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PROJECT REPORT
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TABLE OF CONTENTS
1. Introduction
.3
2. Products of
HPCL
..4
3. Triple Bottom
Line
..5
4. Socially Responsible Core
Operations7
5. Stakeholder
Management
8
6. Corporate Social Responsibility
Initiatives9
7. Global
Compact
.14
8. Awards &
Achievements
16
9. Competitor
Analysis
.17
10.
Controversies
19
11.
The
Change
..21
12.
References
.22
13.
PRODUCTS OF HPCL
Self sufficiency of product which will entail expansion of refining capacity in line with
marketing demand as per Target Shikhar.
To improve the marketing and refining operational efficiency by focussing on energy
conservation and other innovative measures.
Renewed focus on customer delight. Ensure sound financials for supporting business
growth.
Develop capabilities of employees to meet the stated objectives. HR will work as a
strategic partner in sourcing and developing talent in meeting the above objectives.
Technology will be leveraged in a big way. HPCL is focused on inclusive growth and
takes its CSR with utmost seriousness.
Make inroads into new business lines viz. LNG, E&P, Renewables.
HPCL maintains high standards of safety, health and environmental care at all the locations
where it operates, ensuring that increasing scales of operation have no negative impact on
the standards of safety, health and environment. It also never fails to lose sight of its long
term goal of zero occupational injuries, operational incidents. HPCL is committed to
conducting business with a strong focus on preserving the environment, sustainable
development, safe work place and improving the quality of lives of all its stakeholders mainly
employees, customers and the community. Established systems and procedures are revised
constantly for continual improvement.
Planet
Environmental emissions:
Investment of 100 MW in wind farm capacity to tap the vast wind energy potential and
as a move to shift towards renewable energy sources.
The first phase of this farm has already been commissioned and it has generated over
560 lakh units of electricity in 2013-14.
Project Utkarsh implemented at floor level in all LPG plants across India. HPCL uses
techniques like six sigma, quality circle and total productive maintenance. It has
resulted in reducing the no. of low performing plants from 13 to 3.
Launch of green R&D centre at Bangaluru which has been launched to keeping in mind
research laboratories for crude evaluation & fuels research, hydro processing, catalytic
cracking, catalysis, process modeling& simulation, bio processes, standard testing. It
will adhere to eco-friendly design norms.
People
Human Rights
At HPCL, all the stakeholders and not just the employees are given importance. HPCL
has the taken the following measures towards the same:
HPCL is a signatory to the UNGC Global Compacts ten principles
An approved policy for handling grievances of employees, shareholders and
customers
Mechanisms to address issues raised by various business partners
Induction training of all employees to make them aware of their rights and
responsibilities which includes Companys policy on human rights and procedure
to report and address grievances
All security guards receive training on human rights
Avoidance of child labour
Compliance to all applicable labour laws
To improve customer experience HPCL has initiated project JiHaan Samarth.
Under this program HPCL delivery men will be trained on behavioural and
technical aspects and regional languages to enhance customer experience.
It has introduced intercompany LPG portability in 24 cities across 14 states
Employees
Working towards a more balanced male female ratio more work to be done
Employee
Category
Senior
Management
Middle
Management
Junior
Management
Nonmanagement
On deputation
Total
As on 31st March
2014
Male
Female
65
3
As on 31st March
2013
Male
Female
63
3
Female
3
1027
41
888
28
803
27
3727
426
3766
421
3818
411
5191
390
5456
396
5694
400
10016
861
10178
849
10385
841
6
% of Total
Employees
7.92%
7.70%
7.49%
Currently the women employees constitute only 8% of the total workforce. However, the
company has been making substantial efforts keeping this in mind. 22% of the fresh recruits
in the last 5 years were women.
Independent assurance conducted by Emergent Ventures India Pvt. Ltd. (EVI) to conduct an
assurance of the Corporate Sustainability Report for the year 2013-14.
HPCL Response
Properly reducing geo-political risks connected with sources of
crude by diversification of procurement base and entering into
long-term contracts.
Occupational Health
and Safety
Disaster Management
and Preparedness
Water Management
Awareness on
sustainability
Being an Oil & Gas company with operations across the country, it
is most important to address risks and opportunities arising from
various aspects of sustainability. Over 700 stakeholders have been
trained in the year 2013- 14 on sustainability issues.
