Responsible Businesses in Asia

Company Name Reliance Industries Limited India

Group Members Abeerah Shahbaz - 21304725

Moazzam Majeed - 21304699

Lecturer Name Mahwish Anjum

Unit Name Responsible Management in Asia

Unit Code MGMT3016

Submission Day 7 November 2024

Submission Time 11:59 PM (UAE Time)

 Reliance Industries Limited

Introduction

The creation of Reliance Industries Limited (RIL) involved the formation of formal business units
based in 1973 and they have so far grown to be South India’s largest enterprises. RIL has been
successful due to the innate network strategies alongside the projects it carried out having over
the years grown in terms of outreach and the degrees of sophistication (Kulkarni, 2023).
Petrochemical complex, refinery, marketing, refining, oilfields, telecommunications and
digitization are some of the sectors in which this incredibly huge Indian enterprise based in
Mumbai, India deals. The heart of the business of RIL extends from upstream to downstream
businesses promoting products from fuels and polymers to polyesters and elastomers, and oils
(Kulkarni, 2023). Over the past decade, the company has launched renewable energy projects
with solar and biodiesel focus, which is in harmony with the national strategy of transitioning to
cleaner, reliable energy resources (Kulkarni, 2023).

A great business factor in RIL is that it also helps in the promotion of several United Nations’
Sustainable Development Goals (SDGs). Of particular interest, SDG 1- No Poverty, SDG 7-
Affordable and Clean Energy, SDG 9- Industry, Innovation and Infrastructure, and SDG 11-
Sustainable Cities and Communities, are a few SDGs among others, which RIL tries to work
towards (Kulkarni, 2023). As an agent, RIL intervenes in the region’s poverty alleviation through
activities such as job creation in economies and health education, which includes growth from
community welfare programs and financial inclusion. Thus, RIL honors hierarchy in which the
outmost importance is development in relation to the first reduced target of goal 7. SDG 7
embodies facilitating, which benefits from vast investment from RIL to ensure that this country
is able to enjoy renewable energy on an affordable and clean basis without risks (Kulkarni,
2023). Accessing assets, in this case, joint liabilities is the implication of most of the line item
activities under SDG 9, hence benefiting ‘sustainable 5G mega undertaking’ within the
industrialization of the country. RIL’s concentration on environmentally favorable energy serves
to empower the target of SDG 11, which is making communities more secure and connected for
resilience (Kulkarni, 2023).
On Balance, the activities of RIL help to foster sustainable development in India through
promoting low-carbon energy, economic inclusion and the advancement of technology.
However, it is occasionally very difficult to keep a balance between industrial growth and
security of the atmosphere (Kulkarni, 2023).

1 - Activities undertaken by the company:

Dedicated to recalling the features of Reliance Industries Limited (RIL), the case study provides
insight into the organisation's efforts, activities, and practices in maintaining photo growth. The
urge to be able to establish these practices comes from responsible employment of energy,
waste reduction, and social responsibilities. From the foot of emission reduction to community
enhancement to employee safety concerns, RIL's activities have a wide scope (Kulkarni, 2023).

Issues and Benefits for the Community

In its course of action, RIL is involved in several social actions, including job placement managed
by the company and providing various services and health programs to society through its
members (Reliance Industries Limited, n.d.). Also, such activities include improving rural areas,
health improvement, which is also affected, and development in poverty-stricken areas
because, in certain areas, development is limited. As well as reducing harmful pollution, RIL's
acquisition of environmentally friendly technologies could help reduce adverse fitness results,
particularly for individuals allergic to carbon monoxide. There are, however, other concerns as
well (Singhania & Saini, 2021).

