INTRODUCTION

TO
PROJECT

INTRODUCTION TO PROJECT

1
What is CSR?
Corporate social responsibility (CSR) is about how businesses align their values and
behaviour with the expectations and needs of stakeholders - not just customers and investors,
but also employees, suppliers, communities, regulators, special interest groups and society as
a whole. CSR describes a company's commitment to be accountable to its stakeholders.

CSR demands that businesses manage the economic, social and environmental impacts of
their operations to maximise the benefits and minimise the downsides.

Key CSR issues include governance, environmental management, stakeholder engagement,

labour standards, employee and community relations, social equity, responsible sourcing and
human rights.

CSR is not only about fulfilling a duty to society; it should also bring competitive advantage.
Through an effective CSR programme, companies can:

• improve access to capital

• sharpen decision-making and reduce risk
• enhance brand image
• uncover previously hidden commercial opportunities, including new markets
• reduce costs
• attract, retain and motivate employees .

The World Business Council for Sustainable Development in its publication "Making Good
Business Sense" by Lord Holme and Richard Watts, used the following definition.
"Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large"

The same report gave some evidence of the different perceptions of what this should mean
from a number of different societies across the world. Definitions as different as "CSR is
about capacity building for sustainable livelihoods. It respects cultural differences and
finds the business opportunities in building the skills of employees, the community and the
government" from Ghana, through to "CSR is about business giving back to society" from
the Phillipines.

Traditionally in the United States, CSR has been defined much more in terms of a
philanphropic model. Companies make profits, unhindered except by fulfilling their duty to
pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as
tainting the act for the company to receive any benefit from the giving.

2
Many organization do their business only to get profits while some other organization will
also do social activities for society and one of the automobile leader organization MARUTI
SUZUKI LTD. has also done various social activities for benefit of society . In this project
we include CORPORATE SOCIAL RESPONSIBILITY of MARUTI SUZUKI LTD.

As a responsible corporate citizen, Maruti feel that it must plough back in the society that we
live in. They have set up guidelines for CSR activities, which include elements of
partnership, sustainability, employee involvement, and scaling up of activities from the local
to the national level. There is strict adherence to government labour legislations, and there are
defined policies for occupational health and safety, environment protection and product
quality.There is a dedicated department which overlooks the Corporate Social Responsibility
initiatives of the company.
We , at Maruti , strive to make the world a better place to live and make our country
a benchmark for developing nations through the following initiatives.

• Adopting State Run ITI's

• Employment opportunities with driver training
• Focus on Children Education
• Our efforts to make our city green
• Adoption of nearesr villages for -
Basic Infrastructure
Education
Vocational Training
Health Care

We are well aware of our commitments and we believe in partnership to work for the
formation of a better world.

CSR activities:

3
Welfare Camps
Every year we organize blood donation camps along with Red Cross, in which employees
donate blood. Eye check-up camps, family planning related camps and other health camps are
also organized periodically.

Medical support & welfare

The employees of Maruti have always donated generously to people affected by natural
calamities. They contributed Rs. 2 million to rehabilitate earthquake victims in Latur. We
also run a creche for the children of construction workers, which provides food shelter and
education for 85 children.

Education to underprivileged
DPS Maruti Shiksha Kendra, an education programme for the underprivileged, was
inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate the
children of below poverty line (BPL) families from the nearby villages of Gurgaon district.
120 students in the age group of 5-8 years have already enrolled. DPS Maruti Kunj is
providing books, writing material and uniforms, refreshment and transport facilities to these
children.

Education Programme for mothers

'Chetna', an education programme for mothers - is an another endeavour to provide basic
education to mothers of the students of DPS Maruti Kunj and surrounding villages. Majority
of students at the school is first generation learners. Therefore, the concept of starting a
movement of learning 'Chetna' for mothers has been promoted. The response has been
encouraging and about 130 mothers are attending it regularly.

Educational benefits :
DPS
Through the Maruti Employees Education Trust (MEET) we have set-up a well equipped
modern school in association with Delhi Public School Society (DPS) at Maruti Kunj
(Bhondsi), Gurgaon. This school will go a long way in providing quality education not only
to the children of the employees at Maruti but also to the citizens of Gurgaon.
Education to underprivileged
DPS Maruti Shiksha Kendra, an education programme for the underprivileged, was
inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate the
children of below poverty line (BPL) families from the nearby villages of Gurgaon district.
500 students in the age group of 1-15 (classes I-IX) have already enrolled. DPS Maruti Kunj
is providing books, writing material and uniforms, refreshment and transport facilities to
these children.

4
Maruti and kids
Maruti Udyog Ltd maintained and managed Children's Park at the India Gate, is a popular
learning and recreation spot among children . The park adjacent to India Gate is spread over
14 acres, is at the polygon between Dr Zakir Hussain Marg and Shah Jahan Road.
More than 2500 children visit the park every week. Based upon the theme of
EDUTAINMENT(education + entertainment).The park plays host to a variety of facilities, as
science centre, a well equipped library with latest children books , a maze hedge and an open
air amphitheatre and a very special herbal garden . All this is set amidst beautifully
landscaped greenery
The Musical & a story telling fountains are a major draw for the children.
There are 4 exclusive play areas complete with swings and other play equipment which
appeal to all children.
Maruti Udyog Ltd regularly plays host to various activities as painting, dance and singing
competitions for all junior schools.
NGO's are also welcome for conducting events for underprivileged children.

Environment :
Maruti Udyog Ltd. is committed to:
·Maintain and continually improve upon our Environmental Management system and
performance.
·Prevention of pollution resulting from our business activities and products.
·Strictly adhere to environmental laws and further follow our own standards.
Recognizing our responsibility to provide a green and safe environment, we put forward
following action guidelines:
·Promote energy conservation
·Promote three R's (Reduce, Reuse, Recycle)
·Promote "Green" procurement
·Provide environmental education to all the personnel working for or on the behalf of Maruti
Udyog Limited.

Maruti Steers Pulse Polio Campaign

In the past few months Maruti has undertaken various activities to create awareness and
improve the health of people residing in their adopted villages in Manesar.

Taking a step forward, this time Maruti's Corporate Social Responsibility team joined hands
with Public Health Centre of Kasan village. The project undertaken was Pulse Polio drive.
This is one of the project where our Corporate Social Responsibility team had established
collaboration with government and worked for a cause.

5
For the Pulse Polio drive apart from covering our adopted villages the activity was also
extended to two other villages, Nanarpar & Kho at Manesar. Nukkad Natak was organised a
day before to spread awareness among the parents. All the effort paid off, when the doctors
managed to cover more than
7200 children across all these villages…

Road Safety and Maruti Suzuki

Maruti Suzuki has already trained around 450,000 persons in safe driving in the last few years. Through
the National Road Safety Mission, the company plans to touch a total of million persons in the next few
years.

Maruti Suzuki contributes towards road safety through its IDTR and MDS initiatives.

Institute of Driving Training and Research

With IDTR, Maruti Suzuki introduced world class driving training facilities. These include scientifically
laid-out driving tracks, advanced computer simulators and a theory module for class room training.
IDTR at Loni, started in 2000 in collaboration with the Delhi government, is spread over 14.6 acres. It
caters primarily to commercial vehicle drivers.. In 2006, the second IDTR was set up at Sarai Kale
Khan, South Delhi to focus on personal car and Light Motor Vehicle drivers

Maruti Driving Schools

Maruti Suzuki has involved its vast dealer network in promoting road safety and safe driving. In
collaboration with the dealers, the company has set up 47 Maruti Driving Schools (MDS) in 43
locations across the country. The MDS too are equipped with driving simulators. One of the unique
features at MDS is that it also has women trainers. All trainers at MDS are trained at the IDTR facilities.
MDS network has trained over 52,000 people so far of which over 50 percent are women learners.

Maruti Suzuki's Corporate Social Responsibility

Maruti Suzuki's National Road Safety Mission has been designed to have all the elements of a good
Corporate Social Responsibility program : partnership with stakeholders, use of corporate management
skills to benefit society, utilizing existing resources and a national reach, in addition to making a
financialcontribution. To mark the launch of Maruti Suzuki National Road Safety Mission occasion a
special logo created for the programme was unveiled. Participants from the pilot batch of trainees were
felicitated at the event. This pilot batch consisting of 11 candidates, including 6 women learners, were
handed over Certificate of Merit for their participation.

6
INTRODUCTION
TO
TOPIC

7
 INTRODUCTION

Corporate Social Responsibility - What does it mean?

One of the most frequently asked questions - and probably for all those
individuals and organisations dealing with CSR issues is the obvious - just what
does "Corporate Social Responsibility" mean anyway? Is it a stalking horse for
an anti-corporate agenda? Something which, like original sin, you can never
escape? Or what?

