A PROJECT REPORT

ON
“A CORPORATE SOCIAL RESPONSIBILITY REPORT ON
MARUTI SUZUKI”

Submitted in Partial Fulfilment for the award of the

Degree MASTER OF MANAGEMENT STUDIES
OPERATION
Under University of Mumbai
SUBMITTED BY
AKASH TEMBHARE
ROLL NO. MS2122080
CSR PROJECT
Under the Guidance of
Prof. Mahesh Mahajan
Batch 2021-23

ASM’S INSTITUTE OF MANAGEMENT AND COMPUTER

STUDIES THANE (W)

1
 DECLARATION

1. I, AKASH TEMBHARE the student of MMS Semester IV, Batch

2021- 23 hereby declare that this Project Report is submitted by me to the
ASM's Institute of Management & Computer Studies, (IMCOST),
Thane.

Is a bonafied work undertaken by me and it is not submitted to any other

University or Institution for the award of any degree/diploma certificate or
published any time before.

Name of the Students: AKASH TEMBHARE

Roll Number: MS2122080
Signature of the student:

2
 ACKNOWLEDGEMENT

I take this opportunity to express my gratitude and extend my thanks to all those helped and
guided me to make this endeavour successful.
I would also like to thank our project guide Prof. Mahesh Mahajan who helped me in the
completion of project.
I express my profound since of gratitude and sincere thanks to our Director Dr. D.V
Kulkarni, for enabling us to undertake such an excellent project, which made us to acquire
tremendous knowledge and self-confidence.
I would like to specially thank to Prof. Mahesh Mahajan (project guide) who gave me
wonderful opportunity to select and work on this topic and understand the process and
strategies which we apply in our career path while dealing with people and the complexities
of the job and for his valuable guidance and inputs which helped me to select and focus our
work on this project.
I would also like to thank to our entire professor cadre, who have not directly supported for
the project but indirectly extended support by way of improvement in presentation skill, deep
knowledge sharing against today's business environment as well as competitive world.
I cannot end this page without thanking my family and friends for their support and
encouragement while undertaking this project.

Signature
Name: Akash Tembhare

3
 INDEX

[Link] TITLE PAGE NO.

1 TITLE PAGE I

2 DECLARATION II

3 CERTIFICATE III

4 ACKNOWLEDGEMENT IV

5 LIST OF TABLES V

4
 LIST OF TABLES

[Link] TITLE PAGE NO.

1 INTRODUCTION TO CORPORATE SOCIAL 7-8

RESPONSIBILITY

2 PYRAMID OF SOCIAL RESPONSIBILITY 10-12

3 CORPORATE SOCIAL RESPONSIBILITY NORMS 13

IN INDIA
4 OBJECTIVES OF STUDY 15

5 FIVE WAYS CORPORATE SOCIAL 16-25

RESPONSIBILITY PROMOTES SUSTAINABLE
BUSINESS

6 ADVANTAGES OF CSR 26-36

7 ABOUT MARUTI SUZUKI 37-39

9 ABOUT MARUTI SUZUKI 40-41

11 CORPORATE SOCIAL RESPONSIBILITY (CSR) 42

POLICY OF MARUTI SUZUKI
12 INITIATIVES BY MARUTI SUZUKI 43-47

13 RESEARCH METHODOLOGY 48

14 CONCLUSION 49

5
15 BIBLIOGRAPHY 42

6
INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility is the continuing commitment by business to achieve commercial

success in ways that honor ethical values, address legal issues and contribute to economic
development while improving the quality of the workforce and their families as well as the local
community and society at large. Indeed, the idea of social responsibility is not new to this age;
rather it has been around as long as businesses have existed. Sometimes it comes in the shape of
caring owners who provided housing, paid the workers who are off due to sickness or otherwise
in form of attempts made to provide ease and comfort to the employee’s lot. Although many
such voluntary social measures have become legal requirements, a number of business leaders
have gone further ahead by utilizing their wealth to improve the living conditions of many
people in the society. Simultaneously, a shift is already occurring from traditional philanthropy
to wholesome community development among the more progressive of the companies.

Financial System is the most important institutional and functional vehicle for economic
transformation of any country. Banking sector is reckoned as a hub and barometer of the
financial system. As a pillar of the economy, this sector plays a predominant role in the
economic development of the country. Thus, the banking sector has been playing a significant
role as growth facilitator. In recent years corporate social responsibility has become an important
issue at global level. The concept of corporate social responsibility recognizes as commitment of
an organization to operate in a socially responsible manner. It takes into consideration the social
and environmental implications of corporate financial decisions. It is also associated with
corporate governance and ethical business procedure.

Experts have defined CSR as ‘A concept whereby a company indulges in continuous

responsible activities that point to its good intentions as a corporate citizen’.

A renowned social responsibility analyst in the UK, Malin Baker states that CSR is about how
companies manage the business processes to produce an overall positive effect on society. The
World business counsel for sustainable development notes that CSR is the continuing
commitment by business to behave ethically and contribute to economic development while

7
improving the quality of life of the workforce and their families as well as of the local
community and society at large.

DEFINITIONS

“Act” means the Companies Act, 2013

Corporate Social Responsibility (CSR) means and includes but is not limited to
a) Projects or programmes relating to activities specified in Schedule VII to the Act or
b) Projects or programs relating to activities undertaken by the board of directors of a
Company in pursuance of recommendations of the CSR Committee of the board as per declared
CSR policy of the company subject to the condition that such policy will cover subjects
enumerated in Schedule VII of the Act.
CSR Committee means the Corporate Social Responsibility Committee of the board referred to
in section 135 of the Act. CSRPolicy relates to the CSR outlook of the Company and the
activities to be undertaken by the company as specified in Schedule VII to the Act and the
expenditure thereon, excluding activities undertaken in pursuance of normal course of business
of a company.
Net profit means the net profit of a company as per its financial statement prepared in
accordance with the applicable provisions of the act, but shall not include the following,
namely:-
a) any profit arising from any overseas branch or branches of the company, whether
operated as a separate company or otherwise; and
b) any dividend received from other companies in India, which are covered under and
complying with the provisions of section 135 of the Act,
provided that net profit in respect of a financial year for which the relevant financial statements
were prepared in accordance with the provisions of the Companies Act, 1956, (1 of 1956) shall
not be required to be re-calculated in accordance with the provisions of the Act.

8
 NEED FOR CSR

CSR is a concept whereby companies decide voluntarily to contribute to a better society and a
cleaner environment. It is represented by the contributions undertaken by companies to society
through its business activities and its social investment. CSR has been making an increasingly
prominent impact in the Indian social system by supplementing development projects. But it is
not a novel concept in India as its historical roots goes till the Vedic age. Today Insurance Sector
is growing larger and powerful than before. Various non-government organizations put pressure
on them to act responsibly towards their stakeholders. Thus, pressure has given rise to the
concept named Corporate Social Responsibility.

CSR defined as the economic legal, ethical and philanthropic placed on organizations by society
at a given point in time. Exactly what responsibility companies have towards society has been
discussed for some decades now.

CSR is now an integral part of functioning of an organisation. The performance of an

organisation should be judged beyond the financial parameters. The authorities need not only
focus on the financial performance but to examine into the CSR performance of the organisation.

9
PYRAMID OF SOCIAL RESPONSIBILITY

10
 THE CSR PYRAMID: ECONOMIC, LEGAL, ETHICAL, AND
PHILANTHROPIC RESPONSIBILITY

The basis of what we consider the modern definition of CSR is rooted in Carroll’s pyramid
of corporate social responsibility. In Carroll’s pyramid, a business has four types of
responsibilities, which are as follows:

1. To be economically profitable,
2. To obey the law,
3. To be ethically responsible,
4. To give to philanthropic causes.

