Csr

CHAPTER 1: INTRODUCTION Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, and responsible business) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; still others argue that it is an attempt to preempt the role of governments as a watchdog over powerful multinational corporations.

1.1 DEVELOPMENT Business ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. In the increasingly conscience-focused marketplaces of the 21st century, the demand for more ethical business processes and actions (known as ethicism) is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws (e.g. higher UK road tax for higher-emission vehicles). Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia, descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e.g. ethics codes, social responsibility charters). In some cases, corporations have redefined their core values in the light of business ethical considerations (e.g. BP's "beyond petroleum" environmental tilt).

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The term CSR itself came in to common use in the early 1970s although it was seldom abbreviated. The term stakeholder, meaning those impacted by an organization's activities, was used to describe corporate owners beyond shareholders from around 1989.

1.2 APPROACHES Some commentators have identified a difference between the Continental European and the Anglo-Saxon approaches to CSR. And even within Europe the discussion about CSR is very heterogenous. An approach for CSR that is becoming more widely accepted is community-based development projects, such as the Shell Foundation's involvement in the Flower Valley, South Africa. Here they have set up an Early Learning Centre to help educate the community's children, as well as develop new skills for the adults. Marks and Spencer is also active in this community through the building of a trade network with the community - guaranteeing regular fair-trade purchases. Often alternative approaches to this is the establishment of education facilities for adults, as well as HIV/AIDS education programmes. The majority of these CSR projects are established in Africa. A more common approach of CSR is through the giving of aid to local organizations and impoverished communities in developing countries. Some organizations do not like this approach as it does not help build on the skills of the local people, whereas community-based development generally leads to more sustainable development.

1.3 AUDITING AND REPORTING To demonstrate good business citizenship, firms can report in accordance with a number of CSR reporting guidelines or standards, including: •

AccountAbility's AA1000 standard, based on John Elkington's triple bottom line

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(3BL) reporting Global Reporting Initiative's Sustainability Reporting Guidelines

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Verite's Monitoring Guidelines

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Social Accountability International's SA8000 standard

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Green Globe Certification / Standard

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The ISO 14000 environmental management standard

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The United Nations Global Compact promotes companies reporting in the format of a Communication on Progress (COP). A COP report describes the company's implementation of the Compact's ten universal principles.

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The United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) provides voluntary technical guidance on eco-efficiency indicators, corporate responsibility reporting and corporate governance disclosure.

The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance of companies.

1.4 BUSINESS BENEFITS The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones (e.g., Deming's Fourteen Points, balanced scorecards). Orlizty, Schmidt, and Rynes found a correlation between social/environmental performance and financial performance. However, businesses may not be looking at short-run financial returns when developing their CSR strategy. The definition of CSR used within an organisation can vary from the strict "stakeholder impacts" definition used by many CSR advocates and will often include charitable efforts and volunteering. CSR may be based within the human resources, business development or public relations departments of an organisation, or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSR-type values without a clearly defined team or programme. The business case for CSR within a company will likely rest on one or more of these arguments:

• Human resources • Risk management • Brand differentiation • License to operate

1.5 CRITICAL ANALYSIS CSR is entwined in the strategic planning process of many multinational organizations. The reasons or drive behind social responsibility towards human and environmental responsibility whether driven by ulterior motives, enlightened self-interest, or interests beyond the enterprise, is subject to much debate and criticism. CORPORATE SOCIAL RESPONSIBILITY

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Some critics argue that corporations are fundamentally entities responsible for generating a product and/or service to gain profits to satisfy shareholders. Milton Friedman and others argue that there is no place for social responsibility as a business function. These critics point to the rule of corporate law that prohibits a corporation's directors from any activity that would reduce profits. Other critics argue that the practice cherry-picks the good activities a company is involved with and ignores the others, thus 'greenwashing' their image as a socially or environmentally responsible company. Still other critics argue that it inhibits free markets or seeks to pre-empt the role of governments in controlling the socially or environmentally damaging effects of corporations' pursuit of self-interest. Disputed business motives Some critics believe that CSR programmes are often undertaken in an effort to distract the public from the ethical questions posed by their core operations. Examples of companies that have been accused of this motivation include British American Tobacco (BAT), which produces major CSR reports, and the petroleum giant BP, which is well-known for its highprofile advertising campaigns on environmental aspects of its operations. Self-interest Some CSR critics argue that the only reason corporations put in place social projects is for the commercial benefit they see in raising their reputation with the public or with government. They suggest a number of reasons why self-interested corporations, solely seeking to maximise profits, are unable to advance the interests of society as a whole. They point to examples where companies have spent a lot of time promoting CSR policies and commitment to Sustainable Development on the one hand, whilst damaging revelations about business practices emerge on the other. Other views from this perspective include: •

Corporations really care little for the welfare of workers or the environment, and given the opportunity will move production to sweatshops in less well-regulated countries.

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Companies do not pay the full costs of their impact. For example, the costs of cleaning pollution often fall on society in general. As a result profits of corporations are enhanced at the expense of social or ecological welfare.

