a project report on csr new sagar

8/8/2019 A Project Report on Csr New Sagar

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A PROJECT REPORT ON

COOPERATIVE RESPONSIBILITIES OF

MAHINDRA & MAHINDRA CO. LTD.

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V

(ACADEMIC YEAR 2010-11)

SUBMITTED TO THE UNIVERSITY 0F MUMBAI IN PARTIAL

REQUIREMENT LEADING TO A DEGREE IN BACHELOR OF

MANAGEMENTMENT STUDIES

UNDER THE GUIDANCE OFPROF. Mrs. S. S. R. SIVAJYOTHI

SUBMITTED BY

SAGAR AKARAM SATHE

SEAT NO. 1234

TYBMS SEM V

BHAVNA TRUSTS DEGREE COLLEGE OF BMSDEONAR MUMBAI 400088

2010-2011


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OF SCIENCE AND COMMERCEDeonar, Mumbai 400 088.

DEPARTMENT OF MANAGEMENT STUDIES

Certificate

I hereby certify that ---------------------

Of Bhavna trusts Degree College of Science & Commerce of TYBMS(Sem-V) has

successfully completed project on------------------------------------------------------------------ in the academic year 2010-

2011. The information submitted is true and original to the best of my knowledge.

Signature of Principal Signature of project

Co-ordinator

Name & sign. of BMS Course


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Co-ordinator Name & sign.of External Examiner

DECLERATION CERTIFICATE

I, SAGAR. A. SATHE student of TYBMS 2009-2010 studying at

BHAVNA TRUSTS DEGREE COLLEGE OF TYBMS (Sem-V) hereby declare thatthe project work entitled COOPERATIVE RESPONSIBILITIES OF MAHINDRA

& MAHINDRA CO. LTD was carried by me in the partial fulfillment of BMS

program under the University of Mumbai for the academic year 2010-2011.

This project was undertaken as a part of academic curriculum

according to the university rules and norms and it has not commercial interest and

motive. It is my true and original work.

Date: -

Place:-Mumbai


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Signature of the Student

SAGAR. A. SATHE

T. Y. B. M. S.

ACKNOWLEDGEMENT

It gives me immense pleasure to present this project report on

Cooperative Responsibilities carried out at MAHINDRA & MAHINDRA CO. Ltd. in

partial fulfillment of graduate course B.M.S.

I would like to thankMRS. S. S. R. SHIVJYOTHI In charge of

TYBMS for their valuable advice and guidance during my project Completion) for

timely help concerning various aspects of project.


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SAGAR. A. SATHE

T. Y. B. M. S.CONTENTS

SR NO. TOPICS


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CHAPTER - ICOOPERATIVE RESPONSIBILITIES


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CHAPTER-1

1. Introduction

2. Definition3. Historical definition4. Features of CSR5. Need of CSR6. Determinants of CSR7. Why CSR is so

important?

8. Challenges of CSR9. Introduction of Mahindra

co.10. Mahindra co. and its

responsibilities11. Objective of Study

Methodology of DataCollection

12. Limitations of Study


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INTRODUCTION

OFCSR

INTRODUCTION OF CSR :->

CSR is stands for Cooperative Social Responsibity, which means

kinds of responsibility of the organization towards the society. It is anevolving concept which is yet to command a standard definition or a

fully recognized set of criterion. With the given understanding that

businesses have a key role of job and wealth creation in society.


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CSR generally understood to be the way an organization achieve a

balance between economic, environment and social imperative while

they address the exception if shareholders and stakeholders. It is

generally accepted that business firms have so vial responsibilities that

extend well beyond what in the past was commonly referred to simply as

the business economic function.

Corporate social responsibility ("CSR" for short, and also called

corporate conscience, citizenship, social performance, or sustainable

responsible business) is a form ofcorporateself-regulation integrated

into a business model. CSR policy functions as a built-in, self-regulating

mechanism whereby business monitors and ensures its active

compliance with the spirit of the law, ethical standards, and

international norms. The goal of CSR is to embrace responsibility for

the company's actions and encourage a positive impact through its

activities on the environment, consumers, employees, communities,

stakeholders and all other members of the public sphere. Furthermore,

CSR-focused businesses would proactively promote the public interest

by encouraging community growth and development, and voluntarily

eliminating practices that harm the public sphere, regardless of legality.

CSR is the deliberate inclusion ofpublic interest into corporate

decision-making, and the honouring of a triple bottom line: people,planet, profit.

The term "corporate social responsibility" came in to common use

in the early 1970s, after many multinational corporations formed. The

term stakeholder, meaning those on whom an organization's activities

have an impact, was used to describe corporate owners beyond

shareholders as a result of an influential book by R. Edward Freeman,

Strategic management: a stakeholder approach in 1984. Proponents argue

that corporations make more long term profits by operating with a

perspective, while critics argue that CSR distracts from the economic

role of businesses. Others argue CSR is merely window-dressing, or an

attempt to pre-empt the role of governments as a watchdog over

powerful multinational corporations.
http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-regulationhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Proactivehttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-regulationhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Proactivehttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Multinational_corporations


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Corporate social responsibility (CSR) of companies has become a

subject of much debate. Despite this, I had been unable to understand

what exactly companies are supposed to do as their CSR. Is it

philanthropy and charity? Is it social and humanitarian work orprotecting the environment? Is it undertaking public service tasks which

normally government should be doing? Or is it all of these? I believe

that the CSR of a company should be undertaking all actions as would

maximize the probability of its long-term survival and sustained growth.

CSR is titled to aid an organization's mission as well as a guide to

what the company stands for and will uphold to its consumers.Development business ethics is one of the forms ofapplied ethics that

examines ethical principles and moral or ethical problems that can arise

in a business environment. ISO 26000 is the recognized international

standard for CSR (currently a Draft International Standard). Public

sector organizations (the United Nations for example) adhere to the

triple bottom line (TBL). It is widely accepted that CSR adheres to

similar principles but with no formal act of legislation. The UN has

developed the Principles for Responsible Investment as guidelines forinvesting entities.

Corporate social responsibility (CSR) has variously been described

as a motherhood issue, the hot business issue of the naughtiest and

the talk of the town in corporate circles these days. There seems to be

an infinite number of definitions of CSR, ranging from the simplistic to

the complex, and a range of associated terms and ideas (some usedinterchangeably), including corporate sustainability, corporate

citizenship, corporate social investment, the triple bottom line, socially

responsible investment, business sustainability and corporate

governance (Prime Minister's Community Business Partnership). It has

been suggested that someresearchersdistort the definition of
http://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investment


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corporate social responsibility or performance so much that the concept

becomes morally vacuous, conceptually meaningless, and utterly

unrecognizable; or CSR may be regarded as the panacea which will

solve the global poverty gap, social exclusion and environmental

degradation.

An approach for CSR that is becoming more widely accepted is

community-based development approach. In this approach,

corporations work with local communities to better themselves. For

example, the Shell Foundation's involvement in the Flower Valley,

South Africa. In Flower Valley they set up an Early Learning Centre to

help educate the community's children as well as develop new skills for

the adults. Marks and Spencer is also active in this community throughthe building of a trade network with the community - guaranteeing

regular fair trade purchases. Often activities companies participate in

are establishing education facilities for adults and HIV/AIDS education

programmes. The majority of these CSR projects are established in

Africa. JIDF For You, is an attempt to promote these activities in India.

A more common approach of CSR is philanthropy. This includesmonetary donations and aid given to local organizations and

impoverished communities in developing countries. Some organizations

do not like this approach as it does not help build on the skills of the

local people, whereas community-based development generally leads to

more sustainable development.

