CSR of Mahindra and Mahindra Ltd

Corporate Social Responsibility Project Report

on

Critical analysis of Sustainability report of Mahindra & Mahindra Ltd.

Submitted by:

Group 10

Avinash Kumar G034Saurabh Mishra G040Abhiroop Mukherjee G042Amartya Sen G055Vuda Anurag Naveen Theja G062

Corporate Social Responsibility

Index

1. The Mahindra Group 3

2. CSR policy of Mahindra Group 3

3. Sustainability challenges / materiality issues 6

4. Integration of Sustainability into business strategy 6

5. Sustainability structure of Mahindra 7

6. Measurement of social performance indicators 8

7. Measurement of environmental performance indicators 9

8. Achievement of past targets 10

9. Approach to stakeholder engagement 11

10. Other pertinent things 14

11. Three key learnings for the team 15


2


The Mahindra Group

Mahindra is a USD 16.7 billion multinational group based in Mumbai, India, with more than 180,000 people in over 100 countries. In addition to being leaders in fields of utility vehicle manufacturing, information technology, tractors, financial services, real estate and vacation homes, they also have a presence in aerospace, aftermarket, components, consulting services, defence, energy, logistics, retail and two wheelers.

The group has transformed its core purpose which is, “To challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world - to enable them to Rise.” The new purpose aims in taking along all the communities and stakeholders across the world to grow and rise move beyond the conventional thinking by engaging all its resources. This goes in tandem to their core values to rise and lead by sustainability. These values guide their actions, personal and corporate both. Their core values are; Professionalism, Good corporate citizenship, Customer First, Quality focus, Dignity of the individual. These values of the employees drive the group to set the targets for their CSR activities and deliver on them.

CSR policy of Mahindra Group

Being such a large global organization, Mahindra sees an opportunity to bring about positive change for all its stakeholders. By making all aspects of the business sustainable, they strive for a better world. Mahindra being an integral part of the society feel that they need to conduct their business responsibly. In all they do, they ensure they ‘Rise for good’.

Sustainability encompasses not only the conservation of our environment, but also a responsibility to every stakeholder - shareholders, employees, and customers, the communities impacted and the suppliers. Besides making the business sustainable they go from creating fuel-efficient automobiles in green facilities to encouraging sustainable supply chain management to reducing office footprints.

Beyond conducting business consciously and responsibly, they support communities through environmental and social initiatives. They build schools and support educational programs for students of all ages. Their environmental initiatives include building greener facilities and planting trees across India. They provide health and disaster relief for people in need. They also embrace culture and sport through festivals and youth sports leagues.

SUSTAINIBILITY 2.0


3


Look into deeper into materiality issues Align sustainability in line with newer expectations of external stakeholders such

as govt., regulator and investor Champion sustainability through a structured process Realign materiality with stakeholder expectations Make the business future ready, enabling them to make a larger impact Move towards business wise reporting so that each business can focus

individually on material issues Benchmark each business against the best in the industry

Fig 1. Sustainability 2.0

VARIOUS PROJECTS UNDERTAKEN AS PER POLICY

Fig 2. Various Educational Projects Undertaken

Education is a great tool for transforming lives. Knowledge and skills impact not only earnings, but also self-esteem and the standard of living. By bringing quality education to more people, a more tolerant, healthy, just, and connected society is achieved.

Nanhi Kali: Sponsor the education of girl children.

Mahindra United World College: Students from all over the world study every year.

Pride schools: These Schools link people with careers by providing job training and computer skills.

Grants and scholarship: We make higher education possible for thousands of students every year. At Mahindra Ecole Centrale they create engineers of the future.


4


Fig 3. Various Environmental Projects Undertaken

The businesses incorporate environmental responsibility, from zero water waste automobile factory at Chakan to LEED - certified Mahindra Lifespaces residences. Quality of life and environmental health go hand in hand Mahindra is transforming old practices into new green initiatives. In 2008, Mahindra developed sustainability roadmaps within each of their sectors.

Fig 4. Various Projects Undertaken in Health sector

Good health is the foundation of happy, prosperous, and meaningful lives. They organize workshops on HIV/AIDS, dental care, and hygiene and run medical camps providing free care. Their disaster relief response to the 2008 Bihar floods touched 10,000 lives. Lifeline Express, Call 108, and 104 Advice services are expanding medical care into more and more regions that are not well served by the formal system.

They partner with the Emergency Management and Research Institute to provide an ambulance service in many states across India. From blood donation drives to health education and check-ups, Esops volunteers touch thousands of lives each year.

Fig 5. Various Cultural Projects Undertaken

Mahindra helps support long heritage of performing and fine arts through film festivals and awards, cultural festivals, and theatre awards.