Carroll’s revision of the CSR concept has endured and continues to grow in importance and
impact. For instance, in Google Images there are over 100 variations of this pyramid, and 5200
citations of the original article. After 25 years, Carroll’s original publication remains the most
frequently downloaded article from Elsevier Journals.
Before Carroll, definitions of CSR varied. Some were vague, stating companies should
simply consider their impact on society. Others were more targeted and explicit about a
company’s legal and ethical stance.
Carroll’s pyramid imposes a four-part definition of CSR, which is: To be socially responsible a
business must meet economic, legal, ethical, and philanthropic expectations given by society at a
given point in time.
Carroll’s pyramid rates the importance of each CSR dimension. According to Carroll, economic
responsibilities are most vital for a business. Next comes legal and ethical responsibilities.
Philanthropic responsibilities are considered to be the least important.

Business Economic Responsibilities: Be Profitable

Businesses have an economic responsibility to society, that is, they need to be profitable to
be sustained. Business creates goods and services that society needs or wants. To continue
operations while meeting other responsibilities – legal, ethical, and philanthropic – a company

11
must be financially stable. This means being attentive to revenues, cost-effective, investing
appropriately, and running effective marketing campaigns.

Business Legal Responsibilities: Obey the Law

Legal systems are society’s codified ethics of operation. They’re fundamental moral principles
written as rules. Law is born from society wanting to operate with a rudimental moral grounding.
For a business, these ground rules include laws, regulations, and fair business practices. These
rules are established by lawmakers at federal, state, and local levels.
Businesses not meeting the minimal legal requirements will face costly lawsuits and a tarnished
brand image.

Business Ethical Responsibilities: Do What’s Right

The ethical responsibilities of a business are important because the normative expectations
society holds in law are not always sufficient. Sometimes the law does not provide guidance or
dictate a business course of action. This is when ethical principles of practice are needed to
protect a stakeholder’s moral rights.
It takes time for the law to catch up to rapidly changing society. Law often lags behind
technology and can reflect a dominant class rather than the public good. This is why meeting
ethical responsibility in business is vital.
Business Philanthropic Responsibilities: Be A Good Corporate Citizen
Philanthropy in business embraces activities that are voluntary and discretionary. These
activities go above and beyond a society’s expectations of what’s required. Society will label a
business as unethical if it does not meet philanthropic responsibilities.
Yet, these actions – which seem purely altruistic on the surface – work to enhance a company’s
reputation. Hence, philanthropy isn’t necessarily done for noble or self-sacrificing reasons.

12
 CORPORATE SOCIAL RESPONSIBILITY NORMS IN INDIA

India is the primary nation on the planet to make corporate social responsibility (CSR)
obligatory, following an alteration to the Companies Act, 2013 in April 2014. Organizations can
put their benefits in zones, for example, training, neediness, gender correspondence, and craving
as a feature of any CSR consistence.
CSR announcing practices fortify associations. The way toward reporting and imparting CSR
practices gives advantages to enterprises, remembering the capacity to formalize their situation
for CSR, distinguish hierarchical qualities and shortcomings, and oversee partner connections
and desires. In India, any shortage in spending in CSR will be clarified in the budget summaries
and the Directorate will express the sum unspent and explanations behind not spending that sum.
According to the CSR Law, the CSR Advisory group of association will establishment a
straightforward checking instrument for execution of the CSR ventures or projects or activities
embraced by the organization.
Documentation, revealing and correspondence of the CSR execution in essential to the CSR
methodology. Documentation of the CSR must be coordinated and organized and ought to be
available. Companies can investigate the better approach for documentation, announcing and
correspondences.
In the midst of the Coronavirus (Covid) flare-up, the Service of Corporate Undertakings has
advised that companies' consumption to battle the pandemic will be viewed as legitimate under
CSR activities. Assets might be spent on different activities identified with Coronavirus, for
example, advancement of medical care including preventive medical services and disinfection,
and calamity the board.
The alteration informed in the Companies Act, 2013 requires companies with a total assets of
INR 5 billion (US$70) at least million, or a yearly turnover of INR 10 billion (US$140) at least
million, or net benefit of INR 50 million (US$699,125) or more, to burn through 2 percent of
their normal net benefits of three years on CSR.
As of not long ago, if an organization couldn't completely spend its CSR assets in a given year, it
could convey the sum advance and spend it in the following monetary, notwithstanding the cash
apportioned for that year.
The CSR corrections presented under the Act currently expect companies to store the unspent
CSR assets into an asset recommended under Timetable VII of the Act inside the finish of the
financial year. This sum must be used inside a long time from the date of move, bombing which
the asset must be saved in to one of the predetermined assets.

13
The new law recommends for a financial punishment just as detainment in the event of
rebelliousness. The punishment goes from INR 50,000 (US$700) to INR 2.5 million
(US$35,000) though the defaulting official of the organization might be obligated to detainment
for as long as three years, or a fine up to INR 500,000 (US $7,023), or both.

14
 OBJECTIVES OF STUDY:-
1) To study the CSR initiatives of Maruti Suzuki-
For every aspiring entrepreneur it is vital to study all the aspects of business if he wants to create
goodwill in market and imbibe a positive impression of the brand in the minds of society. Such a
crucial aspect of business is CSR that has become an integral part of each and every company
who wants to survive in the critical market conditions today. Maruti Suzuki is India's largest
passenger car company and the most socially responsible car manufacturer in India. At such a
point it becomes very important to understand, analyze and create innovative strategies that can
benefit the society as well as help you for future entrepreneurship.
2) To study the scope of CSR in India-
The concept of Corporate Social Responsibility has set its mark on all the multinational giants
and they see a huge scope for nurturing their CSR habits in developing countries like India
through upliftment of the weaker community. This makes it important to analyze that how much
CSR contributes and can further contribute for the welfare of the country.
3) To study the diverse dimensions of CSR-
CSR is generally understood as being the way through which a company achieves a balance of
economic, environmental and social imperatives (“Triple-Bottom-Line-Approach”), while at the
same time addressing the expectations of shareholders and stakeholders. In this sense it is
important to draw a distinction between CSR, which can be a strategic business management
concept, and charity, sponsorships or philanthropy. Even though the latter can also make a
valuable contribution to poverty reduction, will directly enhance the reputation of a company
and strengthen its brand, the concept of CSR clearly goes beyond that.
4) To analyse the relationship between CSR and Sustainable Development-
According to Brundtland Commission, “Sustainable Development is a development that meets
the needs of the present without compromising the ability of future generations to meet their
own needs”. So when we study or discuss CSR, it is always important to know that how much
sustainable the project is or how much it is beneficial towards sustainable development.
5) To study an ideal CSR policy-
For effective implementation, the CSR committee oversees the systematic development of a set
of processes and guidelines for CSR to deliver its proposed value to the company. An effective
CSR Policy can work wonders for the society as well as for the company, while a poor CSR
policy can create amass. Hence it is crucial to identify and study an ideal CSR Policy.
6) To study an ideal CSR policy-

For effective implementation, the CSR committee oversees the systematic development of a
set of processes and guidelines for CSR to deliver its proposed value to the company. An
effective CSR Policy can work wonders for the society as well as for the company, while a
poor CSR policy can create amess. Hence it is crucial to identify and study an ideal CSR
Policy.

15
 Five Ways Corporate Social Responsibility Promotes Sustainable
Business

Since the 1950s, corporate responsibility has been the means by which the public can hold
companies accountable for their actions.

Corporate social responsibility, sometimes referred to as CSR, is increasingly more

important today and can take on various forms – including pro-bono work, volunteer
activities, product donations, financial contributions, employee community service days, eco-
friendly practices and many more creative activities by which businesses, small and large,
can give back to their communities.

While it’s inarguable that most corporate responsibility efforts benefit society, it’s helpful for
company leaders and business experts to evaluate how these initiatives also positively impact
the companies that carry them out. The following are five major ways in which responsibility
for corporate actions contributes to the triple bottom line.

1. Positive Press and Reputation Building

One of the most powerful effects of sustainable, responsible business is its ability to quickly
generate positive publicity for an organization. In addition to press and social media
coverage, many major business awards assess corporate citizenship when choosing
companies to recognize.

On the other hand, organizations that fail to take responsibility for corporate actions can
severely damage their reputations. Consider the annual Public Eye Award, which names
companies that demonstrate poor ethics, cause environmental damage and commit human
rights violations.

While these positive and negative assessments were previously only discussed
among industry professionals, today’s climate of social media coverage often puts
the ethical standards of modern businesses directly in front of consumers.

