W20891

HERO MOTOCORP LIMITED: INCREASING THE IMPACT OF CSR

PROGRAMS

Utkarsh Majmudar and Namrata Rana wrote this case solely to provide material for class discussion. The authors do not intend to
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Copyright © 2020, Ivey Business School Foundation Version: 2020-11-13

On a hot sunny day in March 2019, Vijay Sethi met with the corporate social responsibility (CSR) team of
Hero MotoCorp Limited (HMCL) in the city of Rewari, in the state of Haryana, India. Sethi, who was the
chief information officer and head of human resources at HMCL, also led the company’s CSR team in
training local women to find employment opportunities or set up their own small businesses. At the meeting,
the CSR team reported on the work and financial situation of the women in the program and the success of
the program. The feedback was important because HMCL wanted to substantially improve the lives of these
women. However, despite the CSR team’s success in helping many women become financially
independent, many others still lacked the opportunities to earn a living or the resources and family support
to start a business of their own.

In 2017, HMCL had launched an ambitious program across all of its plants in India to promote gender equality
and increase the number of women on the shop floor. The program, which was named Tejaswini (“Radiating
Energy”), was driven by three recent significant changes in the country. First, the Government of India had
recently launched the Skill India initiative,1 which focused on improving skills training across the country’s
workforce. Second, the government had launched the Beti Bachao Beti Padhao2 (“Save the Girl Child, Educate
the Girl Child”) initiative to support empowerment for women and girls. Third, India’s industrial sector was
subject to a considerable gender gap in terms of human resources, and HMCL wanted to help improve the
situation. Several leading automobile manufacturers were already addressing the issue by employing more
women3 and taking part in programs aimed at increasing the number of women in the workforce.

Although HMCL was pleased with the success of its Tejaswini project, the company soon realized that it
could do more. Reports from the field indicated that some women were interested in starting their own
businesses in areas such as retail, beauty and skin care, or food production. Therefore, HMCL decided to
expand the Tejaswini program to help more women achieve their goals. The program’s success would also
benefit the company in terms of improved brand presence, greater talent pool of future employees, and
enhanced consumer loyalty, especially from women who might be interested in buying motorcycles, the

1
National Skill Development Corporation, “About Us,” accessed September 20, 2020, https://nsdcindia.org/about-us.
2
Beti Bachao Beti Padhao, “About Scheme,” accessed September 20, 2020, https://wcd.nic.in/bbbp-schemes/about-scheme.
3
PTI, “Women in Manufacturing, May Your Tribe Increase: 2-Wheeler Cos” India Today, July 9, 2017, accessed September 20,
2020, www.indiatoday.in/pti-feed/story/women-in-manufacturing-may-your-tribe-increase-2-wheeler-cos-994800-2017-07-09.

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company’s main product. HMCL, India’s largest two-wheeler company, helped empower women and girls
by training them to drive two-wheelers and worked with schools to lower dropout rates.

The company’s CSR team reported feedback received from Rewari, which was consistent with research
HMCL had undertaken in other cities. Women in India faced unique socio-economic issues. Parents sent
their daughters to school but they were expected to eventually get married and take care of household
activities, rather than pursue a vocation. In many parts of the country, women were restricted from holding
jobs or spending time outside the home. Upon his return to the main HMCL office in New Delhi, Sethi
summarized the CSR team’s findings:

I am wondering, whether we have built up sufficient momentum in enabling women to get jobs and
start their own businesses. We should review our progress and evaluate the way forward. We should
also speak to them to understand what more needs to be done for us to be far more effective. My
main concern is that while we have started many initiatives, how should we scale them up to impact
a larger number of women?

HMCL OPERATIONS

HMCL held a 51 per cent market share in India, the world’s largest two-wheeler market. The company was
also rapidly expanding its global footprint to 37 countries across Asia, Africa, and South America, as well
as most countries in the Central American region. By March 2019, the company had sold 90 million units
of two-wheelers and had an annual capacity of 9 million two-wheeler units. In fiscal year (FY) 2018–19,4
HMCL earned ₹343 billion5 in revenue, ₹34 billion in profits, and ₹169 in earnings per share, with a return
on capital rate of 41 per cent.6

With headquarters in Gurugram, Haryana, HMCL had five manufacturing facilities across India at
Dharuhera, Gurugram, Neemrana, Haridwar, and Halol. The company name and its individual product
brands were well known across the country. Splendor, for example, was India’s largest two-wheeler brand,
and the CD-100 was also extremely popular. In fact, the idea of being an HMCL employee was considered
a matter of pride for many Indian people.

HMCL used various strategies to achieve market leadership. The company targeted the youth segment and
invested heavily in research and development to ensure that it produced attractive and reliable motorcycles.
As sales grew, HMCL expanded its service network to reach all parts of the country. The company saw
itself as a conscious corporate citizen that was compassionate and committed to social and environmental
issues. HMCL also strategically invested in initiatives that were focused on the betterment of society.

