Corporate Social Responsibility & Sustainability

CSR: Status, prospect and challenges

Sector: Consumer Durables

Group 5
Samiksha Patel 17083
Saurabh Singh 17084
Sharon S Pinto 17085
Shreya L 17086
S V Karthik 17087
Sreerag Rajendran 17088
Sumitesh Pattnaik 17089
Swathi Prasad 17090
Udayana Pratap 17091

25 th October 2017

Submitted to: Dr. Mousumi Sengupta

Contents

1. Introduction to the concept of CSR and its significance .................................................... 1

2. Significance of Corporate Social Responsibility ................................................................ 3
3. Consumer Durables Sector ................................................................................................. 4
4. Global CSR Practices in the consumer durables sector ...................................................... 7
4.1. Bajaj Electricals........................................................................................................... 7
4.2. Apple ......................................................................................................................... 10
4.3. Mahindra & Mahindra ............................................................................................... 13
4.4. Bosch ......................................................................................................................... 15
5. Prospects and challenges .................................................................................................. 20
6. Conclusion ........................................................................................................................ 22
7. Recommendations ............................................................................................................ 23
References ................................................................................................................................ 27
 1. Introduction to the concept of CSR and its significance

In the year 1991, we saw a dramatic shift in the needs of business and society in general. This
was the time when many organizations in India had begun understanding the significance of
business involvement in the community. This has been making progress from that point
forward, and today, CSR has turned into a part of the business process.

Today’s consumers hold organizations to a higher standard. They are searching for something
beyond material items or quality services while picking an organization to work with. Nine out
of every ten consumers anticipate that an organization will make a benefit as well as operate
responsibly to address social and natural issues, according to a study held by Cone
Communication. Eight four percent of global consumers also said they would go for the
responsible product whenever possible.

As an organization goes through globalization, many difficulties have waited for them from
government policies to the varying benchmarks of labour exploitation; these challenges
possibly cost organization millions of dollars. A few organizations are of the view that these
approaches are only a cost hindrance, while different organizations utilize CSR strategies as a
procedure to gain the support from the public in the global market.

Recognizing how important social responsibility is to their customers, many organizations now
concentrate on and practice a couple of broad categories of corporate social responsibility
(CSR).

 Environmental efforts

One essential concentration of corporate social responsibility is the environment.

Organizations regardless of size have a large carbon footprint. Any means they take to
eliminate those footprints are viewed as both useful for the organization and society as a whole.

"European companies have really led the way on environment efforts, such as green energy
usage, eco-friendly office and travel policies, and ensuring that businesses take a responsibility
for controlling if their net impact is positive or negative," said Richard Stevenson, head of
corporate communications at ecommerce platform ePages.com.

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  Philanthropy

Organizations also practice social responsibility by giving to national and local charities or
foundations. Organization have many resources that can profit the charities and local
community programs.

 Ethical labour practices

By treating employees fairly and morally, organizations can show their corporate social
responsibility. This is particularly valid for organizations that work in global areas with
different labour laws.

 Volunteering

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Going to volunteer events says a lot about an organization’s sincerity. By doing good deeds
without expecting anything in return, organizations can express their concern for particular
issues and support for specific organization.

Consumers and partners always want to hear that a business is getting more than just revenues.
Even modest steps such as ‘open door days’ can be an incredible approach to build a connection
with your community and reflect that you plan or aim to have valuable and long term impact.

"This new wave of buyers is demanding transparency, and when given the choice, will almost
always choose a brand or product tied to a socially conscious cause rather than a corporate big
name brand," according to DeeAnn Sims, founder of creative agency, SPBX.

Therefore, from the above we can say that CSR (Corporate social responsibility) is the forefront
of the modern day business practices.

2. Significance of Corporate Social Responsibility

All stakeholders in a business try to comprehend and value the mission of the organization, and
why they should invest and support in it, is the reason CSR matters.

Liz Maw, the CEO of non-profit organization Net Impact, noted that CSR is becoming more
mainstream as forward-thinking companies embed sustainability into the core of their business
operations to create shared value for business and society. Sustainability is not just an important
element for humans and the planet, but also a vital element for the success of a business.

More practically, CSR shows the policies, practices and initiatives that an organization
commits to in order to govern themselves with honesty and transparency so that they will have
a positive impact on social and environmental well-being. Not only are the consumers drawn
to the company or an organization that give back to the society, but today, the top talent also
wants to work with companies who engage in CSR activities.

Typically, there are six business benefits, why organizations should go with Corporate Social
Responsibility:

 Innovation
When we use innovation in relation to CSR, it acts as a huge benefit to the society and company.
For example, in a recent video of Geoff McDonald (Global VP for HR, Marketing,

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communications and sustainability), he described that with the lens of sustainability, Unilever
was able to produce new products such as hair conditioners, which require less water.

 Cost Savings
One of the easiest ways for a company to start engaging in CSR is to use it as a cost cut, whether
it is using less packaging or less energy. For example, by 2015 General Mills reduced its energy
savings by 20%.

 Brand Differentiation
Now days, CSR is the best tool to differentiate your product. In the past, it was the sole motive
of the organization but now it is becoming harder day-by-day. For example the “Cola Wars”
between Coke and Pepsi. They both are adopting the same, but a slightly different road to CSR.
Both Pepsi and Coke are pursuing strategies of zero net water usage. Both use environmental
friendly packaging.