Stakeholde
r
Attribut
es
Manageme
nt
employees
Legitima
cy,
Power
Nonmanagemen
t employees
Legitima
cy
Dealers,
suppliers
Legitima
cy,
Power,
Urgency
Contract
Workers
Legitima
cy
Type of
HPCL
Engageme
Response
nt
Regular
Periodic
interaction
meetings
Awareness
(Initiative
Trainings
Yuvantage)
Regular
medical check
ups
Regular
updation of
skill sets of
employees
(Project
Akshay)
Regular
Periodic
interaction
meetings
Awareness Consultations
on safety etc
Meetings
Regular
on business meetings to
related
increase
issues
transparency
Pre bid
Meetings to
meetings
facilitate clear
Feedback
understanding
and training Training
programs
Regular
interactions
Training
programs
Medical
help
Formal
grievance
mechanism
Programs on
safety and
operational
aspects
Health check
ups
Impact
Transporters
Legitima
cy,
Urgency
Customers
Legitima
cy,
Urgency,
Power
Email
communicat
ion
Regular
interactions
Formal
feedback
Launch of
commercials
Local
Community
Legitima
cy
Regular
interactions
Updating their
knowledge base
Formal
grievance
mechanism
Customers are
empowered to
rate their
respective LPG
distributor
Launched
commercials on
safe usage of
LPG
Awareness on
health and
safety aspects
Need based
projects
identified by
CSR Department
Improvement in goodwill
Building stronger relations thus
making communities a part of the
HPCL family
STAKEHOLDER MANAGEMENT
Engagement with stakeholders at HPCL is an active and a continuous process. HPCL identifies
the concerns of the stakeholders and addresses them proactively so as to create shared
value. The stakeholders identified by HPCL, the medium of engagement, the concerns of the
stakeholders and the response of the organization are given as follows:
CSR INITIATIVES
HPCL has been receiving excellent rating based on the Memorandum of Understanding
parameters assigned by the company with the Ministry of Petroleum and Natural gas in which
a significant weightage is assigned to the environmental and social performances. HPCL
received the highest score among PSUs under the ministry of petroleum and natural gas for
the second consecutive year. HPCL has entered in to partnerships with various NGOs and
other organizations in the field of education, health care, local community, livelihood etc to
have a positive impact on the lives of the people in the community.
10
12
Locations: Rajkot
Cause: HIV AIDS Awareness programs thru Khushi Clinics located in HP Retail Outlets
for Long Distance Truckers
Name of the Project: Health services in Rural Areas thru Medical Mobile Vans
Implementing Partner: Wockhardt foundation
Sushrut Hospital
13
A majority of rural population and approx 31% of urban homes in India depend on fuels from
traditional ways (fuel wood, animal and crop waste and charcoal) for cooking. This adversely
affects humanproductivity when more time is spent on gathering diminishing fuel-wood
sources and also when people, mainly rural women, are exposed to health hazards due to
high concentration of particulate matter from inefficiently burnt biomass fuels.
The need for more efficient cooking fuels has been increasingly gaining attention. LPG is
recommended both for its higher efficiency and much less environmental impact than most
other commercial alternatives.
However, the use of LPG in rural areas is only 5.67% due to low purchasing power inability to
pay upfront charges for cylinder deposits and onetime payment of refill charges, local
availabilitywhich make LPG inaccessible to rural people.
Skill Development
Lighting a Billion Lives(LaBL) - The LaBL program set up solar charging stations in villages
that offer certified, bright, solar lanterns for rent to the local people. The charging station
consists of 50 solar lanterns and charging panels. A trained local entrepreneur manages the
charging station and leases the solar lanterns every evening for very affordable fee.
Uttrakhand Flood relief: HPCL employees and their family members contributed
basic necessities such as blankets, medicines and food items.
Toy Distribution: About 450 less privileged children of Mankhurd Childrens Home
were distributed toys.
Blood donation: A blood donation camp was organized by HPCL and active
participation was seen by all its employees
Marathon: HPCL associated with Standard Chartered Mumbai Marathon. Some
employees supported ADAPT, an NGO working for disability rights and action, by
escorting children on wheelchair for 2.5 kms. Some employees participated in other
race categories to help ISHA foundation raise funds for schools in rural areas of South
India.
Walkathon: HPCL employees participated in an all charity walkathon event in Mumbai
held on 2nd October 2013 at BKC, which was held by British Deputy High Commission.
With the aim of recognizing outstanding performance of the nonexecutive staff, HPCL
initiated HP Gaurav award and 79 non-executives were conferred with the award in
the year 2013-14.
HPCL initiated a program called Yuvantage to blend the energy of youth with the
experience of maturity. Many events like Talking Point, balloon house, HP got talent,
etcwere conducted and it saw active participation by all the employees.
Promoting Sports: An all-India annual sports meet was held and a total of 2500
employees and their family members participated in the same. As a part of their CSR,
they provide scholarship to promising boys and girls who can rise to international
standards by giving financial assistance. A total payment of Rs. 47 lakhs was made to
these players. Besides, many cash awards and stipend are given to HPCL employees
children.