The Mahindra Excellence in Theater Awards foster Indian theater by hosting an annual theater festival and recognizing excellence on a national platform. Lucknow culture festival revives and celebrates the performing arts, crafts, and cuisine of the Nawabs of Awadh. Mahindra Blues Festival celebrates a passion for Blues - bringing the world's greatest Blues musicians to Mumbai for an unforgettable event.


5


Sustainability challenges & materiality issues at Group level

While the diversity of issues relevant to each business was sacrosanct, in order to maintain a common pattern, the material issues identified by all the businesses were analysed. It was noted that while the issues included in the roadmaps were different, they revolved around the following five areas:

Eco efficiency: Targets were set around water conservation, energy efficacy, biodiversity preservation, reduction in waste generation and GHG emissions etc.

Responsible product development: Includes issues like customer safety, reduced environmental footprint during product's life cycle in the use phase and product stewardship.

Community Development: Increased employee volunteering, undertaking large-scale social development projects, and conducting need and impact assessments.

Green supply chain management: Encompassed training, audits, effective packaging and logistics etc.

Employee Care & Development: Continuous improvement in health & safety standards, training & development, and knowledge enhancement in various fields.

Integration of Sustainability into business strategy

Mahindra Group started its sustainability journey seven years ago and they now have embarked on Sustainability 2.0 the next stage of their sustainability journey. Now after embedding the overall framework of sustainability across businesses, Sustainability 2.0 takes this ahead to targeted ‘Business wise’ sustainability and the first step towards individual accountability by formulating customized business-specific roadmaps. The following are the ways through which Mahindra tries to integrate Sustainability into its business strategy:

A 3600 awareness campaign to mainstream Sustainability across the organization, including multi-disciplinary tools such as training programs, mailers, installations, posters, celebrations, intranet, film screenings, etc.

‘Alternative thinking’ is used as a strategic approach to drive sustainability into business decisions.

Roadmaps are formulated with a timeframe of 1,3 and 5 years covering aspects related to reduction in energy, GHG emissions, water and waste, enhancing awareness among significant shareholders etc.


6


Continued focus on capacity building and knowledge enhancement around the emerging dimensions of Sustainability through regular workshops and specifically tailored programs.

Adopting sustainability as a key plank in their business portfolio and strategic acquisitions and large-scale investments towards the same. Acquisition of Reva Electric Vehicles Ltd. Forayed in farm equipment and rural housing finance Forayed in solar domain Reinforced focus on alternative propulsion technology. State-of-the-art green manufacturing plant with a phased investment of over

USD 1 billion. The competitive advantages of sustainability is harvested and well communicated

Asia’s first 100% bio-diesel SUV India’s first hydrogen powered three wheeler India’s first compact low maintenance, high mileage and affordable trucks.

Introducing the sustainability culture to key members of supply chain. Instituted a green supply chain policy for all suppliers of group. Awareness drives and training sessions for key suppliers on environment, health

and safety issues are conducted. Going beyond mere incremental change and seeding large impact initiatives like: Rehabilitating the flood-devastated Pattori village to an eco-friendly model village. Being a catalyst to rural prosperity using their unique finance business model and

farm support solutions. Developing business-wise roadmaps in addition to charting a Group-wise

roadmap.

Sustainability structure of Mahindra

Sustainability at Mahindra has always been top-down governance enabling strategic vision and action plan to not just steer grass-roots interventions but also monitoring its effectiveness and disclosing it transparently.


7


Fig 6. Sustainability structure of Mahindra

Measurement of Social performance indicators

Education

K. C. Mahindra Education Trust

The K.C. Mahindra Education Trust has undertaken a number of education initiatives to make a difference to the lives of deserving students.

• K. C. Mahindra Scholarships for Post-Graduate Studies Abroad Interest-free loan scholarships for post-graduate studies for students intending to pursue their education abroad

• Mahindra Search for Talent Scholarship: Covers 35 schools

• K. C. Mahindra United World College Scholarship: Offered for students from 16 – 18

• Encouraging Teachers: K. C. Mahindra Chair for Nuclear Chemistry at the IISc Dhandevi Mahindra Scholarship Award at Sophia College, Mumbai

• Empowering the Under-privileged Mahindra All India Talent Scholarship Nanhi Kali

Mahindra Education Society

• Mahindra Group has established schools near its factories primarily for adding value to the children of its employees.

• The Group has three schools imparting high standards of education -Mahindra Academy at Malad in Mumbai, Mahindra Academy in Zaheerabad and a school in Khopoli.

• The establishment of these schools benefited the employees and also the community around these schools.

Mahindra United World College

• It is the Group’s endeavour to promote world-class education with an emphasis on the ideals of peace and understanding, central to the ethos of the United World Colleges. They are present in U.K, Singapore, Canada, Swaziland, Italy, United States of America, Venezuela, Hong Kong, Norway and India.