Different organisations have framed different definitions - although there is

considerable common ground between them. My own definition is that CSR is
about how companies manage the business processes to produce an overall
positive impact on society.

Other definitions

The World Business Council for Sustainable Development in its publication

"Making Good Business Sense" by Lord Holme and Richard Watts, used the
following definition. "Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their
families as well as of the local community and society at large"

The same report gave some evidence of the different perceptions of what this
should mean from a number of different societies across the world. Definitions
as different as "CSR is about capacity building for sustainable livelihoods. It
respects cultural differences and finds the business opportunities in building
the skills of employees, the community and the government" from Ghana,
through to "CSR is about business giving back to society" from the Phillipines.

Traditionally in the United States, CSR has been defined much more in terms of
a philanthropic model. Companies make profits, unhindered except by fulfilling
their duty to pay taxes. Then they donate a certain share of the profits to
charitable causes. It is seen as tainting the act for the company to receive any
benefit from the giving.

The European model is much more focused on operating the core business in a
socially responsible way, complemented by investment in communities for solid
business case reasons. Personally, I believe this model is more sustainable
because:

8
 1. Social responsibility becomes an integral part of the wealth creation
process - which if managed properly should enhance the
competitiveness of business and maximise the value of wealth creation to
society.
2. When times get hard, there is the incentive to practice CSR more and
better - if it is a philanphropic exercise which is peripheral to the main
business, it will always be the first thing to go when push comes to shove.

But as with any process based on the collective activities of communities of

human beings (as companies are) there is no "one size fits all". In different
countries, there will be different priorities, and values that will shape how
business act.

The World Business Council for Sustainable Development defines corporate

responsibility as the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the
workforce, their families and the local community and society at large.

More than goodwill, corporate community involvement or strategic corporate

philanthropy, corporate responsibility is a genuine attempt by a company to
build meaningful relationships between the corporate sector and the rest of
society.

Corporate responsibility is achieved when a business adapts all of its practices

to ensure that it operates in ways that meet, or exceed, the ethical, legal,
commercial and public expectations that society has of business.

To be considered effective, corporate responsibility must be an integrated part

of day-to-day business, engaging all stakeholders and including strategies to
support individual managers to make socially responsible decisions, conform to
ethical behaviour and obey the law.

Corporate social responsibility is a concept with a growing currency within

india and around the globe. CSR is a concept that frequently overlaps with
similar approaches such as corporate sustainability, corporate sustainable
development, corporate responsibility, and corporate citizenship. While CSR
does not have a universal definition, many see it as the private sector’s way of
integrating the economic, social, and environmental imperatives of their

9
activities. As such, CSR closely resembles the business pursuit of sustainable
development and the triple bottom line. In addition to integration into corporate
structures and processes, CSR also frequently involves creating innovative and
proactive solutions to societal and environmental challenges, as well as
collaborating with both internal and external stakeholders to improve CSR
performancee size fits all". In different countries, there will be different
priorities, and values that will shape how business act.

Corporate Social Responsibility (CSR) aligns business operations with social

values. CSR integrates the interests of stakeholders—all of those affected by a
company's conduct—into the company's business policies and actions. CSR
focuses on the social, environmental, and financial success of a company—the
triple bottom line, with the goal being to positively impact society while
achieving business success.
In the past, a company's merit was solely based on its financial performance.
Stakeholders are now beginning to better understand how corporate behavior
affects social, political, and natural environments. With this increase in
understanding comes an increased pressure from investors, consumers, and
employees for companies to consider social and environmental criteria when
making business decisions. This has created momentum for using a "triple
bottom line" or "sustainable" approach—i.e., looking at social, environmental,
and financial data when evaluating business operations. Increasingly,
stakeholders are concerned that any companies they support have business
practices that positively impact society while achieving financial success.
Corporate Social Responsibility embraces two main concepts—accountability
and transparency.
Today, stakeholders expect companies to perform well in nonfinancial areas
that involve human rights, business ethics, environmental policies, corporate
contributions, community development, corporate governance, diversity, and
workplace issues. Social and environmental performances are considered side
by side with financial performance. From local economic development concerns
to international human rights policies, companies are being held accountable for
their actions and their impact.
Companies are also expected to disclose and communicate their policies and
practices that impact employees, communities, and the environment. In the
global economy, companies that are responsive to the demands of all of their
stakeholders are arguably better positioned to achieve long-term financial
success. Stakeholders, regulators, and NGOs demand information about a
company’s social and environmental impact, and corporate communication
about these issues has become critical for sustainable business growth.

10
Many companies are making significant efforts to decrease their environmental
footprint and better serve their various stakeholder constituencies. Investors,
consumers, and employees are more sophisticated than ever before. While they
understand that every company can do more to be more socially and
environmentally accountable, stakeholders are rewarding companies who make
strides to improve their performance in these areas.
CSR can involve almost any aspect of a company's operations. Every company
has a story to tell that sets it apart. It is important for every company to find its
story and to tell it. A company that is considered a good corporate citizen is one
that demonstrates a commitment to its stakeholders through socially responsible
business practices and transparent operation.

Roots of csr

The notion of CSR originates essentially from the voluntaryactions taken by

concerned company owners inthe industrialised world from the end of the 19th
century.They reacted to social abuses and the associateddemands of labour
movements. Forward-looking indus-trialists built homes and hospitals to
improve the livingconditions of their workers, in the process
promotingmotivation and reducing employee turnover.In the 1980s companies
in the UK began to introducevoluntary social measures following the rapid rise
inunemployment triggered by the initial effects of theThatcher government’s
economic policy. Rioting amongunemployed youths in British cities led
companies totake a closer interest in the country’s social stability andto become
involved in improving living conditions intheir local area.Today British
companies pay closeattention to the needs and demands of the various
different groups in society when considering theirresponsibilities and exploring
ways to generate trustand acceptance.

European view of csr

Recognising that for some of the world’s most pressingecological

andsocialproblems regulation is an inefficientor even wholly ineffective tool,
the EuropeanCommission has increasingly sought to promote voluntarybusiness
initiative. The Commission thereforeincorporated CSR into a formal new policy
approachThe Commission describes CSR in its Green Paper of2001 as a
concept, “Whereby companies integratesocial and environmental concerns in
their businessoperations and in their interaction with their stakeholderson a
voluntary basis”.The European Commission’s view of CSR encompassesall
voluntary actions through which companies contribute
to sustainable development in their core business. These include first and
foremost activitiesover and above legal requirements in the areas ofworking

11
conditions and environmental protection. Inbusiness praxis CSR thus amounts
to essentially the
same thing as sustainability management. CSR alsoincludes charitable giving,
sponsorship, support fornot-for-profit foundations and releasing employees for
voluntary work in community and social projects. Suchactivities, usually
referred to as corporate citizenship,are part but not the core of CSR.

CSR in Germany

The German Federal Government, the majority of Germantrade associations and

the country’s trade unionsessentially agree with the European Commission’s
definition
of CSR. The way that companies implement andcommunicate CSR in practice,
however, indicates thatactual understandings of the concept vary, and
companies
often take a selective approach that emphasisesjust charitable activities or
working conditions in thesupply chain. This is somewhat surprising, as German
companies
actually measure up particularly well against the comprehensiveCSR concept.
Environmental protection andthe country’s comparatively demanding social
legislationhave always been key drivers of continuousimprovement processes at
German companies. Theseprocesses focus on the requirements of stakeholders
and legislators alike. As a consequence most Germancompanies already have
the foundations for implementinga comprehensive CSR concept in place.
Andindeed many have already made exemplary progress.The environmental
management systems alreadyestablished give companies an ideal platform
fromwhich to take up the CSR approach and integrate it intotheir corporate
strategy. Seizing this opportunity offersa chance to stand out in the competitive
internationalmarketplace as an especially trustworthy and innovativepartner.

A practical aid for CSR management

No company has any obligation to sign up to the OECDGuidelines, and their

explicit emphasis on multinationalenterprises means that they are still largely
unknown
among small and midsize enterprises and companiesthat focus on the domestic
market. Nevertheless theycan be useful to smaller companies wishing to
introduce

12
CSR strategies. Many such companies will findthat they already meet the
demanding but entirelyrealistic requirements: after all, preventing
discrimination,corruption and anticompetitive practices, settingup a rigorous
environmental management system,
such as EMAS, and reducing environmental impact arecornerstones of
responsible management.

Definitions of social responsibility

Corporate social responsibility (CSR) is:

• An obligation, beyond that required by the law and economics, for a firm
to pursue long term goals that are good for society
• The continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life
of the workforce and their families as well as that of the local community
and society at large
• About how a company manages its business process to produce an overall
positive impact on society

Corporate social responsibility means:

• Conducting business in an ethical way and in the interests of the wider

community
• Responding positively to emerging societal priorities and expectations
• A willingness to act ahead of regulatory confrontation
• Balancing shareholder interests against the interests of the wider
community
• Being a good citizen in the community

Is CSR the same as business ethics?