Another approach to abcd CSR is to incorporate the CSR strategy

directly into the business strategy of an organization. For instance,procurement ofFair Trade tea and coffee has been adopted by various

businesses including KPMG. Its CSR manager commented, "Fairtrade

fits very strongly into our commitment to our communities."
http://en.wikipedia.org/wiki/Shell_Foundationhttp://www.flowervalley.org.za/http://en.wikipedia.org/wiki/Marks_and_Spencerhttp://en.wikipedia.org/wiki/Fair_tradehttp://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Shell_Foundationhttp://www.flowervalley.org.za/http://en.wikipedia.org/wiki/Marks_and_Spencerhttp://en.wikipedia.org/wiki/Fair_tradehttp://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/KPMG


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Another approach is garnering increasing corporate responsibility

interest. This is called Creating Shared Value, or CSV. The shared value

model is based on the idea that corporate success and social welfare are

interdependent. A business needs a healthy, educated workforce,

sustainable resources and adept government to compete effectively.

In earlier times the managers in most cases had only to concern

themselves with the economic results of their decisions. Todays

managers must also consider & weigh the lehgal, ethical, moral &

repercussion of each of their decisions. All companies have to ensure

that their activities do not adversely affect the environment. Depletion of

natural resources, like forests or ground water is a case in point.

Recovery of heat or minerals from flue gases or effluents reduces

pollution and the consumption of scarce resources, while saving money.Atmospheric pollution affects the health of people and so must be

minimized. Laws relating to the environment should be observed both in

letter and in spirit.

After a comprehensive study of competitor strategy and an

internal policy review performed, a comparison can be drawn and a

strategy developed for competition with CSR initiatives.
http://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Creating_Shared_Value


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http://en.wikipedia.org/wiki/File:CSR_framework_-_value1.jpg


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The CSR is the most important concept for leading business in

competitive world and to follow that many definition has been introduce

in market followed it. Many authorized peoples have defined CSR in their

way are as follow

Corporate social responsibility is operating a business in manner

which meets or excels the ethical, legal, commercial & public expectation

that society has from business.

-----------------------------------------------------------------------------------------

In the year 1953 the Bowen has said that to pursue those policies

and to make those decisions or to follow those lines of actions which are

desirable in terms of objectives & values of society.

-------------------------------------------------------------------------------------------

According to Lord Holme & Richard Watts defines CSR as,

Corporative Social Responsibility is the continuity commitment by

businesses to behave ethical and contribute to economic development

while improving community and society at large.

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According to Wood, the basic idea of corporate social

responsibility is that businesses and society are interwoven rather thandistinct entities.

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The World Business Council for Sustainable Development in its

publication "Making Good Business Sense" by Lord Holme and Richard


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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".

Business for Social Responsibility Americas largest organisationdevoted to CSR, Business decision making linked to ethical values,

compliance with legalrequirements, and respect for people,

communities, and theenvironment around the world.

--------------------------------------------------------------------------------------------

Prince of Wales Business Leaders Forum

Open and transparent business practices that are based on ethical

values and respect for employees, communities, and the environment.It is designed to deliver sustainable value to society at large, as well as

to shareholders.

--------------------------------------------------------------------------------------------

European Commission

A concept whereby CSR companies decide voluntarily to contribute to a

better society and a cleaner environment.

--------------------------------------------------------------------------------------------

Anonymous respondent to anAccountancy IrelandsurveyCSR is doing the right thing even when no-one is looking.

Usually CSR concentrates on the activity that typically address the

aspects of a firms behavior (including its policies & practices) with

respect to such key elements as health & safety, environmental

protection, human rights, human resources management practices,

corporate governance community development, consumer protection,

labour protection, suppliers relations, business ethics & stakeholdersrights.


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CSR IN SOCIETY


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CHAPTER-1

HISTORICALDEFINITION

OF

CSR


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HISTORICAL DEFINITON :->

While the term CSR may appear to be relatively new to the

corporate world, the literature reveals that the evolution of the conceptitself has taken place over several decades. The fact that the terminology

itself has changed over this time also suggests that the meaning ascribed

to concepts such as CSR will continue to evolve in tune with business,

political and social developments. The impact of globalisation

and mass communication also means that while definitions will reflect

local 3 situations, they will also be strongly influenced by global trends

and changes in international law.

1920s 1950s

It has been suggested by Windsor that business leaders have since the

1920s

Widely adhered to some conception of responsibility and responsiveness

practices. Others have argued that the genesis of CSR was in the

1930s with the debate between AA Berle and E Merrick Dodd over therole of managers. Merrick Dodd contended that the powers of

corporate management are held in trust for the entire community.

In 1953, Bowen conceptualised CSR as social obligation the

obligation to pursue those policies, to make those decisions, or to follow

those lines of action which are desirable in terms of the objectives and

values of our society. Carroll has described Bowen as the

modern Father of Corporate Social Responsibility and believes that his

work marks the beginning of the modern period of literature on CSR.Bowen took a broad approach to business responsibilities, including

responsiveness, stewardship, social audit, corporate citizenship and

rudimentary stakeholder theory.


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Peter Drucker was one of the first to explicitly address CSR, including

public responsibility as one of the eight key areas for business objectives

developed in his 1954 book, The Practice of Management. While Drucker

believed that managements first responsibility to society involvedmaking a profit, he felt it was also most important that management

consider the impact of every business policy

and action upon society.

1960s

The literature of the 1960s is not heavily represented in CSR discourse.

However, Carroll believed that this decade marked a significant growth

in attempts to formalize, or more accurately, state what CSR means. Hesuggested that some of the most prominent writers during that time

were Keith Davis, Joseph W McGuire, William C Frederick and

Clarence C Walton. Daviss assertion that some socially responsible

business decisions can be justified by having a good chance of

bringing long-run economic gain to the firm, thus paying it back for its

socially responsible outlook is an interesting precursor 4 to

contemporary debates about the financial implications of CSR. Daviss

later assertion that The substance of social responsibility arises fromconcern for the ethical consequence of ones acts as they might affect the

interests of others introduces the notion of business ethics to CSR.

In 1960, Frederick wrote that Social responsibility in the final analysis

implies a public posture toward societys economic and human

resources and a willingness to see that those resources are used for

broad social ends and not simply for the narrowly circumscribed

interests of private persons and firms. Clarence C Walton emphasized

that the essential ingredient of the corporations social responsibilitiesinclude a degree of voluntarism, as opposed to coercion, an argument

that business continues to put forth today. Walton also counselled the

acceptance that costs are involved for which it may not be possible to

gauge any direct measurable economic returns.


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1970s

The literature on CSR includes many references to Milton Friedmans

minimalist view of corporate responsibility and his famous comment in

1970 . It is useful to include the quotation here because it is such abusiness-centric view and is one end of a continuum that is still being

debated today in terms of CSR:

There is one and only one social responsibility of business to use its

resources and engage in activities designed to increase its profits so

long as it stays within the rules of the game, which is to say, engage in

open and free competition, without deception or fraud.

Friedmans view has continued to be debated over the decades, for

exampleMcAleer, who concluded that Friedmans arguments were

unsound and his views unclear, and Oketch, who suggested that Today,

many would not be comfortable with such a profit-oriented statement.

The US Committee for Economic Developments (CED)1971 model of

CSR reveals that despite Friedmans pronouncement, there were other

evolving views about the role of business in CSR. The Committee

described CSR as being related to products, jobs and economic growth;

related to societal expectations; and related to activities aimed atimproving the social environment of the firm. Carroll describes the

CEDs model 5 as a landmark contribution to the concept of CSR

which illustrated the changing relationship between business and

society.

Business is being asked to assume broader responsibilities to society

than ever before and to serve a wider range of human values. Business

enterprises, in effect, are being asked to contribute more to the quality

of American life than just supplying quantities of goods and services.

