Volume 3, Issue 4 (April, 2014)

Online ISSN-2320-0073

Paper Presented in National Refereed Conference on

Corporate Social Responsibility: Towards New Agenda

Published by: Abhinav Publication

Abhinav International Monthly Refereed Journal of Research in

Management & Technology

DEADLIEST NATURAL DISASTERS IN INDIA: RESPONDING

THROUGH CORPORATE SOCIAL RESPONSIBILITY
Devangi Deore1
Associate Professor, K. R. Sapkal College of Management Studies,
Nashik, India
Email: deoredevangi@rediffmail.com
Nutan Thoke2
Assistant Professor, K. R. Sapkal College of Management Studies,
Nashik, India
Email: nutan.sai@gmail.com
ABSTRACT
India has extremely diverse geography with landscape ranging from snow-capped mountain ranges to
deserts, plains, rainforests, hills and plateaus. The Indian sub-continent has been exposed to natural
disasters from time immemorial including droughts; flash floods, as well as widespread and
destructive flooding from monsoonal rains; severe cyclones; tsunamis; volcanic eruptions; hurricanes;
landslides; avalanche; snowstorms; and earthquakes. The purpose of this study is to recognize,
appreciate and document the CSR of the public and private sector in response to the three deadliest
natural disaster occurred during 2000 to 2013 in India i.e. the Indian Ocean Tsunami, Gujarat
Earthquake, and the recent Uttarakhand Disaster. Data has been collected from the official websites
of the companys and from the websites of Media.

Keywords: Corporate Social Responsibility; Tsunami; Uttarakhand Disaster; Gujarat Earthquake

