ECSR Term Project

Submitted to: Prof. Saikat Banerjee

Submitted by: Group 2

Pallavi Nair 20A1HP026

Sumit Kumar 20A1HP101
Rishab Bangru 20A1HP091
Arjun Singh 20A1HP040
Bhrigu Sud 20A1HP092
INTRODUCTION
The Mahindra Group's flagship company, Mahindra and Mahindra Limited, provides mobility products and farm
solutions. The company has developed at a considerable pace since its beginning in 1947. It now sells from SUVs
to electric vehicles, pickup trucks, commercial vehicles, tractors, two-wheelers, and construction equipment.
Mahindra's Corporate Social Responsibility (CSR) programmes are aimed at bringing about positive and long-term
impact in communities. "We shall question traditional thinking and, Promote positive change in the lives of our
stakeholders and communities around the world by making innovative use of all of our resources, enabling them
to Rise," the organization's fundamental purpose proclaims. The company's CSR efforts are primarily focused on
the development of female's welfare, youth, and farmers, who are helped through educational, health, and
environmental activities. The video below highlights Mahindra and Mahindra Limited's CSR initiatives.

MAHINDRA & MAHINDRA LTD. PRESCIRBED AND ACTUAL CSR SPENDING (IND CR.)*

120

100

80

60

40

20

0
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

Actual CSR Expense Prescribed/statutory CSR Amount

The Mahindra Group's mission encompasses corporate social responsibility (CSR), which is a cornerstone of their
fundamental principle of Good Corporate Citizenship. CSR, according to the Group, is both an opportunity and a
privilege. The Group's strategy extends much beyond corporate image management. The Group marked its 60th
anniversary in 2005 by donating 1% of its yearly profit after tax to social activities every year as a means of
thanking the nation and its stakeholders for 60 years of trust.
Corporate Social Responsibility (CSR) is much more than a buzzword at Mahindra & Mahindra Ltd. (M&M)– it's a
way of life for more than 65,000 Mahindra employees worldwide. The Group's strategy extends much beyond
corporate image management. When the Group celebrated its 60th anniversary in 2005, it pledged to donate 1%
of its yearly profit after tax to social activities every year. Corporate Social Responsibility has always been an
essential aspect of the Mahindra Group's vision and a cornerstone of our core principle of Good Corporate
Citizenship. In 2014, Mahindra Group consolidated its CSR efforts under the Rise for Good banner.

So, let's have a look at some of the projects that the Mahindra Group companies have done under the banner
of "Rise for Good."

A. Mahindra & Mahindra’s CSR: The CSR chamber of Mahindra & Mahindra comprises high-ranking
members of the company's CSR committee. These members are in charge of evaluating and approving
CSR (clearly, altruistic) activities that NGOs and other non-profit organizations may submit.

B. Tech Mahindra’s CSR: The Tech Mahindra Foundation (TMF), the company's corporate social
responsibility (CSR) arm, is in charge of the company's social activities. In 2007, the Foundation was
established as a Section 25 Corporation (alluded to as a Section 8 Company in the Companies Act, 2013).

The Tech Mahindra Foundation focuses on the following areas:

• Volunteering
• Helping the differently abled
• Providing training
• Increasing Employability among the youth

CSR ACTIVTIES AT MAHINDRA & MAHINDRA

KC Mahindra Education Trust: The KC Mahindra Education Trust receives 0.5 percent of the PAT from each firm,
including Mahindra & Mahindra. The KC Mahindra Education Trust was founded in 1953 to change people's lives
in India via education, financial assistance, and recognition of people of all ages and economic backgrounds.
KCMET has adopted a variety of educational programs over the years, all of which have impacted the lives of
deserving and underprivileged girls. The KCMET scholarship has been awarded to over 29,500 students so far.

Mahindra Pride Schools: The KC Mahindra Education Trust has established schools near the Mahindra Group's
producing locations as part of the Mahindra Group's Corporate Social Responsibility initiative. These schools are
primarily designed to educate the children of the school's employees.