Inasmuch as business exists to serve society, its future will depend onthe quality of managements response to the changing expectations of

the public. The relationship between business and society was being

questioned at a time when the United States was embroiled in the social

and political protests of the civil rights and peace movements, when


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issues such as human values and morality were being publicly debated.

This would also have impacted on corporate America.

Wallich expanded the debate about voluntarism versus coercion by

equating CSR with the freedom to be a free agent:I take responsibility to

mean a condition in which the corporation is atleast in some measure a

free agent. To the extent that any of theforegoing social objectives areimposed on the corporation by law, thecorporation exercises no

responsibility when it implements them. Business therefore abrogates its

responsibility to government and the wider society.

In 1974, Eells and Waltons discussion of CSR could perhaps be seen as

moving toward the issue of social licence that was to emerge more fully

nearly thirty years later.

In its broadest sense, corporate social responsibility represents aconcern with the needs and goals of society which goes beyond the

merely economic. Insofar as the business system as it exists today can

only survive in an effectively functioning free society, the corporate

social responsibility movement represents a broad concern with

businesss role in supporting and improving the social order.

In Sethis 1975 three-level model, the concept of corporate social

performance is discussed, and distinctions made between variouscorporate behaviours. Sethis three tiers were social obligation (a

response to legal and market constraints); social responsibility

(congruent with societal norms); and social responsiveness (adaptive,

anticipatory and preventive).

Early research studies on CSR conducted in the 1970s included

Bowman and Haires measurement of corporate involvement in CSR.

Their research used a variant of content analysis to measure the number

of lines covering social responsibility in company annual reports. The

headings they used included corporate responsibility, socialresponsibility, social action, public service, corporate citizenship, public

responsibility, and social responsiveness.

1980s


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The 1980s have been described as having a more responsible approach

to corporate strategy (Freeman in Lucas, Wollin & Lafferty 2001, p.

150). Prominent was the work of R Edward Freeman on the emerging

Stakeholder Theory. Freeman saw meeting shareholders needs as only

one element in a value-adding process and identified a range of

stakeholders (including shareholders) who were relevant to the firmsoperations.

Freemans 1984 paper continues to be identified as a seminal paper on

stakeholder theory, and stakeholder theory as the dominant paradigm

in CSR.

Carroll believes that in the 1980s, the focus on developing new or

refined definitions of CSR gave way to research on CSR and a

splintering of writings into alternative concepts and themes such ascorporate social responsiveness, CSP, public policy,

business ethics, and stakeholder theory/management.

Carroll outlined the work of a number of researchers, including

Jones, who posited that CSR ought to be seen not as a set of outcomes

but as a process, and Tuzzolino and Armandi who sought to develop a

better mechanism for assessing CSR by proposing a need-hierarchy

framework patterned after Maslows.

The authors developed the organisational hierarchy as aconceptual tool that could be used to assess socially responsible

organizational performance.

A prominent development in terms of CSR was the global debate

on sustainable development that emerged in this decade. The World

Conservation Strategy that was published in 1980 stressed the

interdependence of conservation and development and was the first to

conceptualise sustainable development .

In 1987 the World Commission on Environment andDevelopment (WCED) published the Brundtland Report, Our

Common Future. The 7 report states that Sustainable development

seeks to meet the needs and aspirations of the present without

compromising the ability to meet those of the future (World


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Commission on Environment and Development 1987). This early

definition of sustainable development is often quoted, but it is

interesting from the viewpoint of the CSR debate that most authors to

not seem to quote the next sentence from the report:

Far from requiring the cessation of economic growth, it recognizes that

the problems of poverty and underdevelopment cannot be solvedunless we have a new era of growth in which developing countries play

a large role and reap large benefits. (World Commission on

Environment and Development 1987)

The report clearly links sustainable development with economic

growth and sets the direction for future debate on this issue. Although

we have seen examples of earlier work that touched on the issue of CSR

and financial profit, Carroll identified the 1980s as the period when

scholars were becoming interested in the question of whether sociallyresponsible firms were also profitable firms. If it could be demonstrated

that they were, this would be an added argument in support of the

CSR movement. Aupperle, Carroll, and Hatfields 1985 study of the

relationship between CSR and profitability ordered the priorities of

four components of CSR previously identified by Carroll, as economic,

legal, ethical, and discretionary.

1990sThe literature of the 1990s has not so much expanded the

definition of CSR, but used the CSR concept as the base point, building

block, or point-of-departure for other related concepts and themes,

many of which embraced CSR-thinking and were quite compatible with

it. CSP, stakeholder-theory, business ethics theory, and corporate

citizenship were the major themes that took center stage in the 1990s.

An important contribution to the literature was made by Wood in

1991 when she revisited the CSP model and placed CSR into a broadercontext than just a standalone definition. An important emphasis in her

model was on outcomes or performance. The CSP framework

developed by Wood and the pyramid of responsibilities developed by

Carroll, with economic responsibilities at the base and philanthropy at

the apex, are discussed in depth in the literature,


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including Carroll (1999) and Windsor (2001).

Swanson (1995) suggested that there were three main types of

motivation for CSR:

i. The utilitarian perspective (an instrument to help achieve

performance objectives);ii. The negative duty approach (compulsion to adopt socially responsible

initiatives to appease stakeholders); and

iii. The positive duty view (businesses self-motivated regardless of social

pressures) (Swanson in Maignan & Ralston 2002).

Wood also identified three main types of processes used by businesses to

implement their CSR motivational principles: environmental

management, issues management and stakeholder management.

Once implemented throughout the organization, these processeshelp the firm to keep abreast of, and to address successfully, stakeholder

demands. However, this may be a somewhat simplistic view of CSR and

relationships with stakeholders. It is also a view that was overtaken in

the 90s by a broadening discussion of the concept of stakeholder, and

whether the first priority of a corporation is to its shareholders or

whether policymakers should develop a flexible multistakeholder

approach to promoting CSR, as Aaronson suggests has occurred in

Britain in response to concern about global corporate responsibility.Even within the group that ORourke has described as the primary

stakeholders the shareholders the boundary zone of CSR is

currently being negotiated with companies.

ORourke writes that:A trend also noteworthy in the late 1990s was

that of shareholderactivists linking their environmental or social issue to

financialperformance and/or risks faced by the company. By claiming

that

environmental and social issues have a direct effect on shareholder

value, shareholder activists are moving the rhetoric of their activism outof the realm of ethics or good versus bad behaviour, and into that of

traditional issues of profitability, risk and shareholder value.

An example of shareholder activism is the groupBHP

Shareholders for Social Responsibility, which was formed in 1994 as a


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result of shareholder concerns aboutenvironmental damage done by the

company in Papua New Guinea. The group hasconcerns about

environmental, social and economic issues and has actively

engaged BHP Billiton management about its concerns (BHP

Shareholders for Social Responsibility). Similar advocacy groups have

been formed in Australia for shareholders of Boral Green, Gunns, andPaperlinX.

Global influences on CSR continued in the 1990s as the roles of business

and government continued to blur. In 1997, Solomon wrote that now

that businesses are often the most powerful institutions in the world, the

expanse of social responsibility has enlarged to include areas formerly

considered the domain of governmentsThe more powerful business

becomes in the world, the more responsibility for the wellbeingof the world it will be expected to bear .

Writing in 1999, as the new millennium approached, Carroll suggested

that, the CSR concept will remain as an essential part of the business

language and practice, because it is a vital underpinning to many of the

other theories and is continually consistent with what the public expects

of the business community today.

