CSR at GAIL…

Doing Business Responsibly

India‟s No. 1 integrated Natural

Gas Company

CAGR on PAT over last years – 12%

Consistent achieved “EXCELLENT”

rating since Inception

Ranked by Platts as - no. 1

company in Downstream

Operations globally

Highest domestic credit rating of

AAA from ICRA and CARE

PSEs and CSR - the connect

CSR – Not new to PSE‟s

– intrinsic part of their

very philosophy

Practiced as part of

R&R and Community

engagement

Only over last few

years – recognized the

need to give CSR a

structured format

The GAIL CSR Journey…

•Limited to feel good activities in neighborhood areas

•Responding to immediate needs

1980’s &

1990s

- CSR incorporated in the company’s Vision

- CSR Policy adopted

Early 2001’

s

Distinct Shift towards Strategic CSR

2009 onwards

The transformation of CSR in PSEs

Increased Focus: A Virtual Movement

Guidelines enabling a tangible, formatted agenda

for PSEs

Percentage allocation of PAT as annual CSR budget

CSR parameter in the MoU (5marks) Incentivisation of CSR efforts

Change from one time /stand alone to longer,

impactful and sustainable programmes

2/17/2012 5

From Philanthropy to Project Based Mode

From a loosely practised to structured approach

Assimilation of change…@ GAIL- Quick to respond & adapt to changing

expectations of stakeholders - the

government and community.

- Policy realigned

- CSR Spends have increased almost 4 times

over last 5 yrs - Rs.19 crores in 2006-07 to Rs.

81 crores in 2011-12

- Separate Department since 2003;- Strengthened at C.O. with extended

arms at major work centers

Strategic Moves

Partnering with Institutions

3rd Party evaluation

Standardized procedures

5

An attempt towards transforming lives…

Community Development

Education/Literacy Enhancement

Skill Development/

Empowerment

Infrastructure

Health Care/Medical

Drinking Water/ Sanitation

Environment Protection04%

18%

14%

31%

11%

14%

08%

Annual allocation for relief against Natural Calamities.

CSR POLICY• Board approved policy since 2001-02; Allocation enhanced to 2%

in 2009-10– Non lapsable

• Policy further revised in 2010 following DPE guidelines

• Annual CSR Budget not to be less than previous years‟ allocation

• Predefined allocation of budget to major GAIL work centers

80% in rural/ semi urban areas

• Separate resource allocation for:

-MoP&NG/Govt. Schemes

- Natural calamities & disasters

- Education Trust

- NI/IA Studies

Project based approach – Annualised Funding : Short Term – 6 months to 1 year

Medium Term – 1 year to 2 years

Long Term – 2 year and above –„Flagship programmes‟

2/17/20128 8

CSR Processes

Criteria for selection

Programme identification

For programmes

For NGO Selection

Approval Process

Programme implementation

Programme Evaluation

More recently -

Structured need

assessment by

external parties

Programme identification

Within our

CommunityConsultative mechanism

with State Govt. Reaching out with

their proposals

from local population

Criteria for selection of programme

Systematically done by

Professional Agencies/

Institutions

Proximity from GAIL

offices/ installations Cost vis-à-vis expected

benefits for target groups

Building Trust Capital &

Goodwill among

stakeholders

In sync with Govt Projects

Criteria for selection of

NGO/Implementing partner

Credibility

With Govt/semi-Govt./

Autonomous Bodies/

Capart/National CSR Hub

valid Income-tax

Exemption

Certificate

Annual audited reports for

at least 5 years

Trust/ society under

Societies Registration Act

Founder member :

awardee of some

prestigious awards Association with other PSUs

Established Accreditation

Corporate level

Board level

• Identification by -

Cross functional

CSR Task force at local level

Reviewed by OIC

• Forwarded to C.O.

through CSR

online system

• Examined by

Corporate CSR team

• Reviewed by ED/HoDlevel cross functional Committee

• Recommended progs. are put up to the CSR Sub Committee of Board for approval

Work centre level

A 3 tier Approval ProcessStage -1

Time period: Jan- AprilStage -2

Time period: April-May

Stage -3

Time period: May- June

12

1414

Base line survey conducted

An Agreement is signed for each project between each

executing/ implementing agency & GAIL (India) Limited

to the extent possible

Programme implementation steps

Monitoring/Concurrent Evaluation & Feedback

Documentation for each project

-photographs & videographic coverage

NGO/Partner Interactive Meet

Auditor‟s Certificate after project completion

Quarterly CSR Meet convened – physically or virtually

Online Tracking System

Monthly monitoring of Work Center performance at

Corporate Level

Responsibility Project EIC & Work Centre CSR

heads

15152/17/2012

An annual Evaluation of each project is intended -however, not

taking place everywhere or every year

Selectively - internal audit team carries out an assessment at

major work centres

In addition, Third Party assessment carried out in the past only

at major work centers :

2003-05 Jamia Milia University

2005-07 SoulAce

2009-12 TISS, Mumbai

Reported back to internal CSR Committee & Board Sub-

Committee

Learning's attempted to be assimilated in next cycle .

Evaluation of Projects

16162/17/2012

Span across all Thrust Areas

- based on local requirement

Range from short term (1

year) to long term (3-5 years)

involving commensurate

financial commitment (few

lakhs to over

Rs. 10-12 crores)

Focused over last 2 years in

domain of:

Education

Employment

linked Skill

Development

Medical

Community

Development

Not huge in expans– YET,

intense & sensitive in

approach –carefully chosen

& completely owned.