In 2016, the Indian automobile industry was one of the largest in the world, accounting for 7.1 per cent of
India’s gross domestic product. The two-wheelers segment, with 81 per cent of the market, was the industry
leader. Growth in this industry came mainly from the country’s growing middle class and youth segments.

4
HMCL’s fiscal year spanned from April 1 to March 31.
5
₹ = INR = Indian rupee; ₹1 = US$0.014 on March 31, 2019; all currency amounts are in ₹ unless otherwise specified.
6
Hero MotoCorp Limited, Annual Report 2018–19, 138–139, March 31, 2019, accessed August 6, 2019,
www.heromotocorp.com/en-in/uploads/Annual_Reports/pdf/20190715054601pdf266.pdf.

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According to data released by the Society of Indian Automobile Manufacturers, domestic sales of the two-wheeler
segment grew by 4.86 per cent in FY 2018–19, despite relatively low consumer sentiment throughout the industry.
Unit sales rose to over 21 million units, which was a rise of almost 1 million units over the previous year.7

HMCL employed approximately 8,500 people in its factories. Almost all staff were recruited from nearby
villages. Employees were trained and deployed to the shop floor. The company’s operations employed mainly
men, but this trend was changing with more women entering the workforce. Over the previous three years,
the company’s gender diversity had improved steadily, from 2 per cent in 2017 to 6.67 per cent in 2019.8 With
most of its labour force coming from nearby villages, HMCL made significant efforts to train and integrate
new workers into the HMCL culture. The company had embarked on a journey of cultural transformation that
aimed to build and sustain diversity and inclusivity. HMCL prided itself in being open to new ideas without
boundaries for age, organization level, gender, region, income, or cultural background.

Components for HMCL came mainly from vendors who normally bought the raw materials and produced
the required components. Therefore, the company was not directly affected by changes in prices of raw
materials, although they would have some impact on its procurement costs for components and parts. Key
raw materials used in the manufacture of two-wheeler components included base metals (e.g., steel and
aluminum) and oil-derived plastics and resins. Therefore, sharp fluctuations in raw material commodity
prices could lead to business challenges affecting production costs, product pricing, and company earnings.

Another risk HMCL could face was work disruption from job actions and strikes. Although Haryana was
known for employee volatility, HMCL generally enjoyed favourable industrial relations by working closely
with its employees. HMCL’s efforts in increasing diversity and inclusivity also included hiring more than 25
expatriates from 10 different countries and engaging specially abled employees. By April 2019, female
employees were working on the shop floors of HMCL plants in Dharuhera, Haridwar, Neemrana, Gurgaon, and
Halol. The company credited its overall success to strong marketing capability, value chain management, a
strong corporate image, and effective employee management and retention.

CSR AT HMCL

The company’s impetus toward social activities at HMCL had come from its founder and chairman
emeritus, Brijmohan Lall Munjal, who died in 2015. Munjal had been known at the company for statements
such as, “We must give back to the society from whose resources we generate wealth.” During FY 2018–
19, HMCL spent over ₹1 billion on CSR activities (see Exhibit 1), which was equivalent to 2 per cent of
the company’s average profits over the previous three years. As required by law (see Exhibit 2), the
company had also formed a CSR policy and a CSR committee to oversee corporate spending in that area.
HMCL ranked among the country’s top CSR and sustainability companies, holding 45th place in 2019,
which was an improvement from 72nd place in 2018.9

HMCL branded its CSR activities under the slogan “Hero We Care,” with a vision statement that spoke of
working toward a greener, safer, and more equitable world. The company ran six CSR programs, with
various activities that covered safe riding, education, the environment, and empowerment of women and
girls (see Exhibit 3). Education activities were focused on promoting literacy, especially for girls. The safe
riding program promoted road safety by addressing issues that led to road accidents. HMCL used this
7
Rabi Wangkhem, “Indian Automotive Industry Performance in 2018–19—SIAM,” Auto News, April 9, 2019, accessed
September 20, 2020, https://steelguru.com/auto/indian-automotive-industry-performance-in-2018-19-siam/537862.
8
Hero MotoCorp Limited, op. cit., 49.
9
Utkarsh Majmudar and Namrata Rana, “Responsible Business Rankings India’s Top Companies for Sustainability and CSR
2019,” Futurescape, accessed September 20, 2020, https://www.futurescape.in/responsible-business-rankings/.

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program as part of its branding strategy. Environment activities promoted clean emissions and eco-friendly
practices to counter the adverse effects of two-wheelers. The company’s various empowerment activities
provided skills training and job opportunities for underprivileged women and girls, and supported young
girls attending and staying in school.