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Hindrance of free trade These critics are generally supporters of Milton Friedman, who argued that a corporation's principal purpose is to maximize returns to its shareholders, while obeying the laws of the countries within which it works. Friedman argued that only people can have responsibilities. Because of this, moderate critics suggest that CSR activity is most effective in achieving social or environmental outcomes when there is a direct link to profit. This approach to CSR requires that the resources applied to CSR activities must have at least as good a return as these resources could generate if applied anywhere else. This analysis drastically narrows the possible scope of CSR activities.

1.6 DRIVERS Corporations may be influenced to adopt CSR practices by several drivers. Ethical consumerism The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand (Grace and Cohen 2005, 147). Industrialization in many developing countries is booming as a result of technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are beginning to make purchasing decisions related to their environmental and ethical concerns. However, this practice is far from consistent or universal. Globalization and market forces As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. Government regulations, tariffs, environmental restrictions and varying standards of what constitutes labour exploitation are problems that can cost organizations millions of dollars. Some view ethical issues as simply a costly hindrance. Some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising.(Fry, Keim, Mieners 1986, 105) Global competition places particular pressure on multinational corporations to examine not only their own labour practices, but those of their entire supply chain, from a CSR perspective.

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Social awareness and education The role among corporate stakeholders to work collectively to pressure corporations is changing. Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. Non-governmental organizations are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behavior. Through education and dialogue, the development of community in holding businesses responsible for their actions is growing (Roux 2007). Ethics training The rise of ethics training inside corporations, some of it required by government regulation, is another driver credited with changing the behaviour and culture of corporations. The aim of such training is to help employees make ethical decisions when the answers are unclear. Tullberg believes that humans are built with the capacity to cheat and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning normative values and rules in human behaviour (Tullberg 1996). The most direct benefit is reducing the likelihood of “dirty hands” (Grace and Cohen 2005), fines and damaged reputations for breaching laws or moral norms. Organizations also see secondary benefit in increasing employee loyalty and pride in the organization. Caterpillar and Best Buy are examples of organizations that have taken such steps (Thilmany 2007). Government laws and regulation Another driver of CSR is the role of independent mediators, particularly the government, in ensuring that corporations are prevented from harming the broader social good, including people and the environment. CSR critics such as Robert Reich argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow a business to conduct themselves responsibly. Crises and their consequences Often it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental management is the CERES Principles that resulted after the Exxon Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally and caused the company to initiate new risk management and quality control processes. In another example, Magellan Metals in the West Australian town of Esperance was responsible for lead contamination killing thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a cleanup. CORPORATE SOCIAL RESPONSIBILITY

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COMPANY PROFILE Earlier, most of the population of India was engaged in agriculture (about 90%) this was in 1950’s and the Indian agriculture was mainly dependent on rains for irrigation except a few isolated pockets being irrigated through canals and tube wells. People hardly used chemicals and pesticides and even the major agricultural operations life ploughing, planking, etc. were carried down by million of bullocks. As a result, India could not produce enough to feed its 370 million people, despite 135 million hectares of land under cultivation. To meet the excessive demand, heavy expenditure was incurred on import of food grains. Import of food grains proved a compulsive drain on scarce foreign exchange reserves of our country. All this initiated Indian government to give highest priority to development of agriculture in its fiveyear plan programmed. Irrigation, being the key operation in agriculture, was accorded great important in the Five Year Plans. A stress was laid on the improvement in agricultural output through use of advanced technology. Extensive use of effective and improved equipments was made by importing tractors. All these developments made mechanization mandatory for agriculture. This also increased demand for tractors. Our Government encouraged manufacturing of tractors in India to save its foreign currency reserves. As a result, a few plants were set up but Indian technology at that time was not in a position to design and manufacture indigenous tractors. So the plants were mainly set up for manufacturing tractors with the help of some foreign collaboration.

PROMOTION OF PTL Punjab Tractors Limited (PTL) a joint sector company of the Punjab Government, which went into commercial promotion in the early seventies, is a unique example of technological self reliance in a high technology area like the automotive sector in the country. It is promoted by Punjab State Industrial Development Corporation (PSIDC) in 1974 which was set up by Punjab Government for setting up new projects. In 1965 when the entire industrial growth of India relied upon foreign technology and knowhow for setting up industrial ventures in India, the Central Mechanical Engineering Research Institute (CMERI, Durgapur), a national Laboratory of the Government of India, took the bold step of taking up the design and development of totally Indian know how for 26.5 H.P. agricultural tractors.

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LOCATION The plant of Punjab Tractors Limited is located in Mohali Focal Point Estate near Chandigarh on Chandigarh-Ludhiana Highway (Phase IV, Sahibzada Ajit Singh Nagar, Mohali (Punjab) on a campus of 17 hectares. The land was allotted by Punjab Govt. in the developing Mohali to add to the vigorous effects to make it a progressive Industrial Centre. The location of plant is very suitable because it is quite near to the capital of Punjab. This fact has been advantageous to the company in its initial stage of growth. However the inadequacy of railway facilities is a serious drawback to the location of the plant.