Though important for the energy balance, the operations of oil and gas exploration of the
company can arouse some problems, as well as those related to the excesses of the population
of air and water resources uptake (Singhania & Saini, 2021). Communities close to the places of
crude oil production might have their health at risk from emissions and resource conflicts. Such
an endeavour of RIL to lower harmful practices creates conflict as both industrial activities and
community growth have to be promoted (Singhania & Saini, 2021).
Impact on Sustainable Development Goals

RIL has features that correspond to nearly all the SDGs concerning sustainable development.
The company's environment-friendly initiatives also address concerns fashioned underneath
goal 13 concerning "climate change." This goal is pursued

through the target of becoming carbon neutral by 2035 and goal 7 limiting itself as the
investment in renewable energy (The Editors of Encyclopedia Britannica, 2024). Further, RIL's
commitment to the welfare of society is in line with SDG 3 and SDG 4, which promulgate health
and quality education, respectively, since the company undertakes healthcare provision,
education, and skill acquisition as a part of the CDDS (Reliance Industries Limited, n.d.).

In contrast, it is not out of place to state that the process of extracting oil, as well as the
activities about gas, comprise the ecological problems, including but not limited to the issues of
overexploitation and more so deforestation, that can be at odds with SDG 12 and SDG 15, with
more emphasis on the fourth, i.e., land. Therefore, this is because restarting to remove
antediluvian energies will direct to a rising conflict between growth and the biological
conditions (The Editors of Encyclopedia Britannica, 2024).

Promotion to Sustainable Development

RIL practice attempted to clear this adverse effect. In contrast, not all enterprises or methods
concerned by this energy have been thoroughly destroyed, executing full edge alignment a
lengthy process that is still in progress (Alam et al., 2020). In contrast to the first and fatal
tendencies, support for such efforts in India is a particular asset and constraint of various
factors, especially with the absurd sub-Indian support. In such vicious cycles, aggressive energy
investments (RIL) would mean walking in the opposite direction (Alam et al., 2020).

2 - The Role of Context:

The physical place of company and the company’s incorporation in India influence its
operations and defines the business strategy in genera (Narayanan, 2019). Being among the top
private-sector companies in India, Reliance Industries Limited is deeply ingrained in the
economic, political, and social structures of the country. This might enable the company access
the natural resources, avail export incentives and enthesis render services to the host societies
(Narayanan, 2019).

Economic Context

Of course, India's fast-growing economy and very large population are excellent combined
attractions for companies with a focus on fast-growing sectors such as telecommunications,
retail, and petrochemicals. The above-mentioned industries facilitate employments,
infrastructure, and consumer product availability and hence have received protecting support
from the country's economic policy-oriented toward a path of industrialization and
development (Mazumdar, 2017). Simultaneously, RIL businesses contributed to "Made in India"
through the sale of nationally manufactured goods and job opportunities created accordingly
(Narayanan, 2019).

Political Context

Success in such an economic environment where economic reforms and industrial development
have been the face of India's political psyche, contributed to RIL's success. Incentives by the
government, along with favorable trade policies and energy sector de-regulation, encouraged
RIL to expand its businesses in oil-to-chemicals and telecom businesses (Mazumdar, 2017).
Conversely however, the commitment by RIL to further its fossil fuel business will contribute to
its compliance with these national efforts at tackling the issues of climate change and air
pollution (Mazumdar, 2017). It should be noted in this context, that the government's call for
reduction of carbon emissions has influenced RIL's commitment to achieve a net-zero carbon
footprint by 2035 (Narayanan, 2019).

Social Context

Different community development initiatives by the organization address socio-economic needs

of the country, India, in terms of access to education and health care, while also underpinning
rural development (Singla, 2023). Through its Foundation-Reliance, RIL supports health,
educative, and disaster response programs, with a focus on under-resourced communities. This
is in line with the RIL objective to drive inclusive growth even as goodwill is built among
communities where it operates (Narayanan, 2019).

Environmental Context

India's environment is characterized by diversified ecosystems, alongside increasingly growing

challenges to sustainability. This also characterizes the profile of RIL's operations. The
manufacturing and energy sectors are the two areas through which RIL impacts air, water, and
soil (Mazumdar, 2017). Focus is required in terms of sustainable practices. Greater government
attention to environmental protection motivates RIL toward innovation in energy efficiency and
water conservation, an impetus toward sustainable development (Narayanan, 2019).