INTRODUCTION
Indian Geographical Topology and Its Vulnerability to Natural Disasters
The Indian subcontinent is among the world's most disaster prone areas. Almost 85% of Indias area is
vulnerable to one or multiple hazard. Of the 28 states and 7 union territories, 22 are disaster-prone. It is
vulnerable to wind storms spawned in the Bay of Bengal and the Arabian Sea, earthquakes caused by
active crustal movement in the Himalayan mountains, floods brought by monsoons, and droughts in
the country's arid and semi-arid areas. Almost 57% of the land is vulnerable to earthquake (high
seismic zones IIIV), 68% to drought, 8% to cyclones and 12% to floods. India has also become much
more vulnerable to tsunamis since the 2004 tsunami. [1]
Earthquakes
Of the earthquake-prone areas, 12% is prone to very severe earthquakes,18% to severe earthquakes
and 25% to damageable earthquakes. All 7 North East states of India - Assam, Arunachal Pradesh,
Nagaland, Manipur, Mizoram, Tripura and Megalaya; Andaman & Nicobar Islands; and parts of 6
other states in the North/North-West (Jammu and Kashmir, Uttaranchal, Bihar) and West (Gujarat),
are in Seismic Zone V. [1]
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Floods
About 30 million people are affected annually. Floods in the IndoGangeticBrahmaputra plains are
an annual feature. Floods are a perennial phenomenon in at least 5 states - Assam, Bihar, Orissa, Uttar
Pradesh and West Bengal. On account of climate change, floods have also occurred in recent years in
areas that are normally not flood prone. [1]
Droughts
About 50 million people are affected annually by drought. Of approximately 90 million hectares of
rain-fed areas, about 40 million hectares are prone to scanty or no rain. [1]
Cyclones
The Indian continent is considered to be the worst cyclone-affected part of the world, as a result of
low-depth ocean bed topography and coastal configuration. Cyclones typically strike the East Coast of
India, along the Bay of Bengal, ie. the states of West Bengal, Orissa, Andhra Pradesh and Tamil Nadu,
but also parts of Maharashtra and Gujarat at the Arabian Sea West Coast. [1]
Landslides
Landslides occur in the hilly regions such as the Himalayas, North-East India, the Nilgiris, and Eastern
and Western Ghats. [1]
Droughts
Drought is widespread in states of Rajasthan (chronically),Gujarat, Uttar Pradesh, Madhya Pradesh,
Orissa and Andhra Pradesh which has an adverse impact on vulnerable peoples livelihoods and young
childrens nutrition status. [1]
Cold waves
Hundreds if not thousands of people die of cold waves and related diseases every year, most of them
from poor urban areas in northern parts of the country. [1]
According to Indias Tenth Five Year Plan, natural disasters have affected nearly 6% of the population
and 24% of deaths in Asia caused by disasters have occurred in India. Between 1996 and 2011, 2%
of national GDP was lost because of natural disasters, and nearly 12% of Government revenue was
spent on relief, rehabilitation and reconstruction during the same period. As per a World Bank study in
2003, natural disasters pose a major impediment on the path of economic development in India. [1]
CSR and Its Trend in India
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social
performance, or sustainable responsible business/ Responsible Business) is a form of corporate selfregulation integrated into a business model. CSR policy functions as a built-in, self-regulating
mechanism whereby a business monitors and ensures its active compliance with the spirit of the law,
ethical standards, and international norms. In some models, a firm's implementation of CSR goes
beyond compliance and engages in "actions that appear to further some social good, beyond the
interests of the firm and that which is required by law.CSR is a process with the aim to embrace
responsibility for the company's actions and encourage a positive impact through its activities on the
environment, consumers, employees, communities, stakeholders and all other members of the public
sphere who may also be considered as stakeholders.
India has an impressive history of philanthropic activities, rooted in its religious and cultural heritage.
It is normal practice that whenever there is a crisis resulting from a natural hazard, financially able
individuals and institutions to come forward to help. This study reveals that the nature of the CSR
activities in the disaster sphere is spontaneous and ad hoc. Whenever there is an emergency, private
sector organizations come forward to assist. The assistance may comprise donations by the employees,
investment from the companies resources, and collections from the general public.
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Most organizations view these initiatives as a single activity, and prefer to carry them out on an
individual basis rather than in partnership with other private sector organizations, or the government
and NGO sectors. Almost all interventions observed were on emergency relief, with a few rare
exceptions offering relatively long-term perspectives. Assistance extended in relief can be seen as a
part of the broader social responsibility taken by the private sector. The private sectors engagement in
the facing natural disaster crisis shows that there is substantial potential to seek greater and more
constructive engagement from this sector in disaster management. The positive signs were visible in
terms of initiative, resource generation capacity and efficiency.
There is a growing consensus that companies and organizations have a social obligation to operate in
ethically, socially and environmentally responsible ways. It is also believed that in addition to doing
no-harm to the society, they also have a responsibility to contribute to its well-being. In disaster
response however, CSR activities appear to be more humanitarian in nature than professional in
execution. [2]

Figure 1. The Response of CSR to Natural Disasters Depends On Three Main Factors
PURPOSE OF THE STUDY
In the context of India, the corporate sector is perceived to be one of the active players in the social
development. Its works has received visibility across progressive high profile natural disasters in the
country. In addition to the government and the voluntary sector, this commercial sector holds a special
position in the list of stakeholders active in disaster response. However, barring accounts in the media,
their participation during the different phases of the major disasters have found little or no
documentation. Hence, the purpose of this study is to recognize, appreciate and document the CSR of
the public and private sector in response to the 3 deadliest natural disasters in India
On the other hand, the management of recent natural and human made disasters in India is indicative
of the need for more stakeholders to be better prepared and coordinated to efficiently handle and
mitigate such calamities. The view that through practice of CSR, the corporate sector can potentially
act as a responsible partner that works towards evolving a capable and efficient disaster risk
management system is gaining ground. . This too necessitates serious documented studies on CSR
response to national disaster.
RESEARCH METHODOLOGY
The study undertaken is a qualitative, descriptive desk research involving a detailed study of journals,
newspaper and magazine reports and financial reports accessed through libraries and websites of
Government, NGOs and companies.
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India has witnessed many tragic natural disasters in the time span from 2000-2013. Purposive
sampling has been undertaken to identify 3 most deadliest natural disasters in this time frame. The
severity of the disaster has been measured by considering the official number of death toll.
Table 1. Major Natural Calamities in India (2000 - 2013) [3]
Year
2001
2004
2005
2005
2008
2013

