A STUDY ON CORPORATE SOCIAL RESPONSIBILITY

ACTIVITIES WITH SPECIAL REFERENCE TO SELECTED

COMPANIES IN AUTOMOBILE INDUSTRY

MERLYN MARIAH.S -17/UCMC/507

MOHANA ELIZABETH SEBASTIN -17/UCMC/538
STELLA MARIS COLLEGE AUTONOMOUUS
CATHEDRAL ROAD, CHENNAI-600086
Study of CORPORATE SOCIAL RESPONSIBILITY with special reference to selected
INDIAN AUTOMOBILE INDUSTRY

The automobile industry is one of the greatest and leading industries at global level. It plays a
major role in the development of the country’s economy. It is one of the major sectors. There
are so many specializations in automobile industry such as Car Manufacturing, Marketing,
Distribution of Automobile products such as cars, buses, vans, trucks, motorcycles, mopeds
& motorized bicycles.
The major purpose of this paper is to provide a detailed analysis of the various CORPORATE
SOCIAL RESPONSIBILITY which an automobile industry initiates for the development &
betterment of the society.

ABSTRACT:
Social responsibility is the responsibility of the organisation for the impact of
the decisions & activities on the society & environment through transparent & ethical
behaviour that is consistent with sustainable development & the welfare of society. Since the
business plays a pivotal role in both job & wealth creation in the society & efficient use of
natural capital, CSR is a central management concern which positions companies to
manage risk & take advantage of opportunities. The present study deals with the issue of
corporate social responsibility reporting practices followed by selected reports of selected
companies using content analysis. Certain indicators have been selected on the basis of global
reporting initiatives guidelines & UNCTAD principles.

INTRODUCTION TO CSR:
Corporate Social Responsibility (CSR) is a concept whereby organisation
considers the interest of the society by taking responsibility for the impact of their
activities on customers, employees, shareholders, communities & their environment in
all the aspects of the operations.
Corporate Social Responsibility is continuing commitment by a
business to behave ethically & contribute to economic development by improving the
quality of life of the workforce & their families as well as of the local community &
society at large.
IS AUTOMOTIVE INDUSTRY IS GROWING RAPIDLY...
Automotive industry is growing rapidly. Despite the uncertainties over Brexit
and the Trump – China trade war, the car industry is expanding at a fast rate. Global sales
are growing at around 2.8% worldwide per year.
CORPORATE SOCIAL RESPONSIBILITY BY AUTOMOTIVE INDUSTRY:
As the automobile sector in India is growing & becoming one of the biggest
markets in Asia moreover many foreign companies are launching their products too…To
survive in the markets the company have to be more conscious in quality of products along
with quality control to have a good reputation which leads to the success of the company, So
to maintain a good corporate image the company initiates corporate social responsibilities
which is a significant tool which enhances the company’s reputation and leading it to success
By the means of this paper we’ll discuss the three leading companies in the
Indian Automobile sector. TATA MOTORS, MARUTI SUZUKI & ASHOK LEYLAND

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The study will also reflect upon the CSR policies adopted and their importance of the CSR in
their companies.

TATA MOTORS
About the company:
TATA MOTORS Limited, formerly Tata Engineering and Locomotive
Company (TELCO), is an Indian multinational automotive manufacturing company
headquartered in Mumbai, Maharashtra, India. Its products include passenger cars, trucks,
vans, coaches, buses, sports cars, construction equipment and military vehicles. Tata Motors’
presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply
on Indian roads. Tata Motors is also expanding its international footprint, established through
exports since 1961. The foundation of the company’s growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate them into
customer-desired offerings through leading edge R&D
The years to come will see the introduction of several other innovative vehicles, all
rooted in emerging customer needs. Besides product development, R&D is also focussing on
environment-friendly technologies in emissions and alternative fuels.
STATERGIES:
SHARE OF TATA MOTORS CONTRIBUTION TO THE TOTAL COST
60% ---TATA MOTORS
40% ---FROM VARIOUS PARTNERS
NGO PARTNER COMMUNITY GOVERNMENT OTHERS

13%
34%
32%
21%

 TATA MOTORS has forged many strategic partnerships with range & partners
including educational, technical, institutes, business partners, group companies,
voluntary organisation, State & Central government.
 In 2014 company chartered a new strategy & harmonized the common development
programme (CDP) & primarily linked initiative with impact focused interventions.
 The NATIONAL PRIORITY AGENDA created through common minimum
programme (CMP) & local needs & aspirations created through location specific
programmes.
 Tata motors engaged with their shareholders in designing & implementing AA
Interventions. They take all inputs & feedbacks from the shareholders in planning,
developing, and improving projects.
 Their strategy adopt certain key lines which give company to grow beyond
“CONNECTING ASPIRATION” to “ACCELERATED ASPIRATIONS”