• Each year’s batch of about 100 students accommodates about 65 to 70 from abroad. The faculty includes professors from all around the world.

Saarthi Abhiyaan


8


The ‘Saarthi Abhiyaan’ aims at providing scholarship of Rs.10,000 to truck driver’s daughters who have completed their education till the 10th standard for their higher education.

Mahindra Rise

It is a blog which leverages social media platform to give ideas and innovations through the topics on agricultural, rural development and education.

Health & Disaster Relief

Mahindra Foundation

The specific objective of the foundation is to provide medical relief to the poor and needy sections of society.

• The foundation has helped patients suffering from cancer, heart ailments as well as burn victims.

• It has been very active during national calamities and disasters.

• The foundation also extends its support to academia and other professionals and sportsmen by helping them attend workshops and conferences overseas.

Art & CultureTheatre Week

The Mahindra Excellence in Theatre Awards (META) is an effort to encourage national theatre in two broad categories - Emerging theatre and Established theatre. They are in tune with the Group’s Corporate Social Responsibility programs, which have already received a fillip in the Conglomerate’s 60th anniversary year.

• The Critic’s Panels are based in Kolkata, Mumbai, Delhi and Bangalore.

• Six plays are selected from each region and are referred to the respective Critic Panel.

• The Panel from each metro city then sends the final list of eight productions to the Grand National Jury.

• The Mahindra Group also set up a Mahindra Academy for Excellence in Theatre.

Measurement of Environmental performance indicators• Mahindra products such as vehicles are designed meeting International

standards of Safety and emission.

• Mahindra Hariyali, is a mass tree plantation initiative undertaken by each and every Mahindra location - be it a Plant/factory setting or a corporate office. The Group has vowed to plant a One Million Trees across the Nation by October 2016.

• In 1984, the Mahindra Group started the ‘Green Bombay’ movement by developing and maintaining garden.


9


Achievement of past targets

Social Targets and achievements


10


Environmental targets and achievements

Approach to stakeholder engagement

The following are some of the ways through which Mahindra engages with its stakeholders:

Employees

Trainings were held like by KPMG training session on GRI’s fourth generation sustainability reporting guidelines

Living Mahindra Experience (LME): The guidelines sheet for Mahindra employees on what to do and what not to do

Annual Steel Conference where best practices and strategies are shared


11


Annual Sector Sustainability conference is held every year to review the sustainability performance

Week-long campaign “Greens” was organized where employees generate ideas on areas like growth, re-engineering, employee engagement, environment etc.

Eyon’s Café was launched to share success stories among each others In addition, there are publications, feedback surveys and one to one interactions

etc. through which Mahindra engages with its employees

CustomersMahindra actively engages with its customers and solicits feedback from them. The following are the some of the ways through which they do this:

Coalesce is a platform where customers meet, discuss about the present initiatives and collaborate on new initiatives

Mahindra Finance had a special initiative of Bharat Awakens to share the stories of people who succeeded with the help of Mahindra Finance

Mahindra Milan programme by Farm Division where the customers are taken around the plant in Nagpur to give them an macroscopic understanding of things in the plant

Automobile division arranged a free service camp M-Plus for Mahindra automobiles

MSSL launched Keth Se Khaliyan Tak - to help farmers improve exportable quality of grapes

Mahindra’s Online footprint is an online engagement drive to receive feedback, to enhance customer satisfaction, engage with fans and build loyalty and most importantly to address concerns

Suppliers Suppliers are one of the most important part of Stakeholder engagement. Mahindra engages with them at multiple levels like:

Sustainability Awareness and Training workshop for suppliers to bring them on the sustainability platform

Sustainability Supply Chain Management (SSCM) workshop was conducted at MSSSPL where suppliers came together and discussed their sustainability practices.

Mahindra Automotive and Farm sector (AFS) ensures that the suppliers follow Sustainability standards through frequent audits and suggesting improvement areas for five of its core suppliers.

Suppliers Cluster meet is organized for bringing together Tier1 and Tier 2 suppliers of Automotive division .


12


Dealers

Dealers are the channel partners and one of the most important stakeholders of Mahindra. It engages with it as follows:

IT–enabled Dealer Management Service (DMS) is an information sharing tool connecting all the Mahindra Two wheelers Ltd. Dealers.

Automotive Division’s ‘Mahindra Idols’ and ‘Ustaadon ke Ustaad’ assesses its dealers.

‘Mahindra Star’ is launched by Farm Division to reward its star dealer.

Local Communities (100)

Mahindra engages with its local communities as follows:

An anti-tobacco rally had been organized to sensitize people about the ill effects of tobacco by Mahindra Two wheelers Ltd.