16
2. Consumer Appeal
As corporate responsibility initiatives have become more common, consumers are
increasingly interested in patronizing businesses that support causes they value. Business
leaders can benefit from partnering with charities that are important to their customers. For
example, an outdoor sports and recreation store that donates a percentage of its revenue to
wildlife and forest preservation is not only remaining true to its brand, but it’s helping solve a
global issue that is likely a priority for its consumer base.

Consumer appeal often increases when a customer’s behavior is directly linked to areas of
social concern and charitable efforts. This is the case with companies like TOMS, Warby
Parker and Yoobi – which donate one product for every product purchased. This direct link
between a purchase and a charitable donation provides greater motivation for customers to
spend money, connect with the brand and develop loyalty.

3. Talent Attraction and Employee Retention

Consumers aren’t the only people drawn to an organization’s commitment to improving the
world. Increasingly, talented professionals, especially those looking for business management
careers, consider whether a company’s business strategy and core values match up with their
own when pursuing jobs.

Corporate responsibility also plays a major role in employee satisfaction and retention rates.
When a company’s leadership involves employees in making decisions about which charities
to serve or how to help them, it gives employees a greater sense of investment in the
organization. According to Insights Success, “socially conscious consumers are looking to
build relationships with responsible companies that focus on environmental issues and ethical
practices.”2

Another major way corporate responsibility leads to greater employee satisfaction is during
team or company-wide service outings. These activities allow employees to take a break from
the office and hone different skillsets. Service days also provide important bonding
opportunities during which various teams and departments can have meaningful interactions
that improve relations back at the office.

17
4. Stronger Client and Community Relations
In general, seeing one business do charitable work can inspire other organizations to follow
suit, both on a local and a more global scale. This gives savvy corporations the opportunity to
work with other companies – which could include potential clients or collaborators – and
develop important relationships while contributing to the greater good.

One way business leaders can put this into practice is by working with multiple organizations
in a competition to raise the most money or accumulate the highest number of volunteer
hours. Similarly, companies can sponsor and organize days of service and volunteer activities
that involve entire communities. These events not only increase the positive impact a
company has, but they serve as great opportunities to network, connect with other
professionals and set the groundwork for future collaborations.

Community-based service events also allow employees and community members to have
meaningful interactions, giving the business important recognition and positive associations
with its potential customers.

5. Bottom Line
No modern business leader would deny that a company’s ultimate goal is to make money.
While focusing on corporate responsibility can come at a cost, it can also have a positive
net effect on a company’s bottom line. All the previously mentioned benefits – reputation
building, customer appeal, talent retention and increased connections – can significantly
improve a company’s financial health.

However, responsible choices on their own can also be favorable for a company’s bottom
line. For example, transitioning from paper reporting to a fully digital system reduces a
company’s impact on the environment while cutting administrative costs over the long term.
Other similar choices include switching to environmentally friendly lighting options, using
solar power or operating in a green-certified office building.

Sometimes a business’ corporate conscience and sustainability strategy can ensure its own
future survival. For example, farming and fishing companies that rely on natural resources
can adopt more sustainable practices that won’t destroy the land or deplete marine life
populations. This change is not only good for the environment but it’s a valuable investment

18
 that sets the groundwork for a company to successfully operate for years to come. Indeed
companies can do well by doing good specifically by adopting the broader perspective of
serving all stakeholders rather than merely the shareholders.

PARTS OF THE CSR STRATEGY

The CSR strategy of the organization will, entomb alia, incorporate the accompanying to be
specific:

1. A rundown of CSR undertakings or projects which an organization intends to embrace in

regions or subject falling inside the domain of the Timetable VII of the Act, indicating modalities
of execution of such venture or projects and usage plans for the equivalent; and
2. Checking cycle of such tasks or projects.

ACTIVITIES/USE EXCLUDED FROM CSR

The accompanying will not be treated as CSR activities/use:

1. The activities embraced by the organization in its ordinary course of business.

2. The CSR ventures or projects or activities under taken external India.
3. The CSR ventures or program or activities that advantage just the workers of the
organization and their families.
4. Commitment of any sum legitimately or in a roundabout way to any ideological group
under area 182 of the Act.
5. One off functions, for example, long distance races/grants/altruistic
commitment/promotion/sponsorship of television programs, and so on
6. Costs caused by companies for the satisfaction of any Act, for example, work laws, land
securing act, and so on
Some other use on tasks or projects or activities which are not in similarity or not in accordance
with activities set down in Timetable VII of the Act.
Activities which might be incorporated by companies in their CSR strategy are as under:

19
1. Activities identifying with annihilating outrageous craving, destitution and hunger,
advancing medical services including preventive medical services and disinfection (counting
commitment to the Swachh Bharat Kosh set-up by the Focal Government for the advancement of
sterilization) and making accessible safe drinking water;
2. advancing training, including specialized curriculum and work upgrading business
aptitudes particularly among kids, ladies, old, and the in an unexpected way abled and vocation
improvement ventures;
3. advancing sexual orientation fairness, enabling ladies, setting up homes and inns for
ladies and vagrants; setting up mature age homes, day care focuses and such different offices for
senior residents and measures for diminishing disparities looked by socially and financially in
reverse gatherings;
4. guaranteeing natural supportability, biological equilibrium, assurance of verdure, creature
government assistance, agro-ranger service, protection of normal assets and keeping up nature of
soil, air and water (counting commitment to the Tidy Ganga Asset set-up by the Focal
Government for revival of stream Ganga);
5. security of public legacy, workmanship and culture including reclamation of structures
and locales of verifiable significance and masterpieces; setting up open libraries; advancement
and improvement of customary and handiworks;
6. measures to support military veterans, war widows and their wards;
7. preparing to advance country sports, broadly perceived games, paralympic sports and
Olympic games;
8. commitment to the Leader's Public Alleviation Asset or PM's Resident Help and Help in
Crisis Circumstances Asset (PM CARES Asset) or some other asset set up by the Focal
Government for financial turn of events and help and government assistance of the Booked
Stations, the Planned Clans, other in reverse classes, minorities and ladies;
9. commitments or assets gave to innovation hatcheries situated inside scholastic
establishments which are affirmed by the Focal Government;
10. rustic advancement ventures
11. ghetto territory advancement; and
12. Fiasco the board, including help, recovery and reproduction activities including
commitment to PM Thinks about Coronavirus.
The activities in Timetable VII of the Act are to be deciphered generously in order to catch the
quintessence of the subjects counted in the previously mentioned plan. It is for the Leading body
of the organization to figure out what is incorporated inside the equivalent.

CSR CONSUMPTION

20
An organization which is needed to comprise a CSR advisory group is needed to spend in each
budgetary year in any event two percent of the normal net benefit of the previous three monetary
years on CSR activities determined in its CSR strategy.
For this reason, "net benefit" signifies the net benefit of an organization according to its fiscal
summary arranged as per the relevant arrangements of the Act and will exclude:

1. Benefits emerging from branches outside India; and

2. Any profit got from different companies in India which are covered under and following
CSR arrangements as given in the Act.
It has been explained by MCA vide its overall roundabout no. 01/2016 that the commitment in
kind towards CSR may likewise be considered as CSR use.
It is relevant to specify here that any sum spent in overabundance of the two percent of its
normal net benefits can't be conveyed forward to the resulting years as well as changed against
that year's CSR consumption. Then again, the Leading body of the organization is allowed to
choose whether any unspent sum from out of the base required CSR consumption is to be
conveyed forward to the following year. Nonetheless, the conveyed forward sum ought to be
well beyond the following year's designation identical to at any rate 2% of the normal net benefit
of the organization of the quickly going before three (3) a long time.
It might be noticed that there is no punishment endorsed in the Act in the event that the
organization neglects to spend the base recommended measure of its benefits towards CSR
activities during the monetary year. Notwithstanding, the Board will determine the explanation
of such disappointment in its report of that money related year.

