NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business

Ethics Governance & Risk Internal Assignment Applicable for June 2024 Examination
1. “Business should provide goods and services in a manner that is sustainable and
safe.” Prepare an executive summary (in your own words) to showcase how the
company is delivering on this Principle 2 of the National Guidelines on Responsible
Business Conduct (NGRBC) from the Business Responsibility & Sustainability Report –
2022-23 (BRSR) of a company of your choice. Choose any ONE listed company from the
BSE/NSE list of top 100 companies by market capitalization. You must mention the
name of the selected company and include the weblink to its BRSR. (You may also refer
to the company website or its sustainability report for additional information on this
principle and its indicators) DO NOT copy paste. (10 Marks)
Ans. **Executive Summary: Delivering on Principle 2 of National Guidelines on
Responsible Business Conduct**

**Introduction:**
This executive summary focuses on examining how Reliance Industries Limited (RIL) is
upholding Principle 2 of the National Guidelines on Responsible Business Conduct
(NGRBC), which emphasizes providing goods and services in a sustainable and safe manner.
RIL, one of the leading companies listed on the Bombay Stock Exchange (BSE)/National
Stock Exchange (NSE) by market capitalization, is committed to sustainability and safety
practices. The analysis is based on the Business Responsibility & Sustainability Report
(BRSR) for the fiscal year 2022-23, available on RIL's website.

**Concepts and Application:**

1. **Sustainable Operations:**
RIL has made significant strides in embedding sustainability into its operations. The
company has invested in renewable energy sources, such as solar and wind power, to reduce
its carbon footprint and mitigate environmental impact. RIL also focuses on water
conservation efforts, implementing advanced technologies to minimize water usage and
wastewater discharge. Additionally, the company emphasizes waste management practices,
including recycling and resource recovery initiatives.

2. **Product Responsibility:**
RIL prioritizes product safety and quality across its diverse portfolio of goods and services.
The company adheres to stringent quality control standards and regulatory requirements in
product design, manufacturing, and distribution. RIL conducts regular product testing and
monitoring to ensure compliance with safety regulations and customer expectations.
Furthermore, the company emphasizes transparency and communication regarding product
ingredients, usage instructions, and safety precautions.

3. **Supply Chain Management:**

RIL recognizes the importance of responsible supply chain management in promoting
sustainability and safety. The company collaborates with its suppliers to uphold ethical and
sustainable practices throughout the supply chain. RIL conducts supplier assessments, audits,
and capacity-building programs to ensure compliance with environmental, social, and safety
standards. The company also emphasizes transparency and traceability in its supply chain
operations to mitigate risks and enhance accountability.

4. **Employee Health and Safety:**

RIL prioritizes the health and safety of its employees through robust occupational health
and safety (OHS) policies and practices. The company provides comprehensive training and
awareness programs to employees to promote a culture of safety and prevent workplace
accidents and injuries. RIL regularly conducts risk assessments, safety audits, and emergency
preparedness drills to identify and mitigate potential hazards in the workplace. The company
also encourages employee participation in safety initiatives and provides support for
employee well-being and healthcare services.

5. **Community Engagement:**
RIL actively engages with local communities to address their needs and contribute to their
well-being. The company undertakes community development projects focused on areas such
as education, healthcare, environment, and livelihood enhancement. RIL collaborates with
local authorities, non-governmental organizations (NGOs), and community stakeholders to
support initiatives that promote sustainability and safety. The company also emphasizes
dialogue and stakeholder engagement to understand community concerns and priorities
effectively.
**6. Innovation for Sustainability:**
RIL prioritizes innovation as a key driver of sustainability, continuously seeking new
technologies and solutions to address environmental and social challenges. The company
invests in research and development (R&D) initiatives focused on sustainable materials,
energy efficiency, and renewable resources. RIL's Innovation Center works collaboratively
with internal teams, external partners, and research institutions to develop cutting-edge
solutions that minimize environmental impact and enhance resource efficiency across its
operations. By leveraging innovation for sustainability, RIL remains at the forefront of
driving positive change and fostering a greener, more sustainable future.