Corporate Social Responsibility in the 21st Century

If the issue of CSR came to public prominence as a result of highly-

publicised events such as the collapse of Enron and the James Hardie

asbestos scandal in Australia, how have these concerns been addressed

in the literature of the new century? The debate about the place of CSR

in the global economy continues, with writers such as Scherer and Smid

echoing Solomons opinion that multinational corporations should

take responsibility for the improvement of world-wide social and

environmental conditions.Windsor takes this point further by investigating examples of

Western oil production projects currently operating in a number of

war-torn, impoverished African states that are noted for corruption and

human rights abuse. James Buckee, the CEO of one of these companies,

is quoted as saying that it is socially responsible for a corporation to


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invest in certain places that some elements of popular opinion find

objectionable. Clearly this illustrates Windsors conclusion that There

are fundamental differences of opinions and values in the global

economy. Oketchs simplistic contention that there is need to ensure

that the global market operates according to a certain set of rules and

institutions that a majority of people see as being legitimate raises morequestions than it answers.

As well as the development of global business, recent literature

appears to be moving away from a US-dominated discourse to a more

international one. Academics such as Maignan and Ralston CSR in

France, the Netherlands and the UK; Aaronson UK; Perrini et al

Italy; and Lucas et al Australia have extended the debate to other

countries, as well as comparing national perceptions of CSR and the

role of business in society. Significant international developments thathave influenced this move include the appointment of a UK Minster for

Corporate Social Responsibility in March 2000; the release of the

European Commissions Green Paper,Promoting a European

Framework for Corporate Social Responsibility; and the United Nations

Global Compact regardinghuman rights, labour and the environment.

Such developments are also reflected inthe literature, where the linkage

between government and CSR has been explored.

Corporate Social Responsibility and Financial ImplicationsThe issue of CSR and its effects on financial performance continued to

be addressed in the literature. Windsor quotes the 1998 findings of

Verschoor, that among the 500 largest US public corporations, the

26.8% committing in annual reports to ethical behaviour toward

stakeholders or compliance with corporate code of conduct have

higher financial performance measures than other firms that do not.

However, this is a very narrow measurement of CSR and does not allow

for the fact that companies such as Enron can engage in philanthropy

while being guilty of moral misconduct. Windsor suggests that TheEnron collapse is a reminder that such deviation [between responsibility

and wealth] is never far away in the increasingly competitive landscape

of global business operations.

He believes that there has been A marked tendency in the


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relevant literatureto examine alternatives such as citizenship or

stakeholder management precisely because of the difficulties inherent

in the responsibility construct.

Orlitzky argues that his research shows a positive correlation

between corporate social performance (CSP) and corporate financial

performance, that CSP actually reduces financial risk and thatorganisations of all size may benefit financially from socially responsible

activities. In a discussion about the business case for CSR, Hopkins

suggests that while it is difficult to prove a causal link between CSR

actions and financial indicators, an in-depth benefit-cost analysis of

CSR by the Cooperative Bank of the UK declared that between 15 and

18% of its pre-tax profits could be directly attributed to its ethical

stance.

Hopkins undertook a study of the top UK companies, examiningthe correlation between social responsibility and their stock market

performance. He concluded that the publics purchasing of shares was

still not greatly affected by the companies level of social responsibility

[but]that CSR standing does not necessarily badly affect a companys

share price. Of course, share market price is only one measure of

profitability and the narrowness of Hopkins research supports his

contention that, Definition, measurement and data problems exist for

assessing both social responsibility and financial performance.In terms of corporate financial investment in CSR, McWilliams

and Siegel postulated that there is some level of CSR that will maximize

profits while satisfying the demand for CSR from multiple stakeholders.

The ideal level of CSR can be determined by cost-benefit analysis.

Another aspect of investment in CSR that has financial implications is

what Brammer and Pavelin have termed insurance-motivated social

investment, a risk-management strategy aimed at reducing reputational

and financial losses caused by adverse stakeholder reaction to negative

events.The authors suggested that Social investment, by establishing a

positive reputation in the eyes of stakeholder groups, helps to mitigate

the impact of those negative events by reducing the likelihood that

stakeholders attribute blame to the company concerned.


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Corporate Citizenship and Moral/Ethical Responsibility One of the

complexities of CSR is that in defining what it means to be a good

corporate citizen, some lobbyists talk in terms of absolutes, while others

speak in terms of degrees. In this age of multi-facetted international

corporations, practices within and across corporate boundaries may

vary. In a recent analysis ofBusinessEthics magazines 100 BestCorporate Citizens for 2006, Mattera points out that high-tech firms,

such as Hewlett-Packard, make up seven of the top eleven companies.

However, he disputes this view of the high-tech industry as a top

environmental performer, citing concerns about its creation of toxic

waste sites, the wastage generated by obsolete hardware, and workplace

exposure to toxic chemicals. Mattera categorises the divergency between

Wal-Marts environmental reforms and its retrograde labour policies as

symbolising was he sees as the selective business ethics that prevailtoday. The difficulty in discussing moral/ethical responsibility, of

course, is whose morality/ethics? Ryan asks who should be the judge of

a companys reputation, and how should it be measured? Nevertheless,

an increasing number of writers are raising the issue of moral/ethical

responsibility as an identifiable aspect of CSR.

In a discussion of Shareholder Theory versus Stakeholder Theory,

Post contends that Implementing management principles derived from

Stakeholder Theory will broader and enhance the moral quality ofdecisions. In the modern era, having management serve only the

interests of the shareholder or itself is morally untenable. The linkage

between CSR and corporate morality has also been explored by

Richards and Maignan and Ralston.

In their study of business ethics and CSR, Joyner and Payne

identified a time lag between socially responsible behaviour by a

company and financial gain. They have called for larger longitudinal

studies of this linkage over a five-ten year period, and comment that

although in a perfect world such studies would not be necessary, inthis less-than-perfect-world, where success for business is measured

almost exclusively by financial performance, the ability to show that

ethical and socially responsible behaviour can boost financial results

might provide the impetus for real change in many organizations.


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Social Licence A recent addition to the vocabulary of CSR is the concept

of social licence.

Gunningham et al offered the following description:

social licenceis based not on compliance with legal requirements

(although breach of these requirements may jeopardise the social

licence), but rather upon the degree to which a corporation and itsactivities are accepted by local communities, the wider society, and

various constituent groups.

Sweeney compares societys treatment of corporations with its

treatment of persons, with the attendant rights and responsibilities.

Thus corporations are allowed the right to operate provided they fulfil

their duties by providing benefits to society. In this sense, corporations

have a social licence to operate.

The concept of social licence is an abstract one, the interpretation ofwhich varies. This is understandable in a corporate world grappling

with varying degrees of success with a range of concepts such as CSR,

triple bottom line, and socially responsible investment. However, it is

critical that corporations understand and embrace this relationship with

the broader society in which they operate. The websites of the

Association of Market & Social Research Organisations and the Mineral

Policy Institute suggest that these organisations interpret social licence

as the Government allowing them to operate, or a way of operating thatwill allow companies to avoid regulation (Evans 2001 ; Sergeant 2005)

Social licence is not a licence to avoid government regulation, in fact it

has been described as a way of operating beyond compliance.

Matilda Minerals has stated that, The social licence to operate is a

compliment [sic] to the regulatory licence issued by government. The

Minerals Council of Australia has expanded on this statement:

The Australian minerals industry is committed to developing its

social licence to operate as a complement to the regulatory licence issued

by government. To the minerals industry social licence to operate isabout operating in a manner that is attuned to community expectations

and which acknowledges that businesses have a shared responsibility

with government, and more broadly society, to help facilitate the

development of strong and sustainable communities. Simply defined

the social licence to operate is an unwritten social contract


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Similarly, the Ministerial Council on Mineral and Petroleum Resources

defines social licence as: the recognition and acceptance of a

companys contribution to thecommunity in which it operates, moving

beyond meeting basic legalrequirements, towards developing and

maintaining the constructiverelationships with stakeholders necessary for

business to besustainable. Overall it comes from striving for relationships based on

honesty and mutual respect.