• There is clearly an overlap between CSR and business ethics

• Both concepts concern values, objectives and decision based on
something than the pursuit of profits
• And socially responsible firms must act ethically

The difference is that ethics concern individual actions which can be assessed as
right or wrong by reference to moral principles.

13
CSR is about the organisation’s obligations to all stakeholders – and not just
shareholders.

There are four dimensions of corporate responsibility

• Economic - responsibility to earn profit for owners

• Legal - responsibility to comply with the law (society’s codification of
right and wrong)
• Ethical - not acting just for profit but doing what is right, just and fair
• Voluntary and philanthropic - promoting human welfare and goodwill
• Being a good corporate citizen contributing to the community and the
quality of life.

Why is CSR important?

• Customers and clients are influenced by a company's reputation in social

and environmental areas.
• The employment market is competitive and good recruits want to work
for and stay with companies that care.
• Social performance increasingly influences investors' decisions, as the
ethical investment market grows evermore quickly.
• CSR enables the strategic management of internal and external risks in
social as well as environmental areas.
• Existing socially responsible actions become more visible and are better
communicated.
• Social and environmental responsibility has been demonstrated to reduce
operating costs

Why is corporate social responsibility strategy important?

This is a strategic issue for your organisation

Corporate social responsibility in business isn’t just a do-gooders’ charter or

latest example of regulatory overdrive. We’re talking about creating sustainable
businesses through the best possible relationships with their communities and
stakeholders.

The expectations of the traditional stakeholders – shareholders, customers, and

employees are increasing and so, too, is the list of groups wanting to know how
your organisation is run.

14
As a result, more and more companies are working harder not only to make a
positive impact on society and the environment through their operations,
products or services, but also to demonstrate it to these groups.

A comprehensive set of policies, practices and programmes incorporated

throughout a business can increase productivity, contribute to competitiveness,
improve staff recruitment and retention rates and create a more positive
corporate image.

Unfortunately, many companies only use the responsible business approach as a

risk management tool. This limits the benefits that could be achieved through
focusing on opportunity rather than risk. Socially responsible business is not
about restricting business growth; it’s about creating new opportunities, the
better way of doing business.

How does occupational safety and health fit in with CSR?

CSR is a voluntary initiative that must always address goals and actions clearly
above the minimum levels of worker protection set out in EU and national
legislation. Companies should adopt socially responsible initiatives because it is
in their long-term interest. With its focus on enterprises' stakeholders, CSR
embraces both the internal needs of employees as well as the external needs of
society. From an OSH perspective, this means both taking care of employees'
safety and health in excess of legal requirements and considering external
implications, such as using OSH as a criterion in the selection of subcontractors
or in marketing.

CSR is likely to bring OSH closer to other important issues such as:

• Human resources
• Work and life balance
• Other fundamental rights at work
• Environmental issues
• Public safety and health (including product safety)
• Profitability and productivity

CSR presents enterprises with an opportunity to raise their commitment to OSH.

However, this means treading a careful path that builds upon existing

15
achievements in OSH and avoids the pitfalls that might accompany the arrival
of yet another management priority.

The advantage

The advantage of CSR for companiesWho knows the trend for tomorrow knows
also
the market for tomorrow! The use of CSR as a tool for companies strategyand
public relations brings economical success, because economy and stock
exchange know more and more that sustainable oriented
companies are companies for the future. TheTriple Bottom Line Reporting is
well known, beside figures of the balance sheet and R&Dcapacities, also
information and facts about thecompany as a corporate citizen is
included.Moreover CSR is an efficient instrument of howto bind your workers
to your companies. Last
but not least also the consumers have a big say, an international survey brought
theresult that 70 % of the consumers make theirdecision whether to buy a
product or not on the basis if the company shows societal
responsibility or not. More advantages are: an advantage in the personnel
market, to get the best workers, to improve the relationship to your customers
and also more security to shareholders and owners.
The advantage of CSR for the public The economic progress brought prosperity
to a lot of people and therefore they have the opportunity to create their way on
their own. It seems that financial and social lives are secure for many people.
Nowadays it is essential to ask about your own identity and individuality.
Therefore it is more and more necessary to create conditions of work in which
high qualified workers can use their know-how. To feel goodin your job is a
very important fact in order to employ the best and most creative workers.CSR
helps the companies to include the needs of society in their companies strategy.
Corporate social responsibility as business strategy

There is a visible attention being paid towards social and environmental

consequences of business and yet performance in this front is far from
satisfactory. Common trait seen across companies is that social concern and
business are seen as two independent responsibilities and often at loggerhead.
As a consequence, companies lose focus of how social responsibility could have
been integrated with the long term business outcomes. Businesses across the
world are so obsessed with the immediacy of results that they cannot sight the
vast opportunity that discharging of social responsibility holds for the long term
sustainability of the organizations. As a result, based on the maturity of strategic
thinking in the company, CSR is being implemented in one or more of the
following ways as shown here:

16
CSR as Reactive strategy

CSR has in general been a reactive strategy for reviving drooping fortunes of the company by
gaining the confidence of the communities in which they operate. The case of Shell in
Nigeria and that of Nike in Asian countries are just two examples to quote. With such
instances on the rise companies have started adopting a “proactive approach” analyzing the
cost of not discharging the social responsibility and as a result do the bare minimum to pull
on and thus minimizing their spending on this account. CSR is viewed by these companies as
a cost and compulsion. This approach only obscures a business from identifying the real
potential CSR holds with respect to their core business. Any complacence by such companies
may result in the kind of corporate scandals that we are comming across today. Corporate
misdeeds are indeed costly, if caught.

CSR as Image building exercise

Efforts of companies to recover from the effects of not discharging social responsibility can
broadly be classified as damage control exercise as far as their image is concerned. Here the
businesses have their back against the wall. However, CSR today is seen by companies as an
opportunity for building corporate image. Keen on drawing attention of media and general
public, companies announce their plans for various kinds of philatropic activities. There is
nothing wrong with this kind of approach, except for the fact that such initiatives are not
emphasized in the maze of important and urgent business calls. If a company can develop a
systematic and delibrate approach for maintaining the focus on social welfare activities, this
will not only enhance its image in the immediate future but consistency on this front will help
the company in building a positive reputaion of societal concern. Such image will definitely
help the company in its future business forays in the region.

17
On the other hand, the image building campaign includes CSR reporting where a series of
disjointed anecdotes of companies’ contribution to society are highlighted, which are in no
way related to implementation of the business strategy of the company. This underlines the
fact that potential of CSR as a tool for image building is more easily comprehended by
corporate offices rather than as a means of creating a sustainable business.

CSR for improved operating efficiency

There are other set of companies that take care of environment because not only does it help
in operating with in the environmental norms set by statutory authorities but also reducing
their costs by improving operating efficiency. Operating barely with in the norms set by
statutory authorities is being in the compliance mode. As companies deliberately plan and
move beyond the compliance mode, find the case for integration of CSR and business goals,
where improved productivity or operational efficiency in current time frame also results in
better environmental conditions that fosters better living conditions for future generations.
This in fact is a business necessity today for improved profitability for industry and cleverly
used by companies for projecting a business case for CSR and showcasing the integration of
CSR and business outcomes.

CSR as Source of competitive advantage

Business must have clear understanding of the communities that they impact and must give a
serious thought to the question – How the strategy helps these communities grow
qualitatively along with the business in the short and long term? The answer to this question
may not be obviously forthcoming but an open debate among the executives and strategic
managers may open up options, that may help improve the quality of life indicators for the
communities around in a way that enhances business opportunity for tomorrow if not the
current profitability.

The challenge for industry today is to identify social issues that drive its competitiveness both
now and in the future. For this to happen managers must first believe that social concern or
CSR as it is popularly known is a source of business opportunity and competitive advantage.
This integration then would pave way for all round sustainability and growth.

CSR Tools

Companies interested in advancing corporate social responsibility and in improving their

social and environmental performance as part of their business have a wide range of tools
available for application. Tools can vary widely in terms of objectives, scope, costs, level of
formality, partnerships, extent of stakeholder involvement, and many other characteristics.
Tools can be applied to one or more of the planning, implementation, checking,
andimprovement facets of corporate operations.

Businesses have options in how they can use the tools. For example, companies can use the
tools that have been developed by others or they can develop their own tools - either
independently or in partnership with other stakeholders.

18
This module of Industry Canada's web site aims to introduce some of the more familiar tools
that are available to companies for advancing and promoting CSR . The tools reflect activity
at the domestic and international levels as well as initiatives by both the private and public
sectors. In some cases the tools may be focussed on one element of CSR such as
environmental protection and in others may be more comprehensive such as the Global
Reporting Initiative.