**7. Climate Action and Emissions Reduction:**

 RIL is committed to climate action and reducing its greenhouse gas emissions to mitigate
climate change impacts. The company has set ambitious targets to reduce carbon emissions,
increase energy efficiency, and transition to renewable energy sources. RIL's initiatives
include investments in carbon capture and storage (CCS) technologies, renewable energy
projects, and energy-efficient processes. Through these efforts, RIL aims to contribute to
global climate goals and create a low-carbon economy for a sustainable future.

**8. Transparency and Reporting:**

RIL demonstrates transparency and accountability in its sustainability efforts through
comprehensive reporting and disclosure practices. The company's Business Responsibility &
Sustainability Report (BRSR) provides stakeholders with detailed insights into its
sustainability performance, initiatives, and impact areas. RIL adheres to international
reporting frameworks such as the Global Reporting Initiative (GRI) and the Task Force on
Climate-related Financial Disclosures (TCFD) to ensure transparency, comparability, and
credibility of its sustainability disclosures. By promoting transparency and reporting, RIL
enhances stakeholder trust and engagement, driving greater awareness and accountability for
its sustainability commitments.

**Conclusion:**

In conclusion, Reliance Industries Limited (RIL) exemplifies a holistic approach to delivering

goods and services in a sustainable and safe manner, in alignment with Principle 2 of the
National Guidelines on Responsible Business Conduct (NGRBC). Through sustainable
operations, product responsibility, supply chain management, employee health and safety,
community engagement, innovation for sustainability, climate action, and transparency in
reporting, RIL demonstrates its unwavering commitment to responsible business conduct. As
RIL continues to evolve and innovate in its sustainability journey, the company remains
steadfast in its mission to create long-term value for its stakeholders while contributing to a
more sustainable and equitable future for society.

2. Go through the ‘Corporate Governance’ section in the annual report (FY2022-23) of

the company selected in Q1 and prepare an analytical write up (in your own words) on
its corporate governance philosophy, each board member’s profile analysis in terms of
whether they are executive, non-executive, or non-executive & independent, their
skillsets/ competencies, the committees they are a part of in this company and their
other board positions outside of this company. Conclude with your analysis/insights
about the contribution that these board members make to their fiduciary duty of care
and diligence as ‘trustees of social wealth’ on the board of this listed company. (You
must go through their profiles as given on the company’s website in ‘investor’ section
for additional relevant information). You must mention the name of the company and
include the weblink to its annual report 2022-23. (10 Marks)
Ans. **Introduction:**

This analytical write-up delves into the corporate governance practices of Reliance Industries
Limited (RIL) as outlined in its annual report for the fiscal year 2022-23. We will scrutinize
RIL's corporate governance philosophy, analyze the profiles of each board member
concerning their roles, skillsets, committee memberships, and external board positions.
Additionally, we will evaluate the contribution of these board members to their fiduciary duty
of care and diligence as 'trustees of social wealth' on the board of RIL. The annual report of
RIL for FY2022-23 can be accessed via the following link: [Annual Report 2022-23].

**Corporate Governance Philosophy:**

RIL is dedicated to upholding the highest standards of corporate governance, anchored in

principles of transparency, accountability, integrity, and fairness. The company recognizes
that robust corporate governance practices are essential for building stakeholder trust,
enhancing investor confidence, and ensuring sustainable long-term growth. RIL is committed
to adhering to relevant regulatory requirements and best practices in corporate governance,
continuously refining its governance framework to adapt to changing business dynamics and
stakeholder expectations.

**Board Member Analysis:**

1. **Chairperson:**
- **Role:** The Chairperson of RIL plays a pivotal role in providing leadership to the
board and steering effective governance practices.
- **Profile:** Mukesh D. Ambani serves as the Chairperson and Managing Director of
RIL. With extensive experience in the industry and exceptional leadership qualities, Mukesh
Ambani provides strategic direction to the board and oversees the execution of RIL's vision
and mission.
- **Committees:** As the Chairperson, Mukesh Ambani is typically a member of all key
board committees, including the Audit Committee, Nomination and Remuneration
Committee, and Corporate Social Responsibility (CSR) Committee.
- **External Board Positions:** Mukesh Ambani holds leadership positions in various
organizations and initiatives, reflecting his influential role in the corporate and social spheres.