Among the company’s large workforce, many employees volunteered to participate in CSR programs. Many
of the employees, who came from nearby villages, had credited HMCL for their improved economic standing,
so they were eager to help improve the lives of other people in their villages and nearby areas. They also felt
that the company treated its employees fairly and had taken significant measures to ensure worker safety and
to provide medical assistance in times of need, which led to high company morale and enthusiasm.

To prioritize the various CSR projects at HMCL, a materiality approach was used that ranked issues based on
a specific threshold to be an essential cause to monitor and report. The materiality assessment also considered
the importance of each cause to the company’s various stakeholders. HMCL representatives regularly visited
towns and villages affected by the CSR programs to monitor local needs. The representatives then submitted
proposals to extend or start a new program based on their assessment. If local needs met HMCL’s objectives
and funding, a new program or activity was implemented.

Several HMCL programs were specifically focused on improving the lives of women and girls (see Exhibit
4). For example, the projects entitled Shiksha and Jeevika provided livelihood and skills training to girls
and women from marginalized socio-economic backgrounds. The education projects also helped improve
infrastructure in schools, such as renovations to the building, playgrounds, toilets and washing areas,
libraries, and computer laboratories, as well as providing basic necessities such as school bags, stationery,
and books (see Exhibit 5). The projects promoted girls staying in school, despite the community pressures
and socio-economic challenges they faced daily. According to the company’s own records, approximately
367,000 students across six states had benefited from this project in FY 2018–19.

Other projects trained women on riding two-wheelers to help make them more independent. The company
started its first two-wheeler training school for women at Bhagat Phool Singh Mahila Vishwavidyalaya, a
school for girls in Khanpur Kalan. Over time, projects expanded to include 11 industrial training institutes
in Haryana. HMCL claimed that it was able to train over 3,000 girls to ride two-wheelers.

PROJECT JEEVIKA (“LIVELIHOOD”) FOR WOMEN

HMCL engaged with young children to help with their education. The company also provided skills training
for older children in the community so that they could become financially independent. The Jeevika project
was focused on livelihood and skills training for women and girls from marginalized socio-economic
backgrounds in areas such as auto mechanics (which had been an exclusively male vocation), computers,
hotels, garment making, beauty and skin care, and sales (see Exhibits 6 and 7). As well, the program helped
trainees get jobs. According to HMCL, over 19,000 people had been trained and more than 60 per cent had
secured jobs or become entrepreneurs with substantial monthly earnings. As people in the villages became
aware of the program’s success, more women joined the company’s CSR initiatives.

The Jeevika project was started in the state of Haryana, where HMCL’s headquarters was located. The
general culture and lifestyle in Haryana was extremely regressive and male-dominated, with reported
incidents of female infanticide and women constricted to wearing veils (known as ghoonghat) and obeying
men’s commands. Women seemed to be willing to consider employment or even entrepreneurship, but the
society around them made it very difficult to pursue their goals.

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As part of the Jeevika project, HMCL’s CSR team conducted outreach activities in the various villages,
communicated the project’s benefits to spouses and family members, and partnered with non-governmental
organizations that were already present in the region. The combined effort of all HMCL field staff members
helped determine skill requirements, identify interested applicants, and generate local support for the
program. The training, which was conducted in nearby locations in small groups, was customized to the
specific needs of the women. The HMCL team followed up with trainees after completion to ensure that
they were able to apply what they had learned to their chosen job or business. HMCL was working with
women from marginalized communities nearby the company’s areas of operation, so it was able to evaluate
the progress of its initiatives.
HMCL estimated that 50 per cent of the total amount it spent on CSR programs went directly toward
economic prosperity for the women, 30 per cent went toward improving their social status, and 20 per cent
was spent on improving their standard of living. HMCL also estimated that each ₹1 invested in the project
generated approximately ₹1.50 in improved economic well-being and social status for the women, whereas
standard of living was estimated to have improved by a rate of ₹1 for each ₹1 invested.
According to HMCL, the skills training was intended to impart knowledge and develop essential skills in a
timely manner so that women could become self-reliant, either as entrepreneurs or by being gainfully
employed. Women who received part-time employment (approximately four hours per day) earned an
average of ₹3,000–₹5,000 per month. Women who were trained in digital technology and spoke English
could earn up to ₹25,000 per month working in hotels, retail stores, or offices. Women who were trained to
become entrepreneurs could earn ₹20,000–₹25,000 per month on average. Of the 30,044 women that took
part in the company’s CSR programs, HMCL found that 50 per cent opted for entrepreneurship, 10 per cent
wanted to learn new digital technologies, and 10 per cent were interested in beauty and skin care, customer
service, and garment making (see Exhibit 8).
Most women who opted for entrepreneurship training, however, faced opposition from their spouses and
family members. It was difficult for women to learn new skills and become employed in a male-dominated
society. Even men who understood the importance of women earning a living failed to act, due to either
their inability or deeply ingrained bias. HMCL also faced resistance from some women for some of its skills
development programs. In particular, some women from marginalized communities avoided high-level
skills training with high-earning potential but long course duration. These women worried about the loss of
current earnings despite the prospect of higher future returns.

