CORPORATE SOCIAL RESPONSIBILITY ASSIGNMENT

Hero Moto Corp CSR Activity Analysis

Submitted by S.Sivaramakrishnan 10AB36 Srividya 10AB37 E.Suresh 10AB38 Trinita Machado 10AB39 R.Vaidehi 10AB40

Table of Contents
Introduction ...................................................................................................................................... 3 About Hero Moto Corp ...................................................................................................................... 3 Vision ................................................................................................................................................ 3 CSR Activities ..................................................................................................................................... 3 Green IT............................................................................................................................................. 4 Green Manufacturing ........................................................................................................................ 5 Raman Munjal Vidya Mandir School.......................................................................................................6 Raman Munjal Memorial Hospital..........................................................................................................7 Raman Munjal Sports Complex...............................................................................................................7 Vocational Training Centre.....................................................................................................................7 Porters Diamond.....................................................................................................................................8 Conclusion ......................................................................................................................................... 9

Introduction
Corporate Social Responsibility (CSR) can be defined as the phenomenon were the firm eliminates the harmful activities from its values chain or includes activities which are beneficial to both the firm as well its stakeholders. In other words, the firms integrate the concern of the stakeholders into their business plan and make it aligned with the sustainability of the people, planet and profitability. Hero Moto Corp is one of the largest of motor cycles in India and it is also one of the oldest business houses in India. It is also involved in lot of activities that are beneficial to its stakeholders. A Strategic CSR can be defined as the phenomenon were the firm is involved in CSR activities which are part of its value chain or in its external environment that results in some kind of outcome that is beneficial to its business and profitability. If not beneficial to the firm, then it is called Generic CSR. In this report, report we are going to analyse the CSR activities of Hero Moto Corp on whether it is strategic or generic.

About Hero Moto Corp

Hero Moto Corp has emerged become of the following history. Hero Honda is joint venture between Hero Group of India and Honda Motors of Japan, set up in 1984. It is the world s largest two wheeler company for nine years in succession with customer base of 30 million. It has 48% market share in India as March 2010. Post liberalisation particularly in 21st century Hondo Motors of Japan become actively involved in manufacturing and selling vehicles in India, there raised a conflict of interest between the two joint venture partners. This resulted in Honda Motors shares being purchased by Hero Group resulting in the emergence of Hero Moto Corp. It is just the ownership of the firm changed from two dominant partners to one party Munjal family. Brijmohan Lall is the Chariman of the Hero Moto Corp. Its net profit after tax is 2231.83 crores.

Vision
To provide world class, affordable and durable personal transport for masses.

CSR Activities
The CSR activities of the Hero Moto Corp can be grouped under following categories:  Green Manufacturing

           

Supply Chain Green IT Rural Development Initiatives Raman Munjal Vidya Mandir Raman Munjal Memorial Hospital Raman Munjal Sports Complex Vocational Training Centre Adult Literacy Mission Marriages of Underprivileged Girls Rural Health Care Supporting Physically Challenged People Safe Rider Program

Now let us each one of the programs in detail and analyse to find whether it is strategic or generic CSR.

Green IT Background
It has been estimated that IT operations account for 4-5% of the carbon emissions. But it has been estimated that it has the highest utility in terms of reducing the carbon emissions.

Initiatives
 Energy efficient datacenter and server consolidation with power management features helps to reduce power consumptions.  Replacing CRT monitors with Thin Film Transistor helps in saving power because of reduced power consumption by monitor and air conditioner in additions to safeguarding employees health in relation to CRT monitor usage.  Reduction of printer usage helps in reduced paper usage, power consumption and overhead expenses.  Use video conferencing for meetings than travelling to have meeting in one location for reducing the travel expenses and to reduce carbon foot print.  Replacing old equipments with energy efficient equipments for better productivity, quality and reduced power consumptions.  Creating awareness in organization about the Green IT usage so as to make it part of their culture.  Reducing paper utility by card based loyalty programs instead of paper based one, replacing cheque with electronic fund transfer and digitization of work approvals instead of using files. In addition, it also avoids overhead activities like phone calls, administrative jobs, etc.