Natural Calamity
Gujarat Earthquake
Tsunami
Kashmir Earthquake
Gujarat and Maharashtra Floods
Bihar floods
Uttarkhand Flash floods

Official Death toll

25000 (approx)
10749
1309
2000 (approx)
1500 (approx)
5700

Source: Secondary data

Hence, for the study, based on the above data, 3 most deadliest natural disaster are identified i.e.
Gujarat Earthquake of 2001, Tsunami in 2004 and Uttarakhand Flash floods of 2013.
Gujarat Earthquake (2001)
The 2001 Gujarat earthquake struck India at about 08:14 AM when India was celebrating its republic
day on January 26, 2001. It was 7.6 to 8.1 Richter scale earthquakes, which was felt widely in India
and Pakistan. In the aftermath of the earthquake, about 25,000 people died in different parts of Gujarat,
including Bhuj, Bachao, Anjur, Ahmedabad, and Surat. There were 6.3 million people affected, which
is the third largest number of people affected by any earthquake in the world. Immediately after the
earthquake there was a total failure of command and control system, but afterwards many innovative
changes and institutional mechanisms were initiated. One of the important innovations was the
training of people and their involvement with labour along with professional mason in rebuilding their
own houses. [3]
The 2001 Gujarat Earthquake was huge and had very serious impacts on the government and policy
makers, in addition to victims, their families, and general citizenry. The Government of Gujarat for the
first time in India enacted the Gujarat Disaster Management Act, 2003. Before that, neither at the
federal level nor at the state level there was any act to deal with the management of disasters of various
kinds in a comprehensive manner. Immediate CSR activities were initiated by prominent companies of
Gujarat including Reliance Industries, Amul, Tata Chemicals, Nirma, Torrent and Cadila for relief and
rehabilitation of the catastrophy affected people.
According to the survey conducted by Mihir Bhatt, August 2002(, CSR and Natural disaster reduction:
Local overview of Gujarat, Benfield Greg Hazard Research centre, University College, London, UK.):
It appeared that despite diverse and elaborate plans to intervene in a number of areas of disaster
response only a few crucial immediate basic survival related areas finally found their way to the
implementation desk. A large number of companies were involved in the construction of houses and
temporary shelters in the affected areas. . A link between their own business expertise and the
resources needed in the field was consciously made. It was heartening to know that companies
provided a range of financial, material and human resources to address the multiple needs of the
situation.
Contribution for Gujarat Earthquake in Kind
Heavy Industries like Burn Standard Co. Ltd. (B.S.C.), Bharat Heavy Electrical Ltd. (BHEL),
Hindustan News Print Ltd, HEC, Scooters India Ltd, was the companies who dispatched heavy
machineries and equipment for relief operations. Textile package comprising of support from various
segments of Textile industry has contributed 23 crores and supported through constructing houses,
shed etc. Jet Airways set up 750 temporary shelters. Tata Group has immediately provided 320 units of
blood as well as 10,000 blankets, Food packets, medical supplies and equipment. Cummins
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contributed by providing power support to construction. Employees spent three days dispersing food,
clothes, water, slippers etc. Reliance Industries provided power and communication facilities to the
affected area. Rasna Pvt Ltd dispatched water pouches.
Table 2. Contribution in cash Towards Gujarat Earthquake [27]
Sr
1
2
3
4

Sector
Telecom
Airlines
Diversified
Oil and Gas

6
7
8
9
10
11
12
13
14
15
16
17

Name of The companies

Mahanagar Telephone Nigam Ltd
Sahara Airlines
Reliance Industries Ltd
Reliance Petroleum Ltd
Ranbaxy Ltd
Ranbaxy Labortories
VSNL
Corporation Bank
Food Corporation of India Ltd
Telecommunications Consultants India Ltd
ITI Limited
Neyveli Lignite Corporation
PSU Banks
State Bank of India
Wheels India Ltd
Brakes India Ltd
Deccan Herald
GAIL