WOMEN IN THE INDIAN LABOUR FORCE

The principle of gender equality was enshrined in the Constitution of India’s Preamble, “Fundamental
Rights, Fundamental Duties and Directive Principles.” Not only did the constitution grant equality to
women, it also empowered the state to adopt measures of positive discrimination in favour of women.10
However, society’s track record in that respect was poor. According to the United Nations Development
Programme’s Gender Inequality Index, India had a low rank of 127th in the world for various reasons. India
had a high maternal mortality ratio per live birth. Between 2010 and 2017, Indian women had occupied
only 11.6 per cent of seats in the country’s parliament. Also, only 39 per cent of Indian women had a
secondary education, compared with 63.5 per cent of men. In 2017, only 27.2 per cent of women were part
of the labour force. In fact, Indian women lagged in most measures, except maybe in respect to reasonably
strong political empowerment.11

10
Government of India, Department of Legal Affairs, “Chapter 3: Fundamental Rights, Directive Principles and Fundamental
Duties,” in Constitution of India, December 1, 2007, accessed September 20, 2020,
www.legalaffairs.gov.in/sites/default/files/chapter%203.pdf.
11
“Gender Inequality Index (GII),” United Nations Development Programme, Human Development Reports, accessed
September 20, 2020, http://hdr.undp.org/en/composite/GII.

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The country’s rate of female labour force participation reached a peak in 2005 at 36.8 per cent, but it had
been declining ever since. In 2018, the rate was down to 26.9 per cent, the lowest among all Group of
Twenty (G20) countries except Saudi Arabia. In comparison, the global average female labour force
participation rate was approximately 48.5 per cent, and various comparable countries to India had rates near
or higher than the global average (e.g., Brazil at 53.08 per cent, Russia at 56.31 per cent, China at 60.87 per
cent, and South Africa at 47.9 per cent).12

The patriarchal social system and practices prevalent in India promoted male domination, oppression, and
exploitation of women. This culture was promoted by the ancient Indian religious prophet and lawgiver
Manu. His writing, which would be considered ridiculously outdated by current standards, suggested that
women should be in the custody of their fathers as children, their husbands when married, and their sons
after growing old. Manu’s teachings helped keep women away from opportunities and subjected them to
gender inequality in society.13

According to a study prepared by The Indian School of Business in collaboration with HMCL, women did
2.6 times more unpaid care and domestic work than men. Families, societies, and economies depended on
the work of women, but it led to lower earnings and less time to engage in non-work activities. The right to
equal distribution of economic resources was denied to women, as was any fairness or balance of
responsibility for unpaid care.14

The study found that a preference for male children in India had led to skewed gender ratios. Male children were
expected to grow up to be providers for parents in their old age, and also to inherit their parent’s wealth, whereas
married women were seen as part of the husband’s family and were relegated to housework. The practice of
giving a dowry in the form of cash or gifts to the groom’s family upon marriage was widespread across
geographic regions, social classes, and religions. The dowry system in India contributed to gender inequalities
by influencing the perception that girls were a burden on families. Such beliefs limited the resources invested by
parents to benefit their daughters and limited the bargaining power of girls within the family.15

However, the study also showed that when women were given vocational training opportunities, they
outperformed men in certification, grading, and employment abilities. In skills training programs, women
were more likely to pursue self-employment after certification (22.58 per cent women versus 7.14 per cent
men). However, men earned far more in terms of salary. An average wage gap of approximately 17 per cent
was spread across all categories—apprenticeship, self-employment, and salaried work.16

The study recommended that six specific steps be taken to increase the rate of female labour force
participation in India:

1. Women with family demands or accommodation needs should be provided places to stay while
attending skills training.
2. Women should be encouraged to use the Internet and related technologies to move up the salary value-
chain in their work.
3. Industry should be given incentives to establish training centres.

12
“Developing Corporate Skilling Strategies to Enhance Women’s Employability,” The Indian School of Business, accessed
September 20, 2020, http://staging.isb.edu/research/reports/developing-corporate-skilling-strategies-enhance-
women%E2%80%99s-employability.
13
Hirday N. Patwari, “The Status of Women as Depicted by Manu in the Manusmriti,” Nirmukta, August 27, 2011, accessed
September 20, 2020, www.nirmukta.com/2011/08/27/the-status-of-women-as-depicted-by-manu-in-the-manusmriti.
14
“Developing Corporate Skilling Strategies to Enhance Women’s Employability,” op. cit.
15
Ibid.
16
Ibid.