Our Projects – A Snap Shot

17172/17/2012

Infrastructure development of

Government schools &

augmentation of facilities –

socially & economically

deprived segment.

Setting up NFE centres for slum

children (rag-pickers)

Enhancing facilities in ITIs in

tribal villages in MP & Gujarat

E-Shiksha – basic computer

education through Mobile

Computer Vans

Education

In F/Y 2011-12, Rs. Crs have been spent on __ nos. of Education programmes across India

Bridge/Remedial

courses for school

drop-outs &

academically poor

students of

economically deprived

segment

Specialized residential

coaching for under

privileged students –

for engineering

entrance

examinations.

Scholarships to

students on merit-cum-

means basis through

C&E Trust.

Education (Contd…)

19192/17/2012

Setting up 3 large Skill Schools in MP,

AP, Gujarat

Retain/Facility management,

trade, IT (4000 youth to be

touched)

Skill resource training centres in

partnership with Ministry of Rural

Development – Employment linked

training to BPL rural youth)

IT-training cum employment centre for

visually impaired youth

Mushroom Production, Tailoring,

Blanket weaving centre for

tribal/socially & economically under

privileged women

Empowerment through Skill Training

In F/Y 2011-12, Rs. Crs have been spent on __ nos. of Education programmes across India

20202/17/2012

Enabling primary Health care across

villages in MP & UP through MMUs.

Infrastructural support to District

Rehablitation Centre, Jhabua over last 10

years.

Surgical intervention camps for polio

patients

Eye screening & cataract operations

across villages in Haryana, UP, MP,

Rajasthan, AP & Rajahmundry

Health & Family Planning Camps

Medical/Healthcare

In F/Y 2011-12, Rs. Crs have been spent on __ nos. of Education programmes across India

Setting up of a cancer ward for

under- privileged women &

children in a Government

Hospital

Medical equipment to

Government Hospitals

Setting up of telemedicine

centres

Setting Up Centre of Excellence

for reconstructive surgery,

rehabilitation, community

outreach services and device

development centre

Medical/Healthcare

22222/17/2012

Solar lighting across various villages in UP &

MP (1000 nos. approx.)

Stop water check dams/irrigation facilities

Sanitation facilities – toilets & drainage – UP &

MP

Bio gas Plants in identified villages in MP

Construction of village roads

Drinking water facilities – bore wells, hand

pumps

Infrastructure support for setting up a sports

stadium in Guna.

Projects under other thrust areas

In F/Y 2011-12, Rs. Crs have been spent on __ nos. of Education programmes across India

23232/17/2012

Education :

Centre for Social Responsibility and Leadership, Delhi

Great India Dream Foundation, Delhi

SOS Children's Village, Jaipur

Kumarappa Institute of Gram Swaraj, Jaipur

National Association for Blind

Ramakrishna Mission, Kolkata

District Administration/Government schools

Healthcare/Medical :

Aakar-Asha, Hyderabad

Goutami Eye Institute, Rajahmundry

Wockhardt Foundation, Mumbai

Ratna Nidhi Charitable Trust, Mumbai

Smile Foundation, Delhi

Government Hospitals

Our partners…Range from Small NGOs to Companies to Govt. Agencies.

24242/17/2012

Skill Development :

IL&FS Clusters, Delhi

AROH Foundation, Delhi

Chakriya Vikas Pranali Sanstha, UP

Society for communication and Social Research, Bhopal

Ujjain Foundation Samitee, Ujjain, MP

Pragati Manav Seva Sansthan,Raghogarh, MP

Community Friendly Movement, Delhi

PRAYAS

Drinking Water/Sanitation, Infrastructure, Community

Development

Akshaya Patra Foundation

Bal Sahyog

Natraj Vikas Sansthan

Sulabh Sanitation Mission Foundation

Our partners

A mixed bag of and

Emerging seriousness in the Organization –

attributable to Government mandate

Message driven home that CSR is there to stay

Exposure of Management team across functions

– Greater appreciation of role of CSR.

Growing respect that CSR is an investment in

future with tangible & intangible benefits

Imperative for building a separate CSR cadre recognized

Succeeded in changing the nature of

programmes - Small, isolated programmes

substituted with long term interventions

Structured framework enabled resilience to

external pressure

Confusion over multiple platforms

Scepticism : on credibility/ability of

NGOs

Sustainability of projects

Seen as a fad/bubble

Susceptibility of being used as boundary

management platforms

Absence of mechanism to enable concerted

efforts by PSE‟s – coherent

Road blocks in implementation – where

interphased with Govt. agencies.

Lack of clarity on integration of CSR with

business strategy

CSR jobs considered as „nomination cases‟ –

not in tandem with C&P procedure.

The Road Ahead…

CSR

Focus on fewer but big impactful

projectsAssimilation of

technology in CSR process

Employee Sensitization

Structured and Comprehensive Documentation

Capacity Building for CSR personnel

Interlink age of Sustainability & CSR parameters

Honing Monitoring and

Evaluation Mechanism

Buy In of Internal Stakeholders

Collaboration with other PSUs –Avoid duplication

of efforts

2/17/2012CSR@GAIL

26

CSR..An investment in the futureBeing responsible makes good business sense

garnering Tangible and Intangible benefits.TANGIBLE:

Competitive Advantage.

Infrastructural Progress

Increased income levels.

Increased levels of

EmploymentINTANGIBLE :Value Creation for the Community

Improved Stakeholder Relationship

Employee Attraction, Motivation and

Retention

Trust Building and Risk Management

Brand and Reputation Enhancement

Forging International partnerships