TAX CUTS UNDER CSR

No particular duty exceptions have been reached out to CSR use essentially. In fact, the Money
Act, 2014 has explained that the use on CSR doesn't frame part of business consumption. While
no particular assessment exclusion has been stretched out to consumption caused on CSR,
spending on a few activities like commitments to the Head administrator's Help Asset or PM's
Resident Help and Alleviation in Crisis Circumstances Asset (PM CARES Asset), logical
examination, country improvement ventures, aptitude advancement ventures, rural expansion
ventures and so forth which discover place in Timetable VII, as of now appreciate exceptions
under various areas of the Personal Expense Act, 1961.
Your organizations legitimate agenda for consenting to Segment 135 of the Companies Act 2013
Check the relevance to Area 135 of the Companies Act, 2013 and decide the CSR spending plan
to be spent by the organization.'
Board to comprise a CSR council, endorse the CSR strategy and guarantee usage of the activities
under CSR.

21
CSR panel is ordered to organize a straightforward checking component for execution of CSR
programs. Along these lines, establish a CSR Board of trustees to:

1. Detail procedure and activities.

2. Suggest use sum.
3. Routinely screen CSR strategy.
Survey current CSR ventures attempted versus necessities of the act. Dissect and build up a CSR
strategy and a CSR administration structure. You can execute your CSR strategy in both of the
accompanying way.
Building up a different CSR Establishment: The Organization may set up a different not-revenue
driven CSR arm alongside the essential expense and administrative enlistments. Assess the
upsides and downsides of a different CSR establishment as a trust, society, not-revenue driven
organization both from an expense and administrative just as a program viewpoint and register
the CSR establishment under different rules. The CSR arm must be enlisted trust, society or an
organization set up under area 8 by the organization, either independently or alongwith its
holding or auxiliary or partner organization, or alongwith some other organization or holding or
auxiliary or partner organization of such other organization, or something else.
CSR Undertaking Usage Accomplice: Guarantee that CSR venture execution accomplice is
chosen in arrangement to Segment 135 of the Act (i.e., with a history of 3 years and so forth) and
lead due ingenuity of accomplices actualizing CSR ventures including charge and administrative
due steadiness.
Recognize viable duty models to actualize CSR tasks and expense deductibility of CSR
consumption caused by the organization.
Keep up inward administration data framework for guaranteeing a yearly audit of CSR activities
covering different parts of the venture cycle and Segment 135 of the Act.
Revealing and correspondence of CSR activities in Chief's report in Yearly Report of the
organization is an obligatory necessity under Companies Act, 2013. Following ought to be
remembered for the report:

1. Number of individuals in the board of trustees or the quantity of gatherings of the council
these exposures are significant from responsibility and straightforwardness points of view.
2. Subtleties of sum spent on CSR.
3. Subtleties on center territories of CSR intercession.
4. Subtleties of effort/individuals impacted.
5. Clarification given by companies which have not spent the endorsed 2 percent.
6. Plan to convey forward unspent CSR add up to the following year.

22
The arrangements of CSR would not be relevant on an organization where none of the three
measures the total assets nor turnover nor the net benefit is being met by the organization are
being satisfied. Similar was held in the matter of Bilfinger Neo Structo Private Limited.
In Technicolor India (P.) Ltd. v. Recorder Of Companies the Company met the net benefit rules,
U/s 135 of the Companies Act, 2013, and had a CSR board of trustees yet it went through some
sum according to the CSR Policy of the Company during the monetary year 2017-18, which stay
underneath the edge referenced in Section 135 (5) of the Act for which an explanation was
properly given by the organization in its Director's Report. Anyway it was discovered that the
sum spent on the CSR and related detail is erroneously caught in the Director's report
consequently the organization sent an application to NCLT Bangalore. The council permitted the
utilization of the organization to re-examine its report offering freedom to the organization to
petition for compounding under section 441 of the Act.
Alok Pharmaceuticals and Industrial Company Private Limited, Rapid Estates Private Limited,
Avinash Developers Private Limited where This Compounding Application was documented
before the Registrar of Companies, Chhattisgarh (hereinafter as RoC and the equivalent has been
sent to the NCLT, Mumbai alongside the RoC Report. The Learned RoC has educated that, this
application was recorded in light of the fact that the Company has abused the arrangement of S.
134 (3) (o) of the Companies Act, 2013 (hereinafter as Act) r.w. Rule 8 of Companies (Corporate
Social Responsibility Policy) Rules, 2014 wherein the Company neglects to give clarification for
the non-expenditure of the CSR sum for the Financial Years 2011-12 to 2013-14 in individual
year’s Director’s Report.

MAJOR AREAS FOR CSR

Following are the major areas the insurance sectors need to focus on for acting as socially
responsible:-

 CSR AND PROJECT FINANCE:- How to balance the risk and interest of the various
participating parties including protecting the interest of those who are directly or indirectly
affected, specifically the local community that reside within or close to the area impacted by the
project. This means that before funding a particular project they should analyse the project to
assess the social and environmental harm that can be caused by its activities. They should also
verify the credit worthiness of the borrower so that the stake holders are protected.

 COMMUNITY INVOLVEMENT :-This includes sponsorship of young entrepreneurs,

giving academic scholarships, taking part in recycling and waste management, health support
programs, financial support for art and culture, supporting NGOs engaged in drugprevention
measures for the youth etc.

23
 AWARENESS AND TRANSPARENCY:-Dedicating sections of annual reports to CSR
matters, publishing sustainability reports on CSR and web-based information

 ENVIORNMENT:-By limiting the consumption of energy and paper, ensuring good

waste management and encouraging the clients to adopt low-carbon emission practices.

24
 Children Rural
and Develop
Women ment

Main
Categories

Enviro of CSR
Activities Educa
nment tion
Social
Communit
Healt
y Welfare h

25
 ADVANTAGES OF CSR

In today’s business climate, it’s not enough for companies to produce great products at
reasonable prices. Customers and employees alike expect the companies they do business with to
use their resources and influence to bring positive change to the world. In this article, we will
highlight the benefits of CSR (corporate social responsibility) and why companies should make
this strategy a focus.

A study by Porter Novelli found that 88% of employees believe that it’s no longer acceptable for
a company to solely focus on making profits; it must also positively impact society.

This approach is known as Corporate Social Responsibility (CSR).

Guest of the Team Building Saves the World podcast, Stewart Downey, explains CSR like this:

“The idea is that a company that wants to give back to the community, non-profits, or charities
across the local, national, or global level can do so by adding a CSR effort for their team. It also
means that it gives their employees a chance to volunteer and give back too.”

1. Increased Brand Recognition

Tapping into the zeitgeist with a socially-conscious CSR effort can bring your brand to the
attention of people who may have otherwise never heard of it.

People are hungry for positive stories. If you associate your brand with positive social and
political change, you can earn the type of media coverage you can’t buy from advertisers.

2. Boosted Company Reputation

Recognition isn’t worth much if your reputation is tarnished. Lending a helping hand, making
sacrifices in the name of fairness, and engaging in sustainable business practices paint your
organization as worthy of its growing recognition among consumers.

26
3. Bolstered Public Trust

Once your reputation for CSR work is established, you can’t rest on your laurels. Many people
intrinsically don’t trust corporations and think they’re “just in it for the money.”

By supporting community initiatives with ongoing funding and producing public proof of your
egalitarian organizational principles, you can keep the trust you earned by building yourself as a
socially responsible brand.

4. Improved Customer Loyalty

If you can show that you give back, customers are willing to come back repeatedly. A study by
Statista found that 70% of customers are more loyal to companies that showcase CSR efforts.

Something as simple as hosting a fundraising event for a local food bank can reinforce the public
perception that you have the community’s back and encourage the community to have yours.

5. Accelerated Capital Growth

If you’re boosting your brand, enhancing your reputation, gaining public trust, and inspiring
customer loyalty, this may positively impact your bottom line.

Positioning yourself as “part of the team” gives you a chance to reach a wider customer base and
price your products and services with a social consciousness premium.

6. Deepened Competitive Advantage

Maintaining a reputation as a giving, grateful, and socially conscious organization is not an

approach every business takes.

When you adopt a CSR strategy, you set your business apart from more seemingly traditional
concerns that are “all about the money.” By earning more community trust, you can position
yourself as the preferred option in any saturated market. Higher

27
7. Employee Retention Rates

Today’s employees find fulfilment in working for a socially responsible company, which means
your CSR efforts will make them less likely to quit. According to a recent study, 95% of
employees who work for purpose-driven companies report that they are more loyal to their
employer.