Nanhi Kali Project: The KC Mahindra Education Trust manages Nanhi Kali, promoting girls' education (KCMET).
Over 370,000 talented young girls have benefited from the initiative. Nahi Kali is one of the most well-known Rise
For Good programs, and it has been hailed as a model in the field
Disaster Relief: The Mahindra Group's mission is to provide relief to society's impoverished elements. Patients
with diseases, heart illnesses, and others the market has exploited have benefited from the establishment. It has
also been exceptionally responsive during national and natural disasters, contributing and preparing resources
for those in need. The Mahindra Group has always been interested in giving aid in a natural disaster in India

Lessening CO2 Emissions: Developing Bijlee: The Bijlee is a unique electric three-wheeler that was designed in-
house. It was India's first foray into developing a battery-powered car. The Bijlee is a clever "Kind to Man" design
created under Mahindra & Mahindra's exchange fuel program. It is an electrically fuelled car with minimal
outflow that runs on a 72 volt DC engine. The 12 batteries in the Bijlee allow the client to go 80 kilometres at a
speed of 35 kilometres per hour. The car can run for about 120 kilometres with a replacement battery on board.
The interior of the electric vehicle is spacious, with enough room for a whole family. It is a noiseless vehicle
because it lacks a motor, gearbox radiator, and silencer.

Public Health Initiatives: The Mahindra Group has organized various public health drives under the umbrella of Rise For Good.
These initiatives include the following:
• Camps for Blood Donation: 14 camps were directed, with 797 donors

• Camps for eye donation and awareness - Camps for eye donation and awareness were held. While many
people signed up to donate their eyes after they died, attempts were made to promote awareness about the
value of donating eyes after death

• Eye check-up camps- Free eye exams are available for many people

• Surgical Camps - Surgical camps were arranged with the cooperation of the Rotary Club to treat around 300
persons from tribal areas. A total of 175 surgical procedures were performed for free.

• Camps for Health Check-Ups – After registering at a special activity camp, 115 railway porters working at
Mumbai's Chhatrapati Shivaji Terminus were awarded wellbeing cards. One hundred seventy police officers
were also given wellbeing cards

• HIV/AIDS Awareness Camps — The Mahindra Group has held numerous camps in rural and urban regions to
raise HIV/AIDS awareness

Empowering Women Leaders: The Women Leaders Programme (WLP) is an 18-month leadership development
program for middle-management women. The Mahindra Group hopes to develop female leaders and change
agents pipeline through this program. This is the Group's first step toward making the workplace more gender-
inclusive and giving women equal chances. Over 54 women have been trained as part of the WLP to date

Hariyali Programme: The Mahindra Group also invested in the Hariyali program as part of its sustainability activities. This
organization has been active since 2007 and focuses on tree planting. Hariyali has planted approximately 16.4 million trees
across India since its beginnings.
ETHICAL ISSUES WITH RESPECT TO MAHINDRA ACTIVITIES
- Like many automobile firms, Mahindra Group faced an ethical dilemma with tooling purchases in its
automotive CDMM function. There was a code of violations as performed by Rajneesh Vashishth, VP of AD,
CDMM. Taking into account his violations, he was suspended until further enquiry. Following this, they made
a change in leadership for the AD CDMM with immediate effect. Additionally, there were other complaints
that were made by external consulting firms regarding the dealings as well as the non-compliance with the
company's code of conduct. Thus, they also terminated the services of MR Sanjay Gupta, General Manager
of CDMM, and Manoj Shukla, Senior Manager, CDMM.

- As the Mahindra Group's main focus is in the automotive sector, their activities have a serious social impact.
This includes various factors such as the environment, which they are now trying to rectify. They are now
trying to measure their social impact as part of their ESG commitments. This is primarily not just because of
the ethical dilemma but also because the impact of their ESG commitments is of increasing interest to the
company, its shareholders, and its investors. The metrics that they're using to make this assessment use
universal, comparable disclosures focused on people, planet, prosperity, and governance. This helps
companies report on such matters regardless of industry and region, which helps strengthen their abilities
regardless of industry or region.

MAHINDRA’S CORPORATE GOVERNANCE STRUCTURE

POLICY FOR APPOINTMENT AND REMOVAL OF DIRECTORS, KMPs AND SENIOR MANAGEMENT

- Directors : The conditions for appointment to the Board are set by the NRC. It has the ability to nominate
candidates for appointment to the Board of Directors. The NRC will consider a variety of factors in
determining a candidate's suitability, including general business knowledge, education, professional
background, personal achievements, individual skills, expertise and competency, knowledge of global
business, financial management, strategy and planning, technology, governance, professional ethics and
integrity. The Board will examine the applicant(s) and pick the best candidate based on the NRC's
recommendation. The Board will communicate with the new member through the Chairman / NRC/EVC / MD
& CEO to request his or her approval to join the Board. The new Director shall be nominated by the Board
upon receipt of consent, subject to shareholder approval and in compliance with applicable provisions of the
Act and Rules adopted thereunder