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4. A robust monitoring mechanism should ensure that the industry adheres to mandated CSR spending
guidelines.
5. Technology should be used to promote and encourage skills training for women.
6. A secure and robust infrastructure should promote and encourage women to pursue self-employment,
if interested.17

INDUSTRY PERCEPTIONS ABOUT SKILLS TRAINING

Many barriers constrained women and girls from accessing relevant skills training. The school and college
system largely focused on academic rather than skills-based knowledge. Therefore, many companies provided
more specific training to new hires. Companies that were unable to provide supplementary training preferred
to recruit candidates from skills-based training institutions. However, skilled or trained women could still be
kept from joining the workforce, and many training modules lacked a practical perspective to help women
become suitable candidates. Training seemed to be used only to help employees adapt to the specific nature
of work at a specific company, as a way of filling the gap in the education system.18

Aspiring women workers from low-income groups needed training on soft skills to help them prepare for a
professional work culture. This training was especially needed in the service sector, where multiple layers
of management, numerous colleagues, and a wide range of customers could inhibit and intimidate a low-
income employee. Training in soft skills could help these employees when taking orders, receiving negative
feedback, and dealing with pressure from stringent targets.

Some industries required job applicants to have a reasonable command of English. Even if the worker’s
basic operations did not specifically require speaking English, the language was still a desirable skill.
Companies also preferred to hire candidates who had experience in the industry and who were certified in
a relevant regulatory environment. Therefore, to become self-reliant and independent income earners,
women needed to gain competencies in addition to technical skills.

SETHI’S PREDICAMENT

Sethi realized that many initiatives that his CSR team was administering were clearly benefiting women.
Yet, he still had many questions. With limited resources, should HMCL undertake more initiatives, or
expand the scale of existing ones? He was particularly concerned about the skills training projects, which
had the best potential to impact the lives of women. Had HMCL created enough momentum to empower
women and help them get jobs or start their own business? Sethi’s main concern was a matter of maximum
impact—despite the company’s many CSR initiatives, how could they be scaled up to reach the largest
number of women?

17
Ibid.
18
Shagun Sabarwal, “Young Women Hold the Key to Skilling India,” Hindustan Times, March 19, 2018, accessed September 20,
2020, www.hindustantimes.com/analysis/young-women-hold-the-key-to-skilling-india/story-G02idBk4AYYgebebCf2jKJ.html.

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EXHIBIT 1: HERO MOTOCORP LIMITED’S SPENDING ON VARIOUS CORPORATE SOCIAL

RESPONSIBILITY PROJECTS, 2018–19 (IN ₹ MILLION)

Project Cost
Environment, tree planting, solar lights, LED lights 262.4
Preventive health care and sanitation 34.7
Education and vocational skill development for children and women;
Road safety awareness 610.1
Sports 26.3
Women empowerment and community development 53.6
Army wives’ welfare 5.1
Chief Minister’s relief fund 10.0
Rural development projects 17.3

Note: LED = light-emitting diode.

Source: Hero MotoCorp Ltd., Annual Report 2018–19, March 31, 2019, accessed August 6, 2019,
www.heroMotoCorp.com/en-in/uploads/Annual_Reports/pdf/20190715054601pdf266.pdf.

EXHIBIT 2: CORPORATE SOCIAL RESPONSIBILITY RULES AND REGULATIONS MANDATED BY

COMPANIES ACT 2013

The Companies Act, 2013 contains an important clause (Clause 135) that mandates corporate social
responsibility (CSR) regulations for Indian companies. The final rules were notified on February 27, 2014, coming
into force on April 1, 2014.

This piece provides a guide to the rules and how these rules affect your business.

Who are these rules applicable for?

The mandatory CSR clause is applicable to companies with net worth of Rs 500 crores or more; or annual
turnover of ₹1000 crores or more; or annual net profit of ₹5 crores or more.

How is net profit calculated?

1. Net profit before tax, not including profits arising from branches outside India.
2. The two per cent CSR spending needs to be computed as two per cent of the average net profits made by
the company during every block of three years. For the purpose of the first CSR reporting, the net profit should
be calculated as average of the annual net profit of the preceding three financial years ending on or before March
31, 2014.

2 Per Cent CSR Expenditure—What does it include?

1. CSR expenditure has to be in line with the amended Schedule VII of the Companies Act 2013. While the
company can conduct CSR activities across a range of areas that it may deem suitable, however, only
investments in areas specified in Schedule VII will be considered as eligible CSR expenditure. Therefore,
companies will have to draw up the policy and action plan to ensure that they spend the required 2 per cent
amount on the activities included in Schedule VII.
2. CSR expenditure should exclude expenditure on activities undertaken in pursuance of normal course of
business of a company.
3. Foreign companies have to contribute to CSR based on the profits of their Indian business operations.

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EXHIBIT 2 (CONTINUED)

4. Companies belonging to the same group can set up a trust or not-for-profit company to undertake CSR.
Companies can also join hands with other companies to undertake CSR projects jointly. This would allow groups
and companies operating in an area to come together and undertake projects of a larger scale.

