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TERI SAS launches M.Sc. (Energy Studies & Management)
Ellectiveness of corporate social responsibility- Community development (CSR-CD) policy of NTPC

Student name: Mr D. Ashok Kumar Patro
Guide: Dr Smriti Das
Year of completion: 2010
Host Organisation: NTPC
Supervisor (Host Organisation): Mr R.K.D. Verma
Abstract: With businesses focusing on generating profits, sustainability was not a popular concern among companies until recently. Now, in an era of globalization, multinational corporations and local businesses are no longer able to conduct destructive and unethical practices, such as polluting the environment, without attracting negative feedback from the general public. With increased media attention, pressure from non-governmental organizations, and rapid global information sharing, there is a surging demand from civil society, consumers, governments, and others for corporations to conduct sustainable business practices. In addition, in order to attract and retain employees and customers, companies are beginning to realize the importance of being ethical while running their daily operations. The corporate response has often meant an adoption of 'a new consciousness', and this has been known as Corporate Social Responsibility (CSR).

As a responsible corporate citizen, NTPC is also committed for people, planet, and power in harmony. NTPC has always acknowledged the contribution of society and its responsibility to pay back to the society. In order to promote Corporate Social Responsibility (CSR) in a systematic manner, NTPC has adopted elaborate policies addressing issues related to CSR. NTPC formulated its CSR-CD (corporate social responsibility – community development) policy in 2004 for which an amount of Rupees 17 crore per annum was earmarked.

The aim of this study was to find out the effectiveness of the activities carried out under CSR-CD policy according to the perception of beneficiaries. The study involved review of NTPC’s CSR-CD policy, government guidelines on CSR, and CSR activities of other corporate houses. The major objective however was to analyze people’s perception about effectiveness of CSR activities of NTPC. This was done through analysis of survey data from various target groups (including local community of Ramagundam, Rihand, Talcher, Vindhyachal projects and NTPC employees who implemented the iii programmes). Along with findings about the scope of improvement, the study recommended that NTPC should conduct a need assessment survey from time to time (every alternate year) in all the affected villages around project stations. Like other organizations, NTPC should also allocate some percentage of net profit instead of a fixed budget (Rupees 17 crore) towards CSR activities.