 Long Term Thinking

The statement issued by Unilever was “The only reason we’re doing sustainability is to drive
the growth of Unilever”. Most of them are doing CSR activities keeping in mind the
organization’s long-term interest and to ensure that the company’s future is well sustainable
and maintained.

 Customer Engagement
Using CSR can help to interact with the customer in new ways. Since the message is about
“good”, it can often be an easier way to talk to customers. For example, Walmart has
established itself as a leader in environmental efforts. Walmart is doing an ad campaign
designed to raise awareness about the environment and the product choices customers could
make.

3. Consumer Durables Sector

Consumer Durables are manufactured items, typically cars or household appliances, that are
expected to have a relatively long useful life after purchase. Demand for consumer durables in
India has been growing on the back of rising incomes; this trend is set to continue even as other
factors like rising rural incomes, increasing urbanization, & changing lifestyles aid demand
growth in the sector (htt). Consumer durables account for more than 40% of end consumer
spending in India.

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Annual turnover of more than INR 500 billion and contributes more than INR 150 billion to
revenue of Centre and State governments. India is expected to become the fifth largest
consumer durables market in the world by 2025. Urban markets account for the major share
(65 per cent) of total revenues in the consumer durables sector in the country. Demand in urban
markets is expected to increase for non- essential products such as LED TV’s, laptops, split
ACs and, beauty and wellness products (22).

With the introduction of GST, the consumer durables category has been placed under the 28
per cent slab rate a slight increase from the previous 25-27 per cent. This has led to an increase
in prices by 1-2% and a slower demand. With festivals around the corner, industry players are
betting big on sales of consumer durables like 4K smart TVs and larger appliances like washing
machines, which are expected to see a surge in sales this festive season compared to a year ago.
Industry stakeholders say many consumers seek to make costly purchases at such times (23).

The Consumer Durables industry consists of durable goods and appliances for domestic use
such as televisions, refrigerators, air conditioners and washing machines (htt1). Instruments
such as kitchen appliances (microwave ovens, grinders etc.) are also included in this category.

The Indian Consumer Durables Industry can be broadly classified into two segments:
Consumer Electronics and Consumer Appliances. Consumer Appliances can be further
categorized into Brown Goods, which are relatively light electronic consumer durables such as
TVs, radios, digital media players, and computers, as distinct from heavy consumer durables
such as air conditioners, refrigerators, stoves, which are called White Goods.

Categories

White
goods

Brown
goods

Consumer
electronics

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 White goods Brown goods Consumer electronics
 Air conditioners  Microwave ovens  TVs
 Refrigerators  Cooking range  Audio and
 Washing Machines  Chimneys video systems
 Sewing machines  Mixers  Electronic
 Watches and clocks  Grinders accessories
 Cleaning equipment  Electronic fans  PCs
 Other domestic  Irons  Mobile phones
appliances  Digital cameras
 DVDs

The consumer electronics market is expected to increase to $400 billion by 2020. Consumer
durable market expected to grow at CAGR of 13 per cent from 2005 to 2020 (htt2). Around
two third of the total revenue is generated from urban population & rest is generated from rural
population. As per the EY report published in March 2017, country’s top 50 biggest cities
experienced growth in consumption pattern corresponding to high gross domestic product of
the country.

India has the world’s third largest television industry. India’s television industry is expected to
grow at a CAGR of 14.7 per cent over FY16-21. By 2018, the television industry in India is
expected to grow to US$ 11.78 billion from US$ 9.23 billion in 2016, registering a growth of
12.97 per cent (www).

India’s consumer durables exports include refrigerators and refrigerating equipment

compressors, colour TVs, air conditioner parts and compressors, and fully automatic washing
machines. The U.A.E. is a major export location. The majority of white goods are exported to
the South Asian Association for Regional Cooperation (SAARC) nations, countries that border
India.

The following factors are affecting Indian durable consumer goods industry in India:
 The demand for consumer durable goods has risen with increase in disposable income
along with more consumers falling under the double income families. This, coupled with a fall
in the prices of durable goods mainly due to the advancement of technology, easy import of
components has led to an increase in the consumption expenditure on durable goods.

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  In the case of more expensive consumer goods, such as refrigerators, washing
machines, colour televisions and personal computers, retailers are marketing their goods more
aggressively by providing easy financing options like EMI’s to the consumers by partnering
with banks. This is beneficial mainly for the lower and middle-income group, especially when
the cost of capital and flexibility of the scheme is in their favour.
 There is huge potential for growth in the rural markets. In the last year, 30-35% of the
total sale of consumer durable was from the rural market. This is expected to grow by 40-45%
in the near future. The rural durables market has been growing by 30% annually, mainly due
to the growing affordability of products as well as the general buoyancy in the economy.
(www1)

4. Global CSR Practices in the consumer durables sector

4.1. Bajaj Electricals

Bajaj Electricals is an Indian consumer electrical equipment manufacturing company based in

Mumbai. It comes under the Bajaj Group. Consumer durable products of the company are fans,
juicer, induction, irons, food processor etc. They have 19-branch offices across India. They
have about 1000 distributors, 4000 authorised dealers, 400000 retail outlets & 282 customer
care centres.

