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Global Corporate Social Responsibility and Sustainable Management

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Global Corporate Social Responsibility and Sustainable Management

Assignment A

Q1: What is social audit and what is its relevance for business organization?

Q2: What do you understand by business ethics and how it is important for the business?

Q3: What do you understand by Sustainable Development? What are its objectives and components?

Q4: Give a brief overview of Dimensions of Social Responsibility.

Q5: Explain the concept of Corporate Governance and show its relation with Social Responsibility of Business.

Assignment B

BHARAT PETROLUEM

Introduction

Bharat Petroleum Corporation Limited (BPCL) is a downstream oil refining and marketing company. The company has its network spread over all the four regions in India and is represented in almost all markets. It caters to different petroleum sectors Liquefied Petroleum Gas (LPG) and Kerosene for domestic consumption, automotive fuels and lubricants for vehicles, and feedstock and fuels for industrial applications. The company also manufacture petrochemicals like Benzene, Toluene, Linear Alkyl Benzene feedstock etc. With a sales turnover of Rs. 25,650 crore and profits of Rs. 701.30 crore in

1999, BPCL is the 5th largest company by sales in India. Its strength lies in an efficient refinery and strong distribution network, which has given it a 20% market share in petroleum products in India. BPCL has a tie up with Shell Petroleum Co. of Netherlands to manufacture and market Shell lubricants in India. In a major expansion move, BPCL is increasing its refining capacity through 3 joint ventures and also adding on to its distribution strength by laying a similar number of pipelines. BPCL is also planning a foray into petrochemicals through a 1.8 million tonnes (mt) naphtha craker plant in Tamil Nadu for around Rs. 7,000 crore and this project is scheduled to go on stream by 2002.

Ecological Concern

BPCL has been continuously striving towards conservation and improvement of the environment by adopting new technologies. In March 2003, BPCL introduced low lead MS (with 0.15 gm of lead per liter) in the country. From April 1996, HSD with a maximum sulphur content of 0.5% by weight, was introduced in the metro cities and in the Taj Trapezium. From September 1996, HSD, with a maximum sulphur content of 0.25% by weight, was introduced in the Taj Trapezium. To meet the requirement of HSD all over the country with the revised specification of maximum sulphur content of 0.25% by weight, from April 1999, facilities for Diesel Hydro De-sulphurisation are being put up in the refinery. Distribution of other low sulphur fuels (which has maximum sulphur content of 1.8% by weight) was started in the National capital region

from October 1996, which ended the use on High Sulphur FO and RFO. BPCL conducted two advertising compaigns of behalf of the industry the first on the importance of LPG conservation and the second on the introduction of low leaded petrol. On the pollution control front, BPCL has set up a special sophisticated plant to meet the stringent standards set by Minimum National Standards for Effluents from Oil Refineries (MINAS). BPCLs emission standards are far more stringent than the limits laid down by the Pollution Control Board. BPCL had also invested around Rs. 220 crore, in pollution abatement and energy conservation systems.

Safety and Social Commitments.

Safety continued to be accorded the highest priority in BPCL both in refining and marketing operations. In 2002-03, its refinery achieved 3 million man-hours without Lost Time Accident (LTA) on one occasion and one million man-hours without LTA on two occasions. The microprocessor based control system as its refinery monitors the operating conditions for safety hazards and the refinery is divided into three separate areas as high risk, low risk and medium risk. Each employee, irrespective of levels, is given fire-fighting training and mock drills are carried out at quarterly intervals for different range fires. Employees are given training on simulators so that they learn by committing mistakes on simulators and not in real conditions. BPCLs Mumbai refinery has a Mutual Aid agreement along with the neighboring 9 industries for fighting major fires.

As a result of higher exposure to various safety awareness programs, there has been a reduction of injuries in BPCLs refinery by 34% for its own employees, and 43% for contractors’ employees, in 1996-97. Moreover the frequency of LTA has come down from 1.5% to 0.6% for its employees and from 5.6% to 1.7% for contractors employees. To enhance safety performance, BPCL introduced ‘safety by walk-around’ concept wherein experienced officers were appointed as safety surveyors and safety sampling was done by senior management staff. It also organized a safety symposium at its refinery in which members from the oil industry, government bodies. Oil awareness on LPG safety, BPCL also screened one-minute films on the safe handling of LPG, on popular TV channels.