3 - The Role of the Leader:

Mukesh Ambani, who owns Reliance Industries Limited (RIL) plays a very important role in
driving the business to align with the Sustainable Development Goals (SDGs) (Singla, 2023). His
methods are so impressive that they took the company from a traditional to a diversified
combined business with such kinds of investments (Mazumdar, 2017). The vision of Ambani
took the ordinary company to an affordable, clean energy driven, innovative and game changer
in community development (Singhania & Saini, 2021). The following leadership provided an
approach that is aligned with the SDGs such as the efforts that took him to involve programs
that met the basic needs and delegate them economically (Schaumberg & Flynn, 2016). Such as
SGD 1, which is one of the major concerns in India is related to poverty that has been looked
after by RIL majorly focusing on the people from rural areas (Singla, 2023). Due to the high rise
of pollution in India, RIL has taken initiatives that can aid in reducing pollution by switching
towards renewable resources that involve solar and hydrogen projects (Singhania & Saini,
2021). SDG 7 has been looked after by the firm so that they won't pollute any further and assist
in maintaining sustainable goals (Singla, 2023).
Great people come with great responsibility. This means that under the leadership of Ambani,
RIL has had significant growth in innovation and infrastructure that fulfils SDG 9 (Singla, 2023).
By launching Jio, Ambani has made an affordable pathway for people who do not have access
to the internet and connectivity through digital means (Reliance Industries Limited, n.d.). He
has invested in the digital connectivity in India that created opportunities for locals (Singhania
& Saini, 2021). His leadership has positively affected other areas of development as well such as
urban sustainability (SDG 11) (Schaumberg & Flynn, 2016). RIL provided better living conditions
and encouraged sustainable development by taking such projects that fulfil SDG11 (Singla,
2023).
By having a focused approach as an owner of such an amazing firm, Ambani made sure to be
committed and played an important part which highlighted the incorporation of SDGs (Singla,
2023). He has crafted the firm’s culture by prioritizing its priorities, being as sustainable as it
could be and playing an extreme role in CSR (Reliance Industries Limited, n.d.).

Organization Structure and Leadership

RIL has a very unique kind of structure such as petrochemicals, telecommunications, retail, and
energy, and this gives the firm a competitive advantage to be specifically focused on its goals
and also make a difference by prioritising sustainability (Mazumdar, 2017). The targets of SDGs
are being monitored by the teams making sure that they are progressing every day (Singla,
2023). We learnt such kind of structure enables transparent and effective decisions, especially
in those specific infrastructures such as utilization by adhering to renewable energies and
digitalization (Le & Lei, 2018). Ambani makes sure that such kind of acts are embedded in all
parts of his industries (Singhania & Saini, 2021).

Analysis of Leadership Style

The vision of Ambani and such kind of leadership that has elements of transformation have
effectively influenced the industry’s development incorporating SDGs (Schaumberg & Flynn,
2016). Ambani has emphasized a lot on innovation, thoughtful investments, and building
infrastructures that assist the company’s growth (Singhania & Saini, 2021). Jio is the digital
connectivity in India that is affordable for millions of people (Reliance Industries Limited, n.d.).
This goal fullfils SDG 9 (Singla, 2023). His efforts made a big difference which led RIL to utilise
renewable energies (Pradhan et al., 2017).

Ambani has led its firm in the path of CSR where he is still making profits but also at the same
time he is bringing India closer to clean energy targets (Gupta & Misangyi, 2018). By
incorporating various initiatives, Ambani has led communities through employment and
education programs (Mazumdar, 2017). Ambani has indeed followed and fulfilled and is
fulfilling SDG goals by reducing poverty and providing a quality life for the people living in both
rural and urban areas (Singla, 2023).

4 - Recommendations:

Although RIL did a lot under the leadership of Ambani. To make the company better, there are
following suggestions for RIL.

SDG1 talks about no poverty. However, the company already did a good job but it can enhance
its operations and set up programs that are more aligned towards the development of skills,
especially focusing on entrepreneurship in rural areas (Malik et al., 2017). SDG7 is about clean
energy and its accessibility to everyone. To have sustainable energy, RIL should grow its reach
in renewable energies further and invest in research and development. The firm can partner
with NGOs and other various companies so that they can together provide for those who are in
poverty-stricken communities and have the potential to go green as well. The country will be
encouraged and as well as they will breathe in cleaner air making people live healthy lives.