For purposes of this site, CSR tools are clustered into the four following groups:

• principles, guidelines, codes of conduct

• approaches for developing management systems
• indicators, measuring, reporting, and benchmarking
• other (e.g. training and education, awards of
recognition, promotion and communicaiton, facilitating
forums

19
INTRODUCTION
TO
INDUSTRY

20
 INTRODUCTION TO COMPANY

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in
the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of
Japan. The Indian government held an initial public offering of 25% of the company in June
2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial
institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which
at the time was the only modern car available in India, its' only competitors- the Hindustan
Ambassador and Premier Padmini were both around 25 years out of date at that point.
Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and
various several other countries, depending upon export orders. Cars similar to Marutis (but
not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and
other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's
largest selling compact car ever since it was launched in 1983. More than a million units of
this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term "Maruti", in popular
Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been
the leader of the Indian car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New
Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a
capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of
100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined
capability to produce over 700,000 units annually.

21
More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki
Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the
public and financial institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on
December 14, 1983.

Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R,
Zen Estilo, Swift, Swift Dzire, SX4, Grand Vitara. Swift, Swift dzire, A star and SX4 are
maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit
(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is 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.

Maruti is clearly an “employer of choice” for automotive engineers and young managers
from across the country. Nearly 75,000 people are employed directly by Maruti and its
partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by
customers)first in customer satisfaction among all car makers in India for nine years in a row
in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a
people's car for middle class India. Over the years, the product range has widened, ownership
has changed hands and the customer has evolved. What remains unchanged, then and now, is
Maruti’s mission to motorise India.

Upcoming models in 2009

1. Suzuki Splash
2. Suzuki Kizashi

A-Star, dubbed the global India car and developed by Maruti Suzuki Ltd's research and
development (R&D) team in Gurgaon near Delhi, is sleek, smart and fun to drive. Designed
by Saurabh Singh and Rajesh Kumar Gogu of Maruti Suzuki India, the fivedoor hatchback
with a 1,000 cc petrol engine has been designed keeping the European market in mind.

22
Maruti Suzuki India hopes to commence production of A-Star by October 2008, said the
managing director of Suzuki Motor Corporation, Shinzo Nakanishi. The car would be
manufactured from the company's Manesar facility in Haryana, he said. By 2010, Suzuki
plans to export 100,000 units of the new model to Europe. "Maruti's manufacturing capability
has reached a level where Suzuki wants to make small cars for Europe exclusively in India,"
he said. A-Star will be an "A-Segment" car as per the European nomenclature (considered the
A-2 segment in India) and Euro-V compliant with a 1.0-litre aluminium petrol engine. Maruti
enjoyed a 50 percent market share in the Indian auto market, so MSIL would launch one new
model in India every year to consolidate its market position. The A-Star is considered to be
one of the most ambitious projects of Maruti Suzuki India. In fact, the concept car is a first
for Maruti Suzuki India's R&D team. The company has entered into an agreement with
Nissan to sell A-Star under the latter's brand name in the US market,. Although A-Star
attracted most eyeballs and mind space Wednesday at the Expo, Nakanishi was keen to see
the Rs.100,000 car of his rival. He, however, ruled out a price cut for Maruti 800 and
dismissed rumours of Maruti's foray into the Rs.100,000 segment. Suzuki first unveiled the
Kizashi concept car at the Frankfurt Motor Show in November. It is unclear whether Kizashi
will be produced or remain on Suzuki's drawing board.

The Maruti models on road now are

• Maruti 800
• Maruti Omni
• Maruti Alto
• Maruti Gypsy
• Maruti Versa
• Maruti Zen
• Maruti Wagon- R
• Maruti Esteem
• Maruti Baleno
• Maruti Grand Vitara
• Maruti Swift
• Maruti Dzire
• Maruti SX4

Maruti Udyog In News

• Maruti Udyog will now produce Nissan Models from their new plant, as Japanese car
majors Suzuki and Nissan have signed a global model and production sharing agreement.
• Maruti's first fully indigenous car will arrive by 2007.
• Maruti will buy Suzuki's 30% stake in its subsidiary, Maruti Suzuki Automobile
India.
• Maruti ended this year with a nearly 39.3% increase in net profit at Rs 1,189 crs.

23
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been
the
leader of the Indian car market for about two decades. Maruti's contribution as the engine of
growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire
generation of Indian middle class, is widely acknowledged.
Maruti tops customer satisfaction again for seventh year in a row according to the J.D.
Power
Asia Pacific 2006 India Customer Satisfaction Index (CSI) Study. The company has also
ranked
highest in India Sales Satisfaction Study. TNS Automotive also ranks Maruti first for
Corporate
Social Responsibility.
Maruti is also among Top 5 car companies in the Forbes list of the Worlds Most Reputed
Companies – Nov 06. In 2001, Maruti Suzuki India Ltd became one of the first automobile
companies anywhere in the world to get an ISO 9001:2000 certification. A V Belgium has
rated
the company’s quality systems and practices as a “benchmark for the automotive industry
world-wide”, global auditors for International Organization for Standardization. Maruti
already rolled out over 6 million vehicles till 2006 year, in fact on an average two vehicles
roll out of the factory every minute. In March 2007 Maruti crossed umulative export figure of
450,000 vehicle since its first export in 1986. Vehicle for exports and domestic are
manufactured on the same production facilities.

Our Vision:
The leader in Indian automobile industry , creating customer delight and shareholder’s
wealth a pride of india.

Our core values

Customer obsession , fast , flexible and first mover , innovation and creativity, networking
and partnership, openness and learning.

Gurgaon plant

The Gurgaon plant comprises of three fully integrated, state-of–the-art production facilities
spread over a sprawling 297 acres. While the three plants have a total installed capacity of
350,000 cars per year, several productivity improvements over the years have made it
possible
to manufacture nearly 650,000 cars per year at these facilities alone.
Working towards the goal of making India a global hub for small cars, Maruti and Suzuki
have
drawn up an investment plan of Rs 9000 crore in India upto 2010.

Energy & Environment:

Since the commencement of operations in 1981 we've been committed to the protection of
the
environment and conservation of non-renewable energy sources. Our proactive approach
depends upon not only meeting the expectations of the regulatory authorities but achieving
the

24
high standards that we have set as a responsible corporate citizen. This philosophy of trying
to
make a difference to the environment penetrates through our employees to the process of
manufacture and finally into our products

Energy Conservation at Maruti:

Energy & environment are always remains in focus while talking any decision.Maruti has
halfsleeve shirt in summer uniform for its employees, trainees and apprentices throughout the
Maruti’s operation In India. This significantly reduces company’s air conditioning load and
burden on environment. Task lighting, spot cooling & Just in Time (JIT) approach for feeding
energy to production lines are the few examples of energy saving practices at Maruti
Campus.Maruti recognized importance of energy and formulated following 4-point action
plan.

1. Use renewable energy

2. Eliminate wastage
3. Improve Energy efficiency
4. Improve process efficiency with automation

25
LITERATURE
REVIEW

26
LITERATURE: 1

Business Responsibilities in a Divided World: The Cold War Roots of the Corporate
Social Responsibility Movement

Bert Spector
Northeastern University

Enterprise and Society, Vol. 9, Issue 2, pp. 314-336, 2008

Abstract:
Both business executives and management scholars have, in recent years, focused a great deal
of attention on the theme of corporate social responsibility (CSR). Calls for business leaders
to expend resources on behalf of social good tend to downplay, if not ignore, what is
fundamentally an ideological question: just what is a good society and who defines
goodness? The ideological underpinnings of social responsibility and its relationship to the
good society can be explored through an historical perspective. The roots of the CSR
movement trace back to the early years of the Cold War. Led by Donald K David, Dean of
the Harvard Business School and supported by other academics and executives given voice
on the pages of the Harvard Business Review, advocates urged expanded business social
responsibility as a means of aligning business interests with the defense of free-market
capitalism against what was depicted as the clear-and-present danger of Soviet Communism.
Today's enthusiastic calls for business to do well by doing good could benefit from a similar
critical analysis not just of the goals of CSR but also the ideological assumptions, often
unacknowledged, that underlie those goals.

LITERATURE:2.

A Critical Review of Relations between Corporate Responsibility Research and Practice

Matthew Haigh
University of Aarhus - Aarhus School of Business

Marc Jones
affiliation not provided to SSRN

Electronic Journal of Business Ethics and Organization Studies, Vol. 12, No. 1, 2007

Abstract:
This essay identifies epistemological, theoretical and methodological problems in a
potentially influential subset of the interdisciplinary corporate responsibility literature, that
which appears in the management literature. The received conceptualization of stakeholder
analysis is criticised by identifying six sets of factors conventionally considered as promoting

27
social responsibilities in the firm: inter-organizational factors, economic competitors,
institutional investors, end-consumers, government regulators and non-governmental
organizations. Each is addressed on conceptual grounds, its empirical salience in terms of the
latest relevant research and prospects to be a significant factor in promoting outcomes
consistent with social welfare. Despite obvious antagonistic relations between organization-
centred economic objectives and extra-organizational-directed social considerations, the huge
body of research we address drifts in a disengaged Sargasso Sea. The essay argues for
appropriate directions for continuing business ethics/responsibility/corporate citizenship
research, suggesting certain sociological works on moral leadership, moral courage, and
academic leadership.