BPCL sponsors many sporting events like Santosh Trophy, National Football Tournament, and also coaching camps for youngsters. Lifeline Express was contributed to social welfare a fully equipped train, which look the latest medical technology to remote villages of India. The company has also adopted 11 Scheduled caste/Scheduled tribes villages under the Component and Tribal sub-plan. The facilities provided by the company include community centers, tube/borewells, educational support medical facilities, vocational guidance and training to make villagers self-reliant and improve their standard of living.

Achievements

BPCL was adjudged the winner of the ‘Oil Industry Safety Awards’ for its safety performance being the best among all the “LPG Marketing Organization in 1995-96” for the fourth year in succession. BPCLs annual report for 1994-95 was selected by ICAI as the best presented amongst the public sector/joint sector companies for the second year in succession. The South Asian Federation of Accountants also adjudged the same as the second best presented in the non-financial sector in the SAARC region. BPCL received ISO-9002 certification from Bureau Veritas Quality International (BVQI) for 15 out of its 22 bottling plants. BPCL has also received ISO-9002 accreditation for its refinery, aviation service stations at Mumbai, Delhi, Calcutta and Bangalore depots at Miraj and Mysore and lubricants blending plant at Wadilube.

Q1: What are the Social Commitments of Bharat Petroleum?

Q2: What are the Ecological Concerns projected by Bharat Petroleum?

Q3: Has Bharat Petroleum benefitted from showing responsibility towards the environment?

Assignment C

1. Sustainable development is defined as:

a) Development to deplete the natural resources

b) To completely use up the natural resources by the present generation

c) To degrade quality of human life

d) Development, which meets the needs of the present without compromising the ability of future generations to meet their own needs

2. Sustainable activities are those which

a) Use materials in continuous cycles.

b) Use reliable sources of energy continuously.

c) Use the positive and just side of human personality.

d) All of the above

3. Today’s environmental problems are largely the consequence of

a) Management of Waste Products

b) Sustainable Consumption of natural resources

c) the unsustainable consumption of natural resources and the mismanagement of waste products

d) Re-use and Recycling of products

4. The HDI is computed from:

a) gross domestic production per capita, adjusted for local purchasing power

b) life expectancy at birth

c) Literacy

d) All of the above

5. The positivist approach was studied in terms of

a) Environment Protection

b) FDI

c) HDI

d) GDP/GNP

6. The goal of sustainable agriculture is to :

a) Degrade Environment

b) Increase Pollution

c) Maintain production at levels necessary to meet the increasing aspirations of an expanding world population without degrading the environments.

d) Decrease Productivity

7. Sustainability Indicators include:

a) crop yields,

b) productivity,

c) nutrient status

d) All of the above

8. The major advantage of crop diversification is

a) reduced erosion,

b) reduced soil fertility,

c) maximization of risk, and

d) decreased yield

9. CSR is about how companies:

a) manage the business processes to produce an overall positive impact on society

b) increase profits

c) Harm the environment

d) Have a negative impact on society

10. Companies who are willing to ____ are committed:

a) provide information that is incredible

b) provide information that is ambiguous

c) provide information that is credible

d) provide information that is unverifiable

11. CSR will advance ___ across sectors

a) Profitably

b) Inconsistently

c) Consistently

d) ecologically

12. Assessment of social environment is an integral part of

a) maximization of profits

b) ensuring CSR

c) degrading the environment

d) ensuring political stability

13. The following act deals with welfare of the employees:

a) Factories Act

b) the Employees Statement Insurance Act, 1948.

c) Employees Provident Fund

d) All of the above

14. Social accounting is:

a) the systematic assessment and reporting on those aspects of a company as activities that have a political impact

b) the systematic assessment and reporting on those aspects of a company as activities that have an economic impact

c) the systematic assessment and reporting on those aspects of a company as activities that have a technical impact

d) the systematic assessment and reporting on those aspects of a company as activities that have a social impact

15. The Social Income Statement is divided into:

a) Social Benefits and Costs to Staff

b) Social Benefits and Costs to Community

c) Social Benefits and Costs to General Public

d) All of the above

16. The socio-economic operating statement should be prepared

a) along with the temperature of the place

b) along with the financial statements of the company

c) along with the political statements

d) along with the technical statements

17. Social audit refers to

a) the process involving a retrospective review of the impact or contribution of a company to the recognized political dimensions

b) the process involving a retrospective review of the impact or contribution of a company to the recognized technical dimensions

c) the process involving a review of the impact of a company to the recognized social dimensions

d) the process involving a retrospective review of the impact or contribution of a company to the recognized economic dimensions