While the above are examples of corporate commitment to social

licence, the literature also provides examples of the corporate

misreading of the terms of their social licence, which caused a broader

corporate rethink. These examples include Monsantos failure to

appreciate the European consumer backlash against genetically

modified food and the perception of Nike as an exploiter of labour inimpoverished countries. Both situations led to damage to brand image

and necessitated corporate restructuring. Wheeler et al provide further

comment on these examples in their discussion of CSR and a

stakeholder approach to the creation of value.

FEATURES OF CSR :->

Increasing inconsistencies between corporate actions.

Creating the good relationship between customers & firm.

Improvement of responsibilities towards the employees.

Improving the company status in the market.


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Helping to solve the social problem.

CHAPTER-1NEED

OF

CSR


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NEED OF CSR :->

While the interests of shareholders and the actions of managers of

any business enterprise have to be governed by the laws of economics,

requiring an adequate financial return on investments made, in reality

the operations of an enterprise need to be driven by a much larger set of

objectives that are today being defined under the term CSR.

The CSR is important for broad rationale for a new set of ethics forcorporate decisions making, which clearly constructs and upholds a

organizations social responsibility, arises form the fact that a business

enterprise derives several benefits from society, which must, therefore,

require the enterprise to provide returns to society as well.

The CSR is beneficial for clearly establishes the stake of a business

organization in the good health and well being of a society of which it is apart.

Most importantly in this age of widespread communication and

growing emphasis on transparency, customers of any product or services

are unlikely to feel satisfied in buying from an organization that is seen to

violate the expectations of what is deemed to be ethically and socially

responsible behavior.


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The CSR now a days becoming increasingly evident that

organizations that pay genuine attention to the principles of socially

responsible behavior are also finding favor with the public and are the

preferred choice for their goods and services.


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CHAPTER-1

DETERMINANT

OFCSR


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CHAPTER-1

WHY CSR IS SOIMPORTANT


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IMPORTANCE OF CSR :->

The CSR is important to improve the financial performance of

firm :->

The management literature has acknowledged social

responsibility as an important corporate duty. Given the

significance of corporate social responsibility in corporate

decision making the relationship between a firms social

and ethical policies or actions and its financial

performance is an important topic.

Heightened public creditability :->

In this regard the number of companies is maintaining

their public relationship for inventing their business

status good in the peoples eyes. The CSR is very

important to provide the good services to their customers

and other surrounding peoples.

It helping to reduce cost :->

The CSR is helping to the customers to reduce the cost of

good and services in many ways. By maintaining good

relation with the people leads to increase the business

activity with the demand.

To increase attractiveness of investors :->

The CSR helps to the company to earn huge profit by

maintaining CSR among their members and surrounding

people.


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Improve relationship with stakeholders :->

Good public relation among the members helps the

business to maintain their goodwill in the market.

Early identification of potential liability :->The CSR is important to identify the public demand

towards the companies activities. It helps to identify the

potentiality of the liability.

Market place advantage :->

The CSR helps at the market place for set-up the goodbusiness.

Improve overall management :->

The CSR improving the whole department wise

management of the organization.

Improve organization effectiveness.

Decrease risk of adverse publicity.


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CHAPTER-1

CHALLENGESOF

CSR


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CHALLENGES OF CSR :->

Lack of awareness of general public in CSR activities

There is a lack of interest of the

general public in participating and contributing to CSR activities of

companies. This is because of the fact that there exists little or no

knowledge about CSR. The situation is further aggravated by a lack of

communication between the companies involved in CSR and the general

public at the grassroots.

Need to build local capacities

There is a need for capacity building of the local non

governmental organizations as there is serious dearth of trained and

efficient organizations that can effectively contribute to the ongoing CSR

activities initiated by companies. This seriously compromises scaling up

of CSR initiatives and subsequently limits the scope of such activities.

Issues of transparency

Lack of transparency is one of the key challenge for the

corporate as there exists lack of transparency on the part of the small

companies as they do not make adequate efforts to disclose information

on their programmed, audit issues, impact assessment and utilization of

funds. This negatively impacts the process of trust building among the

companies which is key to the success of any CSR initiative.

Non-availability of well organized non-governmental organizations

There is non-availability of well organized non

governmental organizations in remote and rural areas that can assess and

identify real needs of the community and work along with companies to

ensure successful implementation of CSR activities.


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Visibility factor

The role of media in highlighting good cases of successful

CSR initiatives is welcomed as it spread good stories and sensitizes the

population about various ongoing CSR initiatives of companies. This

apparent influence of gaining visibility and branding exercise often leadsmany non-governmental organizations to involve themselves in event-

based programmers in the process; they often miss out on meaningful

grassroots interventions.

Narrow perception towards CSR initiatives

Non-governmental organizations and Government

agencies usually possess a narrow outlook towards the CSR initiatives of

companies, often defining CSR initiatives more as donor-driven. As aresult, corporate find it hard to decide whether they should participate in

such activities at all in medium and long run.

Non availability of clear CSR guidelines

There are no clear cut statutory guidelines or policy

directives to give definitive directions to CSR initiatives of companies.

The scale of CSR initiatives of companies should depend upon their

business size and profile. In other words, the bigger the company, thelarger its CSR programmed.

Lack of consensus on implementing CSR issues

There is a lack of consensus amongst implementing

agencies regarding CSR projects. This lack of consensus often results in

duplication of activities by corporate houses in areas of their intervention.

This results in a competitive spirit between implementing agencies rather

than building collaborative approaches on issues. This factor limits

companys abilities to undertake impact assessment of their initiatives

from time to time.


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CHAPTER-2

INTRODUCTION

OFMAHINDRA CO.


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PROFILE OF THE COMPANY

Mahindra is one of the leading business group of India, it is one of

the largest corporate group of India. Mahindra Groups has global

presence & it is ranked amongst Forbes Top 200 list of the worlds most

Reputable companies & in the Top 10 of Most Reputable IndianCompanies.

The origins of Mahindra & Mahindra company can be traced back

to Oct 2, 1945 when Mahindra brothers, J.C. Mahindra & K.C.Mahindra

joined hands with Ghulam Mohammad & Mohammad was set up as a

franchise for assembling Jeep from Willys (U.S.A). When this company

name was Mahindra & Mohammad but after India independence in

1947, Mahindra & Mohammad returned back to Pakistan & became thefirst Finance Minister of Pakistan.

At the beginning time this company was introduced first Indigenous

Jeep in the year 1949 in market and then this company proceeds with

new brands vehicles. Some of the famous automobiles brands of

Mahindra are- Scorpio & Bolero. The Mahindra company is also the

largest producer of tractors in India & now it is fourth largest tractor

company in the world. Mahindra & Mahindra is one of the leading

tractor brands in the world. It is also the largest manufacture of tractorin India with substain market leadership of over 25 year. It designs,

developes, manufacturers and market tractors as well as farm

implements. Mahindra Tractors (CHINA) CO. Ltd. Manufacturer

tractors for the growing Chinese market and is a hub for tractor exoports

to the USA and other nation. Mahindra & Mahindra has a 100%


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subsidiary, Mahindra USA, which assembles products for the American

markets.

HISTORICAL SCENARIO :->

1945

- The Company was Incorporated and converted into Public Limited in

1955 at Mumbai. The Company Manufacture Jeep type vehicles, petrol

industrial engines, industrial process control instruments and flow

meters. Trading in steel and manufacture of professional grade

electronic components. Jeeps are manufactured under a license and

an agreement with Willys Motors Inc., Toledo, Ohio, U.S.A., for whom

the Company also acts as exclusive distributors for the whole of Indiafor their entire range of vehicles including utility vans,

cargo/personnel carriers and pick-up trucks.

1958

- The Company entered into an agreement with Birfield Ltd., to form

Mahindra Sintered Products Private Limited for the manufacture of a

wide range of self lubricating bearings.

