Globalisation has brought significant advantages to countries and business around the world but the benefits have spread unequally both within and among countries.
While the rules favouring global market expansion have grown more robust, the rules intended to promote equally valid social objectives viz. in the areas of human rights, labour standards and environment lag behind and in some cases actually have become weaker.
In order to promote Corporate Social Responsibility and citizenship in the new global marketplace, UN Secretary General, Mr. Kofi Annan first proposed the Global Compact at Davos in Jan'99. It was thus created to help organisations redefine their strategies and course of actions so that all people can share the benefits of globalisation, not just a fortunate few.
The Global Compact’s operational phase was launched at UN Headquarters in New York on 26 July 2000. and has since then focussed its efforts on achieving practical results and fostering the engagement of business leaders in the direction.
Through the power of collective action, the Global Compact seeks to promote responsible corporate citizenship so that business can be part of the solution to the challenges of globalisation. In this way, the private sector – in partnership with other social actors – can help realize the Secretary-General’s vision: a more sustainable and inclusive global economy.
The Global Compact is a network. At its core are the Global Compact Office and six UN agencies:
The Global Compact involves all the relevant social actors: governments, who defined the principles on which the initiative is based; companies, whose actions it seeks to influence; labour, in whose hands the concrete process of global production takes place; civil society organizations, representing the wider community of stakeholders; and The United Nations, the world's only truly global political forum, as an authoritative convener and facilitator.
The Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:
The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption:
Human Rights
Principle 1 : Business should support and respect the protection of internationally proclaimed human rights; and
Principle 2 : Make sure that they are not complicit in human rights abuses.
Labour
Principle 3 : Business should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4 : The elimination of all forms of forced and compulsory labour;
Principle 5 : The effective abolition of child labour; and
Principle 6 : The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7 : Business should support a precautionary approach to environmental challenges;
Principle 8 : Undertake initiatives to promote greater environmental responsibility; and
Principle 9 : Encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10 : Business should work against corruption in all its forms, including extortion and bribery.
Due to keenness of UN that this movement takes root in India, some business leaders took the initiative and organised a meeting of select business leaders in Mumbai in Dec' 2000. NTPC as a prominent business and community leader in the power sector was also invited to the meeting and thus engage/associate itself with Global Compact.
Following this meeting which was attended by CMD NTPC, NTPC agreed to be associated with the Global Compact. In his letter in May 2001 CMD addressed to Mr. Kofi Annan, Secretary General, UN formally expressed its support for the Global Compact and its commitment to take action in this regard.
NTPC expresses its continued support for the Global Compact and its commitment to take action in this regard. The principles of GC are regularly communicated to all employees through in-house magazines, internal training programmes and posters.
NTPC along with major corporate in India took the lead and founded Global Compact Society of India in the year 2003. Further, NTPC as founder member of Global Compact Society took the lead for organizing the 1st national convention on “Excellence in Corporate Citizenship and Global Compact” on 27th July 2004 at New Delhi.
NTPC expresses its continued support for the Global Compact and its commitment to take action in this regard, as was communicated by the Chairman & Managing Director, NTPC in his letter dated May 29, 2001 addressed to Secretary General, United Nations.
NTPC has posted the brief of Global Compact and its commitment to the principles of GC on its website at www.ntpc.co.in. The principles of GC were also communicated to all employees through in - house magazines, internal training programmes and posters. Director (HR) of NTPC has been nominated as Vice President, Northern Region for Global Compact Society, India.
Human Rights: Principle 1-2
Most of NTPC's operating power stations are located in remote rural areas which are socio-economically backward and deficient in the basic civic amenities. NTPC, as responsible corporate citizen has been addressing the issue of community development is the neighbourhood areas of its stations, which had been impacted due to establishment of the project.
While, this has been initially administered as part of resettlement and rehabilitation effort, NTPC recognized its social responsibility to continue community and peripheral development works where the same has been closed under R&R policy. Towards this, NTPC during 2004-05 adopted “Corporate Social Responsibility–Community Development (CSR-CD) Policy”, July’ 04.
Under this policy, during 2006-07, NTPC allocated a fund of Rs.62.049 million to 20 operating stations for carrying out comprehensive Community Development work in the area of health, education, drinking water and peripheral development. In addition, Quality Circles (QCs) have been started in neighborhood villages of 10 stations. The NTPC employees participate in various CD activities through Employee Voluntary Organization for Initiative in Community Empowerment (EVOICE).
NTPC also recognizes that generation of power is key to development, particularly in the remote and far-flung places where the power is either not available or is in acute shortage. The Decentralized Distributed Generation and Supply (DDGS) of power is a plausible solution. Under its CD initiatives, NTPC supported for preparation of 45 Detailed Project Reports (DPRs), for insurance of the commissioned DG projects and for bridging the gap between the total project cost and the grant received from external funding agencies in respect of 11 Distributed Generation (DG) Projects.
NTPC supported various Institutions/ Bodies and undertook initiatives for major activities as detailed below:
In Uttarakhand, NTPC is committed to provide support for setting up a technical polytechnic at Kaladungi, Dist. Nainital.
In Kerala, NTPC has committed to provide support to Allapuzha medical College Hospital for one dialysis machine. The hospital will provide free medical facilities to the economically under privileged patients.
In Orissa, NTPC has taken up Developmental works for Car parking, Water tanks and Lighting of approach road for Shree Jagannath Temple, Puri, a renowned cultural heritage site.
Further in the field of Health, NTPC has committed to provide support to Hyderabad Eye Research Foundation for three specialized Eye Centers at Bhubneswar Eye Hospital, Bhubneswar, Orissa. These Centers will provide free medical facilities to the economically under privileged patients.
NTPC has also committed support to Centre of the Study of Values, Udaipur for assistance in self reliance for 200 tribal girls/ women in tribal area of Jhamar Kotra in Udaipur District, Rajasthan.
NTPC supported and participated in the "Ability Mela" organized by Business & Community Foundation, Delhi for the benefit of Persons with Disability.
Labour Standard: Principle 3-6
For addressing the issue of labour standard in comprehensive manner, NTPC has decided to adopt international standards like SA-8000 and OHSAS-18001.
During the year 2006-07, two of the NTPC stations viz Unchahar and Vindhyachal received SA-8000 accreditation. Anta, Auraiya, Badarpur, Faridabad, Kayamkulam, NCPP–Dadri, Ramagundam, Simhadri, Talcher-Thermal and Tanda are already accredited in the previous years.
All the 20 operating Stations of NTPC have already obtained accreditation under OHSAS 18001. During 2006-07 seven stations viz. Anta, Kahalgaon, Kayamkulam, Korba, Ramagundam, Simhadri, and Singrauli have been re-certified under OHSAS 18001. Surveillance audits were conducted for OHSAS 18001 for all other stations.
Environment: Principle 7-9
Towards its commitment to environment NTPC has decided to adopt ISO-14001 and all its 20 operating stations have obtained accreditation for ISO-14001.
During the year 2006-07, six stations viz. Kayamkulam, Korba, Ramagundam, Simhadri, Singrauli and Tanda stations have been re-certified under ISO 14001. Surveillance audits were conducted for ISO-14001 for all other stations.
