CSR Law Violation By Adani Directors & Dead Olive Turtles of Orissa – The Poor Quality Speaking Skills of Directors & Misuse of CSR Funds.
CSR Audit On Planning & Implementation of CSR Projects - Research by HR Lab
* Birendra K Jha Practitioner Social Impact Assessment Audit; CSR Expert: Planning, Implementation, Consultation & CSR Audit ; Practitioner BRSR Audit - ESG Audit - Sustainability Assurance . EMail: birendrajha03@yahoo.com
The Dhamra Port Company Limited (DPCL), is the 100% subsidiary of the Adani Port. The Adani Port conducts CSR of this company. Not a single Rupee of CSR Fund in the Financial Year 2024-2025 has been given to the Olive Ridley Turtle and before that. An endangered species, affected by the business of the Adani Port. This non-compliance is seen in the past several financial years also.
The Directors sitting at the CSR Committee have no skill in understanding the CSR Law. They have no skill in "CSR Planning". They have failed in conducting the "CSR Need Analysis". An important tool, that gives CSR Committee to understand correctly the social problems of this area. The CSR Committee what did, just an eye wash. In CSR, meeting the "Social Need" and "Compliance" both are necessary. Any CSR fails if "Compliance", is there in paper, as tick box, but no real "Social Need" is fulfilled. The CSR Committee Directors of Adani Port have just selected some projects on random basis to meet the necessary compliance.
Let it be very clear. The Adani Port, should take this report positive and improve its business activities. It shall give more business respect to the Adani Port. Business is needed for growth and economy. But, not at the cost of killing the endangered species and damaging the ecological balance where Olive Ridley Turtles have right to exist. There are ways where business can operate after taking care endangered species. For this purpose the CSR Fund is here.
As we proceed, this is important to know first about the endangered species Olive Ridley Turtle and the CSR Law. The DPCL and the Adani Port, both have failed in understanding clearly the Olive Ridley Turtle and the CSR Law. Different parts are discussed under different headings:
1. CSR Need Analysis.
2. Olive Ridley Turtle - The endangered species.
3. What is CSR Law ? And what violation Adani Port did ?
4. What Adani Port did in the CSR ?
5. What should be the planning focus area in CSR ?
1. CSR Need Analysis:
The CSR Need Analysis ( Base Line Survey ) is the spinal cord of planning. If planning is good, 80% work is achieved. There remains only 20% work balance.
HR Lab conducted CSR Base Line Survey of community cry of some hundred response in between 2020 to 2024. The response has been taken to know the "Negative Social Impact" from the operation of this Adani Port.
The data analysis is given below.
First time this CSR Need Analysis reflected that ships coming to the Adani Port or moving out from this port, are one of the major reasons, for killing of the endangered species the Olive Ridley Turtle. The survey reported that the ships are crossing the turtle movement zone. While crossing the turtle movement zone, the ships propeller kill the turtle. Other responses are also important. 19% responders were worried that "Light Pollution" from the port operation is affecting the turtle nesting. Some 21% response were worried against disturbance to turtle due to dredging. This study shall focus on the 40% response on turtle killing due to ship collision. This shall try to find solution and expected to cover under the CSR Programmes, where the Adani Port should invest.
The Board of Directors of the DPCL and the Adani Port, both are jointly responsible for the protection of the Olive Ridley Turtle, through CSR Fund. The CSR Law binds the Directors, to meet this compliance. The CSR Committee has failed in understanding this basic CSR Law. Many big names are here. The four Directors in the CSR Committee, Prof. G Raghuram; Mr GK Pillai; Mr Karan Adani; Mr PK Pujari and Mrs MV Bhanumachi have violated the CSR Law. They have jointly misused the CSR Funds. Not a single Director raised the objection that CSR Funds are needed to be utilized for the protection of the endangered species.
The TUV India, which audited the Assurance part of the BRSR Report for 2024-2025 is just formality. This audit has failed in capturing this major CSR Law violation. The Adani Directors can not escape sitting behind the TUV India auditors.
The CSR Committee of DPCL and Adani Ports have selected some projects on random basis just to meet the check box compliance, then to meet the real "Social Need" under the CSR Law. Hence real social impact is missing here.
CSR Need Analysis & Synthtic Aperture Radar (SAR):
The CSR Need Analysis that has given of majority response of mass killing of turtles have been tested through the Satellite, using the Synthtic Aperture Radar (SAR).