1968

- The Instrumentation & Electronics Division came into existence as

a result of merger of the wholly-owned subsidiary of Mahindra

Engineering Co. Ltd., with the Company with effect from 1st April

1968. The activities of the merged company were being carried on in

this division.

- The Company acquired the whole paid-up capital of Mahindra

Electro-Chemicals Products Ltd. Company.

- With effect from 1st April, the wholly owned subsidiary Mahindra

Engineering Co. Ltd., was merged with the Company. International

Tractor Company of India Ltd., was merged with the Company

effective from 1st November 1977.


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1970

- The name was changed from Mahindra Van Wijk & Visser Ltd. to

Mahindra & Mahindra Ltd. This was merged with the Indian NationalDiesel Engine Co., Ltd., during 1977-78.

1977 - 74,

- 700-9.3% Pref. and 12,98,202 No. of Equity share allotted without

payment in cash to shareholders of International Tractor Co. Ltd.,

on its merger in prop 1:1 Pref. and 2:3 Equity. 12,500-7.8% Pref.

shares redeemed on 1.2.1979.

1978

- The Company started negotiation with Balania K. Zacharopoulos

Ltd., Athens for jointly promoting a new company in Greece for the

manufacture of Jeep vehicles and trucks. Initially, it was proposed

to assemble these vehicles mainly from CKD packs to be shipped from

India.

1979- 57,22,764 Bonus equity share issued in prop. 1:1.

1983

- 76,30,352 Bonus equity shares issued in prop. 2:3 in October 1984.

1984

- Mahindra Spicer Ltd. (MSL), was amalgamated with Mahindra &

Mahindra Ltd. (MML) with effect from 3rd April. Pursuant to the

scheme of amalgamation of MSL with MML, the shareholders of MSLwere allotted 1,88,166 equity shares of MML in the ratio of 1 equity

share of MML for every 6 shares held in MSL.

- The Company entered into a collaboration agreement with Foramer

S. A., an associate of Forasol S.A., for purchase of Ile d' Amsterdam


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an offshore drilling rig at a price U.S. .75 million. The Company

arranged for a foreign currency loan through Bank of Baroda. In

view of this purchase, the Company obtained a firm order from ONGC

for drilling services for 2 years.

1985

- A letter of intent was obtained for the manufacture of 50,000

lines of EPABX/PAXs in collaboration with OKL Electric Co. of Japan.

- The Company also signed a Memorandum of Understanding with the

British Telecom p.l.c. of London under which the two companies were

to jointly explore and develop opportunities in telecommunication andtechnical fields in India.

- MBT was made a subsidiary of the Company with 60% holding and

the remaining 40% was subscribed by the foreign partners, the British

Telecommunications p.l.c., U.K. (BT) for provision of software

engineers of MBT to work on various projects of BT in the U.K. MBT

also decided to issue equity capital to the extent of Rs 4 crores

out of which shares worth Rs 2.40 crores were to be offered toMahindra & Mahindra Ltd., for subscription and the balance shares

worth Rs 1.60 crores were to be offered to BT.

1987

- (17 months), approval from Government was received for the

manufacture of Peugeot 504 pick-up vehicles in collaboration with

Automobiles Peugeot of France.

- A new model M-595 tractor in the 50 H.P. range was introduced.

1988

- The Company acquired a off-shore drilling rig Ile d' Amsterdam

from Foramer S. A., France as on 1st March. A firm letter of intent

was received for one land rig for drilling operations at Jwalamukhi,


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Himachal Pradesh against a tender from ONGC. The Company already

entered into an agreement with Forasol S.A., for purchase of a landrig and related equipment.

1989

- During the year improved versions of CJ 500 range of jeeps and FJ

range of LCVs were introduced. Also a sporty model of jeep was

introduce which was well received by the target audience.

- During September, the Company acquired the automotive pressingunit at Kanhe from Guest Keen Williams, Ltd. for a gross consideration

of Rs28.75 crores. The unit has an installed capacity of 10,000 tonnes

per annum.

1990

- The Automotive division faced adverse market conditions resulting

in a drastic reduction in production and sales of vehicles. The

Automotive division introduced a direct injection diesel engine, theMDI 2500 A engine on the CJ 500 vehicles. A new fuel efficient 10

seater vehicle having a direct injection diesel engine was

introduced.

- A letter of intent was obtained from ONGC for extension of the

contract for a further period of one year. However, on account of

certain procedural delays ONGC dehired the rig and it remained

non-operational for about 160 days. However, the Company received a

contract from ONGC for a much higher day rate and the rig wasrendering service to ONGC with effect from 9th November.

- The Company issued 48,16,012-12.5% fully convertible debentures of

Rs 110 each with a provision to apply, instead, for 58,86,236 fully

convertible zero interest bonds of Rs 90 each. An option was given


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to apply for a combination of debentures and bonds subject to an

aggregatevalue of Rs 52,97,61,320. These debentures/bonds were

offered on rights basis to the then existing equity shareholders in theratio of one debenture for every four equity shares held. The issue was

fully subscribed. Additional bonds/debentures were issued to retain the

over-subscription to the extent of 15% of the issue which is equivalent

to 7,22,401 debentures of Rs 110 each.

- Through another letter of offer, two blocks consisting of 8,64,049

debentures each were offered to Mahindra Companies and

International Finance Corporation, Washington, respectively with anoption to apply for bonds subject to the aggregate value of Rs

9,50,45,390 for each block. The issue was fully subscribed. Additional

bonds/debentures were issued to retain the over-subscription to the

extent of 15% of the issue which is equivalent to 1,29,607 debentures of

Rs 110 each for each block.

- The employees (including Indian working directors)/workers of the

Company were also offered on an equitable basis 2,40,801 debenturesof Rs 110 each with a provision to apply for bonds within the aggregate

limit of the issue. The issue was under subscribed. Only 16,750

debentures and 68,250 bonds were allotted. The balance

debentures/bonds were allowed to lapse.

- As on 1st April, 49,90,354 debentures and 26,20,371 bonds were

allotted.

- As on 1st May, the Company allotted on private placement basis 14%redeemable non-convertible debentures for a total value of Rs 20

crores to UTI, LIC, ICICI, Army Group Insurance Fund and GIC and

its subsidiaries. These debentures are redeemable in full at a premium

of 5% on 1st May 1997.


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1991

- New replacement kits for the series of diesel engines, the XDP

4.90 were successfully launched in order to replace petrol engines in

passenger cars and create new demands for the series of diesel

engines manufactured by the Company.

- During the second half of the year, the Company introduced the new

range of `Commander' vehicles which were well received in the

market.A new model on the anvil was a five door ten seater vehicleArmada with a factory built body for which dies were imported from

Japan.

- To meet the changing needs of the market, the Company introduced a

new model 225 DI (25HP) tractor.

- Another 8,64,049 zero interest fully convertible bonds of Rs 90

each for a total value of 9,50,45,390 were allotted to Peugeot IndiaHolding, France, a subsidiary of Automobiles Peugeot, France as on

18th January.

- As per the terms of the issue, a portion of Rs 55 of each

debenture was converted into one equity share of Rs 10 at a premium of

Rs 45 per share and a portion of Rs 45 each bond was converted into

one equity share of Rs 10 at a premium of Rs 35 per share an on 1st

April.

- Accordingly, the Company allotted 49,90,354 equity shares on

conversion of debentures and 34,84,420 equity shares on conversion

of bonds. The balance amount of each bond and debenture was to be

converted as per the same terms given above at the end of 18 months

from the date of allotment.


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- In order to meet the long term working capital requirements, the

Company issued in January 1991, 14% redeemable non-convertible

debentures aggregating Rs 25 crores to Infrastructure Leasing andFinancial Services, Ltd. on a private placement basis. The debenture

are redeemable in full at premium of 5% on 8th January, 1998.