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ACHEIVEMENTS IN CSR:
CONTRIBUTION INIATIVE BENEFITED AIM
TOWARDS PEOPLE

HEALTH AAROGYA 3,81,437 To curb malnutrion

through facilitation
of clean drinking
water to remote areas
EDUCATION Focuses on
VIDHYADHARAM 1,46,894 improving the
academic
performance of
secondary or college
going students by
financially
EMPLOYABILITY KAUSHALYA 1,06,038 Focuses on training
unemployment
youth in three
segments viz.auto
traders, non-auto
traders &
agriculture & allied
activities.
ENVIRONMENT VASUNDHARA 11,17,186 New saplings
(saplings were planted across Tata
planted) motors location

CASE STUDY:
Apartheid is a tribal village situated in Jawaharlal block PALGHAR district.
This is 150 km away from Mumbai. The 6 hamlets of the block consist of 33% tribal
population. Malnutrition & huger deaths are high in this area.
The literacy rate is 65% acute water shortage, unemployment and out
migration of the youth are the major factors that causes blockade in the development of the
area. Parthadi lags behind in all development indicators. Tata Motors along with sahabhag,
the AA cell of government of Maharashtra decided to work on an integrated village
development approach. The force was to improve water, heath, education, livelihood, micro
entrepreneurship, physical infrastructure and governance.
A 3 year plan was charted out after rigorous base line and needed assessment
through PRA ( Participatory Rural Approach) clear roles and responsibilities were chosen.
This village was chosen in order to make it a sustainable modal village BIF,
TML, TSMG and the government of Maharashtra collectively ensure the availability of all
basic amenities at the village level. The total budget of 16 cores had been mobilised through a
MOU (Memorandum Of Understanding) with the district collector.

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 Gram panchyats have been strengthen in order to form new village level
committee, local youth have been chosen as leaders so that even after the completion of the
project the development may be continued.

MARUTI SUZUKI
ABOUT THE COMPANY:
Maruti Suzuki Indian limited is a publically listed automaker in India. It is
a leading four wheeler automobile manufacture in South Asia. Suzuki motor corporation of
Japan holds a majority stake in the company. It was the first company in India to mass-
produce & sell more than a million cars. Its manufacturing plant located some 25km south of
New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a
capability to produce about half a million unit.
Maruti Suzuki is one of the India’s leading automobile manufactures & the
market leader in the car segment. Their major competitors are Honda, Chevrolet, Tata,
Mahindra, Hyundai, Ford.
The company has 4 P’s

P (marketing mix)

PRODUCT Price Place Promotion

CSR INITIATIVES:
Company will remain ahead in energy conservation at all it’s manufacturing
units and would produce goods that consume fewer natural resources. Company will develop
products and services to fulfil desires of the customers and help them during natural
calamities. The company will extend it technological and managerial support to its suppliers
and dealers for their profitable and sustainable growth
Company would encourage and recognize its employees for volunteering in the spirit
of serving the community and sharing their skills and expertise. Company will partner with
Government, NGOs and other organizations for the welfare of society especially
Underprivileged people.
Maruti Suzuki’s social initiatives focus on three primary areas.
• Road Safety
•Vocational training
•Community development
Road safety is a major concern in India considering the scale of injuries and fatalities
due to road accidents….
As per the Ministry of Road Transport and Highways (MoRTH)
125,660 - people were killed
500,000 - injured

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The Company adopted two models in partnership mode for imparting driving training skills
to existing as well as new drivers. These are the Institute of Driving and Traffic Research
(IDTR) and Maruti Driving Schools (MDS’s)

