUR VILLAGE:
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Respond to each statement given below by indicating the degree to which you Agree or Disagree with the CONSTRUCTION OF NTPC PROJECT it in terms following scales:
S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
STATEMENTS The Surrounding areas have developed. The Employment opportunities have increased. The Education /literacy level has increased. The Income opportunities have increased. The Standard of living of people has increased. The Village infrastructures have developed to large extent. The Awareness level of the villagers has increased. The Skill of the local villagers has increased. The Health condition of the villagers has improved. The Living condition of the villagers has improved.
RESPONSE SA A D SA A D SA SA SA SA SA SA SA SA A A A A A A A A D D D D D D D D
SD SD SD SD SD SD SD SD SD SD
NS NS NS NS NS NS NS NS NS NS
ADDITIONAL COMMENTS: Thank you for giving your valuable time and information for filling my questionnaire.
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BIBLIOGRAPHY
Websites: www.ntpc.co.in www.ntpc.nic.in Local intranet of NTPC, Tanda
Records: Records from HR Department of NTPC, Tanda. NTPC Policy on corporate social responsibility. House Journals of NTPC (NTPC News etc.) House Journals of NTPC Tanda (Saryu Suman) HR Manual of NTPC available in intranet. NTPC News Samachar.
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