CSR Policy
On 1 April 2014, Bajaj Electricals Limited approved the policy on Corporate Social
Responsibility. The CSR committee is headed by Mr. Shekhar Bajaj, Mr. Anant Bajaj, Dr
(Mrs.) Indu Shahani. The company believes that CSR is not what they do with their profits, but
also how they make their profits. They go beyond philanthropy & compliance, and manage our
economic, environmental & social impacts and the relationship with diverse stakeholders. They
follow a particular model while doing CSR activities. The model comprises of four pillars:

 Diversity & Inclusion

Diversity & inclusion is created in the culture of the company. They believe in high performing
inclusive environment. They strive to attract & retain capable employees with respect to
diversity.

 Employee Volunteering

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The employees engage themselves in the volunteering programs of the company through CSR
& strong individual commitment. They believe in giving back to the society & the commitment
is seen in the employees of the Bajaj.

 Community Initiatives
The community initiative programs ensures Environmental Sustainability, Education,
Employment, preventing Health Care & promotion of Arts & Culture. They consider this as an
important part of the social & individual responsibility.

 Sustainability
The Bajaj Family believes that long-term business goals should be achieved with sustainable
development without compromising on the economic, environmental & social factors. It is
always consolidated in the Bajaj Strategies.

CSR Activities
Jankidevi Bajaj gram vikas sanstha

The trust was established for the rural community to improve the quality of life, women
empowerment, development of human, eliminating the poverty, promoting ecological balance.
This is being done in 24 remote villages in Khed & Mayal talukas of Pune & Gangapur talukas
of Aurangabad (htt3). They have undertaken many activities:

 For improving agricultural productivity, they have taken the water conservation project.
 Construction of Latrines
 They are training women to use technology so that with the improved technology they
can store the food grains easily.
 Immunization campaigns for Polio.

Kamalnayan Bajaj Hospital

The Marathwada Medical And Research Institute (MMRI) Kamalnayan Bajaj Hospital
Aurangabad, has been established to provide health care of the highest possible quality and
developed as a tertiary care hospital in Aurangabad. As the only referral point for all patients
from Marathwada region, continuing to fulfil the critical need of providing best medical care
to the people of Marathwada, the Marathwada Medical & Research Institute (MMRI) now
presents all new comprehensive healthcare facilities under one roof at the Kamalnayan Bajaj
Hospital. It is conveniently located on the Beed Bypass road, just two kms away from the

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railway station and four kms from bus stand. The prime objective of the hospital is to offer
complete healthcare facilities to the local people, so that not a single person from the
Marathwada region needs to go to Pune or Mumbai for expert medical care and treatment (htt4).

Consumer Protection

In the year 1988, the Bajaj Family gave a donation to CFBP to initiate annual awards in the
name of Jamnalal Bajaj to encourage integrity & fairness among small, medium & large
business & industrial enterprises. To ensure that people get food items & medicines that has
been tested the company gave Rs.3.5 million as donation to the S.N.D.T women’s University
for setting up a CFBP Food Testing Laboratory.

Project Disha

Project Disha is launched for employment, to enhance vocational skills & livelihood of the
youth. Through the program, the company will train 1000 after sales technicians in seven
locations across India. The customer care department of the company will help the trainees
when they required technical information. Mr Shekhar Bajaj, Chairman & Managing Director
of Bajaj Electricals Ltd. Said 50% of the population in India are below 25 years of age so he
wanted to create employment for the youth. With the expansion of consumer Durables, they
wanted to skilled technicians.

No Tobacco

Bajaj Electricals is working for Yes to life & No to Tobacco by ensuring the workplace and
workforce free across it offices, factory sites & branch locations. Their mission is to eradicate
the consumption of tobacco from society so they are campaigning for tobacco awareness to
achieve their goal. They have initiated Tobacco Control Program in two districts Yavatmal &
Wardha of Maharashtra. The main objective of this program is to empower the schoolchildren
to refuse tobacco product creating Tobacco Free Schools. Under Bajaj Electrical Ltd Tobacco
Control program, 250000 students of 2148 schools were facilitated to work towards being
tobacco free schools last year on World No Tobacco Day.

Onergy Solar

Punam Energy Private Limited is a Kolkata based start-up that facilitates clean environmental
products such as lighting, cooking & electrification by setting up energy distribution & service
networks to underserved household & institutions. The Bajaj Electricals Ltd invested in the

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Onergy Solar to grow their business. This investment from Bajaj Electricals has made a direct
impact on the growth of North Eastern States. Mr Shekhar Bajaj believes that Onergy solar has
the capability to execute the program thus making a positive change in the society. That made
Bajaj Electricals to invest in the Onergy Solar.

Butterfly Garden

The Bajaj Electricals have taken an initiative of butterfly garden at Vikhroli with Godrej &
Boyce Mfg. They have planted 125 saplings adding to the diversity of the site. The main
objective is to nurture the nature so to attract colourful butterflies thus supporting the
ecosystem.

4.2. Apple

Apple Inc. is an American multinational organization having its headquarters at Cupertino,

California, which develops, innovate and markets electronics, computer software and services
online. “There are many hardware products of Apple, such as iPhone, iPad, Mac a personal
computer, iPod, Apple iWatch, Apple TV, home Pod. Apple has a unique software macOS and
iOS as operating system; it has Safari as a browser and iLife and iWork as innovation and
efficiency tools. Apple has online services which include iTunes Store, iOS AppStore, iCloud
(enw).”