The SAR data attested that large numbers of ships are operating in day time on the turtle moving path during their movement season which is typically between December to March. These ships are either going to the Adani Port or returning from the port. The satellite images of ships are seen in bright light spot, that has been covered with round yellow circle. The SAR images are produced below:
The Satellite equipped with the Synthetic Aperture Radar detected on 09th of February 2024, some 11 cargo ships moving to the Adani Port or returning from the Adani Port. These cargo ships are crossing the Olive Ridley Turtle moving path in day time. Not to mention turtles in day time only moves to the breeding ground. In night the turtles do not travel.
The SAR Satellite again provided evidence of 18 cargo ships moving in day time inside the turtle moving path. This was taken on 16th January 2024.
2. The Olive Ridley Turtles
The Adani Port has been constructed near the endangered Olive Ridley nesting site. The Olive Ridley turtles, are in habit coming here from many hundred and thousand years in practice from Bangladesh; Sundarban; Andman & Pacific Ocean in between December to March. The nesting population at this area has been alternately and sometimes simultaneously referred to as the ‘world’s largest’ and as ‘highly endangered’.
The turtle nesting site, what is identified as Gahirmatha area, is very busy during December to March. These moving turtles while coming to the nesting site, are crushed by the moving ships either reaching Adani Port or moving out of it. This is proved in the satellite images. The Olive Ridley turtles, found at Orissa, have strong memory power. They remember their birth place. When the young turtles become mother. They breed their child, where their mothers have born them. Mother takes the pain and travel more than 1000 kilometers to reach this site. Turtles are long age driven. Species like Adwaita (Aldabra Giant Tortoise) have registered an age span of more than 255 years. They remember their birth place for many decades. Dakshin Turtle Report 2024 paves the way how Olive Ridley Turtles move. This was a brilliant study where transmitters were fitted across the Olive Ridley Turtles to know exact movement path.
The Environmental Impact Assessment Audit conducted for the Adani Port at the beginning is very poor. The auditors have not accounted the threat of Olive Ridley Turtle in more prominent way. It appears the auditors are in hurry to give a green signal for shipping business operation. This downsize the trust and image of the auditors, who handled the Environmental Impact Assessment Audit in the past.
After port construction, the incidents of turtles getting dead have increased. Many turtles are found floating on ocean in dead condition with signatures of mechanical cut. The environment activists of Orissa have made noise frequently. But no body hear those loud cry against the dead turtles. Because the dead turtles do not speak.
Various photographs of the dead turtles carried away by high tide sea to Puri coastal area, are just adding the dimension of this problem. An evidence is given at the top of this study. This is heart wrenching. Painful and disgusting.
The endangered species, Olive Ridley Turtle, are widely affected by the business operation of the Adani Port. The turtles have not been properly protected under the CSR Law. The CSR Fund of the Adani Port is needed here as per CSR Law.
3. What CSR Law Says:
1. Under Section 135 of the Companies Act, 2013, Parliament mandates the Company Director to meet social responsibility. This provision effectively codifies the principle that "corporate profit" is not solely the private property of the shareholders but is partly owed to the society that enables, the profit generation. The Olive Turtles are the important part of this society.
2. The Section 166(2) of the Companies Act, 2013 imposes a strong fiduciary duty on Directors. Now Directors are legally mandated to act in good faith not just for shareholders, but for the "best interests of the company, its employees, the community, and for the protection of environment".
3. The definition of "community" as stated in the CSR Law is expanded to explicitly include the natural world, cementing the link between social welfare and environmental health. Schedule VII of the Companies Act, 2013 enumerates permissible CSR activities, specifically listing "ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, and conservation of natural resources".
4. By categorizing these ecological activities as "social" responsibility, the CSR Law binds that as human beings, we cannot “own” or “use” environment for “our purpose”. The corporate duty must evolve from merely protecting the shareholders to protecting the ecosystem that we all inhabit. Therefore, the corporate definition of "Social Responsibility" must inherently includes the "Environmental Responsibility."(Hon'ble Supreme Court on M.K. Ranjitsinh vs Union Of India)
5. Where corporate activities such as mining, power generation, or infrastructure threaten the habitat of endangered species, the "Polluter Pays" principle mandates that the company bears the cost of species recovery and protection. CSR funds must, be directed towards ex-situ and in-situ conservation efforts to prevent extinction, wherever business operation impacts on the endangered species (Hon'ble Supreme Court on M.K. Ranjitsinh vs Union Of India).
