Case study 1: CSR at Bank of India

At bank of India, corporate social responsibility basically the care and concern for the deprived in particular and the community at large. Social responsibility is a function of the banking industry where by the Bank focuses on those below poverty line and the communities that quality for schematic lending under the various government sponsored programs. The focus is on ensuring that that they become self-sufficient and can achieve the desired goals to improve their loving standards. The Bank has a policy of reciting the blind and disabled and also has a committee to monitor and prevent any sexual harassment at the work place. Employees always volunteer to support NGOs in noble causes such as Eye donations/Blood donation camps. The top management not only involves in such a cause but also actively supports it. Well known NGOs who have been in the scene for quite a number of years and doing services to the community over the years are supported in their cause. The programs are monitored by the zonal offices spread over 43 zones that ensure the end of the funds donated to the NGOs. The relationship with some of the NGOs is on a continuous basis like hat with the cancer foundation. The Bank is truly a bank of India. As the name indicates, with over 2600 branches and 43 zonal offices and has a good representation both in metro, urban and rural India. It is, therefore, natural that CSR should spread across state borders and is not limited to where the Bank is headquartered. Business ethics and governance arte separate issues. The money contributed toward to submit receipts and photographs justifying end use of funds. Employees have always contributed whenever there has been a major disaster by donating a days wages. This along with the Banks contribution collectively works out to a few million rupees. Their employees are involved in a systematic monitoring of the activities for which the funds have been donated. The objective is to ensure that there is total involvement of both the management and the employees while the mission would be to succeed in making life better for poorest of the poor and the downtrodden. As part of its centenary celebrations, the Bank of India has adopted 101 villages. Employees too are very considerate when it comes to serving a social cause and the Officers association and the Unions have always been organizing blood donation drives, adoption of village and free cancer detection camp.

Case study 2: Hero Honda

Hero Honda is considered to the single largest manufacturer of two-wheelers in the world market. Their best selling model, Splendour, is the worlds largest selling motor cycle brand at present. The domestic motorcycle market has expanded in the past few years due to easy availability of loans and fall in interest rates. Its net profit increased by 25% and market share in motor cycle increased by 4% to 48% in 2003-04, compared to the previous year. However, the company faces huge challenges. The motorcycle market in India has become extremely competitive with the technology evolving constantly. Motorcycle manufactures have been launching a variety of models across all segments and product launches are often accompanied by heavy discounts. The company will find it increasingly difficult to withstand this onslaught, without cutting prices, a difficult proposition given that the input costs are rising. Competition is also expected to intensify with the entry of foreign companies. But the future is not that gloomy for Hero Honda. It is the market leader by a wide margin and has a very good distribution network. The company also has a large cash hoard to face competition. Question: Do you think that the Hero Honda would remain as market leader in the motorcycle market?

Case study 3: Nirma

Nirma is an Ahmedabad-based soaps and detergent company. They have a broad product portfolio, with salt and soda ash to soap and detergent manufacturing and marketing. The company was established in 1969 and its early operations were small in scale. They adopted the strategy of low pricing and low margins to best the giants in the FMCG sector. The company also concentrated on widening its distribution network. Their sales were pushed up mainly through word of mouth. As the products fame spread, agents from across the country become willing to operate on the tiny margins that Nirma offered. The operated in the small-scale sector and thus saved enormously on excise duty that multinationals had to pay for every kilogram of detergent produced. They advertised in Doordarshan, not in cable TV channels. In 2003-04, the companys net sales grew to Rs 2,206 core, 7.5% higher than 2002-03. it also gained a net profit of Rs 246crore, up 14% in 2003-04 from the year 2002-03. The company has saved much on various expenditure heads liked staff cost, power and fuel. The debt-servicing burden has also decreased by 21% to Rs 8.6 core. Nirma has already created a brand associated with cheap products. The company also faces intense competition from hundreds of small-scale soap makers. Presently, the company has 14,000 workforce and a turnover of Rs 2500 core. Nirma faces stiff competition these days. However, Nirma has ventured into other sectors like education and run its institutions with the determination to serve the society and create goodwill.