“Steve Jobs, Steve Wozniak, and Ronald Wayne started Apple in April 1976 to design and
market desktops. It had strengthened as Apple Computer, Inc. in January 1977, and offers of
its desktops saw huge force and income growth for the organization. Within two years, they
procured a staff of desktop designer and developers and had a formation line. Apple came to
the world in 1980 and received quick success. Next couple of years, it launched new desktops
with imaginative graphical UIs.”

“In January 2007, Steve Jobs mentioned that Apple Computer, Inc. would be renamed as Apple
Inc. to shift centring to consumer devices. He declared the iPhone, which saw approval and
huge monetary achievement. In August 2011, Jobs surrendered as CEO due to health
complexities, and Tim Cook became the new CEO.”

MISSION: "Man is the creator of change in this world. As such, he should be above systems
and structures, and not subordinate to them." Apple’s motto “Think different” became an
advertising slogan for Apple.

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Corporate Social Responsibility of Apple
Lisa Jackson, the Vice President of Environmental Initiatives, drives Apple’s CSR projects and
activities. It must be noticed, "Steve Jobs wasn't known for altruism. Some thought whether he
made unknown gifts to philanthropy, some censured him for his absence of giving to people,
while others safeguarded him". With Tim Cook accepting its initiative in 2011, the attention
on CSR part of the business was expanded to an impressive degree.

Apple Assisting Local groups

Global Volunteer Program' was propelled in 2011 to urge workers to volunteer in nearby
groups. Since its institute nearly USD 89 million was given to philanthropies and NGO’s all
over the world.’

Apple started Empowering and Training Workers

Apple training and development program is free for more than 20 factories and more than
300000 employees chosen different modules in 2016. Under Denise Young Smith, as Apple
vice president for Human Resource, it expanded its employee welfare program to some extent
so that all the employees are satisfied with the program they have initiated (enw). In addition,
“pregnant mothers can take a leave of four weeks before delivery and 14 weeks after delivery,
and for fathers, they can take up to six weeks leave as a paternity leave.’

Labor and Human rights

Apple have introduced “The Supplier Code of Conduct “which is considered as one of the
hardest in the gadget business. They have achieved a 95% consistency among the suppliers to
an extreme of 60 –hour week’s work.’

Employee Health and Safety

Apple have introduced Supplier EHS Academy, an 18-month program for improving the
working conditions & security all around the world. 240 providers and 270,000 labourers have
showed interest in this initiative (enw). Research led to Apple's ergonomics division on around
75 occupations within inventory network to recognize perils.’

Energy Consumption

Apple is frequently commended for its natural records that incorporate abatement of aggregate
power utilization of Apple items by 57%,’ launching of Mac smaller than expected and
surpassing energy star rules. In addition, Apple rises as the main organization that has been

11
granted with a Clean Energy Index of 100%, as indicated by Greenpeace's Clicking Clean
Report.’’

Water Consumption

The organization drove The Clean Water Program in 2013 and in 2015, 73 providers joined the
program to build the sensitiveness of their water utilization. Cooling frameworks focuses can
reuse water more than 36times. In 2015 the organization changed over around 120,000 square
feet of beforehand grass yards to dry spell tolerant scene, meaning evaluated water reserve
funds of up to 6 million gallons for each year (enw).’

Waste reduction and recycling

Apple offers recycling initiatives in 99% of the countries and ‘the organization has redirected
nearly 512 million pounds of electronic wastes from landfills since 2009. In 2016, the
organization collaborated with Liam, an array of robots that can destroy an iPhone at time
intervals and sort its astounding parts so they can be reused. In 2015, more than 98% of Apple
item bundling was done from reused paper, sourced from economically oversaw forests. Apple
collaborated with more than 160 reusing organizations all over the globe and in 2015 it piled
almost 90 million pounds of e-squander through its reusing programs.’

Carbon Emissions

Apple is responsible for 34.2 million metrics of ozone harming substance emanations amid
year of 2014. The fact that the organization is looking into methods of lessening carbon related
with assembling and using its items, with the increasing in the quantities of items manufactured
and marketed products has lessened the level of Apple's carbon effectiveness. In 2014,
employees took nearly 120,512 excursions on shared bicycles, a 65% expansion more than
2013. Apple gifted more than 550 electric vehicle charging ports, an expansion of 67%
contrasted with the previous year to improve the usage of electric vehicles (enw).

Sustainable Sourcing

In 2015 nearly 68% of paper is utilized for packing, was set up from reused wooden fibre.
Apple collaborated together with The Conservation Fund to get 36,000 sections of land of
feasible timberland in North Carolina and more than 14,000 metric huge amounts of wood was
reaped responsibly. Apple plans to add to change up to 1 million sections of land of forests,
over the southern territories, into responsible committee by 2022.’

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 4.3. Mahindra & Mahindra

Mahindra & Mahindra is an automobile manufacturing company based in Mumbai. It is one of

the largest vehicle producer in India and the largest producer of tractors in the world. It was set
up as a steel company in 1945 in Punjab. They were initially involved in the manufacturer of
Jeep in India and now they have ventured into commercial vehicles and in agricultural tractors.
Currently they are also operating in two wheeler industries. The group has also presence in
aviation, military, energy, construction equipment, information technology, real estate and
logistics.