SDG9 is about the development of industries, being innovative and having a better
infrastructure. The company can do a lot by developing organizations that are only oriented to
sustainable development. New means of technology can enhance and upgrade the
infrastructure by being innovative (Le & Lei, 2018). Establishing dedicated firms that only focus
on the things that relate to sustainable manufacturing. Using biodegradable materials that are
made from recycled components can be impactful for the Go Green movement. To have
smooth operations in the supply chain of goods and products, the company can take huge
advantage of digitalization and run the supply chain effortlessly (Shin & Park, 2020).

SDG11 talks about sustainability in cities and communities. The company can partner with the
government so that they together can build healthier communities by providing initiatives to
create something like smart cities for the people (Pradhan et al., 2017). They can together assist
each other in waste management, conservation of water and enhanced transportation for the
people of India. The firms or businesses that are looking to operate in India, when aligning their
goals with sustainable development goals (SDGs), can strengthen the market entry of the
business, build trust, and promote sustained growth over time (Shin & Park, 2020).

One of the many recommendations is to acknowledge local needs and prioritize community
engagement. Companies must interact with various communities to better understand their
specific needs, particularly in areas like employment opportunities, education, and healthcare,
which lines up with SDG 1 (No Poverty) (Singla, 2023). Building alliances with local stakeholders,
including federal agencies and non-profit organizations (NGOs), can help corporations deliver
social impact initiatives that meet local expectations and contribute to poverty reduction (Malik
et al., 2017).

One of the many recommendations is to invest in affordable and clean energy solutions (SDG
7). The energy landscape in India is rapidly evolving, and it is extremely focused on renewable
forms of energy. Companies and organisations should look into investing in renewable forms
such as solar energy, wind energy, and hydrogen energy resources to support their operations
and fulfil India's clean energy goals (Malik et al., 2017). Putting into effect sustainable energy
practices, the organisation can reduce their environmental footprint and contribute to India's
advancement towards energy security.

SDG 9 is about embracing innovation and infrastructure development. Investment in the

infrastructure that aids in regional growth, such as manufacturing facilities, technological
centres and distribution systems can further boost the local economy and generate local
employment positive rate. Furthermore encouraging and promoting technological
advancements and implementing new and more innovative practices, such as data-driven
supply chain management, can assist in more systematic operations and sustainable
infrastructure development in India (Shin & Park, 2020).

SDG11 talks about the development of urban areas and sustainability. The companies that are
functioning in densely populated areas should be performing corporate social responsibility
(Pradhan et al., 2017). This can be done by various means such as by providing water reduction
and conservation initiatives. This will help the people of the country and as well as it will be
renowned for its sustainable practices.

5 - Conclusion:

In conclusion, the company showcased to us the effective role played by the great leadership of
Ambani by incorporating sustainable goals in its operations and by having a visionary vision
(Schaumberg & Flynn, 2016). The company has taken a very successful turn under the
leadership of Ambani by strategically evolving from an ordinary firm to a sustainable and digital
company that is following CSR responsibilities (Reliance Industries Limited, n.d.). Other than the
business, Ambani has led its operations into clean energy, digitalization, and building smart
communities (Mazumdar, 2017). Ambani took initiatives to reduce poverty for the people of
India and the rest of the SDGs as discussed (SDG7, SDG9, SDG 11) were incorporated to
contribute to sustainable growth (Singla, 2023).

Although the company strives to expand, it faces a lot of issues while stabilising both the
growth of the industry and sustaining the environment as well. Investing in renewable energy,
building smart communities for the people, and incorporating digitalisation into the business
with the aim that people will benefit (Mazumdar, 2017). We can see that by having a visionary
leader, the firm can do wonders and even be sustainable in supporting green movements. To
do any type of business in this country, we see how a company can be sustainable and yet gain
profits as well (Reliance Industries Limited, n.d.).
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