Bharat Petroleum and Social Responsibility

Introduction:

Type Public

Traded as BSE: 500547

NSE: BPCL

ISIN INE029A01011

Industry Oil and Gas

Founded 1976

Headquarters Mumbai, Maharashtra, India

Key people D Rajkumar (Chairman & MD)

Products Petroleum, Natural gas, LNG, Lubricants, Petrochemicals

Owner Government of India (53.29%)

Number of employees 12,157 (2018)

Synopsis of the Case:

 The essence of CSR is to behave ethically and to contribute economic development and
improving the quality of life of work force, their families as well as society at large.
 CSR contributing long-term prosperity of the companies and ultimately their survival
 Challenge for every business is to maintain efficient, effective and fair relationship with
global and local stakeholders.
 The emergence of CSR is for million of people who are below Poverty Line.
 CSR can ensure a proper feedback system to realize the impact of its contribution. Based
on this it can review its approach and implement new strategies.
 Social Service Activities undertaken by BP as Infrastructure Development, Education
Support, Health Care and Skill Enhancement.

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Problems:

1. Why an organization like BP also involve social activities?

Alternatives:

1. Yes, an organization like BP also involve social activities.

2. No, an organization like Bp not involves social activities.

Selection of Alternatives: (SWOT ANALYSIS)

The SWOT analyses involves study of strengths, weaknesses, opportunities and threats of an
organization. SWOT factors that are evidently available to the BP are:

YES, BP involve Social activities:

Benefits of Complying with CSR (strengths):

 Improved Public Image

 Increased brand awareness and recognition
 Advantage over competitors
 Increased customer Engagement
 More benefits for employees
 Enhanced reputation and brand image
 Increased customer loyalty and sales
 Use of recycled products.

Weakness:

 There is lack of communication between companies and general public. General public is
very less interested in knowing whether the company is contributing for society,
economy and country.
 Due to lack of transparency among the companies, CSR initiatives can’t be taken as there
is no proper report of profitability, exact information, audit issues and utilization of
funds.

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  The people in India take CSR as narrower term but in reality it is a broader term if taken
into action.
 Well organized non-government organizations are not available in rural and remote areas.
 Involves lot of money to be spent.

Opportunities:

 Business relationships should be built on mutual understanding and based on realistic and
true statements.
 This will lead to have great opportunity for being sustainable and developed.
 Being able to understand the real facts of the environment which helps business as well
as the society.
 Better impact of brand image of the business house on the minds of customers
 Better visibility of the business in all areas

Threats

 There is lack of public policies to promote CSR.

 There is lack of consistent legislative framework.
 Regulations by the Government to make CSR spending compulsory as a percentage of
their annual profit.

Implementation Plan:

In my view, out of the two options I choose the first one. Because Bharath Petroleum is a
Government sector so, it involves in undertaking Social activities. Bharat Petroleum Corporation
Limited is a model entity with social responsibility as is deeply enshrined in vision and value
system. Being a leading organization BP recognize the responsibility towards the community and
have been working continiously for the betterment of weaker sections of society for years. It is
constant endeavour to maximize the positive impacts of activities and ensure that they reach to
all stakeholders.