BACKGROUND Punjab Tractors Limited (PTL) was promoted by PSIDC to commercialize the indigenous tractor developed by the Central Mechanical Engineering Research Institute (CMERI). The Company's plant is situated at S.A.S. Nagar (Mohali) where production commenced in the year 1974. Initially, PSIDC contributed 42% equity capital against the total paid up capital of Rs.140.00 lacs. The facility was initially created to manufacture 5000 nos., tractors and the capital cost at that time was Rs.321 lacs. The company's product line also includes Combine Harvesters and Forklifts. The production capacity of tractors has increased to 60000 nos., from the level of 5000 nos. The company, over the years, has also promoted two companies, namely, Swaraj Mazda Limited (manufacture of Light Commercial Vehicles) & Swaraj Engines Ltd. (manufacture of Diesel Engines in collaboration with Kirloskar Ltd and it has also promoted Swaraj Automotives. The present stake of PTL in these is 14% in Swaraj Mazda, 33% in Swaraj Engines and 24% in Swaraj Automotives.

SHARE HOLDING PATTERN AS ON 31ST MARCH, 2008 IN PTL Mahindra group Financial institutions Mutual funds F.I.I Insurance Companies Public & others

64.64% 0.09% 2.37% 0.44% 22.65% 9.81%

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SWARAJ: PTL’s BRAND NAME ‘SWARAJ’ The word SWARAJ in Indian language means ‘freedom from bondage’. Since PTL was the first large scale project in India based totally on Indian know how and technology, Swaraj was appropriately chosen as its brand name. With more than 5 Lac tractors and harvest combines operating in Indian farms, now Swaraj is also an internationally recognized name in the developing world Viz. East Africa, West Africa, Middle East and South East Asia, etc. SWARAJ - STAGES OF GROWTH A study of PTL history from project stage to its present position of eminence makes a very interesting reading. It is a fascinating tale of inspiration, dedication, perseverance and a strong to succeed against all odds and prejudice. All these years could be divided into different phases: CONCEPTION STAGE (1970-74) This project for manufacture of 5000 tractors per year was set up at an outlay of Rs. 3.70 crores during November 1972- March 1974. Despite all hurdles and constraints, the project was completed within the estimated costs and well ahead of 24 months time schedule. The engineers for Swaraj tractors were procured from M/s Kirloskar Oil Engines Ltd., a pioneer in Indian Engineering Industry. PTL went into commercial production with the introduction of its first Model Swaraj 724 in April 1974. TEETHING YEARS (1974-78) In the intensely competitive domestic market conditions prevailing in 1974 when well known international brands such as Ford, Massey, Ferguson, etc were available, it was difficult to establish a new tractor. Thus to establish Swaraj against this severe competition, the following strategy was adopted. 1. Intensive and close marketing. 2. District - wise distribution. 3. Limited introduction and slow extension of distribution network. 4. PTL’s own serving group. 5. Strict uniformity of product performance and quality. PTL’s first launch SWARAJ 724 received quite favorable response and encouraged by this response and also by taking into account the preference of large segments of farmers for higher HP tractor, development work on a 35 HP tractor was started in January 1975. PTL introduced its second model SWARAJ 735 in November 1975 which is now the most CORPORATE SOCIAL RESPONSIBILITY

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popular tractor. Then a low cost tractor SWARAJ 720 was introduced in 1978 for small farmers.

CHAPTER 5: CSR STUDY IN PTL, MOHALI CSR ACTIVITIES: Sustainability Report –Content can’t be copied, hence only headings & sub-headings are mentioned belowESOPS- Employee Social Options. Rajeev Dubey- Chairman of CSR Council. Keshub Mahindra- Chairman of Mahindra Group. Mahindra Group is central CSR Activities 1. 2. 3. 4. 5.

Nanhi Kalis- Project set up by K.C Mahindra Education Trust. Mahindra all India Talent Scholarships. Cochlear ImplantsAdopt Govt SchoolsMidday Meal Kitchen in Rajasthan-2006 December 1 crore was donated by m &M though the Chief Minister of Rajasthan to Naandi Foundation to build a Midday Meal Kitchen in Dudu, Jaipur. District which will serve 28,000 children in government school of the district with Midday Meal.

OTHER INITIATIVES Plantation 1) Govt. Elementary School, Chappercheri 11th August 2008 2) Medical Health Combat Panchayat Ghar Chappercheri 23rd August Beneficiaries 3064 1. Awareness camp for women and children, 13th September 2. Initiative to save village Chappercheri and factory from flooding 3. Blood donation camp, combine23rd Nov, 2008. Units donated to PGI:G8 4. White wash activities at Panchayat Ghar Chappercheri 21st Augut 5. Health Competition Govt, Elementary School vill kailon 30th January 2008 Beneficiary 2007 Social Initiatives · Overview CORPORATE SOCIAL RESPONSIBILITY