Benefits

 It is an opportunity to care to for the society and environment, resulting in high satisfaction level for employees because of their involvement in activities for the betterment of society.  Number of servers and printers needed reduced, hence low power consumptions for the machines and air conditioners.  Administrative costs reduced because of the reduced overhead activities involving maintenance, liaisoning, etc.

Inference
We can see from above points that Hero Moto Corp was involved in many activities which helps it to reduce the carbon foots print by reducing power consumptions. Yes, these activities are reducing the harm its value chain was causing to the environment but if you deeply analyse it there is another element attached to it. The activities such as consolidation in servers, electronic fund transfer, using TFT monitors, etc are the way the supplier firms are offering such products because of the product evolution. So if they didn t change then their suppliers could have made it happen. In the case of workflow usage for production systems, video conferences, using energy efficient equipments, etc are necessary for the firm to reduce cost rather than to avoid carbon foot print. The value to stakeholders is the outcomes of above initiatives such as reduced overall pollution and hence less impact on the health of stakeholders as well as less cost of acquiring the basic human necessities such as water, vegetables, etc. Hence the overall intention of the so called Green IT CSR initiative itself is on profitability and but the element of environmental concern are also present. So these value chain activity improvements are beneficial to all stakeholders in terms of reduction of harm it caused to them. Some CSR activities also help to increase operating efficiency there by profitability of the firm. Hence by definition, this can be termed as Generic CSR activity.

Green Manufacturing Background

Hero Moto Corp believes that to create a sustainable enterprise, it is critical to strike the right balance between the business, nature and mankind. Its vision is to become one of the India s most environment friendly companies.

Initiatives  Cleaner Processes:

It has been continuously reducing the usage of harmful items like asbestos, hexavalent chromium and phenolic substances in its manufacturing process. Thereby avoiding the possibility of any harmful substance being discharged into the environment as production waste.

 Green Supply Chain:

It engages the suppliers and educates them on the sustainability practices by developing required competencies, sharing knowledge and providing technological support. This results in the entire value chain of the firm becoming green. The firm also wants to evolve these practices and then share these practices with the industry so as to make the industry value chain a green one.

 Scare Resources:

The form has installed rainwater harvesting facilities in the plants. Its water conservation model has been by the Centre for Science and Environment as the model for its usage on public awareness campaigns on rain water harvesting.

 Green Awards and Certifications:

It has received the following certifications for environmental initiatives.     Environmental Management Systems as per ISO 14001 Occupational Health and Safety Management Systems as per OHSAS18001 Quality Management Systems as per ISO-9001

Green Technology:
It has started using water soluble paints that is environment friendly. It has also reduced the wastage effluent left out at the end of painting process.

 Green Roof:
It has started using the roof which is designed to reduce the intake of heat into the plant and also helps in rain water harvesting.

Benefits
 Reduced solid waste from manufacturing process by elimination of harmful element usage in any form.  Reduced water pollutions and increased water conservation.  Reduced power consumptions.

Inference
The initiatives to reduce the usage of harmful elements in any form during manufacturing process is good measure as it reduces the exposure of employees, customers, the society to them. Their effort to efficient and effective utilization of water is a measure for the betterment of all. The value to stakeholders are the outcomes of above initiatives such as reduced overall pollution and hence less impact on the health of stakeholders as well as less cost of acquiring the basic human necessities such as water, vegetables, etc. So these value chain activity improvements are beneficial to all stakeholders in terms of reduction of harm it caused to them. Hence this CSR activity can be termed as Generic CSR activity.

Raman Munjal Vidya Mandir School Background and benefits

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-educational school with over 1200 students and 61 teachers. The school has a spacious playground, an ultramodern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer centre. The school is located at Bhiwadi, Rajasthan. It is playing a major role in providing education for under privileged in Rajasthan.

Inference
The above CSR activity was under taken mainly to provide good education to the local communities. It does not increase the profitability of the company nor provide any significant benefit to its stakeholders. Hence, this could be called as a generic CSR activity.

Raman Munjal Hospital Background and benefits

Multi-specialty hospital equipped with the latest diagnostic and surgical technology, the Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-Jaipur highway.

Inference
The above CSR activity was under taken mainly to provide basic healthcare facility to the people around. It does not increase the profitability of the company nor provide any significant benefit to its stakeholders. Hence, this could be called as a generic CSR activity.