Gardening and landscaping activities: HPCL carried out a biodiversity survey of
flora and fauna and arranged identification tag for the benefit of the children residing in
the colony. Their efforts were recognized by BMC and The National Society of the
friends of the trees.
HPCL has taken an initiative to send e-circular instead of conventional hard copy
circular. This is helping the environment and is addressing MDG of ensuring
environmental sustainability.
The key stakeholders involved in the above employee engagement activities are employees,
families of employees, local community and NGOs like ADAPT and Isha Foundation.
GLOBAL COMPACT
The United Nations Global Compact is an initiative to encourage businesses worldwide to
adopt sustainable and socially responsible policies, and to report on their implementation. It is
15
a principle based framework for businesses stating 10 principles related to human rights,
labour, the environment and anti-corruption. Various global compact principles are addressed
in HPCLs mission statement.
The principles involved in global compact are as given below:
Principles
Statements
Principle 5: Labour
Principle 6: Labour
Principle 7: Environment
Principle 8: Environment
Undertake
initiatives
to
environmental responsibility
Principle 9: Environment
promote
greater
diffusion
of
HPCL has taken following actions to adhere to the principles of global compact:
1) Businesses should support and respect the protection of internationally proclaimed
human rights
Action taken: The organization supports and ensures that there are no violations of
internationally proclaimed human rights.
2) Make sure that they are not complicit in human rights abuses
Action taken: HPCLs conduct, discipline and appeal rules which are applicable to
management employees and standing orders applicable to non-management
employees are designed in a manner to take care of the human rights compliance.
HPCL has an approved policy in place for handling grievances of employees,
stakeholders and customers.
3) Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining
Action taken: HPCL has established practices and policies which allow the employees
to exercise the freedom of collective bargaining on the common issues. The issues are
resolved through signing of long term settlements between unions and the
management. HPCL strongly believes that it is a right of an employee to know about
the organization. Thus organization performance, growth strategies and future plans of
the organization are shared with everyone from time to time.
16
HPCL has its ranking of 284th position during 2013-14 in the prestigious list of Fortune
Global 500.
HPCL has been awarded with the Golden Peacock 'Special ' Award for Corporate
Social Responsibility during the 8th International Conference on Corporate Social
Responsibility.
The most prestigious award recognizing the commitments of Corporates for the
development of Society) was conferred to HPCL on 7th March 2014. HPCL is the only
winner in the PSU category.
C&MD, Ms Nishi Vasudeva has been awarded the FICCI FLO Exceptional Women
Achievers (EWA) Award 2014, the achievements of women who have excelled in their
own field and are icons of inspirations for the society.
HPCL Director V. Viziasaradhi has been awarded with the HR Leadership Award' ,2011
in the Asia's best employer brand awards, World HRD Congress and Stars of the
Industry Group with CMO Asia as a strategic partner.
Received prestigious Green Tech GOLD Award for 2008 for sixth consecutive year under
the Environment Excellence Category., New Delhi recognizes the corporation's
excellent recognizes the corporation's excellent track record in implementing
innovative ideas for environmental protection.
Visakh refinery won the first prize of National Energy Conservation award in Refineries
Sector for best Energy performance for the year 2006-07 from Bureau of President of
India. Visakh Refinery is the only refinery awarded first prize in this category so far.
COMPETITOR ANALYSIS
Major competitors for HPCL in India:
BPCL
Bharat Oman
Bharat Petro JPD
Bharat Petrores
Black Gold Refinery
Bongaigaon Refinery
CPCL
Essar Oil
IOCL
MRPL
Nagar.Oil Refinery.
Nagarjuna Oil
Nandan Petrochem
Numaligarh Refinery
ONGC
Raj Lubricants
Raj Petroleum
Reliance Industries
Reliance Petro.
Southern Refinery
Trinity Tradeli.
Valvoline Cummin
18
Initiati
ve
ONGC
IOCL
HPCL
BPCL
Sport
s
Environme
nt &
community
developme
nt
Heritag
e&
Culture
Global
Comp
act
Chil
d
Car
e
Educat
ion
Health
Care
Skill
Develop
ment
The table below provides a comprehensive database of major CSR activities and the vertical
they are undertaken in:
Inititat
ive
ONGC
Chil
d
Car
e
NO
Educati
on
NO
Health
Care
NO
Skill
Development
ONGC-GICEIT
Computer
Centre; Project
Utkarsh
Spor
ts
Environment &
community
development
Herita
ge &
Cultur
e
ONG
C
sport
s
Varisthajana
Swasthya Sewa
Abhiyan;Harit
Moksha;ONGCNSTFDC Hathkargha
Prashikshan;ONGCEastern Swamp
Deer Conservation
Project in Kaziranga
National Park
NO
19
IOCL
HPCL
BPCL
NO
Scholors
hip
Scheme
Akshay
Patra,ADAPT,U
nnati,Nanhi
Kali
Rajiv
Gandhi
Institute
NO
of
petroleu
m
Sachal
Swasthya
Seva,
Hospitals
ITC,Digboi;Nursin
g
School,Digboi;Ind
ianOil Multi-Skill
Development
Institute, Digboi;
Shikshak
Dakshyata Vikas
Abhiyan
NO
Swachh Vidyalaya
Abhiyan
IOF
Dil without
bill,
Suraksha,
Wockhardt
Swavalamban
HPCL
sport
s
NO
NO
No
BPCL-SEWA
NO
Counselling, Project
Boondh,Swach
Bharat
NO
While we have a list of sectors and initiatives that this companies have taken, it becomes very
important to know what results have come out from genuine concern and not out of
mandatory requirements. As such a concern is very ambiguous to evaluate, we have taken a
parameter which we thought will best bring out the desired result.