1992

- It was proposed to launch a new LCV with a much larger platform,

imported driving comfort and better styling.

- The Company issued 72,42,719 - 14.5% secured Non-convertibleredeemable debentures of Rs 100 each with a detachable warrant

attached

to each debenture entitling the holder thereof to apply for 1 equity

share of Rs 10 each at a premium of Rs 20 per share in the ratio 1

debenture: 5 equity shares held, on the expiry of six months and 36

months from the date of allotment of debentures.

- Another 3,62,136 non-convertible debentures with detachablewarrants

were also offered to employees on an equitable basis. Only 2,20,300

debentures taken up.

- 76,04,855 oridinary shares of Rs 10 each at a premium of Rs 20 per

share were to be issued to those exercising the rights attached to

the

warrants between 6 months and 36 months from the date of allotment

ofdebentures. The debentures were to be redeemed not earlier than the

end of 7th year but not later than the end of the 10th year from the

date of allotment of debentures.

1993


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- The Automotive division undertook to introduce a wide range of

products such as mini bus, MM Deluxe, Armada deluxe, Cabking

pick-up,

CL-Classic & a single/double Cab pick-up etc.

- Mahindra Nissan Allwyn Ltd. (MNL) was amalgamated with

Mahindra &

Mahindra Ltd. (MML) with effect from 1st November. Pursuant to the

scheme of amalgamation, the shareholders of MNAL were allotted

9,73,200

equity shares of MML in the ratio of 1 equity share of MML for every

25

shares held in MNAL. With the merger modern automotive plantowned

MNAL became a Unit of the Company's automotive division.

- The Company issued 100,47,043 Global depository receipts valued at

US

$ 74.75 million. Each GDR was issued at a market price of US .44

and

was supported by equal number of underlying shares. Accordingly1,00,47,043 shares were allotted at a premium of Rs 22.50 per share.

1994

- During the year a new Company Mahindra USA Inc. had been

established

in Texas, U.S.A. with the objective of increasing tractor sales in

U.S.

- 9,73,200 shares allotted to the erstwhile sharehodlers of MNAL

11,14,682 shares allotted against the detachable warrants.

35,85,874

shares allotted to Ford Motor Company USA, at a premium of Rs 370

per


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shares. 28,00,000 shares allotted to the promoter group.

1995

- A New LCV model-cabking DI 3150 - with a payload of 2.5 tonnes, a

5-speed transmission and high quality components was launched. Also,a

sporty 4-wheel drive vehicle Mahindra Classic with modern fitments

such

as Vacuum assisted brakes, disc brakes in front, wire wheels & bull

bar

was launched for the domestic market. In addition, a new commander

5-Door Hard Top vehicle, primarily targeted for semi-urban and rural

transportation was introduced.

- Two new models - 365 DI and 585 - DI were also launched in 30-35

HP

and 45-50 HP segments respectively.

- The Company entered into a joint venture agreement with Ford

Motor

Company USA (Ford) for promotion of a new Company for themanufacture

and marketing of Ford range of passenger and other vehicles. The

Company has an equity participation of Rs 160 crores each by Ford

and

the Company.

- 22,71,322 No. of Equity shares allotted in conversion of warrants.

407,17,489 bonus equity shares issued in proportion 2:3.

- The tractor division received the ISO 9001 certification from TUV

of

Germany.

1996


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- The Company proposed to introduce the `Armada Grand' with XD3

diesel

engine, 5 speed BA 10 transmission with air-conditioning and power

steering as standard features. New models like, soft top and FRP

versions of CL/MM 550 models, comfortable 8 seater Armada with DiscBrakes and an optional factory fitted air conditioner, Commander 650

DI

on a longer wheel base and MM 540/550 XDB models with the powerful

2.5

lines XD3 engine and the all-synchromesh 5 speed BA 10 transmission

were launched during the year.

- During July, the Company offered US 0,00,000-5% convertiblenote

during July 9, 2001 came into GDRs each representing one share at a

cover sum price of US .955 per GDR. Till date 15,73,830 shares

issued.

1997

- The Zaheerabad plant and R&D division were awarded Iso 9002 andISO

9001 certification respectively. With the technology received from

Fuji Technica, Japan the company undertook to manufacture dies for

vehicle bodies in the new Die Shop. During the year, 7 new models

to

cater to different nice markets were introduced.

- New products viz. 275 DI TU upgrades B-275 model with increased

powerand 585-C, 585 DI model with constant mesh transmission for ease

operation were introduced.

- M&M is setting up an engineering and product development centre at

Thane to strengthen its technology and designing capacities.


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- M&M is setting up a joint venture with Mondragon Corporation of

Spain

in the area of iron foundry. The joint venture agreement was signed

in

Spain by M-M at an Indo-Spain joint business council meetingorganised

by the Federation of Indian Chambers of Commerce and Industry and

the

Association of Chambers of Commerce and Industry of India.

- M&M is entering into a 50:50 joint venture with the billion

Case

of the US for manufacturing high horse power tractors.

- The M&M-Sealand joint venture is considering introducing a Ro-Ro

(Roll-on, Roll-off) railway service in India.

- The Mahindra group has tied up with Sega Enterprises Ltd and

Mitsubishi Corporation of Japan to form a joint venture (JV) in

India

to develop and launch Sega branded family entertainment centres.

- M&M has signed an agreement with Chemoleums Ltd under which

M&M

will

use a special quality of Chemoleums lubricating oil, Mahindra

Singlestar, for its tractors.

- M&M has signed a wage agreement with its union at its automotive

plant at Kandivali, evolving a Mahindra Production System (MPS)which

is an amalgamation of latest work measurement techniques and Toyota

Production Systems.

1998


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- A joint venture company is being promoted by Mahindra and

Mahindra

Limited, Infrastructure Leasing and Financial Services and Tamil

Nadu

Industrial Development Corporation to set up an industrial park nearChennai to attract auto ancillary units and all categories of

non-polluting industries.

- Utility vehicle manufacturer, Mahindra and Mahindra (M&M) on

May

27

signed a productivity and capacity linked wage agreement with its

union(Bharatiya Kamghar Sena) at its tractor plant at Kandivali.

- M&M has signed new productivity agreements with its workers at the

Kandivli (Mumbai), Nashik and Zaheerabad (Andhra Pradesh) plants.

- Mahindra Ford is likely to sign a MoU with the government to

import

auto kits.

- Mercedes-Benz India Ltd and Mahindra Ford India Ltd have signed a

MoU

with the Directorate-General of Foreign Trade (DGFT), under the new

MoU

policy for car manufacturing in the country.

- Danish company Maersk, Mahindra & Mahindra and the Tamil Nadu

Industrial Development Corporation (Tidco) propose to establish ajoint

venture to develop Colachel on western coast of south Tamil Nadu into

a

hub port.


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- Mahindra & Mahindra (M&M) is all set to float a 50:50 joint

venture

company with the Punjab state government for setting up a hi-tech

agro-commodity exchange in the state.

1999

- M&M has set up a new company - Mahindra Auto Specialities Ltd -

for

bullet-proofing passenger vehicles and providing specialised

services.

M&M has signed an MoU with Plasan Sasa of Israel for design and

development of armoured (bullet proof) solutions on M&M utility

vehicles for use by Indian security forces.

- The Mahindra & Mahindra group and the TVS group have floated a

joint

venture to provide software solutions to the automobile sector.

- Mahindra and Mahindra (M&M) is working towards introducing a

slew

ofmodels in India from the Mitsubishi stables, including its famed

Pajero

brand of multi-utility vehicles (MUVs) and jeeps.

- Mahindra & Mahindra Ltd (M&M) has created a tier-IT structure

under

Mahindra Holdings & Financial Ltd whereby individual subsidiaries

will

tap the capital market depending upon their need for cash.