18. ITC has set up ____ to fulfill its CSR

a) CFC

b) GHG

c) e choupals

d) All of the above

19. Ethical behavior is:

a) a short term strategy

b) a Long term strategy

c) a short and long term strategy

d) a medium term strategy

20. Morality is the standard

a) which individual or group determine about deciding what is right or wrong and good or evil

b) which individual or group determine about deciding what should be done

c) which individual or group determine about deciding what gives highest profits

d) which individual or group determine about deciding what brings dissatisfaction

21. Business Ethics concentrate on

a) on profitable standards as they apply to business policies, institutions and behaviour

b) on moral standards as they apply to business policies, institutions and behaviour

c) on political standards as they apply to business policies, institutions and behaviour

d) on technical standards as they apply to business policies, institutions and behaviour

22. Free markets are justified from ethical point of view because

a) they allocate resources and distribute commodities in ways that are just

b) they maximize the economic utility of society’s members

c) they respect the freedom of choice of both buyers and sellers

d) All of the above

23. Corporate Governance can be defined

a) as a systematic process by which companies are directed and controlled to enhance their wealth generating capacity

b) as a unsystematic process by which companies are directed and controlled to enhance their wealth generating capacity

c) as a systematic process by which companies are directed and controlled to enhance their space

d) as a systematic process by which companies are directed and controlled to enhance their political contacts

24. Cadbury Committee was set up by ___ in ____

a) Tokyo Stock Exchange, 1980

b) Singapore Stock Exchange, 1985

c) London Stock Exchange, 1991

d) None of the above

25. Naresh Committee was a result of

a) Satyam Fiasco

b) Enron Fiasco

c) Arcelor Mittal amalgamation

d) Microsoft emergence

26. To be a public enterprise

a) Government should have no role

b) Government should have 51% ownership of shares

c) it should be set outside the country

d) It should be privately owned

27. Characteristics of a Socially responsible firm are:

a) Stuck to the basics and produced only high quality goods and services for specific market niches

b) Firmly practiced the dual principles of self-management and decentralization

c) Constantly solicited feedback from customers on all subjects from product direction to corporate donations

d) All of the above

28. Social audit is an outcome of (in increasing order)

a) Assessment& Evaluation, Identification, Measurement, Reporting

b) Identification, Assessment& Evaluation, Measurement, Reporting

c) Identification, Measurement, Assessment& Evaluation, Reporting

d) Reporting, Identification, Assessment& Evaluation, Measurement

29. Social Audit covers

a) Ethical Issues

b) Equal Opportunity

c) Quality of Life

d) All of the above

30. Which of the following is an unethical practice?

a) Selling Products less in demand in home countries

b) Selling products of use

c) Blue Marketing

d) Selling products at cost price

31. Counterfeiting refers to

a) printing money

b) stealing money

c) violating the patent and copyright of another firm

d) All of the above

32. Grey marketing refers to

a) selling grey coloured products

b) goods are imported and sold through market distribution channels not authorised by the manufacturer

c) Selling bad quality products

d) Selling same type of products

33. Comprehensive Audit tries to

a) measure, verify and evaluate the total performance of the organization including its profitability activities

b) measure, verify and evaluate the total performance of the organization including its technical activities

c) measure, verify and evaluate the total performance of the organization including its economic activities

d) measure, verify and evaluate the total performance of the organization including its social responsibility activities

34. Crisis Management is

a) the art of making decisions to head off or mitigate the effects of an event, when under stress

b) the art of protecting the environment when under stress

c) the art of increasing profits when under stress

d) the art of moving ahead technologically when under stress

35. Triple Bottom Line includes

a) People

b) Planet

c) Profit

d) All of the above

36. People refers to

a) increasing profits

b) harming the environment

c) fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business

d) All of the above

37. Planet refers to

a) Earth

b) sustainable environmental practices

c) Using non renewable resources

d) Polluting the environment

38. Adding ecotourism or geotourism to an already rich tourism market such as the Dominican Republic- is an example of-

a) Reaching untapped market potential

b) misusing the environment

c) Marketing the place to increase pollution

d) increasing profits

39. Which of the following is a criticism of TBL?

a) Division of Labour

b) effectiveness

c) Nationalism

d) All of the above

40. Purpose of Sustainability Reporting is

a) Benchmarking

b) Demonstrating

c) Comparing

d) All of the above

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