With employee retention being more difficult to achieve than it’s been in a generation, refusing
to address CSR concerns can have a caustic effect on your company’s ability to attract and keep
top talent.

8. Invigorated Employee Engagement

Your motivation to make a difference in society motivates your employees to engage more in
their work. In a whitepaper published by America’s Charities, CSR practices are directly linked
to improved job performance and productivity among employees. Due to this increase in
employee retention rates and engagement, companies also stand to benefit from reduced costs.

28
9. Revitalized Relationship Building

Whether it’s with your customer base, workforce, business associates, or the world at large,
strong CSR efforts will help you forge relationships that can be beneficial to everyone involved.

The benefits of CSR to companies may be larger than you’d expect.

Stuart Goldstein described this on the same Team Building Saves the World podcast when he
pointed out that “it’s actually something that consumers are looking for.”

“There was a Nielson study in 2015 saying that more than 50% of consumers are willing to pay
more for a product or service if the business prioritizes sustainability. These are all things that
companies need to think about if they want to be successful in the future.”

10. Greater Sustainability

Destroying the environment will ultimately negatively impact your business, so environmental
CSR makes sense in a real way. However, it also makes economic sense.

Transitioning to sustainable options can require some large upfront costs, but sustainable
systems tend to be cheaper to operate over the long run. As fuel and other inputs inevitably get
more expensive, companies that transition away from costly technologies first will see the
greatest financial advantage.

29
STEPS TO ACHIEVING CORPORATE SOCIAL RESPONSIBILITY

When formulating CSR best practices, insurers should consider customers, employees,
shareholders, intermediaries, suppliers, regulators and the broader community. The interests of
these stakeholders are vast, and insurers should focus on those that are affected by, or align with,
their business operations.

There are many potential benefits. Insurers can earn a superior reputation in the market. They
can increase engagement and loyalty among staff while reducing turnover rates. CSR can also
increase long-term sustainability and profitability by shaping the market’s competitive
environment and the community as a whole. Ultimately, it will result in insurers becoming more
attractive to investors, who are increasingly concerned about CSR and corporate governance.

1. Paying Valid Claims Efficiently

Paying valid claims efficiently sounds simple, but it involves more than the obvious. Having the
right technology is essential, as is staff training. Insurers also need to price risks accurately and
fairly. If risks are continually underpriced, an insurer will go out of business, which will have
wide-ranging effects on all stakeholders (as demonstrated by the HIH collapse). On the other
hand, if risks are overpriced, customers may not be able to afford adequate coverage and may

30
choose not to insure at all. If most businesses and individuals choose to bear the risk of a loss
that they cannot afford to cover, this will have real implications for the economy, as well as
individuals’ health and safety. It would also place an unbearable burden on the government to
serve as a safety net.

To pay valid claims efficiently, insurers must also keep down costs. Premiums are calculated by
account for both the particular risks and operating costs required to provide the policy. It is
therefore important to minimize overhead, infrastructure and claims-processing costs so that
insurers can offer affordable insurance. There is, however, a fine line between insurers being
adequately resourced and providing appropriately priced insurance and insurers being under
resourced, leading to cheaper insurance—but poor service, long delays and higher claims costs.

2. Risk Minimization/Loss Control

Money can never entirely repair damage. Therefore, calculating the probability of loss and its
likely costs is not, by itself, good practice. Insurers are in the business of risk analysis. They are
the ones best positioned to minimize risks both internally in their operations and externally for
their clients and other stakeholders.

Internal risk minimization could be as simple as implementing proper policies and procedures,
such as occupational health and safety guidelines. External risk minimization may be more
difficult to employ. Insurers should, however, attempt to do so in any circumstances over which
they have some control. Appropriate strategic CSR measures used to reduce risk externally will
depend on the type of products offered by an insurer. In general, insurers should train
underwriters to look more closely at clients’ internal decision-making processes, risk
management procedures and ethics.

Underwriting for large, risky projects or companies should entail in-depth research on the likely
sources of risk as well as more extensive screening and monitoring. Further, insurers should be
proactive in stipulating limits or requirements around insurance for projects that may impact
human rights. One example is insurance policies for pipeline projects in countries where the

31
exploitation of natural resources has fueled corruption, social unrest, conflict and abuses.

External risk minimization should reduce claims costs and frequency for clients, and insured’s
will thus be incentivized to reduce the likelihood and severity of loss in order to lower their
premiums. Insurers should, and often do, consider offering discounted premiums to insured’s
that take preventative measures. For example, discounts are offered to households that install
security systems, young drivers who take safety courses and life insured’s who do not smoke.

3. Climate Change Leadership

For insurers, a big part of risk minimization involves the environment, as insurers have an
inherent interest in ensuring their clients are equipped to deal with natural disasters and the
effects of climate change. The United Nations Environmental Program Finance Initiative is a
collaborative effort of more than 200 companies in the financial services sector to “identify,
define and promote good and best environmental practice” in the industry. While some criticize
its lack of enforcement powers, the initiative plays an important role in fostering international
dialogue. Insurers should support the work of the program, and those like it, if they want to
strengthen their position as pioneers of CSR and stay in reach of their most advanced
competitors.

With climate change already impacting the industry—increasing the number of natural disasters,
altering claims trends, prompting a need for novel underwriting skills, escalating business costs,
spurring new regulations and altering the investment environment—many insurers have focused
their CSR strategies on reducing their environmental footprint.

In 2006, for example, Aviva, a European company, became the first insurer to “carbon
neutralize” its operations. Its program focuses on reducing energy consumption, paper use and
business travel while capitalizing on energy-efficient property management, waste management
and carbon offsetting. The company’s approach to carbon offsetting is particularly noteworthy.
Not only has Aviva approached carbon brokers to buy carbon credits, but it has also introduced
innovative social and commercial projects to offset carbon emissions. For example, the company

32
is supporting a World Food Organization project in sub-Saharan Africa to slow deforestation that
replaces open fires with energy-efficient stoves.

Some insurers are also helping customers reduce their energy consumption. For example, if
customers’ homes are 80% damaged by a weather-related event, Suncorp and GIO offer them up
to AU$2,500 to pay for rainwater storage or solar power. They also have a policy of providing
replacement household products that have a minimum three-star energy-efficiency rating.

4. Strategic Philanthropy

Strategic philanthropy involves partnering with charities or organizations in the community for a
mutually beneficial purpose. This type of corporate giving can not only impact the community
but also other stakeholders in the business.

For instance, QBE has set up a foundation that aims to drive employee engagement. Through the
program, employees are able to apply for local grants for charities that they personally support.
Employees can also get involved in the community through paid volunteer leave, and the
foundation has promised to match employees’ charitable contributions and fundraising efforts.

Another form of philanthropy relevant for insurers is disaster relief. Following the recent
Queensland floods, for example, Suncorp donated AU$100,000 to the Queensland premier’s
“disaster relief appeal” and set up customer response teams in remote locations to assist as many
customers as it could. Further, Suncorp provided employees affected by the floods with a range
of services including professional counseling, financial recovery packages and hardship grants.

There are many other projects insurers could support that are a form of strategic philanthropy.
Those that decrease crime or improve safety are particularly valuable, as they not only support
the participants but create safer communities, which have lower claims costs than dangerous
areas.

Mission Australia initiated such a program to deter young people from South Pacific Island

33
backgrounds from committing criminal behavior in Sydney’s southwest, an area known for its
high number of insurance claims relating to theft. Independent analysis demonstrated that the
program reduced crime rates amongst participants, and 65% of participants had not reoffended in
the 12 months following completion of the program.

IAG has done something similar. The company focused its strategic philanthropy on a
partnership with St. John Ambulance to help stakeholders improve their safety and reduce
injuries.

5. Recognition for Human Rights

Studies show that few companies have taken steps to implement human rights policies. Such
mechanisms are often overlooked by companies that either do not see their importance—because
they consider the protections afforded in the countries in which they operate to be sufficient—or
specifically want to take advantage of the lack of protections provided by these countries.