10 areas where the CSR Budget can be spent

i) Eradicating hunger, poverty and malnutrition, promoting preventative health care and sanitation and
making available safe drinking water;
ii) Promoting education including special education and employment enhancing vocation skills especially
among children, women, elderly, and the differently abled and livelihood enhancement projects.
iii) Promoting gender equality, empowering women, setting up homes and hostels for women and orphans;
setting up old age homes, day-care centres and other such facilities for senior citizens and measures for reducing
inequalities faced by socially and economically backward groups;
iv) Ensuring environmental sustainability, ecological balance, protections of flora and fauna, animal welfare,
agroforestry, conversation of natural resources and maintaining quality of soil, air and water;
v) Protection of national heritage, art and culture including restoration of buildings and sites of historical
importance and works of art; setting up public libraries; promotion and development of traditional arts and
handicrafts.
vi) Measures for the benefit of armed forces veterans, war widows and their dependents.
vii) Training to promote rural sports, regionally recognised sports, Paralympics sports.
viii) Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central
Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled
Tribes, other backward classes, minorities and women;
ix) Contributions or funds provided by technology incubators located within academic institutions which
are approved by the Central Government;
x) Rural development projects

Directives for Companies

1. Create a ‘CSR Committee’, made up of three or more Directors, one of whom must be an independent director.
2. Report details of all CSR initiatives undertaken by the company in the Directors’ Report and on the company
website at the end of each year.
3. Create a ‘Corporate Social Responsibility Policy’ that details which activities will be undertaken by the
company, and what budget will be spent on them. This should be published on the company’s website.

The rules have brought clarity to the apprehensions which the companies have had with regards to CSR
expenditure. The range of themes is likely to promote national causes. It will now be up to companies to expand
their range of activities.

Note: 1 crore = ten million.

Source: Namrata Rana and Utkarsh Majmudar, Balance: Responsible Business for the Digital Age (Chennai, India: Westland,
2018); Ministry of Corporate Affairs, “The Companies Act, 2013,” accessed November 11, 2020,
http://ebook.mca.gov.in/default.aspx; Ministry of Corporate Affairs, “CSR Activities,” accessed November 11, 2020,
http://ebook.mca.gov.in/Childwindow1.aspx?pageid=21462&type=RU&ChildTitle=The%20Companies%20(Corporate%20So
cial%20Responsibility%20Policy)%20Rules,%202014.

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EXHIBIT 3: HERO MOTOCORP LIMITED’S CORPORATE SOCIAL RESPONSIBILITY PRINCIPLES,

PROGRAMS, AND POSITIVE EFFECTS

Principles

1. Conduct business and govern with ethics, transparency, and accountability.

2. Provide goods and services that are safe and that contribute to sustainability throughout their life cycle.
3. Promote the well-being of all employees.
4. Be responsive and respect the interests of all stakeholders, especially those who are disadvantaged,
vulnerable, or marginalized.
5. Respect and promote human rights.
6. Respect, protect, and help restore the environment.
7. When engaged in influencing public and regulatory policy, do so in a responsible manner.
8. Support inclusive growth and equitable development.
9. Engage with consumers in a responsible manner and provide value to all customers.

Programs

1. Ride Safe India: This program was the company’s road safety initiative.
2. Hamari Pari (“Our Angel”): This program benefited over 160,000 young underprivileged adolescent girls
by helping ensure they grow up in the right conditions, with the right support. This was done through
providing financial assistance as well as holding motivational and guidance session for both parents and
the children. The Hamari Pari campaign was acknowledged by Facebook, which made “Supporting
Hamari Pari” a custom cause under status activities.
3. Educate to Empower (E2): This program aimed to holistically tackle deep-seated issues within India’s
education system. The program provided long-term solutions for issues such as low enrolment in schools.
It focused on improving school infrastructure to improve the quality of education and learning outcomes.
The program encouraged the development of life skills and technical skills that would empower its
beneficiaries, ensuring employability.
4. Happy Earth: This program aimed to protect, conserve, restore, and optimally use environmental
resources with facilitation and through awareness programs. This was achieved through tree plantation
drives, building toilets in schools to promote cleanliness, restoration of water bodies, and wildlife
conservation.
5. Community Care: This program was undertaken in villages to improve the socio-economic conditions of
the people living there. This included health check-ups, provision of mobile medical vans, skills
development, taking care of street dwellers during winters, protecting the welfare of animals, and the
promotion of sports.
6. Digi Aware: This program aimed to gain traction for the company’s safety campaign on social media
through Facebook, YouTube, and Twitter. During major global sports events (e.g., UEFA EURO 2016,
Rio Olympics), the company telecast short films about safety awareness on television. These films
received more than 43.5 million views on social media for safe riding awareness.