LITERATURE:3.

The Politics of Corporate Social Responsibility: Reflections on the United Nations

Human Rights Norms for Corporations

David Kinley
University of Sydney - Faculty of Law

Justine Nolan
University of New South Wales - Faculty of Law

Natalie Zerial
University of Sydney

Company and Securities Law Journal, Vol. 25, No. 1, pp. 30-42, 2007
Sydney Law School Research Paper No. 07/10

Abstract:
Corporate Social Responsibility (CSR) has become a fixture on the agendas of corporate
boards in much the same way as environmental issues did a decade or so ago. To what extent
social responsibilities should be made legally enforceable remains a matter of some fierce
debate. There are already many laws in Australia that bind corporations in respect of such
social issues as occupational health and safety, labour standards, privacy, non-discrimination
and environmental protection. But should there be more specific human rights coverage,
especially in respect of off-shore corporate activities in developing countries where there are
well-documented examples of corporate abuse - or corporate complicity in host-state abuses -
of rights to life, protection from physical harm, trade union membership, labour standards and
workplace conditions, and others? The United Nation's Draft Human Rights Norms for
Corporations seeks to impose obligations on states to ensure that corporations within their
jurisdiction (including extra-territorial) abide by certain minimum human rights standards.
Many (but not all) corporations are opposed to the idea and modus operandi of the Norms, as
are many (but not all) governments, including Australia's. In response to these concerns, the
United Nations Secretary-General has appointed a Special Representative to review the

28
Norms, which review is currently underway. This article analyses the debate over the Norms,
focusing on the various reasons advanced by both sides, their legal implications, and the
likely future of the Norms within the context of the developing notion of CSR, internationally
and in Australia.

LITERATURE:4.

The Evolution of the Corporation: Organization, Finance, Knowledge and Corporate

Social Responsibility

Peer Zumbansen
York University - Osgoode Hall Law School

February 20, 2009

CLPE Research Paper No. 6/2009

Abstract:
This paper, which selectively focuses on the contested concept of Corporate Social
Responsibility [CSR], forms part of a larger research project on the evolution of corporate
governance. This research posits the evolution of corporate governance along three historical
paradigms: first, the economic/industrial organization paradigm, second, the financial
paradigm, and third, the knowledge paradigm. With regard to CSR, the paper explores the
promises and shortcomings of the concept against the background of an evolutionary theory
of corporate governance. The identification of three historical-conceptual paradigms allows
us to trace the development of the relation between a general discourse on corporate
governance regulation [CGR] on the one hand and a more specialized, often polemic debate
over corporate (social, environmental, human rights) responsibilities on the other. On the
basis of the review of the three paradigms of CSR over the course of more than one hundred
years, the paper concludes that there is no convincing justification to separate the general
Corporate Governance from the more specific CSR discourse when assessing the nature of
the corporation. Instead, it is argued that a more adequate understanding of what defines a
corporation is gained when capturing its embedded nature in a continuously changing
domestic, global and functional environment. Besides being both a legal fiction and an
economic actor, the business corporation is assuming a host of other roles in a functionally
differentiated global society. The paper suggests that the generation and dissemination of
knowledge, both internally and externally, has become the defining feature of the firm. The
corporation as a knowledge actor succeeds the prior stages of assessing it as a private,
political or financial actor, without however erasing these dimensions of the firm. In that, the
history of the corporation - as concept and reality - shares important features with that of the
state - as concept and as fact.

29
LITERATURE:5.

Corporate Social Responsibility, Social Contract, Corporate Personhood and Human

Rights Law: Understanding the Emerging Responsibilities of Modern Corporations

Olufemi O. Amao
National University of Ireland - University College Cork - Faculty of Law

Australian Journal of Legal Philosophy, Forthcoming

Abstract:
The social contract theory has been advanced as a theoretical basis for explaining the
emerging practice of Corporate Social Responsibility (CSR) by corporations. Since the 17th
century the social contract concept has also been used to justify human rights. The concept is
the constitutional foundation of many western states starting with England, US and France.
Business ethicists and philosophers have tried to construct and analyse the social
responsibility of corporations from a social contract perspective without linking it to human
rights or the political social contract. This paper posits that there is no need for a separate
social contract between society and business and that a proper understanding of the legal
status of today's corporation would recognise them as new entrants into the existing social
contract. The consequence of this for international human rights law will be that corporations
as "persons" will stand in the same position as natural persons under the law.

LITERATURE:6.

Corporate Social Responsibility: Existing Debates and Research Perspectives

Patricia Crifo
Ecole Polytechnique, Paris - Laboratoire d'Econometrie; Catholic University of Louvain -
Faculty of Economic, Social and Political Sciences

Jean-Pierre Ponssard
Ecole Polytechnique; National Center for Scientific Research (CNRS); CESifo (Center for
Economic Studies and Ifo Institute for Economic Research)

September 1, 2008

Sociétal, Forthcoming

Abstract:
This article examines how corporate social and environmental responsibilities (CSR) are
evaluated and instrumented by various stakeholders: enterprises, specialized agencies, NGOs,
and investors. This analysis questions whether a CSR industry has emerged over the past

30
decade, analogous to the value creation industry that developed during the 1990's. Several
lines of research related to this hypothesis are suggested throughout the article.

LITERATURE:7.

Corporate Societal Responsibility, Green Advertising and Energy Ethics

Dr. Salil
Asian Institute of Technology, School of Management, Bangkok, Thailand; UIBE School of
International Trade & Economics, Beijing, China

September 2007

Abstract:
The configuration and context of business at the global level is transforming with the growing
need for sustainability coupled with growth. The intensified competition, consumer
expectations, governance imperative and natural resource crunch have driven corporate
leadership to synthesize their corporate social responsibilities with corporate strategies.
Investors are incorporating sustainability evaluations in their due diligence, employees adhere
to firms with reputation and stakeholder pressures unfurl innovation.

Regions in the world are vigorously pursuing development. This results in wealth creation.
The growing prosperity leads to consumption, fashion, jet-setting luxury driven life style.

Energy demand is increasing rather exponentially. The traditional sources are fossil fuel
based (for industrial as well as transportation). Added to this is the artificial crisis and control
created by the oil rich powerful cartels.

The leading energy supply companies in the globe have a problem of positioning. Their
Corporate Citizenship role propels them to engage in renewable and biofuel energy sources.
While the pressures of the bottom line motivates to advertise energy consuming events like
formula racing, luxury cars, comfort.

The consumers and the publics are a stakeholder in the 'energy crisis - global warming - GHG
- climate cataclysms' syndrome.

The question they should be asking is: is the 'four P' led life style worth living or they should
become aware of the 'Energy ethics - shun luxury - avoid 'GHG generating' products and
services.

Here come Green Advertising, Green Supply Chain and 'Water neutral' lifestyles.

31
LITERATURE:8.

Corporate Social Responsibility: Modern and Indian Views

Chendrayan Chendroyaperumal
Saveetha Engineering College

Juliet A. Anupama
affiliation not provided to SSRN

April 12, 2008

Abstract:
Corporate Social Responsibility (CSR) has attracted increasingly fashionable attention
recently. Corporate Social Responsibility refers to corporations voluntarily assuming the
responsibilities for the impacts of all aspects of their business activities on the whole society
and the environment. The corporations, through Corporate Social Responsibility, try to help
the society through development projects towards betterment of the standard of life. The
practice of Corporate Social Responsibility is also not free from controversy and criticism.
There are two opposing arguments: one, the corporations profit in manifold ways by spending
on Corporate Social Responsibility projects; the other, Corporate Social Responsibility is
criticized and opposed in that it makes the corporations deviate from their primary economic
roles in doing business. The debate has not yet rested. This paper attempts to resolve this
debate by highlighting the Indian views of Corporate Social Responsibility.

LITERATURE:9.