Companies that show enthusiasm for observing voluntary human rights codes of conduct usually
operate in a business with the potential to considerably impact human rights; the majority of their
work may be done in developing countries, for example. These companies also tend to have
high-profile brand names that they wish to protect, and for that reason they can be more easily
pressured into action by civil society.

The insurance industry doesn’t meet this classification, but human rights are still an important
consideration because insurance permeates many facets of everyday life. It is particularly
relevant for corporations operating globally or those that may be considering outsourcing (or
moving) services to countries with lesser human rights protections.

Many organizations have created initiatives to encourage companies to respect human rights and
hold corporations liable for violations. One of the most notable is the “U.N. Guiding Principles
on Business and Human Rights,” developed by Harvard professor John Ruggie and endorsed by
the United Nations in June 2011.

34
These principles provide a useful reference for insurers. Ruggie explains that “to respect rights
essentially means not to infringe on the rights of others put simply, to do no harm.” The key
operational element is to conduct due diligence to “become aware of, prevent and address
adverse human rights impacts.” This process involves making policy commitments to human
rights, undertaking “periodic assessments on the actual and potential impact of business
operations on human rights, integrating the process into decision making and the tracking of
performance.” The principles also recommend that corporations develop a means to hold
themselves accountable and to provide for remediation through grievance or other mechanisms.

The concern about the lack of international legal remedies available for corporations’ human
rights abuses is on the rise. Following the U.S. Supreme Court’s recent, controversial decision
in Kiobel v. Royal Dutch Petroleum—a ruling that has rendered the Alien Tort Statute incapable
of providing a means for justice for foreign victims—such concerns will presumably now be at
the forefront of human rights discourse. Engaging in voluntary measures that afford some
protection from human rights abuses now will help to diminish the demand for increased
regulation in this area in the future.

6. Socially Responsible Investment

Socially responsible investment describes the process of including non-financial criteria—

environmental, social and governance considerations—in decision making. Institutional
investors, such as insurers, are in a powerful position in that they are able to encourage positive
change in investment strategies.

Traditionally, institutional investors have affected the market by investigating how investment
firm boards manage risk, analyzing reporting methods and occasionally recommending corporate
governance changes. With issues such as global warming, child labor and other human rights
violations becoming more prominent in investors’ minds, however, innovative companies
understand that corporations that knowingly ignore social and environmental influences do so at
their own risk. They may face complaints, litigation, tarnished reputations—or see their

35
opportunity to operate in important markets diminished.

A positive correlation between social, environmental and ethical issues, and long-term
shareholder value is a prerequisite for socially responsible investment to thrive. Studies have
shown that it does not compromise financial gains. Indeed, some studies show a positive
relationship between CSR and financial performance. Institutional investors, including some
insurers, are recognizing that non-financial factors are appropriate considerations when it comes
to investing.

There are three main strategies that socially responsible investors can use. The first, called
screening, involves selecting investment options based on social or environmental criteria. It
makes sense for insurers to screen out companies that, by the very nature of their operations,
increase the likelihood and costs of claims, such as tobacco companies. The second strategy,
shareholder activism, as its name suggests, involves communication with the investment
company through shareholder resolutions, for example. If measures of communication are
unsuccessful, then investors can always make their position clear by ceasing to invest in that
company. The third strategy, community investing, is self-explanatory.

For example, Aviva has insured 450,000 underprivileged people in India who would otherwise
not be able to take part in productive activities. Obviously, financial returns for this type of
investing are likely to be relatively low; however, taking part in community investing may create
new opportunities for an insurer while also improving its standing as a socially responsible
corporation.

36
 ABOUT MARUTI SUZUKI

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of
Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for
over 50 per cent of the domestic car market. Maruti Udyog Limited was incorporated in 1981
under the provisions of Indian Companies Act 1956 and the government of India selected Suzuki
Motor Corporation as the joint venture partner for the company. In 1982 a JV was signed
between Government of India and Suzuki Motor Corporation.

It was in 1983 that the India’s first affordable car, Maruti 800, a 796 cc hatch back was launched
as the company went into production in a record time of 13 month.
More than half the number of cars sold in India wear a Maruti Suzuki badge. They are a
subsidiary of Suzuki Motor Corporation Japan. The company offer full range of cars– from
entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and
sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Since inception, the company has produced and sold over 7.5 million vehicles in India and
exported over 500,000 units to Europe and other countries.

They were born as a government company, with Suzuki as a minor partner, to make a people's
car for middle class India. Over the years, its product range has widened, ownership has changed
hands and the customer has evolved. What remains unchanged, then and now, is their mission to
motorise India. MSIL’s parent company, Suzuki Motor Corporation, has been a global leader
in mini and compact cars for three decades. Suzuki's technical superiority lies in its ability to
pack power and performance into a compact, lightweight engine that is clean and fuel efficient.
The same characteristics make their cars extremely relevant to Indian customers and Indian
conditions. Product quality, safety and cost consciousness are embedded into their manufacturing
process, which they have inherited from their parent company.

Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy
'smaller, fewer, lighter, shorter and neater'
From the Japanese work culture they imbibed simple practices like an open office, a common
uniform and common canteen for everyone from the Managing Director to the workman, daily
morning exercise, and quality circle teams.

Maruti Suzuki exports entry–level models across the globe to over 100 countries and the focus
has been to identify new markets. Some important markets include Latin America, Africa and
South East [Link] with a brand new offering A–star, Maruti Suzuki is ready to take
on European [Link] Suzuki sold 53,024 units during 2007–08. This is the highest ever
export volume in a year for the company, and marked a growth of 35 per cent over the previous
[Link] Suzuki has exported over 552,000 units cumulatively with about 280,000 units to
Europe and Israel .

Maruti Suzuki has two state–of–the–art manufacturing facilities in India. The first facility is at
Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in
North India. The Gurgaon facility – Maruti Suzuki's facility in Gurgoan houses three fully

37
 integrated plants. While the three plants have a total installed capacity of 350,000 cars per year,
several productivity improvements or shop floor Kaizens over the years have enabled the
company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities.

The Manesar facility – Its Manesar facility has been made to suit Suzuki Motor Corporation
(SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated
in February 2007. At present the plant rolls out World Strategic Models Swift , A–star & SX4
and Dzire. The plant has several in–built systems and mechanisms.

Diesel Engine Plant– Suzuki Powertrain India Limited – Suzuki Powertrain India Limited the
diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to
produce world class diesel engine and transmissions for cars. The plant is under a joint venture
company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity
the rest is held by MSIL. This facility has an initial capacity to manufacture 100,000 diesel
engines a year. This will be scaled up to 300,000 engines/annum by 2010.
In 2012 Senior management members were injured as workers resort to violence at Maruti
Suzuki’s Manesar plant.

Product range of the company includes:

It offer full range of cars– from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star,
Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
 Maruti Alto 800
 Omni
 Gypsy
 Zen Estilo
 Wagon R
 Versa
 A– Star
 Ritz
 SX4
 Dzire
 Grand Vitara
 Ertiga
 Celerio

Milestones :

2014: Maruti Suzuki announces global debut of ‘Celerio’ with revolutionary Auto Gear Shift
2013: Maruti Suzuki introduces stylish Stingray
2012 :India's favourite car Maruti Suzuki Alto crosses the 20 Lakh sales mark
2011: Maruti Suzuki India unveiled its much awaited sportier and stylish car, the all new 'Swift'.
2011: On march 15, Maruti Suzuki India rolled out its 1 Crore (ten millionth) [Link] historic 1
Crore car, a Metallic Breeze Blue coloured WagonR VXi (Chassis No 243899) rolled out from
the Company's Gurgaon plant.