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Corporate Social Responsibility has always been an integral part of the Mahindra Group's vision and the cornerstone of our Core Value of Good Corporate Citizenship. - Keshub Mahindra, Chairman The Mahindra Group defines Corporate Social Responsibility as making socially responsible products, engaging in socially responsible employee relations and making a commitment to the community around it. At the Mahindra Group, Corporate Social Responsibility is not just a duty; it's a way of life. In 2005, the Group celebrated its 60th anniversary by renewing its commitment to Corporate Social Responsibility. It pledged to dedicate 1% of its profit (after tax), on a continuous basis towards Corporate Social Responsibility. A unique kind of ESOPs - Employee Social Options was launched to enable Mahindra employees to involve themselves in socially responsible activities of their choice. The Group also announced a special gift: to provide free cochlear implants to 60 profoundly hearing-impaired, under-privileged children. In addition to giving impetus to the Nanhi Kali project for the girl child and the Mahindra All India Talent Scholarship for the economically disadvantaged, the Mahindra Group is planning to set up two Mahindra Pride Schools. These schools will offer a variety of courses, with an emphasis on employability, including training for Information Technology, Retail, Automotive Engineering etc. They will provide new skills and capabilities to the weaker sections of society, particularly the scheduled castes and scheduled tribe youth. While these projects are already underway, plans for more social initiatives are on the anvil. · Education A) K. C. Mahindra Education Trust Established by the late Mr. K. C. Mahindra in 1953, the K. C. Mahindra Education Trust aims to ‘Transform the lives of people in India through education, by providing financial assistance and recognition to them, across age groups and across income strata'. It was registered as a Public Charitable Trust under the Bombay Public Trusts Act, 1950. The K.C. Mahindra Education Trust has undertaken a number of education initiatives to make a difference to the lives of deserving students. The Trust promotes education mainly by way of scholarships. It has provided more than Rs. 13.80 crores (approximately US $ 3.0 million) in the form of grants, scholarships and loans. Some of these scholarships were instituted as far back as the 1950’s, while others were founded recently. These are funded through an investment portfolio, the main donors of which are the Mahindra Group of companies. Encouraging Students In its efforts to encourage and motivate students, the K. C. Mahindra Education Trust has set up the following scholarships:

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a. K. C. Mahindra Scholarships for Post-Graduate Studies Abroad Interest-free loan scholarships for post-graduate studies are awarded to deserving students interested in pursuing advanced studies overseas. b. Mahindra Search for Talent Scholarship This has been set up in 35 schools across the country with an objective to enthuse and reward excellence in academics. c. K. C. Mahindra United World College Scholarship This is offered to deserving students in the age group of 16 -18 Encouraging Teachers To further encourage teachers, the Trust has set up - K. C. Mahindra Chair for Nuclear Chemistry at the Institute of Science, Mumbai. - Dhandevi Mahindra Scholarship Award at Sophia College, Mumbai - The Trust has also established several awards and scholarships for the academia. Empowering the Under-privileged •

Mahindra All India Talent Scholarship

To empower the under-privileged and disadvantaged sections of society, the Trust has set up the Mahindra All India Talent Schoarship. These are given to students belonging to lower income group families, to help them pursue job oriented diploma courses at recognised government polytechnics. Most of the awardees are girl students, as the Trust is keen on helping girls earn well, to elevate their standard of living.

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Nanhi Kali

Government of India statistics reveal that out of every ten girls who enrol in school in India, only three complete Standard X. The Nanhi Kali project, launched in 1996 by the K. C. Mahindra Education Trust, aims to change this by providing quality education to the disadvantaged girl child. This national girl child sponsorship programme ensures that every girl child completes her ten years of formal school education in an environment that would help her to realise her potential to the fullest. Also, various corporates and individuals can join the Nanhi Kali project by becoming guardian angels to these disadvantaged girls. What is most encouraging is that it takes only Rs. 5/- per day to take care of the girl child’s education and provide her with a life of dignity. The project addresses attitudes and issues towards girl children by sensitising the teachers, family members and CORPORATE SOCIAL RESPONSIBILITY

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community on the importance of providing the child with a good education. Sponsors of Nanhi Kali are provided with a profile of the child (including her photograph), along with periodic progress reports so that her academic progress can be tracked. The Nanhi Kali project is currently looking after the education of 30,000 girl children and intends to reach out to many more in a phased manner. Recently, the K.C. Mahindra Education Trust entered into a strategic alliance with Naandi Foundation, a not-for-profit organisation, to jointly manage the Nanhi Kali project. Naandi Foundation works with 1500 government schools in Andhra Pradesh, Madhya Pradesh and Chhattisgarh. Through its ‘Ensure Children Learn Programme’, Naandi Foundation is creating child-friendly school environments that prevent dropouts and ensure that children learn. The partnership complements the efforts put in by Naandi Foundation in enriching the learning environment, by helping the girl child in the form of uniforms, textbooks and other learning material. The Nanhi Kali project is spearheaded by Mr. Keshub Mahindra and Mr. Anand Mahindra on the K. C. Mahindra Education Trust’s board, and Dr. Anji Reddy, Mr. Anand Mahindra, Dr. Ishar Judge Ahluwalia, Mr. Ramalinga Raju and Mr. K. S. Raju on the Naandi Foundation’s board. B) Mahindra Education Society As part of its Corporate Social Responsibility activities, the Mahindra Group has established schools near its factories primarily for children of its employees. At present, the Group has three schools that impart high standards of education - Mahindra Academy at Malad in Mumbai, Mahindra Academy in Zaheerabad and a school in Khopoli.The establishment of these schools has not just benefited their employees but also the community around these schools. Teachers at these schools are qualified and undergo regular training as well as attend relevant workshops. Their teaching methodologies are constantly evaluated and modified when necessary. C) Mahindra United World College The striking feature of the United World Colleges is that they embrace the entire world across all divides of race, history, culture, wealth, religion, economic status and political belief: they are unique and they are conscious of their responsibilities. – Nelson Mandela, United World College Honorary President The Mahindra United World College of India, part of the United World College movement, was founded by the late Harish Mahindra in 1997. It is the Group’s endeavour to promote world- class education with an emphasis on the ideals of peace and understanding, central to the ethos of the United World Colleges. There are 10 United World Colleges spread across the CORPORATE SOCIAL RESPONSIBILITY 13