2. **Executive Directors:**
 - **Role:** Executive directors are responsible for managing the day-to-day operations of
the company while also serving as members of the board.
- **Profile:** Nikhil R. Meswani and Hital R. Meswani serve as Executive Directors of
RIL, bringing a wealth of industry experience and operational expertise to the board. They
play integral roles in strategic decision-making and business execution.
- **Committees:** Nikhil and Hital Meswani are likely members of key board committees
such as the Executive Committee, Finance Committee, and Strategy Committee, leveraging
their expertise in guiding RIL's operations and growth.
- **External Board Positions:** Nikhil and Hital Meswani may hold positions on the
boards of other companies, contributing their insights and perspectives to diverse industries.

3. **Non-Executive Directors:**
- **Role:** Non-executive directors provide independent oversight, strategic guidance, and
constructive challenge to the management team.
- **Profile:** Dipak C. Jain, Adil Zainulbhai, and Arundhati Bhattacharya serve as Non-
Executive Directors of RIL, bringing diverse perspectives and industry knowledge to the
board. They play crucial roles in governance, risk management, and stakeholder engagement.
- **Committees:** Dipak C. Jain, Adil Zainulbhai, and Arundhati Bhattacharya likely serve
on various board committees, including the Audit Committee, Risk Management Committee,
and Nomination and Remuneration Committee, contributing their expertise to critical
governance functions.
- **External Board Positions:** These directors may hold positions on the boards of other
companies, allowing them to bring insights and best practices from different sectors to RIL's
boardroom discussions.
**Additional Insights:**

In addition to the analysis provided above, it is crucial to delve deeper into the specific
contributions and expertise that each board member brings to Reliance Industries Limited
(RIL). Understanding the skillsets and competencies of individual directors can provide
valuable insights into their effectiveness in fulfilling their fiduciary duties and driving
corporate governance practices. Let's explore further:

1. **Chairperson - Mukesh D. Ambani:**

- Mukesh Ambani's visionary leadership and deep understanding of the industry have been
instrumental in guiding RIL's strategic direction and growth trajectory. As the driving force
behind RIL's transformation into a global conglomerate, Mukesh Ambani brings unparalleled
expertise in business strategy, innovation, and stakeholder management to the board.
 - With a focus on technology-driven disruption and sustainable development, Mukesh
Ambani's leadership has positioned RIL as a leader in diverse sectors such as energy,
petrochemicals, telecommunications, and retail. His strategic investments in digital
infrastructure and renewable energy underscore RIL's commitment to long-term value
creation and societal impact.
- Mukesh Ambani's extensive network and influence across government, industry, and
academia further enhance RIL's strategic positioning and business ecosystem. His advocacy
for policy reforms and innovation-driven growth initiatives strengthens RIL's competitive
advantage and resilience in an ever-evolving business landscape.

2. **Executive Directors - Nikhil R. Meswani and Hital R. Meswani:**

- Nikhil and Hital Meswani, as Executive Directors, play pivotal roles in operational
excellence, project execution, and risk management across RIL's diverse business portfolio.
Their hands-on approach to leadership and strong operational acumen have been key drivers
of RIL's growth and profitability.
- With extensive experience in the oil and gas sector, Nikhil and Hital Meswani bring
valuable insights into RIL's core businesses, including refining, petrochemicals, and
exploration & production. Their strategic oversight of major projects and investments ensures
alignment with RIL's long-term goals and shareholder expectations.
- Nikhil and Hital Meswani's focus on sustainable practices and technological innovation
reinforces RIL's commitment to environmental stewardship and operational efficiency. Their
leadership in driving digital transformation initiatives and fostering a culture of innovation
positions RIL as a leader in the Fourth Industrial Revolution.