Corporate Social Responsibility Through an Economic Lens

Robert N. Stavins
Harvard University - John F. Kennedy School of Government; Resources for the Future;
National Bureau of Economic Research (NBER)

Forest Reinhardt
Harvard Business School

Richard Vietor
Harvard University - Business, Government and the International Economy Unit

October 1, 2008

HKS Working Paper No. RWP08-023

FEEM Working Paper No. 84.2008

Abstract:

32
Business leaders, government officials, and academics are focusing considerable attention on
the concept of corporate social responsibility (CSR), particularly in the realm of
environmental protection. Beyond complete compliance with environmental regulations, do
firms have additional moral or social responsibilities to commit resources to environmental
protection? How should we think about the notion of firms sacrificing profits in the social
interest? May they do so within the scope of their fiduciary responsibilities to their
shareholders? Can they do so on a sustainable basis, or will the forces of a competitive
marketplace render such efforts and their impacts transient at best? Do firms, in fact,
frequently or at least sometimes behave this way, reducing their earnings by voluntarily
engaging in environmental stewardship? And finally, should firms carry out such profit-
sacrificing activities (i.e., is this an efficient use of social resources)? We address these
questions through the lens of economics, including insights from legal analysis and business
scholarship.

LITERATURE:10.

Corporate Social Responsibility Through an Economic Lens

Forest Reinhardt
Harvard Business School

Robert N. Stavins
Harvard University - John F. Kennedy School of Government; Resources for the Future;
National Bureau of Economic Research (NBER)

Richard Vietor
Harvard University - Business, Government and the International Economy Unit

May 2008

NBER Working Paper No. W13989

Abstract:
Business leaders, government officials, and academics are focusing considerable attention on
the concept of "corporate social responsibility" (CSR), particularly in the realm of
environmental protection. Beyond complete compliance with environmental regulations, do
firms have additional moral or social responsibilities to commit resources to environmental
protection? How should we think about the notion of firms sacrificing profits in the social
interest? May they do so within the scope of their fiduciary responsibilities to their
shareholders? Can they do so on a sustainable basis, or will the forces of a competitive
marketplace render such efforts and their impacts transient at best? Do firms, in fact,
frequently or at least sometimes behave this way, reducing their earnings by voluntarily
engaging in environmental stewardship? And finally, should firms carry out such profit-
sacrificing activities (i.e., is this an efficient use of social resources)? We address these

33
questions through the lens of economics, including insights from legal analysis and business
scholarship.

LITERATURE:11.

A Cross-Cultural Comparison of Corporate Social Responsibility Orientation: Hong

Kong vs. United States Students

Brian K. Burton
Western Washington University - Management

Jiing-Lih Larry Farh

Hong Kong University of Science & Technology (HKUST) - Department of Management &
Organization

W. Harvey Hegarty
Indiana University Bloomington - Department of Management

August 2007

Hong Kong University of Science & Technology Business School Research Paper Series

Abstract:
This study examined the orientation toward corporate social responsibility (CSR) of 165 U.S.
and 157 Hong Kong business students. Although respondents from both countries viewed
CSR as a construct in much the same way, many differences were found in the types of
responsibilities considered most important. Specifically, Hong Kong students gave economic
responsibilities more weight and noneconomic responsibilities less weight than did U.S.
students.

LITERATURE:12.

Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the
United States: An Institutional-Stakeholder Perspective

Jonathan P. Doh
Villanova University - School of Business

Terrence R. Guay
Pennsylvania State University

34
 Journal of Management Studies, Vol. 43, No. 1, pp. 47-73, January 2006

Abstract:
Corporate social responsibility (CSR) is an increasingly pervasive phenomenon on the
European and North American economic and political landscape. In this paper, we extend
neo-institutional and stakeholder theory to show how differences in the institutional
environments of Europe and the United States affect expectations about corporate
responsibilities to society. We focus on how these differences are manifested in government
policy, corporate strategy, and non-governmental organization (NGO) activism towards
specific issues involving the social responsibilities of corporations. Drawing from recent
theoretical and empirical research, and analysis of three case studies (global warming, trade
in genetically modified organisms, and pricing of anti-viral pharmaceuticals in developing
countries), we find that different institutional structures and political legacies in the US and
EU are important factors in explaining how governments, NGOs, and the broader polity
determine and implement preferences regarding CSR in these two important world regions.

LITERATURE:13.

Corporate Social Responsibility and Public Procurement

Christopher McCrudden
University of Oxford - Faculty of Law

THE NEW CORPORATE ACCOUNTABILITY: CORPORATE SOCIAL RESPONSIBILITY

AND THE LAW, Doreen McBarnet, Aurora Voiculescu, Tom Campbell, eds., Cambridge
University Press, 2007
Oxford Legal Studies Research Paper No. 9/2006

Abstract:
Public procurement (the purchase by public bodies of goods and services from others) has
proven to be a dedicated follower of political fashion. Historically, we see consistent attempts
to link public procurement with the government policy of the day, in areas as diverse as
national industrial policy, reducing unemployment, improving employment conditions,
support for small businesses, local development, employment of disabled workers, and equal
pay for men and women, to mention only a few. With the increasing popularity of "corporate
social responsibility," it is hardly surprising, then, that CSR has become linked to the use of
public procurement. The definition of CSR is contested and so, for the moment, Moon's
definition will suffice: "In essence CSR refers to business responsiveness to social agendas in
its behaviour and to the performance of these responsibilities." This chapter considers the
"new" use of public procurement in the pursuit of CSR in general, but considers in particular
the relationship between CSR, public procurement, and the law.

35
LITERATURE:14.

Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless

Responsibility? Clarifications, Exceptions and Implications

Kenneth M. Amaeshi
Cranfield University - School of Management

Onyeka K. Osuji
University of Manchester - School of Law

Paul Nnodim
Massachusetts College of Liberal Arts

2006

Abstract:
Corporate social responsibility (CSR) is increasingly becoming a popular business concept in
developed economies. As typical of other business concepts, it is on its way to globalization
through practices and structures of the globalized capitalist world order, typified in
Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this
capitalist world order, as MNCs are often challenged by the global reach of their supply
chains and the possible irresponsible practices inherent along these chains. The possibility of
irresponsible practices puts global firms under pressure to protect their brands even if it
means assuming responsibilities for the practices of their suppliers. Pressure groups
understand this burden on firms and try to take advantage of the situation. This paper seeks to
challenge the often taken-for-granted-assumption that firms should be accountable for the
practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of
the concept of responsibility. Except where corporate control and or corporate grouping exist,
it identifies the use of power as a critical factor to be considered in allocating responsibility in
firm-supplier relationship; and suggests that the more powerful in this relationship has a
responsibility to exert some moral influence on the weaker party. The paper highlights the
use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training
and value reorientation as possible sources of wielding positive moral influence along supply
chains.

LITERATURE:15.

Religion and Attitudes to Corporate Social Responsibility in a Large Cross-Country

Sample

Stephen Brammer
University of Bath - School of Management

36
 Geoffrey Williams
University of Bath - Centre for Business, Organisation and Society

John Zinkin
Nottingham University Business School (NUBS)

December 2005

Abstract:
This paper explores the relationship between religious denomination and individual attitudes
to corporate social responsibility within the context of a large sample of over 17,000
individuals drawn from 20 countries. We address two general questions: do members of
religious denominations have different attitudes concerning CSR than people of no
denomination? And: do members of different religions have different attitudes to CSR that
conform to general priors about the teachings of different religions? Our evidence suggests
that, broadly, religious individuals do tend to hold broader conceptions of the social
responsibilities of businesses than non-religious individuals. However, we show that this
neither true for all religious groups, nor for all areas of corporate social responsibility.

LITERATURE:16.

The Cycles of Corporate Social Responsibility: An Historical Retrospective for the

Twenty-First Century

Harwell Wells
Temple University Beasley School of Law

U. Kan. L. Rev., Vol. 51, p. 77-140, 2002

Abstract:
Debates over Corporate Social Responsibility stretch from the 1930s to the twenty-first
century, and have engaged some of the leading minds of the era. In the legal academy, these
debates have tended to focus on whether corporate managers and directors should owe duties
to shareholders alone, or whether the scope of their legal responsibilities should be widened

37
to include employees, communities, consumers, and other "stakeholders" in the enterprises.
But there is a problem with these debates: they rarely seem to have gone anywhere. Viewed
in historical perspective, each new round of debate on corporate social responsibility seems
merely to recapitulate earlier debates in a slightly altered form. This Article traces out these
debates over corporate social responsibility in order to provide contemporary students of CSR
a vantage-point from which they can critically evaluate their predecessors, and separate out
the still-vital elements in those debates from the lost causes.

LITERATURE:17.

Corporate Social Responsibility: An Overview of Principles and Practice

Jill Murray
La Trobe University - School of Law

May 2004

International Labour Office Working Paper No. 34

Abstract:
Corporate Social Responsibility aims to limit the power and behaviour multinational
companies can have on communities in the world, notably in the developing world
concerning workers. The paper argues private initiatives can be valuable alongside traditional
labour standards by following codes designed to support core standards. However, this is
taking note that different methods of production, locations, community wishes, worker
preferences, and company cultures will generate a different set of approaches concerning
social responsibility. Overall, management of firms should aim to ensure adequate standards
that provide decent work such as procedural standards of freedom of association and the right
to collective bargaining. The paper gives descriptions of the importance, roles, and
responsibilities of management, NGOs, national governments, and multinational enterprises
with regard to social responsibility. The role of the International Labour Organization (ILO)
is to help shape the content and implementation of codes of conduct known as “business self-
regulation” and encourage tripartite seminars so firms can better comply with certain ILO
principles.