globe, with colleges situated in United Kingdom, Singapore, Canada, Swaziland, Italy, United States of America, Venezuela, Hong Kong, Norway and India. Her Majesty Queen Noor of the Hashemite Kingdom of Jordan is the President of the United World Colleges and Mr. Nelson Mandela, former President of the Republic of South Africa, is the Honorary President of the United World College International Council. Located 40 kms. west of Pune, the Mahindra United World College of India brings together students of various nationalities for a pre-university degree. The school is global not only because of the International Baccalaureate degree, but also because of the true international culture in which the students study, live and learn. Each year’s batch of about 100 students accommodates about 65 to 70 from abroad. The faculty includes professors from Argentina, Australia, Austria, Cameroon, Canada, Colombia, Ecuador, France, Germany, India, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Sweden, South Africa, UK and USA. The teacher-student ratio is 1:9. This international mix facilitates global exposure and helps students transcend all artificial barriers based on race, religion, ethnicity, class, gender or nationality. Keen focus is given on all-round development, and students are encouraged to think innovatively by involving themselves in socially and environmentally relevant issues. The students also contribute to the local neighbourhood through community service programmes. · Health & Disaster Relief Mahindra Foundation The Mahindra Foundation has been set up with a specific objective: to provide medical relief to the poor and needy sections of society. The foundation has helped patients suffering from cancer, heart ailments as well as burn victims. It has also been very active during national calamities and disasters and has helped contribute and mobilise resources. The foundation also extends its support to academia and other professionals and sportsmen by helping them attend workshops and conferences overseas. The Mahindra Group has always been very responsive to any major disaster in India. Whether it's been the tsunami or the Gujarat earthquake, the Mahindra family has got together and always provided support either by way of financial help or by way of sending vehicles, supplying material or manpower. · Arts & Culture Theatre Week The Mahindra Excellence in Theatre Awards (META) is the latest in the Mahindra Group’s efforts to encourage national theatre in two broad categories - Emerging theatre and Established theatre. The annual awards are in tune with the Group’s Corporate Social Responsibility programmes, which have already received a fillip in the Conglomerate’s 60th anniversary year. The awards will initially cover English & Hindi theatre and include CORPORATE SOCIAL RESPONSIBILITY 14

other language productions at a later stage. The Critic’s Panel, consisting of expert theatre and literary personalities based in the four metros, has overseen the selection of the plays in both categories. The selection process covers four broad areas of the country, namely, North, South, East and West. The Critic’s Panels are based in each of the four regional hubs of Kolkata, Mumbai, Delhi and Bangalore. Six plays are selected from each region and are referred to the respective Critic’s Panel. The Panel from each metro city then sends the final list of eight productions to the Grand National Jury. The Grand National Jury for the year 2006 includes theatre luminaries such as Shyamanand Jalan, Shabana Azmi, Ila Arun, Shashi Kapoor, Zafar Hai and M. S. Sathyu. The Mahindra Group also plans to set up a Mahindra Academy for Excellence in Theatre. · Environmental Initiatives Environment protection is a part of everyday being at the Mahindra Group. Right from Mahindra products such as vehicles which are designed meeting International standards of Safety and emission, to all Mahindra plants across the nation which comply way beyond necessary environmental regulations by setting new standards in natural resource conservation, efficient water management and with the most recent Green IT; Mahindra shows that it care of planet earth proactively. Towards making planet earth greener, the Group has vowed to plant a One Million Trees across the Nation by October 2008 under the Mahindra Hariyali initiative. Mahindra Hariyali, is a mass tree plantation initiative undertaken by each and every Mahindra location - be it a Plant/factory setting or a corporate office. Shramdaan by Mahindra employees (and their families) themselves and even Mahindra dealers is a major driver of the initiative. With strong and meaningful partnerships with various stakeholders in the civil society such as schools, colleges, trusts, and also the Government (Forest Departments etc), the Mahindra Hariyali model ensures plantation and nurturing of these trees in the society at large. What started as a seed with top management vision is now bearing fruits towards reaching the zenith of completion. Since 1984, the Mahindra Group has been lending a hand to the ‘Green Bombay’ movement by developing and maintaining municipal gardens. Greenery is at a high premium as the city has less than half an acre of open place per thousand people. That’s ten times less than Delhi and twenty times less than what London offers.