 Maruti Suzuki partners with the ITIs for their overall up gradation….
The up gradation programme includes:-
 Basic infrastructure development
Class room furniture
Workshops
Maintenance of green area
Rain water harvesting.
 Repair and maintenance of machines
 Provision of teaching aids
 Industry exposure to students and faculty through
Factory visits
Internships
Development of an Institute
Development plan
Additional training sessions for overall development of students:
 Employability skills:
Spoken English, interpersonal skills, work ethics.
 Computer education:
MS Office, internet.
 Technical:
Shop floor practices, CNC machines, advanced technologies,
automobile systems, safety, quality.
 Training of teachers:
Motivational and behavioural
Communication skills and personality development
Technical knowledge & skills on current technologies.
Safety is the key pillar of manufacturing excellence at Maruti Suzuki. Over the years, the
Company has institutionalised robust systems for (226) proactive identification of hazards,
safety audits and mitigation of safety risks.
"While working to enhance shareholder wealth, Maruti Suzuki will regularly engage with all
stakeholders to assess their needs and through its products, services, conduct and
management initiatives, promote their sustained growth and well - being"

ASHOK LEYLAND
ABOUT THE COMPANY:
Ashok Leyland is an Indian automobile company headquartered in Chennai,
India. It is the second largest commercial vehicle manufacturer in India, fourth largest
manufacturer of buses in the world and 10th largest manufacturer of trucks globally.

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Ashok Leyland has been a major presence in India’s commercial vehicle industry since1948,
the year it was born. The origin of Ashok Leyland can be traced to the urge for self-
reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first
PrimeMinister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotivemanuf
acturing. They are one of the India’s leading manufactures of commercial vehicles and
special vehicles, engines for industrial purpose, gen sets and marine requirement equipments.
For over five decades, Ashok Leyland has been the technology leader in India’s
commercialvehicle industry, molding the country’s commercial vehicle profile by introducing
technologies and product ideas that have gone on to become industry norms
Ashok Leyland introduces 'Innoline' - World's first BS4 Engine driven-and the very well
received' IEGR (Intelligent Exhaust Gas Re circulation) by an inline Fuel Pump.
CSR INITIATIVES:

Ashok Leyland encourages employee involvement, engaging the families of theemployees, a

nd involving local, experienced and credible resources in all its CSR activities.
Fun Bus:
Fun Bus is a gift from Ashok Leyland exclusively for free users round the year by
children of orphanages corporation primary schools and physically/ mentally challenged
children in Chennai. The seating layout reckons the requirements of physically challenged
children. The bus is equipped with a hydraulic lift for the convenience of wheel chair – bound
children.
Aids Awareness
In the mid90’s, the department of International Development, British HighCommission, form
ed the Truckers Interim Coordination Unit (TICU) for a focused programme among truck
drivers. Ashok Leyland was one of the first organizations to associate itself by becoming an
intervention centre. Outside the factory camps, and health education programs like lectures,
cycle rallies, film shows, exhibitions etc. are conducted through our volunteers in co-
operation with AIDS prevention and control project. They also provide counselling services
at our Medical centre. Cases which require support service are sent to ‘Seva Kendra’
in Bangalore (an NGO backed by rotary- TTK), RIDS
(an NGO) in Hosur, Kingsley Community Centre- (an associate of Bill and MelindaGates
Foundation) in Krishnagiri
Green Mission
In 2002, all the vehicle manufacturing units of Ashok Leyland were ISO 14001certified with
Environmental Management System. The Ennore unit was recently identified as one of the
model energy- efficientunits by a CII-
TNEB organized Energy Conservation (ENCON) mission.Systematic management of all
energy resources from the 1980’s through better house keeping and awareness has made this
possible. The 1980’s also saw Energy audit being introduced. Improvement in machine tools,
furnace-loading pattern, design of heating elements and an energy efficient lighting system
has all led to energy savings of 30,782 units per day

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CONCLUSION:
It is now recognized that poverty reduction and sustainable development will not be
achieved through government action alone. Policy makers are paying increasing attention to
the potential contribution of the private sector to such policy objectives.
The concept of CSR is sometimes used as shorthand for businesses’ contribution to
sustainable development. A number of core development issues are already central to the
international CRS agenda.
When these CSR activities done in combination CSR can become a companies
successful competitive strategy.

REFERENCES:
Wikipedia- about company’s profile
Google-Automotive industries and their CSR activities
TATA MOTORS, ASHOK LEYLAND, MARUTI SUZUKI – Statistical data are taken from
the annual report of each in company in the 2018-2019
https://www.ashokleyland.com/documents/1305159/1312322/Sustainability-Report-2017-
18.pdf/9dc57d5f-6310-171c-f342-82b9ba5ce660
https://marutistoragenew.blob.core.windows.net/msilintiwebpdf/MSIL_AR_2017-18_HR.pd
https://www.tatamotors.com/wp-content/uploads/2018/07/12115930/Annual-Report-2017-
2018.pdf
IMAGES- GOOGLE images