This paper was written as an insight into the work of the World Commission on the Social
Dimension of Globalization 2004 that aims to provide a fairer globalization for all.

LITERATURE:18.

21st Century Corporate Social Responsibility Trends - An Emerging Comparative Body

of Law and Regulation on Corporate Responsibility, Governance, and Sustainability

Bryan T. Horrigan

38
 Monash University - Faculty of Law

Macquarie Journal of Business Law, Vol. 4, pp. 85-122, 2007

Abstract:
This article examines key aspects of the emergence across a number of jurisdictions of a
distinctive body of comparative corporate law and regulation relating to corporate social
responsibility (CSR). The story of CSR in the 21st century is a story of progressive business
sensitization to systems and dynamics of governance beyond government, regulation beyond
law, and responsiveness beyond responsibility. It is a story of a rapidly growing alignment
across many individual businesses, industry sectors, and geopolitical regions between those
systems and dynamics of governance, regulation, and responsibility, on one hand, and a
company's business model, strategy, and impact, on the other. It marks the progressive
development of corporations as organs of both societal and corporate governance, sites for
the interaction of both public and private interests, participants in various forms of
organisationally and societally orientated regulation, and holders of shared, relational, and
other forms of connected outward-looking and inward-looking responsibilities. It is also a
story of the emergence of a distinctive CSR movement. Both the developed and developing
worlds are rapidly reaching the point where they must decide if today's global CSR
movement is a passing social fad, a threat to economically efficient corporate capitalism, an
intrinsic element of corporate responsibility, or even a key to humanity's long-term survival.
CSR literacy is quickly becoming a primary imperative for a variety of actors in a
multiplicity of roles across governmental, business, and community sectors nationally and
internationally.

LITERATURE:19

Corporate Social Responsibility: Global Perspective, Competitiveness, Social

Entrepreneurship & Innovation

Manoj Joshi
Amity Business School, Amity University, Lucknow Campus, India; Association of
Knowledge Workers Lucknow, India

S. P. Tiwari
Dr R M L Awadh University

Vindhyalaya Joshi
Association of Knowledge Workers - Department of Education - U.P. India

July 9, 2007

39
Abstract:
Profit Making & Social Responsibility is an oxymoron and can be strongly debated. Profit
making is the essential reason for an enterprise to prolong and grow. Social responsibility is
the fundamental duty of the state that must focus upon the upbringing of its stake holders
with social justice. This includes proactive participation by the governance in elevating
quality in work life of its citizens. Thus attempting the balance of wealth and social
justice/empowerment, shall invite a synergy between the Public-Private partnership in
enhancing the competitive existence & growth of national economy.

State is a necessary evil. The primordial responsibility is governance and to bring order from
disorder. The concept of city-states like Greece existed, which portrayed high level of self
governance and self sustenance. Besides this, for a nation to be healthy and prosperous, the
state must not hinder Liberty. The world has witnessed social unrest as a cause of economic
disparity, inequality, social injustice etc. resulting into world wide protests, cross border and
internal disputes, civil wars, battles, regional and the world wars.

Hence, there must be continuous efforts to reduce this economic disparity amongst the
country men but the irony being that the State is unable to execute its primary duties in the
form of social responsibilities, either because (i) it is not able to mobilise funds, (ii) funds
available are not adequate against the requirement, (iii) it is not able to utilise the funds
or/and (iv) there is lack of governance and will power.

As a result, the entrepreneurs in the micro community or corporate, emerge as entrepreneur

cartel(s) to carry out this important assignment. They participate as social entrepreneurs and
emerge as drivers to engine of economic and social growth. Strategic innovation, hence,
emerges as an imperative tool towards a globally competitive existence and performance.

LITERATURE:20.

Corporate Responsibility in a Free and Democratic Society

Joseph William Singer

Harvard Law School

Case Western Reserve Law Review, Vol. 58, 2009

Harvard Public Law Working Paper No. 08-44

Abstract:
Do corporations have any social responsibilities? Those who have argued both sides of this
debate have failed to focus their attention sufficiently on the common law rules governing
market relations, especially the law of torts, contracts, and property. This article argues that

40
these three foundational legal institutions are all premised on a fundamental obligation of
attentiveness. Actors are obligated to attend to the likely consequences of their actions on
others and refrain from actions that impose unreasonable risks of harm or which impose
harms that individuals are entitled to be protected against. If this is so, then the argument that
corporations cannot reasonably respond to vague duties of social responsibility becomes less
powerful, given the pervasive duties of all market actors to consider whether they could
justify their harm-producing conduct to an impartial decision maker - in other words, whether
they could explain their actions as reasonable. We want clear rules to give us guidelines about
what we are and are not allowed to do. But we also want a fuzzy edge of substantive
standards to induce us to think before we act - to be attentive to the ways in which our actions
affect others. Such fuzzy edges create appropriate incentives to think about the effects of
one's actions on others and to consider the judgments that others would make about the
justice or appropriateness of our own conduct, given the impact it will have on others who,
after all, have equal rights. And we care so much about this that we have enshrined it in the
basic law governing the market system.

LITERATURE:21.

Businesses and Corporate Social Responsibility: Rethinking Philanthropy

Ezequiel A. Reficco
affiliation not provided to SSRN

Responsabilidad Sostenibilidad, No. 1, pp. 13-21, August 2007

Abstract:
What comes to mind when, in the context of the business sector and its social responsibilities,
we think about 'philanthropy'? Along the years, this term has passed to mean different things
for different people. We all got accustomed to it, but while some businesses continue to
embrace it as a legitimate basis for their social endeavors, others seek to distance themselves
from it, and leave it behind. The term has been associated with different approaches and
practices that at first sight appear to be incompatible. Or are they? Without intending to carry
out an exhaustive analysis of all existing meanings of philanthropy, this article reviews many
of them, and submits than they do not need to be necessarily incompatible. A conceptual
framework is proposed that allow them to coexist comfortably under a common umbrella.

LITERATURE:22.

Globalization and Corporate Social Responsibility

Andreas Georg Scherer

University of Zurich - Institute of Organization and Administrative Science

41
 Guido Palazzo
University of Lausanne

THE OXFORD HANDBOOK OF CORPORATE SOCIAL RESPONSIBILITY, A. Crane, A.

McWilliams, D. Matten, J. Moon, D. Siegel, eds., pp. 413-431, Oxford University Press, 2008

Abstract:
First, we will explain the concept of globalization. We will describe its conceptual variants
and point to some of the phenomena that are associated with this process. Next we will
describe the traditional paradigm of CSR where the responsibilities of businesses are
discussed vis-a-vis a more or less properly working nation state system and a homogenous
moral (cultural) community. We will argue that both these assumptions become problematic
in the current 'post-national constellation' (Habermas 2001). We describe the new situation
with regulatory gaps in global regulation, an erosion of national governance (loss of national
sovereignty and the exterritorial application of national law), and a loss in moral and cultural
homogeneity in the corporate environment. We discuss the consequences of the post-national
constellation with the help of two recent observations of business firms' behavior which call
for a fresh view on the concept of CSR. We describe the necessary paradigm shifts toward a
new politically enlarged concept of CSR in a globalized world

42
SIGNIFICANCE
OF
STUDY

43
 Significance of the Study

Every Study has some significance. Being an interesting and current topic prevailing in the
market, the significance of the study is very important. These are as follows:

 The Research Study first of all, gives a very clear picture about the maruti Suzuki ltd.

 It gives a clear picture about corporate social responsibility.

 The brief about the organization’s corporate social responsibilities.

 The working patterns & initiatives taken by the organization for social
responsibilities.

 All the Reasons that lets the organization to go for social activities.

44
OBJECTIVES
OF
STUDY

45
 OBJECTIVES

1. To study the various corporate social responsibilities initiatives taken by

MARUTI SUZUKI LTD.

2. To document the CSR(Corporate Social Responsibilities) activities.

46
CONCEPTUALIZATION

47
48
 OPERATIONAL
DEFINITION

OPERATIONAL DEFINITION

CORPORATE SOCIAL RESPONSIBILITIES: What an organization does to influence

the society in which it exists, such as through volunteer assistance programs.

49
CHARITY PRINCIPLES: Doctrine of social responsibilities requiring more fortunate
individuals to assist less fortunate members of society.

GOVERNMENT RESPONSIBILITIES: Gerard F. Scannell developed a reputation as a

vigouous enforcer of workplace safety standards as head of the Occupational Safety and
Health Administration(OSHA), the federal agency charged with ensuring safe and healthful
working conditions in United States.