The Group has transformed three municipal gardens: CORPORATE SOCIAL RESPONSIBILITY

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The Shivaji Garden (near Gateway of India) is admired for its beautiful architecture and flourishing plants and flowers. Completely renovated by the Mahindra Group at a cost of Rs. 6 Lakhs, it now has pathways for pedestrians as well as new stretches of lawns and flowers. An area formerly frequented by anti-social elements has been merged with the garden, to prevent further misuse. Every effort has been taken to keep the garden in an immaculate condition and visiting hours are in place, facilitating maintenance work. The Traffic Island Garden (opposite Regal Cinema) has been completely renovated by the Mahindra Group at the cost of Rs. 1 Lakh. New lamp posts and a variety of plants were put into place and the fountain was restored to its former glory. The garden provides visual relief in this crowded and traffic congested circle. The third garden is located at the junction of Madame Cama Road, to the south of Oval Maidan. This is a brand new garden, developed by the group from scratch, at a cost of Rs. 1.5 Lakhs. Formerly misused by vagrants, it is now a serene and beautiful little corner. Excerpts from letters of appreciation the Mahindra Group has received over the years: The President of India and all VVIP's who witnessed the Presidential Review recently were very happy about the way the Gateway has been given a new look. This was mainly because your organisation did a splendid job in giving a face-lift to Shivaji Garden, which added to the beauty of the surroundings. With your co-operation, the garden stands out as a model to be emulated by others. - Mr. D.M. Sukthankar, Municipal Commissioner, Bombay The Review of the Fleet by the President of India on February 12, 1984 and the other functions concerned with it have been a great success. This achievement would not have been possible without the dedicated efforts of a number of agencies. I would like to especially thank you for your personal interest in the beautification of the garden at the Gateway of India, which distinctively lent charm and character to the Beating Retreat Ceremony and reception that followed. - Vice Admiral R.H. Tahiliant, Flat Office Commanding-in-Chief, Western Naval Command, Bombay The traffic island opposite Regal Cinema has become a beautifully appointed garden. Of greater merit perhaps would be your initiative at undertaking such a job. I consider this a textbook example of showing us a simple, albeit effective way of improving the quality of life in this crowded metropolis. - Sr. Columbiere, Principal, St. Annes School, Bombay A long-time resident of Bombay, I have been in the Virgin Islands, USA, for the past two years. On a recent visit home, I was pleasantly surprised to see new greenery in this city. The CORPORATE SOCIAL RESPONSIBILITY 16

garden at the side of Oval Maidan with its pretty lawns and flaming bougainvillea specially caught my eye. I am sure that citizens of Bombay greatly appreciated your company's efforts in beautifying our city. - Shobha Idnani · Sports Mahindra United Football a) History All work and no play can indeed make a company very dull. That’s why a simple club with a few games and basic amenities was set up in 1950. No one ever thought that this would grow into an establishment that ran a professional team and offered high quality facilities, incentives and allowances. The shift was gradual. In 1956, a group of youngsters enrolled themselves as the Mahindra official team in the Bombay Football League and made valiant efforts to reach the top. To further improve the standards, the company provided a full- size football field for practice and training. At this point, with the football teams representing the company at tournaments in Bombay, the need for a sports club arose. So the Mahindra & Mahindra Allied Company Sports Club came into being in 1962. Since then the team has gone from strength to strength, getting into Bombay’s senior division Harwood League in 1964 and earned the dashing sobriquet, ‘The Giant Killers’. Football was developing in Maharashtra and in Mahindra too. In 1969, Mr. Harish Mahindra was elected Vice President of Western India Football Association (WIFA). Mahindra & Mahindra Allied Company Sports Club, then known as the Orange Brigade, was the most popular team in Maharashtra after strong teams like TATA’s, Mafatlal’s and Caltex. The late 80’s saw Mahindra emerge as one of the most formidable teams in the country, attracting talented international players like P. M. Shivdas, C. Mustafa, Jerry Bassi, Henry Menezes, Santosh Kashyap and Godfrey Pereira. Top teams like East Bengal, Mohun Bagan and Mohammedan Sporting went all out to recruit the Mahindra players. In 2000, the Mahindra Football Team underwent a total revamp and the Orange Brigade turned red. The team was renamed Mahindra United under the leadership of Mr. Alan Durante, Executive Director & President of the Automotive Sector. Committed support from the Chairman, Keshub Mahindra, and Managing Director & Vice Chairman, Anand Mahindra, set the ball rolling. Big names like Raghavan, Derek Desouza, Harish Rao, Karel Stromsik, David Booth and Dhronacharya Awardee, Syed Nayeemuddin, have coached the team and taken it from victory to victory. There's been no looking back since then. Mahindra United of Mumbai is the only team in Maharashtra to win the Durand Cup twice, which is the second oldest trophy in the world. It is CORPORATE SOCIAL RESPONSIBILITY 17