Mahindra has been awarded by different organizations for the ethics followed by the company
and the CSR activities taken up by the company. The group has been involved in many socially
relevant projects and have been awarded the “Pegasus Award” for CSR in 2007.The trust has
been focusing on development of under privileged students by providing incentives and
financial incentives for their education. They have constructed many colleges and schools as
part of their CSR activities.

Objectives of the CSR policy

 Developing strategic and unified approach to CSR in the organization under the project
“Rise for Good” by identifying villages and towns for developing the area and
providing many opportunities for the citizens to achieve their goals in life.
 Increased participation among the employees for participating in CSR activities of the
company for doing good for the society through the volunteering program known as
ESOPs.

CSR activities of Mahindra & Mahindra

Mahindra & Mahindra limited has been a socially responsible corporate going beyond the legal
& statutory requirements to make responsible investments in the community. KC Mahindra
Education Trust was set up on the year 1954 and it was followed by the setting up of Mahindra
Foundation in 1969.The company have decided to allocate 1% PAT for developing the socially
and economically backward communities. They have also taken initiatives for upbringing
public health and the environment. For improving the educational facilities in India, the
Company have taken many initiatives through their CSR activities (htt5).

 Educational grants

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The CSR activities of the company were aimed at enabling students to overcome their financial
difficulties and achieve their educational goals. They have provided scholarships to meritorious
students for studying in foreign institutions and students to earn vocational diploma from
government polytechnic institutions. These scholarships have enabled students to study at the
Mahindra United World College (Pune).

 Nanhi kali

This project was introduced in 1996 for supporting the education of girl from rural, poor urban
and students from tribal communities by providing them academic and material support. The
Naandi Foundation also supports this initiative.

 Mahindra Pride Schools

These schools were started for developing the skills of the youth from economically and
backward sections of the society by providing them livelihood training for getting good jobs.
Training is given in Sales, Craft, IT and Hospitality sector.

 Lifeline express

The company has joined with Impact India Foundation for sponsoring Life Line Express, which
aims to provide health care facilities for people in remote areas. Many treatments are provided
in Lifeline Express such as dental treatments, cataract removal, epilepsy treatments etc.

 Project Hariyali

This was founded in the year 2007for conserving environment by planting million trees every
year on ongoing basis. This is one of the widely acclaimed initiatives of the company and has
received various awards.

 Watershed management

The organization joining hands with Madhya Pradesh government for setting up watershed
management project for conservation of water, soil conservation and increasing the availability
of water for irrigation purposes for improving agricultural productivity and enhancing the
income of farmers.

 Swachh Bharat Swachh Vidyalaya programme

By following the footsteps of Prime Minister’s “Swacch Bharat Abhighyan”, the organization
has contributed to the “Swacch Vidyalaya” campaign by developing 430 toilets in government

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girl schools. It has also constructed many public toilets for the community that is monitored by
the Mahindra group itself and training girls, parents and school authorities about the hygienic
practices to be followed.

 Wardha Farmer Family & Krishi Mitr Project

This initiative was introduced for supporting small-scale farmers by training them in latest
farming techniques so that with minimum inputs the farmer will be able to produce better
quality products by giving them guidance in use of fertilizers and soil conditions (htt5).

 Women Empowerment

The organization have taken many initiatives for empowering women by providing financial
assistances, building homes and hostels for orphans, setting up day care centers and old age
homes and other basic amenities for the senior citizens and economically backward sections of
the society.

 ESOPs

Employees of Mahindra have been given constant support for volunteering in various CSR
activities such as health and education through ESOPs. These programs include creating AIDS
awareness programs, health camps, donation to orphanages and conducting workshops in old
age homes.

 Disaster Relief and Rehabilitation

The organization have taken many timely initiatives for supporting rehabilitation and relief
activities in those places which were effected by natural disaster by giving financial assistance
in the government ‘s relief funds or by directly assisting the rebuilding of disaster affected areas
such as planting trees and building houses in Jammu & Kashmir after the floods.

4.4. Bosch

“It is my intention, apart from the alleviation of all kinds of hardship, to promote the moral,
physical and intellectual development of the people” – Robert Bosch.

Mainly Bosch Limited concentrates on three social engagement programs. It aims to resolve
specific social and community issues and enable the beneficiaries of these programs to secure
a better tomorrow.

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 a. Vocational training (BRIDGE)
b. Health, Hygiene, Education
c. Neighborhood Projects
a. Vocational training (BRIDGE): Ensuring the employability of unprivileged school
dropout youth is an important thrust area for Bosch Limited. After a research on needs
assessment (of both industry as well as learners), an end-to-end solutions model was
developed, known as BRIDGE (Bosch’s Response to India’s Development
and Growth) through Employability Enhancement). A pioneering Bosch CSR program,
it helps in fulfilling the growing need for skilled work force across sectors in India. This
3-month short-term program has been designed and developed by Bosch with a focus
on employability and life skills. Bosch has delivered it across India through BRIDGE
Centres (htt6).