Positive Effects
Program Positive Effects in 2018–19 Positive Effects in Previous Four Years
Ride Safe India 197,231 participants 503,305 participants
Hamari Pari;
130,992 beneficiaries 389,884 beneficiaries
Educate to Empower
Happy Earth 759,910 plantations and 308 toilets 1,660,680 plantations and 1,211 toilets
Community Initiatives 118,880 beneficiaries 329,726 beneficiaries
Digi Aware Over 75.6 million views on all media Over 150.3 million views on all media

Source: Company documents.

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 Page 11 9B20M193

EXHIBIT 4: HERO MOTOCORP LIMITED’S PROJECTS AIMED SPECIFICALLY TO BENEFIT WOMEN

Project Location Project Deliverables

Shiksha and Jeevika Seven Over 30,000 women entrepreneurs participated in the project with the
districts of following achievements:
Haryana  30,044 women trained on entrepreneurship opportunities through
seven districts in Haryana
 4,114 women trained on starting their own business
 2,898 women across seven districts started and improved their
businesses
– 2,194 women started their own business
– 402 women improved an already existing business, and 302
women started businesses with the support of 42 Biz Sakhis who
were trained and motivated to support other women to start
businesses
 In total, 618 women linked to skills training at Rural Self Employment
Training Institutes and in Pradhan Mantri Kaushal Vikas Yojana
Other achievements of the program included 159 applications from
women processed for loans, of which 64 received loans (14 from banks
and 50 from other financial institutions). More than 100 girls (daughters
of women entrepreneurs) connected to Youth Employability Service
Centres for career counselling and job opportunity.
Shiksha and Jeevika Dharuhera Approximately 330 women received skills development as follows:
 Remedial support provided to 100 women for overall improvement in
subject understanding
 230 candidates trained in garment making and in beauty and skin
care
Shiksha and Jeevika Khandsa, Approximately 97 women received skill development as follows:
Gurgaon  Remedial support provided to 50 women for overall improvement in
subject understanding
 97 women trained in garment making and in beauty and skin care
Shiksha and Jeevika Neemrana 100 women received skill development as follows:
 Remedial support provided to 100 Samarth women for overall
improvement in subject understanding
 96 women trained in garment making and in beauty and skin care
Disha Chakarpur, Approximately 200 women trained for digital literacy as follows:
Gurgaon  Remedial support provided to 100 Samarth women for overall
improvement in subject understanding
 200 women received basic and financial literacy
Disha 11 districts of Approximately 10,468 women trained and 432 women received
Haryana placement after undergoing training through this program.
Shiksha and Jeevika North, east Approximately 708 candidates enrolled and 361 received placement.
and south
Delhi
Khelo Hero Imphal, Approximately 20 champion athletes (including 10 women) trained for
Manipur the 2024 Olympics Games.
Jeevika Manesar Approximately 325 women with disabilities were being trained in
industry-specific courses, and 154 received placements.
Jeevika Dharuhera Approximately 230 women were trained on employable skills in sewing
and stitching.
Jeevika Dharuhera Approximately 355 candidates were provided with skills training, and
196 received placement after undergoing the necessary training.

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EXHIBIT 4 (CONTINUED)

Jeevika Halol, Thirty self-help groups were formed, with participation by 354 women,
Gujarat and 182 women engaged in eight different livelihood programs.
Jeevika Gurgaon Twenty women received two-wheeler technician training, and 180
Rewari women were trained for garment making.
Jeevika Gurgaon Approximately 241 women were trained in IT, ITES, two-wheeler
Rewari mechanics, and garment making, and 108 completed the training.
Enable Delhi, Approximately 293 women who were differently abled and 18–40 years
Gurgaon and old with a speech and hearing impairment, a visual impairment, or an
Noida orthopaedic disability were trained on employable skills.
Jeevika Jaipur Approximately 39 women were supported for the skills development
program Aparajita, which focused on improvement in English and
computer skills.

Note: IT = information technology; ITES = information technology enabled services.

Source: Company documents.

EXHIBIT 5: EDUCATION AND EMPLOYMENT ASSISTANCE PROVIDED BY

HERO MOTOCORP LIMITED

Education

School  Mobile  Career  Remedial  Vocational 

WASH Life skills Livelihood
infrastructure science guidance classes skills

Note: WASH = water, sanitation, and hygiene.

Source: Company document.