ENLIGHTENED SELF-INTEREST: Organisation’s realization that it is in their own best

interest to act in ways that the community socially responsible.

CORPORATE SOCIAL RESPONSIVENESS: A theory of social responsibilities that

focuses on how companies respond to issues, rather than trying to determine their ultimate
social responsibilities.

CORPORATE SOCIAL PERFORMANCE: A single theory of corporate social action

encompassing social principles, processes, and policies.

ETHICS: The study of rights and of who is or should be benefited or harmed by an action.

DUTIES: Obligation to take specific steps or obey the law.

MORAL RULES: Rules for behaviour that often become internalized as moral values.

SOCIAL AUDIT: Report describing a company’s activities in a given area of social interest,
such as environment protection, workplace safety, or community involvement.

50
 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

51
Research generally refers to search for knowledge. It is search for knowledge in systematic
and scientific manner for required information on particular topic.

According to cliffford woody, “research comprises defining & redefining problems,

formulation hypothesis or suggested solution , collecting,organising and evaluating data,
making deduction and reading conclusion and at last carefully tasting the conclusion to
determine whether they fit the formulation hypothesis”

Research Design

The research carried out in this project is Exploratory as well as descriptive in nature.

• Exploratory research is the one which is conducted to explore the horizons of

problem. For this project, it was done using the secondary data analysis.

SCOPE OF STUDY

Scope of study is the corporate social responsibilities of MARUTI SUZUKI LTD.

Research Instruments

• Primary Data:-

Primary Data has been collected through interview, observation and schedule which
gives us the relevant information about the project.

• Secondary data

The secondary data is data available on internet, magazine, newspapers and journals.

52
ANALYSIS
OF
DATA

Analysis of the Data

53
Analysis of the data shows that what are the various corporate social responsibilities done by
organization and how it provides return on investment to the organization. To get the return
on investment is not the motive of the organization, obligation of the company is to social
cause for society.

The main motive of doing social activities is for the social cause for society, not to get
profits.

By analyzing the data , I get the rate of return for both education and pulse polio programs.

RATE OF RETURN FOR EDUCATION

In the field of education MARUTI SUZUKI LTD. Provide education to 500 students of
manesar village ,where students got education , uniform, refreshment and transportation fro
free, on the other side some of the students were going to the government school where there
is a fee structure of Rs5 per student. So by this we get :-

Rate of return= 500 x 5 = 2500.

RATE OF RETURN FOR PULSE POLIO

MARUTI SUZUKI LTD. Organized pulse polio campaign in its adopted village manesar
where 7200 children below the age of 5 yrs were covered. Budget for polio program in one
district is Rs.11 lakhs and population of children below the age of 5 yrs. Of one district is 2
lakhs and by this we calculate the total expenses i.e.

54
Expenses= 1100000 x7200=39600

200000

So after getting the expenses we calculate the rate of return , i.e. expenses on treatment of
child which is affected by polio is 1500 per person per week,so,

Rate of return= 7200 x 1500 = 10800000.

IN THE FIELD OF EMPLOYMENT

In analyzing of data I get the employment ratio i.e. by providing driver training MARUTI
SUZUKI LTD. Provide an opportunity for unemployed persons. 3000 persons will get the
training from maruti driving school and out of which 1800 persons will get the employment
out of which 25% were women and they earned 5000-8000 salary per month. Expenses of
these driving school is Rs. 200000 per year . so by this we can calculate rate of return i.e.

Rate of return=200000 x 1800=120000.

3000

55
FINDINGS

FINDINGS

56
 It was founded that CSR of MARUTI SUZUKI LTD. is going well according to the
concepts and implementation. MARUTI SUZUKI LTD. started many projects with
the help of community around them

 In the field of education, MARUTI SUZUKI LTD. , provide education to childrens of

manesar village( which is its adopted village)through, DPS Maruti Shiksha Kendra in
which 500 students are enrolled from class I-IX. Books , uniform,& refreshment will
provide to the students for free and there is no fees for students while in government
school there is a fee for every student i.e. Rs.5 per student . so the return on
investment of MARUTI will be Rs.2500 (500 x 5)

 MARUTI SUZUKI LTD. had also started the “NATIONAL ROAD SAFETY
MISSION” in which company plans to train 5lakhs persons in road safety across india
in safe driving to reduce accidents and till now maruti provides road safety lessons to
45000 persons.

 MARUTI SUZUKI LTD. undertakes various activities to create awareness and

improve the health of people residing in their adopted village ‘MANESAR’.
MARUTI SUZUKI LTD. joined hands with Public Health Centre and start “PULSE
POLIO CAMPAIGN” and about 7200 children were covered and not a single child is
effected by polio in the village. The budget of polio for gurgaon district is Rs.11 lakhs
and population of child under the age of 5yrs in gurgaon is 2 lakhs . so the expenses
for polio campaign in manesar is Rs. 39,600(11lakh/2lakh x7200) and the expense on
treatment of child effected by polio is Rs.1500 per month. So the return on investment
would be rupees 10800000(7200 x 1500).

 As, MARUTI SUZUKI LTD. started project for employment generation for manesar
village by providing driver training to unemployed person and 3000 person will get
the training out of which 1800 people got employment in which 25% were women
and they earned Rs. 5000-8000 as salary ,per month.

57
LIMITATIONS

58
 LIMITATIONS

 The first and foremost limitation was the time constraints, but still efforts have been
made to put picture as clear and candid as possible.

 Since the results have been drawn on the basis of information provided by the
respondent, chance of response error might have crept.

59
CONCLUSION

60
 CONCLUSION

The organization can set and affirmative CSR agenda that produces maximum social benefits
as well as gains for the business. The company can focus its particular CSR initiatives to best
effect.

The MARUTI SUZUKI management and leadership principles states very clearly that “Our
investments must be good for the countries where we operate as well as good for the
company”. Therefore while CSR and sustainability represents a set of useful principles and
practices,MARUTI believes that the true test of a business(particularly in the developing
world) is whether it creates value.

MARUTI SUZUKI supports DPS school , helps in providing education programs. All these
initiatives strengthen the bond between MARUTI and community.

MARUTI SUZUKI has always focused on long term, sustainable and profitable growth and
helped communities around its factories to improve their quality of life in similar manner.

61
SUGGESTIONS

62
 SUGGESTIONS

 MARUTI SUZUKI should create awareness among the people living in the rural
areas about POLIO.

 There should be a feedback review meeting among the panchayats , NGO, and
MARUTI.

 MARUTI SUZUKI should take the advice of panchayats and took the confidence of
the panchayats. This will help MARUTI to grow more among the society and among
the people.

 More involvement are required in the projects started by MARUTI, so that more and
more people are getting benefit out of it.

 MARUTI should provide more time to the people while giving driver training in the
driving school.

63
BIBLIOGRAPHY
64
 BIBLIOGRAPHY

Search Engines

 www.Google.com

 www.ssrn.com

 www.marutisuzuki.com

 Weekipedia.com

Magazines and journals

 Business World

 Journal of Human Values

 Global Business Review

Books

 Human Resource Management by Gary Dessler

 Corporate Social Responsibilities by Philip Kotler

 Modern Human Relation by Richard M. Hodgetts

65
 Corporate Social Responsibility by David E. Hawkins

ANNEXURE
66
 SCHEDULE

1. Are you aware about the company MARUTI SUZUKI ?

Yes....... No.......

2. Which are the following activities going in your village ?

Pulse polio campaign....... Education program..........

Driving program........ Road safety program.........

67
3. Are you aware that MARUTI is sponsoring activities ?

Yes..... No....

4. At what pace, these development are going on ?

High.....

Moderate......

Low.......

5. Do you think these activities will help in development of your area ?

Yes..... No.......

6. Whom do you think should do these activities ?

Govt.......

NGO.............

Companies like MARUTI..................

68
7. Do you think more companies should come forward for these development activities ?

Yes.... No.....

8. How many people are enrolled with these activities ?

10-50.......

50-100.......

100-150........

150-200..........

Others............

9. Is Road Safety Mission really helping the people ?

Yes..... No.....

10. Is Pulse Polio Program really benefited the people ?

Yes.... No.....

69
11. Is Shiksha Kendra helps the children for making their bright future ?

Yes..... No.....

12. Is Maruti Driving School really provide employment to people ?

Yes...... No.......

13. How many people are getting employment out of Maruti Driving School ?

10-50.......

50-100........

100-150........

Others.........

14. Are you satisfied with these activities started by MARUTI SUZUKI LTD. ?

Highly satisfied.............

Satisfied.............

Neither satisfied nor dissatisfied.........

Dissatisfied..............

Highly dissatisfied..........

70
15. Your suggestions for improving the activities.

...................................................................................................
...................................................................................................
...................................................................................................
...................................................................................................
...................................................................................................
...................................................................................................
...................................................................................................
............

71