38
 2010: Maruti Suzuki has been ranked India's most Trusted Brand in Automobile Sector by
India's leading Business newspaper The Economic Times.
2009 – MSIL adopts voluntary fuel [Link] shipment of A–star leaves Mundra Port–jan
10.A–star bags,Zigwheels”car of the year award”A–star rated best small car of the year–autocar–
UTVi.
2008 – World Premiere of concept A–star at 9th Auto Expo, New Delhi.
2007 – Swift diesel [Link] car plant and the diesel engine facility commences operations
during 2006–07 at manesar,Haryana.SX4–Luxury Sedan Launched with the tag line “Men are
black”.Maruti launches Grand Vitara.
2006–[Link] Survey award for the sixth [Link] has changed its EMS from ISO
14001:1996 version to ISO 14001:2004 version w.e.f.1st july
2005– MSIL was re–certified in 2005 as per ISO 14001:2004 standards.
2004 – A new esteem launched –second successful facelift by maruti engineers.
2003 – Maruti gets listed on BSE and [Link](issue oversubscribed 11.2 times)New zen
launched–first facelift by maruti engineers.
2002 – Divestment –Suzuki Motor Corporation(SMC)acquires majority stake in [Link]
Finance & Insurance launched.
2001 – Turn around with profits Rs104.5 [Link] new business–True
value,Insurance,[Link] Versa [Link] True Value launched.
2000 – Maruti alto [Link] car company in India to launch call [Link] launched
jointly with the Delhi government to promote safe driving habits.

Achievements/ recognition:

 The company takes great pride in sharing that customers have rated Maruti Suzuki first once
again in Customer Satisfaction Survey conducted by independent body, [Link] Asia Pacific.
It is 9th time in a row.
 Maruti Suzuki wins 'Golden Peacock Eco–Innovation Award'
 Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India For Ninth
Consecutive Year.
 Maruti Suzuki becomes the first Indian car company to export half a million cars

Other Accolades:

During 2009–10, the company, its products and services received reputed awards and accolades
instituted by independent expert groups, media houses and research agencies.
These Include
 Rated as No. 1 in J D Power Sales Satisfaction Index
 Hatchback of the year – Ritz by Autocar
 Car of the year – Ritz by Business Motoring
 Manufacturer of the year by CNBC Overdrive
 Ranked third amongst global car companies in the World's Most Reputed Company Survey
2009
 National Award for Excellence in Corporate Governance by ICSI

39
 Details of the Business

Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is India’s
largest passenger car maker. Maruti Suzuki is credited with having ushered in the automobile
revolution in the country. The Company is engaged in the business of manufacturing and sale of
passenger vehicles in India. Making a small beginning with the iconic Maruti 800 car, Maruti
Suzuki today has a vast portfolio of 16 car models with over 150 variants. Maruti Suzuki’s
product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan
Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing.
The Company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state of the
art R&D centre in Rohtak, Haryana.

The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint venture
between the Government of India and Suzuki Motor Corporation, Japan in February, 1981.
Presently, Suzuki Motor Corporation owns equity of 56.2%. The Company’s shares are traded on
the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Market Presence
Today, Maruti Suzuki India can proudly claim to be the largest automobile manufacturer and
seller in India. As on July 2018, the company had a market share of 53%.

Maruti Suzuki Limited has three manufacturing units, one each in Gurgaon, Manesar and
Mehsana. All the three manufacturing plants together can produce 17 lakh vehicles annually. The
Gurgaon plant manufactures models like Alto 800, WagonR, Ertiga, S-Cross, Vitara Brezza,
Ignis and Eeco. The Manesar plant produces other models like Alto K10, Swift, Ciaz, Baleno,
Baleno and Celerio. The Mehsana plant in Gujarat is a new one launched in 2017. This plant is
capable of producing 250,000 vehicles annually.

Today, Maruti Suzuki has about 19 active models in the market. This company has discontinued
several of its existing models over the years because of improvements in design and so on. Some

40
of the famous models discontinued by the company include the Maruti 800, Maruti 1000,
Esteem, Zen, Versa, Zen Estilo and Ritz, among others.

At present, Maruti Suzuki has 1820 sales outlets across India. It plans to improve the figure to
around 4000 by 2020. The brand has the distinction of being the first car company to launch a
Call Centre for providing internal and customer services. The year 2001 saw the launching of
Maruti True Value, a platform for selling and buying used cars.

In 2015, the company launched a unique dealership programme, Maruti Suzuki NEXA, for
marketing premium Maruti Suzuki new cars such as Baleno, Baleno RS, S-Cross, Ciaz and Ignis.
Maruti Suzuki has launched various other initiatives, like Maruti Insurance, Maruti Finance,
N2N Fleet Management, Maruti Accessories and Maruti Driving School. All these initiatives
play a tremendous role in ensuring that the brand remains at the top in the automobile sector in
India. Since the inception of the brand in the country, Maruti Suzuki car price, maintenance,
efficiency, and reliability has seen tremendous improvements and hence, it is the favourite
among all kind of car buyers.

CSR Policy
The CSR policy aims to make lasting and meaningful impact in the nearby communities. Maruti
Suzuki CSR projects are to be implemented with the famous Japanese precision for timeliness
and a clear set of objectives and strategic plan. The cornerstones are stakeholder engagement and
shared value creation.
Maruti Suzuki corporate social responsibility primarily focuses on village development, road
safety and skill development. The targets are set in line with the national human development
and UN Sustainable Development Goals (SDG).
Rather than spreading itself too thin, the company tries to make a visible impact and succeeds by
taking on fewer programmers than other largescale multinational corporations that align with its
core values. The CSR department and the implementing partners consequently get the time and
resources to make lasting impact since they aren’t overwhelmed by too many initiatives in far-
out locations.

41
 CSR OF MARUTI SUZUKI

Maruti Suzuki strives to be a people’s company, and for that, it needs to take care of everyone.
Not only is it completely dedicated to the customers, but also to the communities around the
facilities. As a part of the community development programme, Maruti Suzuki identify their
needs through formal surveys, one to one contact, and by engaging with the leaders. Their CSR
programmes tackle social issues at both local and national level in order to develop scalable,
impactful, and sustainable social programmes that leave a visible impact for the future
generations.

1. #PEHNIKYA?

As per the Road Accident data revealed by the Ministry of Road Transport and Highways
(MoRTH) 5,638 people who lost their lives in 2016 were not wearing seat belts. According to
World Health Organization (WHO), use of seat belts, the primary restraint system, can reduce
the risk of fatality by 45-60%. Meaning more lives can be saved with a simple act of buckling
up.

Also, as India takes a step towards new safety regulations, more and more passenger vehicles
will come equipped with airbags. With this, wearing a seat belt becomes even more critical for
safety. If an occupant is not wearing a seat belt, an airbag may cause more harm in the event of a
crash (Source: NHTSA).

Unfortunately, only 25% of the car occupants in India wears seat belt regularly, according to a
latest research survey conducted across 17 Indian cities, commissioned by MSIL. #PehniKya is a
pan-India social campaign by Maruti Suzuki to create awareness about the benefits of wearing a
seat belt, attack misconceptions and negative attitudes around seat belts and persuade families to
ensure seat belt usage at all times in the car. The 360-degree campaign is active across all the
platforms including print, television, radio, digital and on ground events.
42
 2. ROAD SAFTEY

Maruti Suzuki is proud to be associated with several State and UT Governments to take
initiatives that encourage safe and responsible driving practices. As a brand, we strive to play a
bigger role than just a car manufacturer. We intend to achieve it by imparting quality education
and training to millions of people, with the core objective of raising awareness about road safety
measures and making Indian roads safer for driving.
In line with the progressive trends of today, Maruti Suzuki has introduced initiatives such as the
Traffic Safety Management System (TSMS) and Automated Driving Test Centers (ADTC)
which utilize modernised technology to bring transparency, efficiency and convenience to boost
road safety.
Maruti Suzuki and Microsoft pioneer advanced HAMS technology for Safe Driver
Training

Maruti Suzuki India introduces state-of-the-art HAMS technology to digitalise Driving Test
centres to provide a safe, automated and transparent driver’s license test process.
The technology – HAMS (Harnessing Automobile for Safety) - implemented at Automated
Driving Test Centre (ADTC), Dehradun in association with the Transport Department,
Government of Uttarakhand, has been jointly developed by Maruti Suzuki’s Institute of Driving
and Traffic Research (IDTR) and Microsoft Research India with the objective to make Indian
roads safer.
An Important Advancement
With the smartphone-based HAMS technology, Maruti Suzuki is redefining stereotypes and
moving towards the digital world while helping to re-implement a cumbersome process more
efficiently. Using the modern tools and latest technologies, Maruti Suzuki strives to bring
innovation, transparency and safety into account to the process and make it 100% automated
requiring no manual intervention.
The technology works by attaching a HAMS-enabled smartphone to the applicant’s car which
monitors the driver as well as the road. The technology uses advanced AI models for precise

43
tracking of the vehicle’s trajectory during designated test maneuvers. The centres are equipped
with advanced video analytic technology to check driving skills of the applicants and replace
manual assessment of candidates. In cases of disagreements on test results, video recording of
the test drive can also be availed for complete transparency.