6. The obligation to protect endangered species is paramount. The "Species Best Interest" standard for protection should be in priority for the survival of endangered species over commercial and industrial interests (Hon'ble Supreme Court on M.K. Ranjitsinh vs Union Of India).
7. The Constitution of India, under Article 51A(g), imposes a fundamental duty on every company as a legal person and a key organ of society, on fundamental duty of environment protection. CSR funds are the tangible expression of this duty. Consequently, allocating funds for the protection of environment is not a voluntary act of charity but a fulfilment of a constitutional obligation. (Hon'ble Supreme Court on M.K. Ranjitsinh vs Union Of India).
In view of the above CSR Law, the Directors of the Adani Port have clearly violated the CSR Law. The CSR Fund has been misused. This violation is needed to be attended by the Company Law and the SEBI.
4. What Adani Port Did in CSR - In The Financial Year 2024-2025:
The Adani Port invested CSR Funds of around Rs 99.06 Crore in the Financial Year 2024-2025. This fund has been has been misused without conducting any CSR Need Analysis. This is clear violation of the CSR Law. The CSR Fund has been invested in non priority area in Education ( Rs 29.98 Crore ); Health & Nutrition ( Rs 14 Crore) ; Sustainable Livelihood( Rs 23.41 Crore ) ; Community Development ( Rs 20.49 Crore); and Climate Action (Rs 11.18 Crore ).
Not a single Rupee has been invested on the protection of the "endangered species", the Olive Ridley Turtle. This is clear violation of the CSR Law.
5. CSR Planning For Protecting The Sea Turtles From Ship Collision:
Expert consultation is needed on this side to protect the endangered turtle. Meanwhile following programmes are devised based on the "CSR Need Analysis". This should must be defined with "Target Numbers", "Completion Time" and "Responsibility" :
1. Satellite Monitoring of Ship: During turtle breeding season ( December to March ), in day time turtle use to travel long distance in the Ocean. They cross ship's traffic line only during the day time. During turtle moving period (December to March) cargo ships movement if is restricted and is allowed to move only during the night, shall avoid large scale killing of turtles. Regular monitoring of ships using SAR satellite technique shall be used. This shall be one of the various important CSR Programmes.
2. Speed Reduction: In CSR Programmes, focus attention shall be given on the speed reduction of ships. The ship should follow pilot ship. The pilot ship equip with special binoculars should watch whether turtle is crossing the Ocean or not, if operating in the day time.
3. Safe Zone: CSR Fund should be invested in intensive patrolling of this area. No propeller used ships come across the turtle crossing zone in day time. The Indian Coast Guard is doing best job. The Adani Port through CSR Fund should support Indian Coast Guard in different innovation drive to save turtles.
4. Research & Data: The research shall be funded through CSR Fund to find innovative solution for protecting the turtle from the ship collision. Specialized institutes like the Central Marine Fishery Research Institute shall be funded.
5. Safer ship design: This is again Research scope. Safe ship design equipped with turtle deviator is needed to be developed.
6. Public Awareness: For protecting turtle adequate Public Awareness is needed to be addressed using the CSR Fund.
7. Rescue & Rehabilitation: This is the important part of the protection Programmes. The CSR Fund shall be used for turtles in danger. There should be trained rescue team with veterinary doctor to give immediate first aid to the turtle if collided with ships.
About Birendra K Jha:
A Pan India practitioner as Social Impact Assessment Assessor; CSR Expert with Planning - Implementation - Audit - Consultation - Training & CSR Audit. Practitioner of BRSR Assurance & ESG Assurance. He has long standing expertise in Social Safeguard ; Environmental Safeguard. He has earned more than 50 certificates on Social Safeguard; Environmental Safeguard ; Labour Law & CSR from International Organization including ILO Geneva (Switzerland ). He overlooked at senior position as General Manager and Deputy General Manager in HR in foreign and Indian MNCs. He may be approached at: birendrajha03@yahoo.com
#CSR #Adani #CSRHead #Directors #CompanySecretary #MD #ManagingDirector #CSR #SocialImpactAssessment #SocialImpact #SocialAudit #SocialStockExchange #corporatesocialresponsibility #talentacquisition #VicePresident #Director
Comments
Post a Comment