also the first team in Maharashtra to win the Harwood League and the Nadkarni Cup three times in a row. In fact, right now the Indian football team too, is led by the captain of Mahindra United. b) Mahindra United Under - 19 years In an attempt to nurture young talent and promote football in Mumbai, Mahindra United fielded an Under-19 years team from 2003. The team performed extremely well in the NFL league for U-19 years and reached the semi-finals, beating teams like Churchill Bros and Salgaocars. This promotion of the U-19 years team has helped the players to develop and display their talent at the top level and has got them instant recognition and offers from some leading clubs in Mumbai. c) Mahindra United Under - 15 years Spurred by the success of its U-19 years team, Mahindra United fielded an Under-15 years team from 2006. The team played the Manchester United Premier Cup Asian Qualifiers held at Kolkata where top NFL Clubs participated. Awards & Recognitions – 2008 · The Nashik Plant became the first plant to win the prestigious CII National Award for Excellence in Energy Management 2008 at an event held in Pune on 22nd and 23rd August 2008.. The award recognizes various industrial sectors for their outstanding contribution to Energy Conservation and Management. The award was conferred on the basis of Nashik plant’s various energy conservation initiatives and its performance over the last three years. · Mahindra & Mahindra was honoured with the Businessworld FICCI-SEDF Corporate Social Responsibility Award from the Honourable Finance Minister, Mr. P. Chidambaram in New Delhi on May 18, 2008. Instituted in 1999, the Businessworld FICCI-SEDF Corporate Social Responsibility Award identifies and recognizes the efforts of companies in integrating and internalizing CSR into their core business operations. Mahindra’s CSR activities focus on the three areas of education, environment and health, and the company has pledged 1% of its profit after tax (PAT) on a continuing basis for CSR activities. ·

M&M won the Auto Monitor CSR award for the Lifeline Express at a glittering ceremony held in New Delhi on the 7th of March 2008. The Lifeline Express was the organization’s largest Esops initiative and was undertaken by the FES Rudrapur plant, who together with other volunteers such as doctors put in an amazing 21,742 man hours.

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On January 18, Mahindra and Mahindra won the BSE award for Best Corporate Social Responsibility Practice at the Social and Corporate Governance Awards (Innovative strategies - Measurable Impacts), presented by BSE and NASSCOM Foundation. The Award ceremony was the culmination of the Business for Social Responsibility Contest organized by BSE and NASSCOM Foundation in which Mahindra and Mahindra Limited was short listed along with 28 other Corporates for the category Best Corporate Social Responsibility Practice.

From Annual Report Corporate Social Responsibility Corporate Social Responsibility (CSR) has always been an integral part of the vision of the Mahindra Group and has been the cornerstone of its core value of Good Corporate Citizenship. CSR for the Company is all encompassing, including making socially responsible products, engaging in responsible employee relations, and not only making a responsible commitment to the community but also encouraging employee engagement in community initiatives. The Mahindra Group has pledged amounts not exceeding 1% of its profit after tax (PAT) on a yearly basis for the Company’s CSR initiatives, largely to benefit the socially and economically disadvantaged sections of society. While the Company’s focus area for CSR has been in the field of education, as responsible citizens, the Company has also been actively supporting issues such as health and environment. Some of the major initiatives your Company has invested in are described below: Mahindra Pride School: As part of the 60th year celebrations, through the K. C. Mahindra Education Trust, the Company has committed to setting up two Mahindra Pride Schools. The Schools aim to empower the youth from socially disadvantaged sections of society by extending livelihood training which will enable them to gain employment based on the skills learned at these Schools. Mid Day Meal Kitchen: The Company had entered into a tripartite public private partnership with the Government of Rajasthan and Naandi Foundation for setting up of a centralised Mid Day Meal Kitchen at Govindgarh Taluka, Jaipur District, in the state of Rajasthan. This kitchen will hygienic, nutritious and wholesome mid day meals to approximately 25,000-35,000 primary school children studying in 314 Government Schools in Govindgarh Taluka, Jaipur District. Supporting Nanhi Kali: CORPORATE SOCIAL RESPONSIBILITY

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Nanhi Kali, which supports the education of the disadvantaged girl child has been the flagship programme of the K. C. Mahindra Education Trust. The Mahindra Group has committed to independently support 6,000 girls in urban, rural and tribal parts of India by providing academic support as well as material support in the form of uniforms, clothes, school bags, shoes, etc. In addition, the Company has entered into a partnership with the Government of Rajasthan to jointly support the education of 10,000 disadvantaged girl children in the tribal area of Udaipur District. Gifting Cochlear Implants: By gifting the power of sound through the donation of cochlear implants, the Mahindra Group has changed the life and future of 41 profoundly hearing-impaired, underprivileged children till date. Operations are performed by Dr. Milind Kirtane, India’s leading ENT surgeon. All recipients are selected in consultation with Dr. Kirtane and his team of doctors, audiologists, teachers of the hearing impaired and social counselors. Supporting Government Schools: Continuing its commitment to make quality education accessible to all children, the Mahindra Group has continued support to 6 Government Schools in Mumbai (5 Schools at Kandivli and 1 in Worli). Naandi Foundation, the implementation partner for the School Adoption Programme, has through its Ensuring Children Learn strategy, been running Gyan Jyothi Centres – or academic support classes to ensure that children coming to BMC Schools acquire grade specific learning competencies. Mahindra All India Talent Scholarships (MAITS): 498 students from 11 Centres all over India were awarded the MAITS in the last financial year to enable them to pursue a job oriented diploma course at a recognised Government Polytechnic in India. These students have been provided with this scholarship for a 3 year period. A majority of the scholarship awardees are girls, as the Trust is keen to empower girls through vocational education. Employee Social Options (ESOPS): Employee Social Options (ESOPS) the unique programme at the Mahindra Group where each employee can exercise his own social responsibility by volunteering in CSR initiatives received great support, with 14,535 employees volunteering for various initiatives with ESOPS expanding to 6 new States namely Uttar Pradesh, Assam, Madhya Pradesh, Rajasthan, Bihar and Tamil Nadu. Some of the Notable ESOPS initiatives this year were: CORPORATE SOCIAL RESPONSIBILITY