Bosch reaches out to school dropout youth from underprivileged backgrounds who are between
the ages of 18 and 25, and not in education, employment or training (also known as youth in
the NEET category). The objective of this job-oriented program is to utilise Bosch’s already
established skills development competence to deliver a unique vocational training model for
making underprivileged children employable, thereby providing a pool of high quality skilled
manpower, mainly to the services industry (htt6). BRIDGE students receive job skills training
in all the key elements needed to find gainful employment in the organised or semi-organised
sector. In other words, the program prevents the youth from ending up in the unorganised sector
where the opportunity to build a career is vastly limited due to lack of proper skills training.
The program prepares students to find the first job in their life and includes industry demand-
driven modules:

 Soft skills (for 5 weeks)

 Industry-specific and Job skills (for 2 weeks)
 Social Skills (for 1 week)
 On-the-Job Training (for 4 weeks)

Every day, students get one hour coaching on Spoken English, Basic Computers (with hands-
on experience) and Value Education. The increasing proportion of the youth, in India’s
burgeoning population, is certainly a demographic dividend for the country; however, such
optimism comes with due caveats. By 2025, an estimated 70 percent of Indians will be in the
working age group. Casting a shadow over this confidence is the lingering doubt concerning
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this group’s employability. Circumstances such as these, repeatedly, bring to light the
increasing need for quality vocational training that guarantees employability (htt6).

After completion of the BRIDGE program, Bosch provides 100% job placement assistance to
the candidates in finding job in semi-organized or organized sectors. The BRIDGE Trainers
and Coordinators at their Centre location, who are supported by a full-time central Placement
Officer, guide them. BRIDGE candidates have been employed in the sectors, including, but not
limited to (htt6):

 Automotive Dealerships
 Telecommunications
 Hospitality
 Retail Outlets
 ITES/BPO

The typical job Roles BRIDGE candidates have received include:

 Customer Service Assistant

 Sales Assistant
 Warehouse Assistant
 Spare Parts Assistant
 Retail Assistant

As of July 2016, more than 4,500 students (school dropout youth) have been trained and placed.
Hundred percent of BRIDGE students receive job placement offers. Most of them are first-
generation employees to get into the formal job sector, where the remuneration and working
conditions are far more organised and reasonable. Thus, BRIDGE offers a foundation for the
young school dropouts to enter into decent jobs and build their life and career from thereon.

Unique features

Training the Trainers (TTT)

One of the biggest challenges in scaling up vocational training initiatives in India is the shortage
of trained trainers. To address this gap, Bosch has designed an exclusive ‘Train the Trainer
(TTT)’ program, which covers (htt6):

 Student Mobilsation

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  BRIDGE Modules Delivery
 Counseling Skills
 Placement Process
 Bosch Qualification for Trainers
 More than 200 trainers have been already trained.

Public-Private Partnership (PPP)

 Bosch has developed a successful PPP model through the BRIDGE Program. Three State
Governments have joined hands with Bosch to support the BRIDGE Program, namely the
Governments of Karnataka, Maharashtra and Rajasthan.
 As per the MoUs signed with them by Bosch, 88 Government I.T.I.s serve as BRIDGE
Centers where the program is conducted.
 In turn, Bosch upgrades these I.T.I’s to make their curriculum more industry-relevant, train
their vocational trainers, and provide industry exposure to select students, besides setting
up a Bosch Technical Lab in each of these I.T.I.s.

b. Health, Hygiene, Education

Child Health Development Program (CHDP)

“Gifting every child a healthier tomorrow” is the ethos behind the Child Health Development
Program (CHDP) run by Bosch Limited. Our focus is to determine and improve the health
conditions of children studying in government schools between 6 and 15 years of age. As part
of this program, Bosch has adopted 230 government schools, which are located within 30 km
radius of its Bangalore, Bidadi and Kumbalgod Plant facilities (htt6). In 2010, Bosch carried
out a community survey in and around its Plant location in Bangalore. This survey revealed the
need for a dedicated initiative to help improve and maintain the good health condition of
children studying in government schools following which the CHDP was launched. Currently,
42000 students are being benefited through this program.

Medical, Dental & Eye Camps

Bosch conducts free health diagnostic camps at the government schools it has adopted, which
provide complete health screening of all the children by a team of general physicians,
paediatricians, ophthalmologists and pedodontics. We also provide basic treatment for children

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who are in need of dental scaling, vision checks, and provision of spectacles and issue of eye
drops, eardrops and general medicine. Check-ups are repeated annually for all the children.

A unique feature of this program is providing post-screening referral arrangements to ensure

that treatment does not stop at the first level of our diagnostic camps. Ailing children are
referred to specialists with their parents’ consent and are taken to hospitals for further diagnosis
and treatment by our NGO partners and volunteers. Support is also extended through Mobile
Dental Vans.

Hygiene Awareness

Hygiene awareness is an important need in government schools. Sessions on hygiene are

conducted among schoolchildren, which stress the importance of cleanliness and personal
hygiene. These sessions also cover illnesses caused by medical ignorance. Child-to-child and
child-to-family strategies have been inculcated into the program to spread key health messages
for affecting the rural or urban communities at large to which the students belong. Girl students
are made more aware of the physiological changes they are likely to encounter during
adolescence and are educated on ways to cope with such stress, emotions, and personal
hygiene.

Sustainability

Bosch facilitates Government healthcare schemes to the children for timely treatments.
Upgrading Public Health Centers (PHCs) is a testament to Bosch’s alignment with
Government’s healthcare initiatives, which is aimed at long-term sustainability of the program.