18

Steel Authority of India Ltd

Iron and Steel

19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Rashtriya Ispat Nigam Ltd

National Mineral Development Corp.
Manganese Ore. (India) Ltd.
Ferro Scrap Nigam Ltd.
Kudremukh Iron ore Company Ltd
Punjab National Bank
Bank of India, Mumbai
Central Bank of India, Mumbai
Andhra Bank, Hyderabad
Bank of Baroda, Mumbai
Indian Overseas Bank, Chennai
Vijaya Bank, Bangalore
Standard Chartered Grindlays Group
Bharat Petroleum Corpn. Ltd
Oil India Limited
Hindustan Petroleum Corpn. Ltd
BHEL
HMT
EPI
SRTEPC
Tata Steel

Iron and Steel

Iron and Steel
Iron and Steel
Iron and Steel
Iron and Steel
Banking and Finance
Banking and Finance
Banking and Finance
Banking and Finance
Banking and Finance
Banking and Finance
Banking and Finance
Banking &Insurance
Oil and Gas
Oil and Gas
Oil and Gas
Heavy Industries
Heavy Industries
Heavy Industries
Textile Industry
Iron and Steel

Pharmaceuticals
Telecom
Banking and Finance
Food
Telecommunication
Telecommunication
Power
Banking and Finance
Banking and Finance
Auto Ancl
Auto Ancl
Media
Oil and Gas

Amount Rupees
120000000.00
3100000.00
25000000.00
25000000.00
20000000.00
2000000.00
100000000.00
10000000.00
20000000.00
10000000.00
10000000.00
20000000.00
123100000.00
20000000.00
1000000.00
2000000.00
4000000.00
50000000.00
10000000.00
5600000.00
5600000.00
2500000.00
1000000.00
1500000.00
2500000.00
20000000.00
15000000.00
15000000.00
10000000.00
10000000.00
5000000.00
5000000.00
5100000.00
50000000.00
30000000.00
50000000.00
3.5 Crores
51 Lakhs
2.5 crores
2 crores
1.5 crores

Source: Secondary Data

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Tsunami (2004)
The December 26, 2004 earthquake of magnitude 9.3 on the Richter scale off the coast of Sumatra in
the Indonesian archipelago generated tsunami that affected nearly 2,260 kilometers of the mainland
coastline of Tamil Nadu, Kerala, Andhra Pradesh and Pondicherry, as well as the Andaman and
Nicobar Islands, with tidal waves up to 10 meters high penetrating up to 3 kilometers inland. This
tsunami took at least 10,749 lives, and resulted in 5,640 persons missing. It affected more than 2.79
million people across 1,089 villages. It is estimated that 11,827 hectares of crops were damaged, and
that about 300,000 fisher folk lost their livelihoods. India had accepted foreign aid in response and
relief after all the disasters. However, immediately after the tsunami hit on December 26, 2004, Dr.
Man Mohan Singh, Prime Minister of India announced that India will not accept foreign aid for rescue
and relief operations. The government thought that it is capable of dealing with the disaster and has the
necessary resources. India steadfastly stood for not accepting charity. Not only that, India deployed its
defense personnel, medical teams, disaster experts, ships, helicopters and other type of human,
material, and equipment resources to help Sri Lanka, Mauritius, and Indonesia.[3]
The Government of India has long been thinking of a National Disaster Management Authority. The
Gujarat earthquake gave extra impetus for having a national disaster management authority. However,
the bureaucracy does take its claims on the time from a decision is taken to the actual action. The
Indian Ocean Tsunami of 2004 really gave a jolt for this decision process. Finally on December 23,
2005 the Disaster Management Act, 2005 was enacted by the Government of India.
Contribution in Kind for Tsunami
Jet Airways has operated special relief flights and uplifted packaged water, clothing material,
foodstuffs and medical supplies for the needy people. Tata Group has helped rebuild not only their
homes but also their lives. Tata Group has constructed 1,181 houses, provided Sewerage treatment
plant, Desalination plant, Solar- powered street lighting in each district of Tamil Nadu. Reliance
Petrochemicals, Cummins have contributed by providing utensils, clothes, food grains, medicines,
blankets, sweaters, bed sheets and other household items for the tsunami victims. BSNL and Bharti
Airtel built a mobile network. Bharati Airtels A Material Collection Drive was undertaken across
Bharti offices, for collection of material such as clothes, utensils, footwear, blankets, dry ration and
monetary donations. NTPC took an initiative by providing treatment to the injured patients, assisted in
restoration of power supply. Wipro helped victims in Tamil Nadu by providing support in the areas of
livelihood, education, construction of houses and building defense against any natural calamities in the
future.
Table 3. Contribution by International companies towards Indian Ocean Tsunami [59]
Sr
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Name of the company

