CORPORATE CITIZENSHIP POLICY OF ONGC

ONGC’s Commitment to Corporate Citizenship Dr. A. K. Balyan Director (HR) Corporate Responsibility An Approach to Business that Embodies Transparency and Ethical Behaviour, Respect for Stakeholder groups and a Commitment to add Economic, Social and Environmental value Corporate Social Responsibility – Importance Globalisation and Associated Growth in Competition  Increased size and Influence of Companies  Repositioning of Government and its roles  War of Talent: Companies Compete for Excellence and Expertise  Growth of Global Civil society activism  Increased Importance of Intangible Assets Basic Drivers Values: Feel responsible not only for Wealth creation but also for Social and Environmental good Strategy: Being more Socially and Environmentally responsible is important for strategic development of a Company Public Pressure: Pressure groups, Consumers, Media, State, Public bodies are pressing companies to be more socially responsible CSR in Developing Countries  Growing Awareness  Key issues Business Principles Consumer Issues Community Issues Labour Standards Corruption Product Safety Human Rights Freedom of Association Energy Efficiency * Source: UN Survey Important (13) Very Important (14) Environmental Issues - ONGC’s CORPORATE CITIZENSHIP POLICY Statement ONGC Group of companies, as responsible Corporate Citizens, shall promote Education, Healthcare and Entrepreneurship in the community and support Water Management and Disaster Relief in the country. Corporate Citizenship Practice • To operationalise the Corporate Citizenship statement, ONGC Group companies shall . Promote community projects selected on the following parameters in the focus areas: – – – Shared contribution by the Corporation and the community; Sustainable impact of the project on the well-being of the community; and Process credibility to enhance the corporate image. • • Support National causes in the focus areas, and Create enduring Values, Satisfactions and Recognitions Financial Commitment ONGC allocates fund equivalent to 0.75% of net profits of the previous year towards SEDP every year. Out of the total, the following allocation are made:  60% towards Corporate programmes, all in the focus areas. 40% towards programmes in and around the Work Centres and operational areas  The Focus Areas Corporate Level: – Disaster relief management – Water Management Projects. Work Centre Level: – – – – Education especially InfoTech Healthcare including drinking water Entrepreneurship schemes Others Disaster Relief Management ONGC’s Cyclone Relief Activities in Nimpada, situated in Puri district of Orissa in 1999: • Rs.8.0 crores contributed towards the Prime Minister’s Relief Fund. • ONGC’s employees donated one day’s salary • Immediate Relief:  Temporary shelters i.e. polythene sheets, tarpaulins, food, medicines, clothing, 10,500 blankets, drinking water.  Round the clock medical treatment by ONGC doctors. Disaster Relief Management Contd… • Reconstruction, rehabilitation, restoration work:  Restoration work under taken  Reconstruction of public utilities viz.primary health centers, dispensaries.  500 BPL (below poverty line) houses constructed and handed over to beneficiaries  30 schools constructed  74 tube wells drilled Disaster Relief Management Contd… • Relief and Rehabilitation of Gujarat earthquake victims: Immediate Relief:  Rs. 7.5 crores donated to Prime Minister’s Relief Fund.  Employees donated one day’s salary  Relief provided in terms of food, medicines, medical help  Provided heavy machinery like cranes, trailors and fire tenders Restoration/Reconstruction:  Associated with Oil PSUs for construction of 800 temporary shelters  Reconstruction of Meghani Nagar, Kanoria school  Construction/Extension of Physiotherapy building at Vadilal Sarabhai Hospital, Ahmedabad • Kargil War Relief:  Rs. 15 crores contributed towards Prime Minister’s Relief Fund ONGC Employees donated one day’s salary 50 posts sanctioned for Kargil War victims Water Management Project Saraswati • To provide sustainable solution to Ground Water Resource Management in North West Rajasthan. Collaborators: • • • • Central Ground Water Board Rajasthan State Ground Water Deptt. Space Application Centre Deptt of Space & Regional Remote Sensing Service Centre • Indira Gandhi Nahar Pariyojna Scope: – Supplying water from Indira Gandhi Nahar Pariyojna for hinterland through lift canals – Recharging available ground water aquifers through rainwater harvesting and canals – Conjunctive use of ground / surface water – Mixing of Saline ground water with canal water to augment supply – Desalination and deflouridation of contaminated ground water PURA - Providing Urban Amenities to Rural Areas • Vision of the Hon’ble President of India • Bridge urban-rural gap through balanced socioeconomic development • Involves identification of rural clusters with growth potential • Aimed to create 4 types of connectivity : physical, electronic, knowledge and economic. • Management of schools, healthcare units, vocational training centres and help build up a market, banking system & regional industrial units. ONGC-PURA • Govt. to set up 50,000 PURA centres across 6 lakhs villages with priority to rural / tribal areas. • ONGC – PURA Trust set up • Partners: Govt., NGOs, Banks, Local community and industry • ONGC-PURA in Tripura, Assam, Nagaland, Andhra Pradesh, Maharashtra & Gujarat Projects Undertaken at Work Centre Level • Education:  Support to Bhartiya Vidya Bhawan for setting up of school and science centre at Agartala.  Establishment of Centre for Research in Petroleum and Biotechnology at Tezpur University in Assam.  Support for establishment of IT Park at Kanchipuram, Tamilnadu.  Support to TERI for corpus fund of Centre for Study of Energy Security and Development in the Middle East  Contribution to Sarva Shiksha Abhiyan  Support to Computer based IT education in schools by providing setting up of Science Laboratories, procurement of Scientific equipments, Computers etc.  Scholarship scheme for SC/ST students  Support for Aganwadis in backward areas Healthcare  Support to Centres of excellence in medical research in the country example: Sankara Nethralaya, Chennai  Contribution for setting up of a 600 bed hospital in Behala, West Bengal.  Contribution towards Latika Roy Memorial Foundation for running a school for mentally handicapped.  Contributed to Conclave on Accelerating the Business Response to AIDS – Partnership and Action organised by CII. • Healthcare:  Medical camps organised by ONGC serve about 10,000 patients residing around operational area annually and around 300400 patients obtain IOL implants done free of cost.  AIDS Awareness activities are conducted through lectures, display boards, exhibition, plays, rallies, dances etc.  Active participation in pulse polio immunisation programme of the Government. More than one lakh children immunized for polio virus through various clinics in the country. • Promotion of Sports:  Supported National Football League and Durand Football Tournament.  Supported National Games held in Punjab  Supported construction of an International Tennis Centre by Bengal Tennis Association, Kolkata Global Compact . • ONGC is a member of United Nations Global Compact Programme. • ONGC a founder member of Global Compact Society India. • ONGC participated in Global Compact Leaders’ Summit on June 24, 2004 at UN HQ, New York. • Participation in meeting of Indian CEOs with UNGC’s office, New York on June 25, 2004.