Toilets Construction at Government Schools

Bosch has identified government schools that lack clean and separate toilet facilities for boys
and girls. Bosch has not only funded the construction of 50 new toilets at these schools, but
also facilitated water line and sewage connections for them to become functional. All these
new toilets receive maintenance oversight from Bosch for the first 6 months after construction.
Besides, dysfunctional toilets are made functional. We also go a step further in inculcating the
requisite hygiene behaviour among students for them to do their bit in keeping the toilets tidy
and usable at all times for their own benefit.

c. Neighborhood Projects

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Plant management in Bosch India plants, as per their local society needs, identifies
neighbourhood Projects.

Nashik Run

Nashik Run is the biggest community run in India with 20,000 people in participation every
year. Nashik Run was organised by Bosch and other corporates in 2003 to bring about a change
in the lives of the economically backward, by raising funds for their livelihood in the district,
which had witnessed an increase in the number of underprivileged at the grass roots level.
Projects the event funds include shelters for the aged, women, orphans, providing training for
the intellectually challenged, visually impaired and skilling the less capable.

Check Dams

Check Dams are being constructed to reduce velocity of water thereby reducing erosion. This
is a neighborhood Bosch CSR project initiated by Nashik Plant management. Already seven
Check Dams are operational.

Reverse Osmosis (RO) Plants

Initiated by the Jaipur Plant, RO plants provide clean and safe drinking water to the villagers.
Built and maintained by Bosch, so far, 8 RO plants have been built that benefit 4,000 families.

Mid-Day Meals Kitchen

Bosch has agreed to sponsor the construction of a centralized mid-day meal Kitchen, which
will be based in Jigani at Anekal Taluk, Karnataka. The kitchen, to be built on Cauldron
technology, aims to provide mid-day meals to 15,000 children (to be extended up to 30,000
children) in Bidadi as well as in schools situated around Anekal Taluk (htt6). For many
children, who would have to work for a square meal every day, the food from this Kitchen will
come as a boon not only because they can satiate their hunger but also because they get an
opportunity to access education.”

5. Prospects and challenges

Although CSR has become a part of business processes around the world, the practical
implementation of CSR is faced with a lot of issues and challenges. Some of them are (htt7):

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  In the past, governments have relied on legislation and regulation to deliver social and
environmental objectives in the business sector. Shrinking government resources, coupled with
a distrust of regulations, has led to the exploration of voluntary and non-regulatory initiatives
instead.

 “There is a lack of consensus amongst local agencies regarding CSR projects. This lack
of consensus often results in duplication of activities by corporate houses in areas of their
intervention. This results in a competitive spirit between local implementing agencies rather
than building collaborative approaches on issues. This factor limits company’s abilities to
undertake impact assessment of their initiatives from time to time.”

 “There is a lack of interest of the local community in participating and contributing to

CSR activities of companies. This is largely attributable to the fact that there exists little or no
knowledge about CSR within the local communities as no serious efforts have been made to
spread awareness about CSR and instill confidence in the local communities about such
initiatives. The situation is further aggravated by a lack of communication between the
company and the community at the grassroots.”

 It is also reported that there is non-availability of well-organized nongovernmental

organizations in remote and rural areas that can assess and identify real needs of the community
and work along with companies to ensure successful implementation of CSR activities (htt7).
“This also builds the case for investing in local communities by way of building their capacities
to undertake development projects at local levels.”

 “There are no clear cut statutory guidelines or policy directives to give a definitive
direction to CSR initiatives of companies. It is found that the scale of CSR initiatives of
companies should depend upon their business size and profile. In other words, the bigger the
company, the bigger is its CSR program.”

 The role of media in highlighting good cases of successful CSR initiatives is welcomed
as it spreads good stories and sensitizes the local population about various ongoing CSR
initiatives of companies (htt7). “This apparent influence of gaining visibility and branding
exercise often leads many nongovernmental organizations to involve themselves in event-
based programs; in the process, they often miss out on meaningful grassroots interventions.”

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  There is evidence that the ethical conduct of companies exerts a growing influence on
the purchasing decisions of customers. In a recent survey by Environics International, more
than one in five consumers reported having either rewarded or punished companies based on
their perceived social performance (htt7).

 “Investors are changing the way they assess companies’ performance, and are making
decisions based on criteria that include ethical concerns. The Social Investment Forum reports
that in the US in 1999, there was more than $2 trillion worth of assets invested in portfolios
that used screens linked to the environment and social responsibility. A separate survey by
Environics International revealed that more than a quarter of share-owning Americans took
into account ethical considerations when buying and selling stocks.”

 Employees are increasingly looking beyond pay checks and benefits, and seeking out
employers whose philosophies and operating practices match their own principles. In order to
hire and retain skilled employees, companies are being forced to improve working conditions
(htt7).

6. Conclusion

CSR has become an important part of business processes. It is becoming more mainstream as
forward-thinking companies embed sustainability into the core of their business operations to
create shared value for business and society. It is not just an important element for humans and
the planet, but also a vital element for the success of a business.

Consumer Durables are manufactured items, typically cars or household appliances, that are
expected to have a relatively long useful life after purchase. Demand for consumer durables in
India has been growing on the back of rising incomes; this trend is set to continue even as other
factors like rising rural incomes, increasing urbanization, & changing lifestyles aid demand
growth in the sector.

As we saw above, many Indian as well as foreign companies have engaged themselves in CSR
activities such has employee health and safety, water consumption, sustainability, dental and
eye check-ups etc. Even though they conduct these activities for the welfare of the society, they
may have other hidden agendas behind it.