We collated a table of data prior to the law that forces companies above 500 crores revenue
to spend on CSR activities and got following results:
Sr.No.
Comp
any
1 ONGC
CSR
Spendin
g
121.08
2 IOCL
82.73
3 HPCL
26.54
4 BPCL
7.76
Total
%
profits(PAT)
0.639822
448
18924
1.111215
581
7445
1.724496
426
1539
0.501616
031
1547
20
The table point out a very important fact that while ONGC & IOCL both belittle HPCL in
absolute terms of CSR spending, when it comes to % of PAT,HPCL had of trend of spending 2%
even in 2011-12 when a law was not in force.
A Broader Context
Following are top 10 CSR companies:
1. Tata Steel
2. Tata Chemicals
3. Mahindra Group
4. Maruti Suzuki
5. Tata Motors
6. Siemens
7. L&T
8. Coco-cola
9. SAIL
10.Infosys
A noteworthy fact is that none of the oil companies feature in the list, while only one PSU cuts
through the competition and so is the state of service sector companies. The trend generally
points out to the fact that traditional companies are strong spenders in CSR vis-a-vis service
companies. Also the list points out to the fact that CSR spending traditionally has been highly
dependent on companys culture which is very evident in the fact that 3 companies from the
same group figure out in top 10.
21
CONTROVERSIES
1. Issues involved in the HPCL/BPCL disinvestment :
The major controversy with the HPCL, BPCL disinvestment is that, these units running
profitably but they belong to the oil sector which is a sector of strategic importance to
the country.
The government had taken the advice of the Advocate General and said disinvestment
of government equity in the two entities did not require parliamentary sanction. The
government proceeded to disinvest the two companies. This decision to sell the oil
majors was challenged and petitions were filed in public interest directly before the
Supreme Court under article 32.
The court accepted the contention of the petitioners that the two oil companies cannot
be privatized through an order, overriding a Parliamentary legislation creating HPCL and
BPCL in 1974. The Supreme Court verdict, making it mandatory to get a parliamentary
approval had come at a time when Reliance group had already made its intentions of
purchasing HPCL shares more than clear.
22
We saw that in HPCL, they have a number of initiatives in the field of local community
issues; there is still a long way to go:
HPCL does not conduct any activities which focus on preservation of heritage and
culture whereas its competitor IOCL does.
The no. of female employees is hardly 8% of total employee strength. The figure can be
improved with focused measures in recruitments and retention of employees.
Many of the programs like Adapt in Mumbai (for disabled children), Childline in Delhi,
Mumbai, Kolkata (to curb human trafficking and child labour), Nanhi Kali in 7 cities
(gender equality issues) and other programs have only been launched at a few places a
of now. These should be emulated to the other cities too to have a scalable, overall
impact.
HPCL has the Childline project in Delhi and Kolkata but not on gender equality (Nanhi
Kali), miid day meals (Akshayapatra), etc which also are issues that need to be dealt
with. HPCL having the backing of being PSU can leverage that reach and power and
should provide for more schools in more areas.
23
References:
http://www.hindustanpetroleum.com/
http://www.hindustanpetroleum.com/CSRHomeLand
http://www.hindustanpetroleum.com/CSRGCCommitment
http://www.hindustanpetroleum.com/employeeengagement
http://www.hindustanpetroleum.com/employeeengagement
http://www.hindustanpetroleum.com/documents/pdf/HPCL_Sustainability_r
eport_2014.pdf
http://www.hindustanpetroleum.com/documents/pdf/COP_2012-13.pdf
https://en.wikipedia.org/wiki/Hindustan_Petroleum
http://articles.economictimes.indiatimes.com/2012-1018/news/34557383_1_oil-psus-public-sector-oil-companies-iocl
http://articles.economictimes.indiatimes.com/2014-1128/news/56540328_1_csr-tata-motors-tata-chemicals
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