Raman Munjal Sports complex Background and benefits

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and football grounds are used by the local villagers. In the near future, sports academies are planned for volley ball and basket ball, in collaboration with National Sports Authority of India. Since villagers are deprived of such facilities, this sports complex was mainly constructed to be used by the local villagers.

Inference
The above CSR activity was under taken mainly to provide sports facilities to the local people. It does not increase the profitability of the company nor provide any significant benefit to its stakeholders. Hence, this could be called as a generic CSR activity.

Vocational Training Centre Background and benefits

In order to help local rural people, especially women, Hero Moto Corp has set up a Vocational Training Centre. So far 26 batches comprising of nearly 625 women have been trained in tailoring, embroidery and knitting. The Company has helped women trained at this centre to set up a production unit to stitch uniforms for Hero Moto Corp employees. Interestingly, most of the women are now self-employed.

Inference
The above CSR activity was under taken mainly to provide self employment for women. It does not increase the profitability of the company nor provide any significant benefit to its stakeholders. Hence, this could be called as a generic CSR activity

ADULT LITERACY MISSION: Background and benefits

In order to educate illiterate adults in the nearby villages, Hero Moto Corp. introduced a scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Moto Corp. is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults.

Inference
The above CSR activity was undertaken to educate the adults who are illiterate adults in the nearby villages who are interested in being educated. It does not increase the profitability of the company nor any benefit to stakeholders. Hence, this could be called a generic CSR activity.

MARRIAGES OF UNDERPRIVILEGED GIRLS: Background and benefits

In order to conduct marriages for families which do not have support and providing financial help, Marriages are organized from time to time, particularly for girls from backward classes, by the Foundation by providing financial help and other support to the families.

Inference
The above CSR activity was undertaken to conduct marriages whose families are in need of the financial help. The financial amount spent for conducting marriages is never profitable to company. Hence, this could be a generic CSR activity.

RURAL HEALTH CARE

Background and benefits

In order to take care of the health of the people located in the nearby villages. Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care and medical camps are now a regular feature in the Hero Group's community outreach program.

Inference
This CSR activity is done to take care of the people who are in need of health care. This never adds to the profitability of the company but increases the good name of company. Hence, this could be a generic CSR activity.

SUPPORTING PHYSICALLY CHALLENGED PEOPLE BY ORGANIZING CAMPS

Background and benefits

In order to take care of take care of the people who are differently abled ,Hero Moto Corp. they ensure that every person is taken care of. To identify this vision, Hero supports physically challenged individuals through diverse initiatives and encourages them at every step of life.

Inference
This CSR activity is done by Hero so that every person is taken care of. This does not add to the profitability of the company and not to the stakeholders. This is basically a generic CSR activity.

PORTERS DIAMOND

Firm strategy. Structure and rivalry

 The green IT strategy followed by the company resulted in reduction in administration cost and improved operational efficiency.  Productivity improvement because of workflow usage, video conferencing, electronic fund transfer, etc. and also the workflow activities help to make the work a process and also make sure everybody know where the job is now and how for it was there, Resulting in effective and efficient work performance. This gives employee satisfaction and reduction in employee turnover.  Despite the extremely competitive business environment, Hero Honda was able to turn in its best-ever performance during the past years. The surge in profitability came from better sales realisations, cost rationlisation and optimisation measures. It does not do any specific CSR activity to grab customers from its competitors.

Demand conditions

Educating individuals always takes a front seat at Hero MotoCorp. In order to promote road safety, the company conducts timely SAFE RIDE PROGRAMS. This CSR activity stimulates the demand condition to a certain extent. As it does not have any direct impact on profitability, it is generic CSR.

Related and supporting industries

 The Green vendor development programme has stuck deep roots since its commencement in 2007. This collaborative programme calls for partner companies to demonstrate their commitment towards improved environmental performance and striving for continual improvement. This value chain activity is a generic CSR activity and it is gaining acceptance by many partner companies.  The company also organises loan melas in partnership with Gramim banks, License camps. This is done to increase the buy-in for its products and hence it is a strategic CSR activity.

Factor conditions
The factory conditions include
   

Highly skilled workforce Linguistic abilities of workforce Rich amount of raw materials Workforce shortage

The Green IT initiative adopted by the company provides a safe and environment friendly work condition and hence resulted in less employee turnover.

Conclusion