Case study 14: Reliance Indian Limited (RIL): Growth through innovation?

Sudeepta Pradhan, Sanjit Kumar Roy

Research output: Chapter in Book/Conference paperChapterpeer-review

Abstract

As per a study by the Varkey Foundation in partnership with UNESCO reported on January 16, 2015, Reliance Industries Limited (RIL) was quoted to have spent a huge sum of USD 5.4 million on education related Corporate Social Responsibility (CSR) activities. RIL ranks the 80th position the top-100 list as per the world’s first comprehensive study in the global corporate education CSR spends. Incidentally, RIL was the first Indian private sector company to post a profit of USD 1 billion net profit in a quarter (Press Trust of India. Mukesh Ambani-led Reliance Industries Ltd becomes first private company to post USD 1 billion quarterly net profit, July 19, 2014, Retrieved from http://Indianexpress.com/article/business/companies/reliance-industries-q1-net-profit-up-13-7-per-cent-beats-estimates/). It also spent over INR 700 crore of its net profit on CSR in the year 2013-2014 a major portion of it in healthcare and rural development initiatives. The 2014 annual report of RIL reported an expenditure of 3.24% of its net profits. 59% of the total INR 712 crore was spent on healthcare, 23% for rural development, 11% on education for poor children, and 7% on other social activities. The new Companies Bill that was passed in the previous fiscal year mandates every firm with a net worth of Rs. 100 crore to spend a minimum of 2% of their 3-year average annual net profits for CSR activities. During the year 2014-2015, the CSR activities of RIL affected over 1 million lives, across 5500 locations and over 407,000 farmers. RIL was in news in 2013 for being a potential CSR leader.
Original languageEnglish
Title of host publicationServices Marketing Cases in Emerging Markets
Subtitle of host publicationAn Asian Perspective
EditorsSanjit Kumar Roy, Dilip S. Mutum, Bang Nguyen
PublisherSpringer International Publishing AG
Pages169-182
Number of pages14
ISBN (Electronic)9783319329703
ISBN (Print)9783319329680
DOIs
Publication statusPublished - 1 Jan 2016

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