3. SKILL DEVELOPMENT

With more than half of its total economic output coming from the service sector alone,
maintaining and constantly expanding the size of its skilled labour force is imperative for India.
Keeping this in mind, Maruti Suzuki has partnered with a number of state governments to adopt
several Industrial Training Institutes (ITIs). With this initiative, the company aims to make a
large section of the youth employable by the automobile industry.
Maruti Suzuki's Skill Development programme consists of three key elements:
Upgradation of Government ITIs:
In partnership with state governments, the Company is adopting ITIs and through its various
interventions upgrading physical infrastructure and workshops, training faculty, and providing
exposure to students on Japanese shop floor practices
Skill Enhancement in Automobile Trade:
To help workers adapt to the changing demands of the industry, the Company has set up
Automobile Skill Enhancement Centres (ASEC) at 60 ITIs. Each of these centres is equipped
with a model workshop on which practical training is imparted by full time trainers provided by
the Company.
Japan India Institute for Manufacturing:
In 2016-17, the Governments of Japan and India signed an agreement to create a pool of skilled
manpower for manufacturing in India. To translate the vision of this partnership, the Company
embarked on setting up the first Japan-India Institute for Manufacturing (JIM) at AS Patel (Pvt.)
ITI, in Ganpat University, Mehsana, Gujarat.
Upgradation of Government ITIs consists of the following:
Faculty Development:
Maruti Suzuki works in close association with the faculty at the ITIs to improve teaching skills
and methodologies. Working on varied aspects of faculty skill development, such as behaviour,

44
work culture, and teaching techniques, the company assists the teachers in preparing students for
the growing demands of the automobile industry.
Student Development:
Under this arm of the skill development initiative, students are tutored by Maruti Suzuki trainers
in areas related to car service, repair, and maintenance. This is independent of their regular
curriculum at the ITIs. To further the company’s holistic approach, students are also trained in
various soft skills such as discipline, personal grooming, and interpersonal communication skills.
Industry Connect:
Maruti Suzuki also arranges for industrial outreach programmes where experts from the
automobile industry are brought in as guest speakers to the ITIs. These interactions with the
experts not only help the students get industry-specific training, but they also enable them to
upgrade their skills. Apart from this, the company often invites students and faculty for factory
visits so they can familiarise themselves further with the demands of an industrial environment.
The Skill Development initiative is working closely with 141 ITIs across 27 Indian states as of
31st March 2017.

4. Community Development CSR Initiatives by Maruti Suzuki

India

45
The CSR of Maruti Suzuki India seeks to engage with the local community through village
administration bodies (Panchayat) and village leaders to understand their diverse perspectives on
local problems and find solutions to some of the most pressing issues. Based on the local context,
the community development initiatives are focused on improving health, education, water and
sanitation, and common community infrastructure.
Health Initiatives
A multi-speciality hospital has been set up at Sitapur, Gujarat in partnership with Ramanbhai
Foundation, a philanthropic arm of Zydus Hospitals, Ahmedabad. The hospital has been
operational with 50 beds since April 2021, and the facility is spread over 7.5 acres. It provides
out-patient services, emergency care and super[1]specialty medical services in the areas of
radiology, ophthalmology, physiotherapy, gynecology, cardiology, orthopedic, urology,
nephrology and general surgery. During the reporting period, the hospital treated more than
25,000 patients. Along with quality health care services, it provides ambulance facility and
organises health camps in the villages. The hospital has benefited 25 villages by improving
accessibility to quality tertiary health care services. In addition, the hospital facilitated patients to
avail the benefits of Aayushman Bharat Yojana, a Government Health Insurance scheme.
Education Initiatives
The Company has set up a school at Sitapur, Gujarat in partnership with Podar Education
Network to provide quality education to children of Hansalpur, Becharaji and other nearby
villages. The school focuses on the holistic development of children by imparting best academic
practices and inculcating moral values, discipline and ethics. Primary school, from nursery to
Class V, has been operational since April 2021, and during the reporting period, around 150
students were enrolled.
Village Development Projects
Since the project’s inception, the Company has set up 28 water ATMs in 25 villages to supply
drinking water to community members at an affordable price. Over 58 million litres of drinking
water have been provided since the commencement of the project. The water ATMs are self-
sustainable as the operations and maintenance costs are met with user fees. The Company has
also constructed 4,455 individual household toilets to help villages achieve open[1]defecation-
free status.
Support for door-to-door household waste collection and sweeping has been provided in 15
villages. Through the waste collection activity, over 37 tonnes of domestic waste have been
collected from around 15,000 households each day. The mechanised organic waste management
facility at Manesar processed more than 650 tonnes of solid waste during the reporting period.
The Company lends its support in strengthening of the common infrastructure in villages through
initiatives such as laying of paver street, upgradation of panchayat office and development of
community park.

46
 5. MSIL’s COVID-19 Response
Maruti Suzuki India through its CSR program has been supporting the government and local
community throughout the COVID-19 pandemic. The initiatives include setting up of oxygen
generation plants, providing ventilators, oxygen cylinders and protective medical clothing, and
supporting the local community with food, water and dry ration.
During the reporting period, the Company facilitated the installation of 26 oxygen generation
plants in various hospitals, along with Suzuki Motor Corporation and vendors. In addition, the
Company along with Suzuki Motor Corporation, donated around 1,000 oxygen cylinders and 25
ventilators to strengthen the health infrastructure of the country.

Conclusion
To conclude, business organizations must understand the importance of corporate social
responsibility to ensure long-term survival. Maruti Suzuki Limited Industrial Relations considers
CSR a mandatory practices that can no longer be ignored. By investing on economic, legal,
ethical, and philanthropic CSR activities, Maruti Suzuki Limited Industrial Relations has
successfully improved its brand image in stakeholders’ mind. By taking initiatives for the
environment, social welfare, and benefit of broader stakeholders, Maruti Suzuki Limited
Industrial Relations has gained positive media coverage, which has strengthened its positioning
in a competitive marketplace.

Customers feel satisfied when they purchase product from a company that helps the community.
Employees also take pride in getting associated with a socially responsible organization, and
winning the investors and shareholders’ trust over business operations also becomes easier when
business demonstrates its ability to meet the expectations of all stakeholders without
compromising over economic objectives.

By wisely investing on the CSR initiatives, Maruti Suzuki Limited Industrial Relations has been
successful in boosting its long-term growth and profitability. While living in a globally
interconnected world, it is important for businesses to collaborate with all stakeholders and take
care of each other’s’ needs that could eventually benefit themselves.

Although, Carroll’s CSR pyramid model provides valuable guidance about how companies can
ensure their long-term survival, but model does not provide guidance about how businesses
could avoid the clash between CSR and business objectives. Model also focuses on only four
CSR dimensions and does not identify the contextual variables that may positively or negatively
influence the firm’s ability to implement CSR strategies.

47
 RESEARCH METHODOLOGY

Research Design: Descriptive Research

The primary objective of descriptive research is to define the characteristics of a particular

phenomenon without necessarily investigating the causes that produce it. In this type of
research, the researcher must take particular care not to intervene in the observed object or
phenomenon, as its behaviour may change if an external factor is involved.

Data Collection Method

The data collection methods used in this project report include secondary data collection
method. Secondary data collection method include literature reviews and document analysis.
The data collection method was chosen based on their ability to provide relevant data on
HDFC Life’s CSR initiatives and their impact on society and the environment.

48
 BIBLIOGRAPHY

1. [Link]
Relations-Corporate-Social-Responsibility
2. [Link]
3. [Link]

49