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The Lifeline Express; undertaken by the Tractor Plant in Rudrapur, where 647 surgeries were performed free of cost. Mahindra Hariyali; The Management’s vision of planting One million trees has already reached the 2.8 lakhs mark across the country. AIDS Awareness Campaign; inaugurated in July, 2007, and conducted in partnership with an NGO AAS Centre for Human Hope aims to create Aids awareness among the Company’s employees, school/college students, vendor/ suppliers and other citizens of Nashik City. The Company has been recognised for its CSR work and feels privileged to have received the Businessworld FICCI SEDF CSR Award and the BSR Business for Social Responsibility Award. Awards 2007-08 · Businessworld-FICCI-SEDF Corporate Social Responsibility Award · Pegasus Corporate Social Responsibility Gold Award for the Mahindra Lifeline Express and the Nanhi Kali programme · BSE Business for Social Responsibility Award for Best Corporate Social Responsibility Practice · Auto Monitor CSR Award for Mahindra Lifeline Express

SUGGESTIONS AND RECOMMENDATIONS •

Sawaraj tractor/combine plant hass to work more for the society of the nearby villages as contribute more towards corporate social responsibility.

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Efforts have done by Sawaraj in the villages but company need more emphasis on the development of individuals too.

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PTL-Swaraj Enterprise Ltd. has to provide the services and benefits which are much required by the villagers.

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For the beneficial for the area PTL-Swaraj Enterprise Ltd. should have to come forward and indulge with the people fore the corportae social responsibility.

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Sign of development by the work done by PTL-Swaraj Enterprise Ltd. is neverthless thereby CSR activities should have to increase.

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CONCLUSION Of course the changing nature of business into new global forms can also be an opportunity of bringing on that level of accountability. Global brands are more vulnerable to public perceptions about their being ‘good’ simply because much more is at stake, both in terms of money that is invested in building such brands as well in the markets which they affect. CSR has a long way to travel. Today it operates in an environment, which is politically unfavorably balanced for the consumer, and corporates have a larger say in how things are. Even though CSR relates to ethics in business, at this time it seems that this is more a socially and legally enforced practice. PERCEPTION AND PRACTICES OF CSR IN PTL Swaraj Enterprise Ltd. •

CSR has been a precept in PTL Swaraj Enterprise Ltd. for a long time

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Corporate social environment in PTL Swaraj Enterprise Ltd. has been changing in

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view of globalisation, transformation of market environment and deepening of competition. Market economy paved the way for enterprise led development and a new cultural perspective is taking place in PTL Swaraj Enterprise Ltd. business environment having strong bearing on social responsibilities

CHANGES IN ATTITUDES TOWARDS CSR •

There is a growing awareness among the corporate about their social responsibilities.

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The major influencing factors of CSR in the PTL Swaraj Enterprise Ltd. are :

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Increasing awareness o

Reputation

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Rising domestic standard

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Rising international standard

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Domestic regulation

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Commercial pressure etc.

CSR AS BUSINESS SUCCESS Corporate social responsibilities are considered to be an important aspect of business success by 80% of the respondents - through efficient resource management, environment protection, employment, eco friendly atmosphere etc.

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BIBLIOGRAPHY BOOKS AND JOURNALS: 

Gupta, Ananda and Aruna Das Gupta – Corporate Social Responsibility: The Indian Context in Representations of Social Responsibility (Ed. David Crowther and Renu Jatana), The ICFAI University Press, Hyderabad, India, 2005.

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Kumar, Rita , Murphy, David F and Balsari, Viraal – “Altered Images: the 2001 state of corporate responsibility in India poll”. TERI-Europe / New Academy of Business, 2001

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Carroll, A. B. (1979). A Three-Dimensional Conceptual Model of Corporate Performance. Academy of Management Review, 4(4), 497.

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Norris, G., & O'Dwyer, B. (2004). Motivating socially responsive decision making: the operation of management controls in a socially responsive organisation. British Accounting Review, 36(2), 173-196.

INTERNET SOURCES: •

http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-respbusiness.html

• The Social Responsibility Of Business Is To Increase Its Profits by Milton Friedman The New York Times Magazine, September 13, 1970. Copyright @ 1970 by The New York Times Company. •

http://www.globalchange.com/businessethics.htm

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http://www.swlearning.com/management/management_news/mgmt_news_ethics.html

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http://www.csreurope.org/uploadstore/cms/docs/Business_case.pdf

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http://www.valuebasedmanagement.net/organizations_csr.html

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http://www.toxicslink.org/qdocs/Corporate_Social_Responsibility_in_India.pdf

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http://www.indianmba.com/Faculty_Column/FC730/fc730.html

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