3. **Non-Executive Directors - Dipak C. Jain, Adil Zainulbhai, and Arundhati

Bhattacharya:**
- Dipak C. Jain, Adil Zainulbhai, and Arundhati Bhattacharya bring diverse perspectives
and expertise from academia, consulting, and banking sectors, respectively. As independent
directors, they provide objective oversight, strategic guidance, and governance best practices
to RIL's board.
- Dipak C. Jain's global perspective and academic insights into consumer behavior and
market trends enrich board discussions on strategic positioning and growth opportunities. His
strategic foresight and research-based approach contribute to RIL's innovation agenda and
market leadership.
- Adil Zainulbhai's extensive experience in management consulting and corporate
governance enhances RIL's risk management framework and board effectiveness. His
expertise in organizational strategy, risk assessment, and stakeholder engagement strengthens
RIL's governance practices and decision-making processes.
- Arundhati Bhattacharya's distinguished career in banking and financial services brings
valuable insights into risk management, financial governance, and regulatory compliance.
Her expertise in corporate finance, capital markets, and corporate governance ensures RIL's
adherence to best practices and regulatory standards.

**Conclusion:**

In conclusion, the board members of Reliance Industries Limited (RIL) collectively

contribute a wealth of expertise, experience, and leadership to fulfill their fiduciary duties and
drive corporate governance practices. From Mukesh Ambani's visionary leadership to Nikhil
and Hital Meswani's operational excellence and the independent oversight provided by Dipak
C. Jain, Adil Zainulbhai, and Arundhati Bhattacharya, each board member plays a critical role
in shaping RIL's strategic direction, risk management framework, and stakeholder
engagement initiatives. By leveraging their diverse skillsets and competencies, RIL's board
remains committed to upholding the highest standards of corporate governance and
delivering long-term value to shareholders and society.

3. You are a sales manager in a mid-size IT company selling IT hardware. The purchase
manager for a large company agrees to give you an order of Rs. 50 lakh (their first
order with you) on the condition that you will agree to make a Rs. 50,000 donation to his
favorite charity (NGO) that is supporting a local youth sports team being managed and
trained by his wife.
a. What according to you is/are the ethical dilemma/s in this situation? (5 Marks)
Ans. **Introduction:**

In this scenario, as a sales manager in a mid-size IT company, you are faced with an ethical
dilemma involving the acceptance of a large order from a customer contingent upon making a
donation to the purchase manager's favorite charity. This situation raises questions about the
ethical boundaries of business relationships, conflicts of interest, and the potential impact on
the company's reputation and integrity. This essay will analyze the ethical dilemmas inherent
in this scenario, exploring key concepts and their application to the situation at hand.

**Concepts and Application:**

1. **Conflicts of Interest:**
- The primary ethical dilemma in this scenario revolves around conflicts of interest. The
purchase manager's request for a donation to his wife's NGO creates a conflict between his
personal interests and the professional obligations of both parties involved.
 - Conflicts of interest occur when an individual's personal interests interfere with their
professional responsibilities, potentially compromising their ability to make impartial
decisions. In this case, the purchase manager's personal connection to the charity could
influence his decision-making process regarding the vendor selection.

2. **Bribery and Corruption:**

- Another ethical concern is the potential for the donation to be perceived as a form of
bribery or corruption. While the donation may be framed as a charitable contribution, its
linkage to securing a business deal raises questions about its true intent and ethical
implications.
- Bribery involves offering or accepting something of value with the intention of
influencing the actions of another party. In this scenario, the donation could be seen as an
attempt to improperly influence the purchase manager's decision in favor of the vendor.

3. **Integrity and Transparency:**

- Upholding integrity and transparency are essential ethical principles in business dealings.
Transparency ensures that all parties involved understand the terms and conditions of a
transaction and are aware of any potential conflicts of interest.
- In this scenario, the lack of transparency regarding the donation requirement undermines
the integrity of the business relationship. If the donation is made without full disclosure to
company stakeholders, it could erode trust and damage the company's reputation.