- KMPs : The MD & CEO has the power to designate qualified candidates for the positions of CFO and CS. HR
will assist in the identification of potential candidates, both internal and external. In line with the applicable
provisions of the Act and Rules, NRC shall review the candidates suggested by the MD & CEO and make a
recommendation to the Board for consideration and appointment

- Senior Management Personnel : Other than the CFO and CS, Senior Management Personnel are appointed
and removed/relieved by the EVC or MD & CEO depending on the business necessity and applicant
appropriateness. As part of the quarterly briefing on Corporate Governance, details of the appointments
made and people removed/relieved must be submitted to the Board
- Removal of Directors and KMPs : If a Director or a KMP is disqualified under any of the applicable Acts, Rules,
or Regulations, or for failing to follow the company's policies, the NRC may recommend to the Board, with
reasons recorded in writing, that the Director or KMP be removed, subject to compliance with the applicable
statutory provisions

REMUNERATION TO DIRECTORS, KMPs, SENIOR MANAGEMENT PERSONNEL & OTHER EMPLOYEES

- Non- Executive Directors: The NRC will set the conditions for non-executive directors, including
independent directors, to be compensated, whether by commission or otherwise. The criteria will take
into account factors such as a director's attendance at Board and Committee meetings throughout the
year, other responsibilities such as committee membership or chairmanship, time spent carrying out his
or her duties, role, and functions as outlined in Schedule IV of the Act and the Listing Regulations, and
any other factors that the NRC deems appropriate. Based on the foregoing criteria, NRC will provide an
appropriate proposal to the Board, which will decide Non-Executive Director compensation within the
overall limitations set forth in the Shareholders resolution.
- Executive Directors: The NRC will provide a recommendation to the Board about the pay of Executive
Directors, including the MD and CEO. The pay comprises of both fixed and variable compensation, and shall
be paid as salary, commission, performance bonus, perquisites, and fringe benefits, as agreed by the Board
and within the overall limitations set forth in the Shareholders resolution. While the fixed salary (which may
be subject to yearly increases) is decided at the time of appointment, the NRC will determine the variable
remuneration annually depending on the performance

- Remuneration to Senior Management Personnel and Other Employees - To assess the performance of
employees/Senior Management and calculate compensation based on it, the Company uses a performance
management system in accordance with best practice and specified requirements. A fixed component
(Guaranteed Pay) and a variable component make up the total salary for employees (Performance pay).
Because the Company considers that personnel in higher positions have a considerably bigger impact and
influence on the overall company outcome, the percentage of the variable component grows as the hierarchy
rises. Once a year, the cost to the firm (CTC) is evaluated

POLICY ON TRAINING OF THE INDEPENDENT DIRECTORS

Independent directors will get a personal orientation from top executives at the time of their appointment. They
will also be given material/literature or an update during Committee meetings to familiarize them with the
Company's business and operations, the nature of the industry in which it operates, business models, governing
documents, information on important employees, and financial information. Their appointment letter will outline
their responsibilities and roles within the company

FRAMEWORK FOR PERFORMANCE EVALUATION OF THE BOARD

- Structure
• Performance Evaluation of the Board as a whole
• Performance Evaluation of Committees
• Performance Evaluation of Chairman of the Board
• Performance Evaluation of Individual Directors (including Independent Directors)

The evaluation will be carried out as detailed below

- The Board will be evaluated as a whole prior to the first Board Meeting of the financial year (i.e. the
meeting planned for approval of the Company's annual audited financial statements), and the Chairman
will submit the evaluation reports at the said first Board Meeting

- Prior to the first Board Meeting of the financial year (i.e. the meeting scheduled for approval of the
Company's annual audited financial results), the Board's Committees will be evaluated, and the
evaluation reports will be shared with the respective Committees at their first meeting of the financial
year. The Chairman of the relevant Committees will also deliver the results to the Board during the first
Board meeting of the financial year

- Prior to the first Board Meeting of the fiscal year, individual directors will be evaluated. Each of the
Executive/Non-Independent Directors and the Chairman of the Board will be evaluated by the
Independent Directors at their own meeting

- The Independent Directors, together with the Executive Directors/Non-Independent Directors, shall
evaluate/assess each of the Independent Directors, with the exception of the Independent Director who
is being assessed