Mahindra Logistics Ltd. adopted a Avre village near Thane to help them in solving issues like safe drinking water, school infrastructure, vocational training and youth employment.

Swaraj Division launched ‘the Swaraj Arogya Rath’ a mobile health van with an objective to make health care accessible to remote points in Mohali.

Shareholders engagement

While generating value is imperative for any business, generating enhanced value, ethically, gives the competitive edge. Shareholders at Mahindra are not considered as mere recipients of benefits accrued via investments but are important channels of valuable insight. Mahindra’s understanding of shareholder’s aspirations, expectations help them engage with the shareholders more meaningfully.

Mahindra engages in meaningful dialogues with the shareholders across multiple managerial levels via diverse channels of communication. Some of them are:

The Chairman, along with the entire board, addresses the investors and provides clarifications at least once each year during the Annual General Meeting, which is the principal forum for face-to-face interaction.

The Chief Financial Officer (CFO) regularly reaches out to investors across the globe during investors and analyst interactions (twice a year) along with senior management.

In addition, there is a dedicated Investor Relations Cell to interact with the investors.

Corporate website www.mahindra.com provides comprehensive information and an exclusive Investor Relations section which informs and addresses shareholder needs.


13


An exclusive email id “[email protected]” has been created for the investors to register complaints and the same has been displayed on the Company’s website.

Furthermore, the quarterly, half-yearly and yearly results were published in national and local dailies.

Presentations are also made to international and national institutional investors and analysts which are uploaded on the website of the Company and available to all stakeholders.

Information relating to financial results and shareholding pattern is posted regularly on Corporate Filing and Dissemination System on www.corpfiling.co.in, the common platform introduced by BSE and NSE for electronic filing by listed companies.

Reports in public domain (Print & Electronic Media)

The print and electronic media appreciates the CSR initiatives taken up by Mahindra group as a whole. The media highly regards the ‘Rise for Good’ campaign started by Mahindra as an umbrella brand covering the corporate social responsibility, sustainability and corporate governance initiatives.

It believes that this new initiative will give strength and further thrust, drive and synergy to the movement for the employ yes to be more involved in CSR activities responsibly.

The media positively reports about the group's CSR and sustainability initiatives focusing on four broad areas — education (girl education), health, environment and disaster relief.

The media in its reports appreciates the aim of creating one brand umbrella; to motivate people internally and bind them around what Mahindra does for the society, as well as thrill people from outside to join in.

The media validates the initiatives of the group as what started as an announcement of the 'Rise Credo' was followed by 'Spark the Rise' platform around three years ago to promote innovation, entrepreneurship and grass root change.

The media also appreciates Mahindra’s target of spending over Rs.150 crore this year on CSR activities, compared to Rs.42 crore spent last year.

Other pertinent thingsCorporate Governance

Mahindra sees Corporate Governance as an integral part in its growth story. It considers Corporate Governance as not just enhancing Shareholder value. It goes to the level above upholding the best industry practices to being a responsible, ethical and corporate citizen. Mahindra makes sure that its corporate governance philosophy is implemented by taking steps like:


14


Mahindra’s Board of Directors have vast experience and have industry –wide achievements.

Various Board committees are constituted to ensure operational independence. Some are: Audit Committee Governance Remuneration and Nomination Committee Share Transfer and Shareholders/ Investors Grievance Committee Research and Development Committee (Voluntary initiative) Strategic Investment Committee (Voluntary initiative) Loans and Investment Committee (Voluntary initiative) Corporate Social Responsibility Committee

Group Executive Board (GEB) is constituted, which comprises of Chairman and MD, President of different sectors as well as heads of certain key corporate functions. It provides strategic direction and enterprise leadership and creates a shared vision and value system.

A Group Corporate Communications and Ethics Officer has been appointed to institutionalize Group’s core values across business units.

Mahindra considers absolute compliance is a cardinal rule which can’t be comprised upon.

Three key learnings for the team

The concepts studied in the class such as corporate governance, sustainability, different aspects of CSR has been well applied by Mahindra in its policies. This gives an insight into how we should go about things in our roles as manages in the future.

Importance of teamwork was a key learning. Initially, all of us felt that the topic was very difficult. But all of us sat down and started discussing on things related to the topic and inputs from each one proved instrumental and we were able to finish the project. Everyone has some qualities which is unique and working together in a team helps to leverage these qualities and achieve better results.

Also, we learned to accept one another’s opinions by setting aside the differences. This was important for the best outcome of the group. Proper Time management was also a learning. With so many projects and activities in hand, it was essential to devote time judiciously to different things. Learning from peers, one of the goals of joining a B-school, was seen clearly while working for this project.


15

CSR of Mahindra and Mahindra Ltd

Documents

Transcript of CSR of Mahindra and Mahindra Ltd