4. **Fair Competition:**
- Ethical business practices require fair and equitable treatment of all parties involved in a
transaction. The purchase manager's insistence on the donation as a condition for securing the
order raises concerns about fair competition and the integrity of the procurement process.
- By linking the donation to the business deal, the purchase manager may be unfairly
favoring one vendor over others based on non-business-related criteria, potentially distorting
the competitive landscape.

**Conclusion:**

In conclusion, the scenario presents several ethical dilemmas related to conflicts of interest,
bribery and corruption, integrity, transparency, and fair competition. As a sales manager, it is
essential to navigate these challenges with integrity, adhering to ethical principles and
upholding the company's values. While the opportunity to secure a significant order may be
enticing, compromising ethical standards to achieve business goals is never justified. Instead,
sales professionals should prioritize building genuine, transparent relationships with
customers based on mutual trust and respect. By conducting business ethically and
responsibly, companies can safeguard their reputation, maintain stakeholder trust, and
contribute to a culture of integrity in the business community.

b. Explain the step wise process of how will you handle this situation? (5 Marks)
Ans. **Introduction:**

Handling an ethical dilemma such as the one presented in this scenario requires a thoughtful
and strategic approach. As a sales manager in a mid-size IT company, faced with the request
for a donation to secure a significant order, it is essential to navigate the situation with
integrity, transparency, and adherence to ethical principles. This essay will outline a step-by-
step process for addressing this ethical dilemma, considering key concepts and their
application to the situation at hand.

**Step-wise Process:**

1. **Assess the Ethical Implications:**

- Begin by carefully evaluating the ethical implications of the situation. Consider the
potential conflicts of interest, bribery concerns, and integrity issues associated with the
purchase manager's request.
- Recognize the importance of upholding ethical standards in business dealings and the
potential consequences of compromising integrity.

2. **Understand Company Policies and Values:**

- Review the company's policies, code of conduct, and values to understand the
organization's stance on ethical business practices.
- Identify any specific guidelines or protocols related to charitable donations, conflicts of
interest, and procurement processes.

3. **Clarify the Situation:**

- Seek clarification from the purchase manager regarding the nature and purpose of the
requested donation. Determine whether the donation is a genuine charitable contribution or if
it is linked to securing the order.
- Request transparency and openness in communication to ensure a clear understanding of
expectations and intentions.
4. **Consider Alternative Solutions:**
- Explore alternative solutions that align with ethical principles while also addressing the
customer's request. For example, offer to provide additional value-added services or
discounts as an alternative to making a donation.
- Brainstorm creative solutions that prioritize business integrity and fairness while still
meeting the customer's needs.

5. **Engage with Company Leadership:**

- If necessary, escalate the situation to company leadership or ethics committee for
guidance and support. Seek input from senior management regarding the appropriate course
of action in alignment with the company's values and policies.
- Collaborate with relevant stakeholders to ensure a unified approach to addressing the
ethical dilemma.

6. **Communicate Transparently:**
- Communicate openly and transparently with both the purchase manager and senior
leadership about the ethical considerations and decision-making process.
- Clearly articulate the company's commitment to ethical business practices and the
importance of upholding integrity in all dealings.

7. **Negotiate Ethical Terms:**

- Engage in constructive dialogue with the purchase manager to negotiate terms that are
ethically sound and mutually beneficial. Emphasize the importance of fair competition and
adherence to ethical standards in business relationships.
- Seek to find common ground that satisfies both parties' interests while upholding ethical
principles.

**Conclusion:**

In conclusion, handling the ethical dilemma presented in this scenario requires a systematic
and principled approach. By assessing the ethical implications, understanding company
policies and values, clarifying the situation, considering alternative solutions, engaging with
company leadership, communicating transparently, and negotiating ethical terms, sales
managers can navigate such challenges with integrity and professionalism. By prioritizing
ethical business practices and upholding core values, organizations can build trust, maintain
credibility, and foster long-term success in the marketplace.