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EXHIBIT 6: OBJECTIVES OF HERO MOTOCORP LIMITED’S POPULAR TRAINING PROGRAMS

Garment Making
Use of tools and equipment used in the garment making trade
Sewing terminology
Taking correct body measurements
Basic stitching by hand and machine
Designing, drafting, and pattern making
Layout and fabric estimation
Cutting, sewing, and finishing garments for children, women, and men
Alteration, defect correction, and remedies to fitting problems
Processes of quality control, packaging, labelling, marking, costing, and promotion
Sourcing of fabrics and trends related to servicing process
Skills for making professional quality garments

Beauty and Skin Care

Latest trends in beauty and hairdressing
Importance and types of make-up
Eyebrow shaping, facials, bleaching, manicure, pedicure, hair care, cutting setting, styling, and dyeing
Removing of unwanted hair
Body perfection, massage therapy, and yoga
Work ethic in working with different types of clients and mastering appropriate communication skills
Concern for health and hygiene
Developing positive attitude, responsibility, and accountability

Computer Technology
Microsoft Office proficiency and typing skills
File management
Source: Company documents.

EXHIBIT 7: SALARY AND TECHNICAL SKILLS OF VARIOUS JOB PROFILES

Source: Company documents.

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EXHIBIT 8: CASE STUDIES OF THREE WOMEN ENTREPRENEURS

Skills for Jobs

Anita, age 18: Employment potential through computers (Sonipat, Haryana, India)

Anita’s parents were farm labourers who wanted a better life for their only child. With great difficulty, they
managed to put Anita through school, but they could not afford to pay for higher education. At age 18, Anita
graduated from grade 12, having been a top student. Some of her friends were already married; others had
already started attending the local women’s college, where she hoped to also enrol. Her father was not
well, and making ends meet was becoming increasingly difficult. Anita knew that she needed a job soon to
supplement the family income. Job options in Sonipat were limited, and her parents also feared for her
safety.

Anita heard about the skills training program offered by Hero MotoCorp Limited (HMCL) for young women,
which provided computer and English training. Anita was eager to join the program. She could read English,
but was unable to speak it well. She knew that being fluent in English was an important asset that could
lead to a job. Anita had never seen a computer, but had heard that computer skills were also important.

After learning about Anita’s interest in the program, HMCL trainers contacted Anita’s parents and arranged
for let to attend the two-month course. Anita did well in the training and eventually found a job with a financial
technology company that provided loans to small enterprises. Anita’s salary was ₹18,000 per month.

Creating Entrepreneurs

Pinky, age 24: Using embroidery to weave a colourful future (Rewari, Haryana, India)

Pinky loved going to school, where she learned many skills, but what she loved most was sewing. Due to
family circumstances, she left school after grade 10 and was married in 2011. Her husband was a bus
driver with a modest income, but having left school early, Pinky was unable to contribute to her family’s
income. However, her father had bought her a sewing machine when she left home.

After being a homemaker for a few years, Pinky heard about the HMCL entrepreneurial start-up training
program. She joined the program to gain the skills to start a business. She convinced her husband to invest
₹2,000 to repair her old sewing machine, which was a large amount to spend, but she promised him that it
would be a worthwhile investment.

After successfully starting her own business, Pinky stated, “Since I started my stitching and embroidery
enterprise in August 2018, I have given back my husband ₹15,000. I have also invested some money in
buying cosmetic items to sell.”

Tulsi, age 42: Aiming global with local products (Jhajjar, Haryana, India)

“Matti means soil, and we owe everything to it,” stated Tulsi, the co-owner of Matti, a handmade biscuit and
namkeen (“salty foods”) enterprise in the village of Badhani, near Jhajjar. Tulsi was sure the biscuit would
change the experience of snacking.

Matti was founded in January 2018 by four women—Sunita, Sheetal, Kamla, and Tulsi—each with a specific
skill to contribute to the business. “We often cook and produce the snacks together,” stated Tulsi, “but
Sunita and Kamla look after marketing the products because they are very good at it.”

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EXHIBIT 8 (CONTINUED)

One of the founders attended am HMCL training program for start-ups. The women decided on the
innovative idea and technique of using indigenous ingredients such as Baajra (“pearl millet”) and Makhana
(“lotus seeds”) to make a mouth-watering snack. The Indian Institute of Technology in New Delhi, which
was the knowledge partner for the project, helped the women develop a business model and provided
specialized training on procuring, processing, and manufacturing the company’s products using proper
hygienic practices.

To start the enterprise, Tulsi invested money of her own and borrowed from her self-help group. The Matti
products were unique and loved by customers. However, Matti faced marketing issues, as Tulsi explained:

It is hard to sell our products locally. People in the villages think they have access to the same raw
ingredients, so how difficult would it be to cook some on their own? But the real challenge is to
combine culinary skills with flavours that suit the taste buds of both rural and urban customers, and
that is what Matti delivers.

Tulsi and her partners used local resources to make high-quality products, which they hoped to sell to
customers in and outside their village. Many women were starting their own business at the time. In
Haryana, there were over 9,500 businesses operated by women. Tulsi knew that for a start-up to be
successful, she needed patience and a strategy. “I aim to bring in more women in the future to work with
us whom we can train and help earn a living on their own. That will take some time, but we are determined
to make it happen,” stated Tulsi with a smile.

Source: Prepared by the case author with information from company documents.

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