RELIANCE INDUSTRIES LIMITED ETHICAL AND UNETHICAL

               RELIANCE INDUSTRIES LIMITED

Intro to Ethics in Reliance At Reliance Industries Limited, the issue of ethics is simple: it is a simple process that involves defining what is right or wrong, & then doing the right thing. Ethics Management at Reliance Group Companies is about values & associated behaviours. It is a process of defining values & ensuring that corporate & individual employee behaviours epitomize those values. We at Reliance Group Companies believe that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship & Caring. Strong commitments to these high values have long been building principles for Reliance Group Companies. These values are not to be lost sight of by anyone at Reliance Group Companies under any circumstances irrespective of the goals that are intended to be achieved. To us, means are as important as the ends.

ETHICAL PRACTICES OF RELIANCE INDUSTRIES LTD

Responsibilities 

  Honesty:-We are committed to treat everyone fairly & with respect & dignity. We appreciate & value the skills, strengths, & perspectives of our diverse workforce. We request the uniqueness of each employee. We believe that each employee makes a meaningful contribution in Reliance Group Companies’ success.

  Integrity:-Reliance Group Companies insists on honesty, integrity & fairness in all aspects of its business & expects the same in its relationships with all those with it does business. 

• There exists a clear vision & picture of integrity throughout Reliance Group Companies. Our reward & promotion systems are aligned with this vision of integrity. 

• Upholding the Reliance Group Companies reputation is paramount. We are judged by how we act. Our reputation will be upheld if we act with integrity in all our dealings, even at a personal level, & we always do what we think is right at all times. 

• We say what we mean, & deliver what we promise, & promise to stand for what is right. We always honour all our commitments. We stand for loyalty & trustworthiness.

  Respect:-We are committed to treat everyone fairly & with respect & dignity. We appreciate & value the skills, strengths, & perspectives of our diverse workforce. We request the uniqueness of each employee. We believe that each employee makes a meaningful contribution in Reliance Group Companies’ success.

  Fairness:-Reliance Group Companies is firmly committed to fairness & objectivity in all its action & interactions. Justice & fairness imbibed in the Organization’s fabric ensure procedural fairness, impartiality & consistency in Reliance Group Companies operations.

  Purposefulness:-Reliance Group Companies sees its activities in terms of higher purposes & ideals. This purposefulness is a way of operating which ties Reliance Group Companies to its environment at a mutually beneficial dimension.

  Trust:-We endeavour to foster a participatory work environment where trust & confidence between team members is spontaneous. We always encourage teamwork with open, candid & speedy communication.

  Responsibility:-Our employees are expected to demonstrate highest levels of personal responsibility & continually affirm that they are responsible to themselves for the pursuit of excellence. At Reliance Group Companies accountability is individual rather than collective. Our employees are committed & enthusiastic to assume responsibility for actions for the organization.

  Citizenship:-We are a fiercely patriotic company, fully committed to achieving & participating in every conceivable way in the progress & integrity of India. • We are committed to obey all the laws of India & the countries in which we do business & to do our part to make the communities in which we live better.

  Caring :-Compassion, sharing & kindness are values that we try to inculcate in our decision making process to achieve fairness. • It is imperative that each one of us gets intensely driven from the heart towards upholding of these values in our day to day conduct. This initiative will further stimulate the creation & maintenance of a highly ethical work environment.

UNETHICAL PRACTICES OF RELIANCE INDUSTRIES LTD

1)     RIL’s 2000 crore stock market scam :

• In November 2007, the company secured an illegal gain of Rs. 513 crores. Under the law, RIL was liable for a penalty of three times the gain — that is, Rs. 1539 crores – and the disgorgement of its profit of Rs 513 crores, taking the total amount to Rs. 2056 crores. Factoring in interest, this amount would increase by another Rs. 200 -500 crores. More importantly, the violation could also entail criminal prosecution under IPC punishable with seven years’ imprisonment as unsuspecting g investors had been defrauded/cheated of Rs. 513 crores.

2)     Reliance KG Gas Scam :

 The CAG (Comptroller and Auditor General) has shown that the Directorate General of Hydrocarbons (DGH) allowed Reliance Industries and other private operators to gold-plate the capital costs of the plant allowing them to make huge profits. The Production Sharing Contract pegged the profit share of the private operators and the Government to something called an Investment Multiplier, which meant that higher the capital cost, the larger the share of the profits of the private parties.

The capital costs in the KG Basin D-6 Block went up from $2.4 billion in the initial contract to $8.5 billion.

3)     NICL SCAME:

RIL NICL Scam Rs. 273.12 crore CBI files charge sheet against Reliance Industries Limited National Insurance Company Limited. The complaint alleged irregularities in issuance of insurance policies - for coverage of default payments - by NICL to RIL. Case or Investigation Started in year 2005 and CBI file charge sheet on December 9, 2011. CVC said that two MoUs were signed between the private telecom provider and the NICL, where terms deviating from the standard policy and favourable to the party were incorporated, "Deviating means departure from what is described or expected: not following rules and laws. Different not as per law or policy. On the basis of the MoUs, NICL issued two Special Contingency Policies (SCPs) from its Kalyan office. CVC said officials of NICL's regional office in Mumbai and Kalyan branch committed "serious illegalities in connivance with officials of telecom provider which resulted into a wrongful loss of Rs 273.12 crore."

4)     Violation of the Revenue Act :

Reliance Industries do not put Revenue Stamps on the bills receipts. This is in direct violation of the Revenue Act. It’s estimated that by this Reliance earns a sum of Rs. 25 crores a year. 

5)    Illogical accounting pattern: The Company has an illogical accounting pattern. They shift between       Reliance InfoTech and Reliance Industries where payments are concern. Well but then they do not debit or credit the company and thus their accounting pattern is wrong too. That’s why in a 25 years the company has captured most of Indian Industries

6)     Unethical corporate practices of Insider Trading: It is of Public Knowledge that Mukesh Ambani & Group, inherited Promoter of Reliance Industries Ltd involved in one of the most unethical corporate practices of Insider Trading in his own company shares prior to merger of Reliance Petroleum Ltd with the former. SEBI the stock market watchdog did uncover the insider trading scame.

SUGGESTION

Be Trustful Recognize customers want to do business with a company they can trust; when trust is at the core of a company, it's easy to recognize. Trust defined, is assured reliance on the character, ability, strength, and truth of a business.

Meet Obligations Regardless of the circumstances, do everything in your power to gain the trust of past customer's and clients, particularly if something has gone awry. Reclaim any lost business by honouring all commitments and obligations.

Keep An Open Mind For continuous improvement of a company, the leader of an organization must be open to new ideas. Ask for opinions and feedback from both customers and team members and your company will continue to grow.

Have Clear Documents Re-evaluate all print materials including small business advertising, brochures, and other business documents making sure they are clear, precise and professional. Most important, make sure they do not misrepresent or misinterpret.

Become Community Involved Remain involved in community-related issues and activities, thereby demonstrating that your business is a responsible community contributor. In other words, stay involved.

Be Respectful Treat others with the utmost of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect.

Maintain Accounting Control Take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of your company, but as a resource for any "questionable " activities. Gaining control of accounting and record keeping allows you to end any dubious activities promptly.

THANK YOU

AVINASH KUMAR