Abbott Laboratories
American Express
Bristol-Myers Squibb
Cisco Systems
Citigroup
Exxon-Mobil
FedEx
First Data Western Union
General Electric
General Motors
Intel
Johnson & Johnson
JPMorgan Chase
Kaiser Permanente

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Sector
Pharmaceuticals
Banking and Finance
Pharmaceuticals
Information Technology
Banking and Insurance
Oil and Gas
Courier Services
Banking and Financial
Automobile
Automobile
Information Technology
FMCG
Banking and Finance
Banking and Insurance
26

Amount in Rupees
$ 4 Million
$1 Million
$1 million
$2.5 million
$3 million
$5 million
200,000 pounds
$1 million
$1 million
$1 million
$100,000
$2 million
$3 million
$100,000
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Table 3. Contribution by International companies towards Indian Ocean Tsunami [59] (Contd.)
Sr
15
16
17
18
19
20
21

Name of the company

Merck
Merrill Lynch
Pfizer
Sears
Starbucks
Wells Fargo & Co
Rio Tinto

Sector
Pharmaceuticlas
Banking and Finance
Pharmaceuticals
Retail
Food and Beverages
Banking and Finance
Iron and Steel

Amount in Rupees
$250,000
$1 million
$10 million
$200,000
$100,000
$100,000
A$1 million

Source: Secondary Data

The Uttarakhand Tragedy (2013)
The continuous rains from 14 to 17 June, 2013 accompanied by cloudbursts caused grave natural
disaster in the hills of Uttarkhand impacting five districts Uttarkashi, Rudraprayag (kedarnath),
Chamoli, Tehri and Pithorgarh. The tragedy having struck at the time of the Char Dham Yatra, both
the locals and the visiting pilgrims were impacted by the calamity. As of 16 July 2013, according to
figures provided by the Uttarakhand government, more than 5,700 people were "presumed dead.
According to the state government, 147 bridges have been washed away completely in the state. More
than 1,300 roads in different locations have suffered extensive damage, blocking connectivity to most
of the places in the four districts. The initial loss estimates are expected to be above 10, 000 crore.
In addition to the immense loss of precious lives and damage to property and infrastructure, the
disaster has also caused loss of livelihood; the economy of the region was primarily depending upon
the Char Dham Yatra for sustenance. The rebuilding effort required is massive and at least medium
term.
Prime Minister of India undertook an aerial survey of the affected areas and announced 1000
crore (US$150 million) aid package for disaster relief efforts in the state. Several state governments
announced financial assistance.
Contribution in Kind for Uttarakhand Disaster
Employees of Companies like GAIL, BHEL Western Coalfield Ltd, BSNL, SPMCIL and SUNTEC
have contributed one day salary for relief efforts. Power sector companies helped in rebuilding much
needed infrastructure. Indian Oil has made all arrangements to ensure uninterrupted supply of
petroleum products and fuel for the relief teams. Sahara India Pariwar provided more than 1 lac pure
drinking water bottles, more than 1 lac juice bottles and food packets, 25 medical health unit vans,
household items, constructed 10,000 pre-fabricated houses. HAL provided logistic support for the
rescue operations. Tata Group provided water filters, solar power lamps, Transportation facilities,
satellite terminals, mobile base stations, pre-fabricated homes, organized blood donation camps. DELL
contributed towards relief effort includes providing shelter, water sanitation and hygiene support,
emergency food supply. ITC, Nestle and Britannia have sent relief and food packages to the disasteraffected areas.
Table 4. Contribution in Cash towards Uttarakhand Flash Floods [6]- [26]
Sr
1
2
3
4
5