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For example, when ITC started e-choupal, one of the benefits that they got out of it was
extremely good quality of raw materials. Therefore, when companies practise CSR, attention
should also be given to what they gain, rather than just what they do for the society. Though
CSR has become increasingly popular, implementing it poses some challenges in itself.
However, with the right intention and implementation, we all can go a long way towards the
betterment of the society.

7. Recommendations

“The following are recommendations of CSR activities for the companies to integrate social
and environmental concerns in their business operations and interactions with their
stakeholders:

 CSR towards environment

Build a committee or environmental team and define the functions. Can also provide training
to the committee related to environmental issues. Identify the business processes that leads to
negative impact on the environment and set objectives for each environmental aspect identified.

 CSR towards health and safety

Corporate social responsibility means that there is an ethical obligation that requires hospitals
and other organizations to do something beneficial in issues such as delivering quality health
care to everyone who is entitled to it (htt8).

Define the health and safety policies and identify the risks and requirements. Improve the
working conditions for the employees and the number of working hours. Provide safety for the
workers in the factory. Need to recognise the importance of working is safe and clean
environment to avoid accidents and illness.

 CSR towards women employees

Code of conduct must be defined. Ensure that there is safety for women and organisations have
scope for ensuring a development in the status of women. Special arrangements should be made
for protection of women working before 6 am and after 8:30 P.M.

Women can also be provided with self-defence training. Arrangement of rest rooms and lockers
should be made. They should not be asked to come for night shifts. Maximum permissible
working hours in a day is 9 hours and in a week, it must be 48 hours and not more than that.

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  CSR towards customers

Customers should be treated as kings and should not think of them only when they have
pressure to meet the targets. Should never lie to the customers for the sake of pushing the
products to them.

It is the company’s responsibility to take care of the customers’ hard-earned money and provide
them with good quality products. After sales service is essential, ensures long-term growth,
and profits for the organisation as well.

 Engage your stakeholders

Relationships with stakeholders should be strategic. Effective stakeholder engagement will

become a source of market research and help reduce risk and build a company’s brand.
Stakeholders’ views should shape a company’s CSR priorities. Well-structured stakeholder
engagement can become a competitive advantage.

 Look at new business models

Companies should look for ways to more broadly affect local communities and serve the
environment. CSR initiatives, in addition to being central to a company’s business strategy,
need to be included in long-term planning. Everyone in the organization should to recognize
her own role in advancing CSR and management should facilitate this.

 Add value to human resources

Job descriptions and employee evaluations should include employee responsibilities and
expectations around CSR. Employees should be seen as key partners in executing CSR.

 Act on climate change

It is becoming progressively important to understand the business risks and opportunities

associate with climate change. Companies should measure and disclose their own greenhouse
gas emissions and demonstrate how they are working to curb their environmental impact. More
importantly, organizations should actively support environmental initiatives in their
communities.

 Become an expert on corporate governance

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Demand for transparency and accountability will only increase. Strong anti-bribery and anti-
corruption policies will be necessary. International standards and guidelines should be
appropriately adopted.

 Know your supply chain

It will be critical for a company to fully understand its supply chain (a potential area for lax
product safety and human rights abuses). Supply chain standards should also include
environmental considerations.

 Invest in your community

Invest in your community rather than acting as a community philanthropist. This emphasis on
investment over giving can help organizations target resources that will benefit both the
company and the community. Companies can demonstrate their commitment to long-term
development by collaborating with local community groups and NGOs on local and
international imperatives. Measure the impact on the community.

 Reporting and disclosure

Call for increased transparency necessitates better reporting and information disclosure.
Reporting methods are starting to come of age–growing up from annual bound tomes to
dynamic, online platforms that also engage stakeholders. With greater transparency,
effectiveness and selection of responsible companies, consumers will be accountable for the
impact their purchases have on their communities and the environment.

 Suppliers and creditors

Companies must seek fairness and truthfulness in all dealings with suppliers especially pricing
and licensing. Next, companies should make certain that any business transaction with
suppliers must be free from any form of coercion and unnecessary litigation. In addition, firms
must promote long-term stability in their relationship with the suppliers to pay back the good
value, quality, and reliability they gained.

Dealing with suppliers properly means sharing information with them and making them part
of the planning processes. On the part of the creditors, one of the best ways to deal with
suppliers is to be responsible in making timely payments according to the agreed terms and
conditions of the trade.

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Lastly, organizations must be ethically responsible by choosing only suppliers with fair and
just employment practices and those that have respect for human dignity. Therefore, a supplier
that enforces child labour in its activities is not a good example.

 CSR towards government

The organisation has to follow the rules and regulations laid by the government. The business
organisations must pay taxes and duties regularly to the government such as sales tax, octroi
duty, custom duty, VAT, etc. Non-payment of tax is an offense because it would be difficult
for the government to undertake development programs. The government expects co-operation
and help from the business sector to help in implementing programs and policies relating to
social and economic development.”

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 Retrieved from http://www.studymode.com/essays/Consumer-Durables-1843154.html
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india.pdf
 Retrieved from www.ibef.org/download/Consumer-Durables-July-2017.pdf
 Retrieved from www.ukessays.com/essays/marketing/segmentation-of-the-consumer-
durables-industry-marketing-essay.php
 Retrieved http://www.karmayog.org/csr500companies/csr500companies_7376.htm
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portfolio/19-kamalnayan-bajaj-hospital-aurangabad?Itemid=0
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