Name of the company

National Mineral Development Corporation
Steel Authority of india Ltd
Rashtriya Ispat Nigam Ltd
Manganese ore India Ltd
KIOCL ( own funds)
Employees Salary of one day

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Sector
Iron and Steel
Iron and Steel
Iron and Steel
Iron and Steel
Iron and Steel

Amount
2.5 crore
1 crore
0.75 crore
0.75 crore
24 lacs
26 Lacs
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Table 4. Contribution in Cash towards Uttarakhand Flash Floods [6]- [26] (Contd.)
Sr
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46

Name of the company

Gas Authority of India Ltd
Employees Salary of one day
National Thermal Power Corporation
Power Grid Corporation
National Hydro Power Corporation
Tehri Hydro Development Corporation
Satluj Jal Vidyut Nigam
Power Finance Corporation
Rural Electrification Corporation
Damodar Valley Corporation
North East Electric Power Corporation
Indian Oil Corporation. Ltd
Bharat Petroleum Corporation. Ltd
Oil Industry development Board
Oil & Natural Gas Corporation. Ltd.
Hindustan Petroleum Corporation. Ltd
Engineers India Ltd.
Oil India Ltd.
Oil and Natural Gas Corporation
Bharat Heavy Electricals Limited
Coal India Limited
Western Coalfields Ltd
BSNL
Security Printing & Minting Corporation
of India Ltd.
Hindustan Aeronautics Ltd
Toyota Kirloskar In India
Mahindra & Mahindra Group
Honda Group
ICICI Group
Central Bank of India
Dell India
Employees contribution
India Infrastructure Finance Company
Ltd
SunTec Business Solution
Jindal Steel and Power Limited
Bharat Coking Coal Limited
Jaypee Group
SBI
Bank of India
Voltas
HUDCO
Infotech
United Technologies Corp.

Sector

Amount
2 crore
92.25 lacs
10 crore
5 crores
1 crore
1 crore
1 crore
3 crore
2 crore
1 crore
1 crore
2 crore
2 crore
2 crore
2 crore
1 crore
0.60 crore
0.40 crore
2 crore
6.38 crore
50 crore
5 crore
18 crore

Oil and Gas

Power
Power
Power
Power
Power
Power
Power
Power
Power
Oil and Gas
Oil and Gas
Oil and Gas
Oil and Gas
Oil and Gas
Oil and Gas
Oil and Gas
Oil and Gas
Heavy Industries
Coal
Coal
Telecom

1.94 crore
Defence
Automobile
Automobile
Automobile
Banking &Finance
Banking &Finance
Information Technology
Banking &Finance

2 crore
1 crore
1 crore
3 crore
15 crore
11 Lacs
US$220,000
US$ 27,000,
1 crore

Information Technology
Steel and Power
Coal
Iron and Steel
Banking &Finance
Banking &finance
Electronics
Housing & finance
Information Technology

7.5 lacs
5 crore
20 crore
5 crore
2 crore
1.5 crore
15 lacs
1.25 crore
40 lacs
USD $20,000

Source: Secondary Data

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CONCLUSION
The overview process revealed that corporate philanthropy is not well documented. It was not easy to
obtain detailed information about the private sector spending although much secondary data was
available about the participation of NGO, government spending, photos of disaster and outcomes and
public private linkages for long term solutions.
Although the above study is not a comprehensive documentation of CSR spending during the natural
catastrophes, it is a well-intentioned initiative to appreciate the efforts of the private sector in times of
disasters. The findings of the study provide insight into an area of growing concern of the corporate
towards the society. It also calls for a much detailed study regarding the nature of CSR activities being
spontaneous and ad-hoc rather than a well planned , well focused move based on a well designed
disaster management policy looking out for long term perspective and solution.
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http://www.saarc-sadkn.org/countries/india/disaster_profile.aspx

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m
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49. http://www.hindu.com/2004/12/29/stories/2004122906441200.htm

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px
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60. http://money.cnn.com/2004/12/30/news/fortune500/corporate_aid/

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