- Utility vehicle major, Mahindra and Mahindra (M&M), is entering

the

Rs 1,000-crore three-wheeler market for the first time. The company

will launch its first three-wheeler a diesel-driven eight seater


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to

explore the possibility of using Renault petrol engines for M&M's

planned Scorpio utility vehicle.

- The Company has launched a fresh voluntary scheme for employees

inits tractor division. The Scheme will open on June 8 and will

continue

till July 31.

- The Company is set to launch its 2.5-litre multi-utility vehicle,

Bolero.

- The Company launched the 39 HP and 40 HP models of its `BhoomiPutra'

range of tractors.

- The Company has entered into a technical alliance with Austrian

engine manufacturer AVL list GmbH for production of light

commercial

vehicles of 3.5 tonne capacity.

- M&M will launch the LCV under the `Loadking' name in January

next

year.

- M&M has launched its first 60 HP class tractor Arjun 605 DI here,

will from now roll out a new mode very six months.

- The Company the utility vehicle market leader, launch of its

latestUV, the Bolero GLX.

- The Company will launch Scorpio, its urban utility vehicle, by the

end of the year.


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- The Company has launched the first of its new series of Horizin

Tractors, the Mahindra Arjun 605 DI in Andhra Pradesh.

- The Company launched diesel version of Bolero in a short time.

- Mahindra & Mahindra is to go for a expansion, keeping pace withits

plans for the introduction of new models, including the Scorpio.

- Mahindra & Mahindra is likely to introduce agricultural related

implement and equipment in the near fugure.

- Mahindra and Mahindra Limited (M&M) launched yet another range

ofnew

generation tractors to grab a large share of an emerging mature

market.

- The Company has launched its fourth portal business with an

investment of million.

- Mahindra Intertrade, subsidiary of Mahindra & Mahindra, haslaunched

a steel trading portal, steelmartindia.com.

- Fitch Ratings India has assigned `Ind AAA' rating to the proposed

five-year Rs 100-crore non-convertible debenture programme of the

company.

- The Board has approved an ESOS and decided to allot 55,24,219 No.

ofequity shares to the Mahindra & Mahindra Employee Stock Option

Trust.

2001


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- The Company has set up a farm extension services division called

Mahindra Shubh Labh, which will pioneer the building of a chain of

one-stop shops offering a comprehensive range of farm-gate services.

- Mahindra Intertrade, the largest non-automotive company of the

Mahindra & Mahindra group, has entered into a distribution alliancewith Lego.

- Mr. Anand G. Mahindra has been appointed as Vice-Chairman and

Managing Director.

- Mahindra & Mahindra is set to launch three new variants of its

utility vehicle Bolero to boost its presence in the urban segment.

- The strike at the company's Nashik automotive plant which began on

March 4, has been called off with effect from 8th March.

- Credit Rating and Information Services of India Ltd. has revised

the

rating assigned to the company's long-term debentures to `AA+' to

`AAA'.

- Mahindra & Mahindra has tied up with French auto giant Renault for

sourcing petrol engines for its premium utility vehicle Scorpio

which

would be launched later this year.

-The price of Mahindra & Mahindra Ltd (M&M) shares hit a 92-

month

low

on the Bombay Stock Exchange (BSE) on june 14 fuelled by marketapprehensions of a steep fall in the companys sales in May 2001

- Mahindra & Mahindra launched the premium version of its 7 seater

multi-utility vehicle, Bolero GLX.


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2002

-Mahindra & Mahindra Ltd has informed BSE that ICICI Bank Ltd

has

withdrawn the nomination of Mr Inder Chand Jain as their Nominee

Director from the Board of M& M with immediate effect.ConsequentlyMr

Inder Chand Jain ceases to be a Director of Mahindra & Mahindra Ltd

with immediate effect.

-Mahindra & Mahindra Ltd has informed BSE that Mr. David

Friedman

(currently the Alternate Director to Mr.Lewis W. K. Booth) has been

appointed as a Director of the Company w.e.f. October 30, 2002 in thevacancy caused by the cessation of Directorship of Mr. Lewis W.K.

Booth. Mr. V.K. Chanana has been appointed as a Nominee Director of

UTI w.e.f. October 30, 2002 in place of Mr. Sanjiv Kapoor whose

nomination has since been withdrawn by UTI.

2003

-Unleashes MaXX Pik Up utility vehicle- Signed an agreement with Canara Bank . Where in, Canara Bank will

provide loan to those farmers who are willing to buy Mahindra's

tractors and other farm implements.

- Mahindra and Mahindra Ltd on December 24th showcased its new

products, Bolero XL and Bolero XLS, for prospective customers in

Karnataka.

2004

-Mahindra & Mahindra delisting of shares from DSE

-M&M launches two variants of Bolero utility vehicle in TN


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-The former managing director of Rallis India, Mr Rajeev Dubey, is

joining Mahindra & Mahindra Ltd (M&M) as Executive Vice-

President

(Human Resources & Corporate Services). Mr Dubey has previously

held

senior positions at Tata Steel and was the managing director of TataMetaliks.

-Auto giant Mahindra and Mahindra has launched its latest variants of

Bolero XL range here on January 19, 2004, thus heralding its launch

across the State.

-M&M enters into agreement for acquiring majority stake in US based

Bristlecone Inc

-Mahindra & Mahindra Ltd has informed that the equity shares of the

Company have been delisted from Pune Stock Exchange Ltd w.e.f.

January 16, 2004.

-M&M unveils innovation matrix to enhance performance

-Mahindra Special becomes M&M's new IT unit

-Equity shares delisted from Madras Stock Exchange

- tied up with an Iran-based company Barchinkar for localising M&M

tractors in the Iran market

- Mahindra Tractors in accord with Castrol

-M&M rolls out India's first turbo tractor

-Mahindra & Mahindra Ltd has informed that HSBC Global

Investment

Fund has acquired 3,99,825 equity shares of the company through

market on May 17


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-- Andhra Bank has announced that it has joined hands with Mahindra

Tractors for financing the distribution of tractors through the bank

branches across the country

-Mahindra & Mahindra (M&M) has forayed into the Latin Americanmarkets through the opening of an assembly line in Uruguay

-Mahindra & Mahindra Ltd (M&M) on announced its foray into the

South

African automobile market

-Hemant Luthra to head M&M's new MSAT Sector

-Dena Bank inks MoU with M&M for tractor loans

2005

- Mahindra & Mahindra tractors' top dealer in the US has become the

largest tractor dealer in the US, muscling past dealers of John Deer,

New Holland and Kubota.

-M&M forays into Australian tractor market on February 14, 2005.

-Mahindra & Mahindra Ltd (M&M) launches its Common Rail Diesel

Engine (CRDEe) fitted-Scorpio, which conforms to BS III emission

norms on February 22, 2005,

-Mahindra & Mahindra executes JV Agreement with Renault

-Scorpio unveiled in Malaysia on May 4, 2005

-M&M, Renault ink MoU to set up Rs 550 crore car manufacturing

plant

in Nasik


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-M&M introduces new pick-up vehicle on July 6, 2005

-Mahindra unveils 3-wheeler cargo carrier Champion Alfa model

-Mahindra & Mahindra inks a JV with International Truck & EngineCorporation, USA

-Mahindra & Mahindra enters into agreement with Plexion

Technologies,

Mauritius

-M&M has signed a memorandum of understanding with the Saigal

familyof Pakistan for exporting tractors to that country..

2006

-M&M unleashes Scorpio Pik-Up in South Africa

-M&M unveils three-wheeler car

-M&M Hingna unit enters into new new wage agreement

- Mahindra & Mahindra Ltd on Oct 11,2006 signed a agreement with

ITMCo (Iran Tractor Manufacturing Co) to sell tractors in Iran. The

agreement was signed in Tehran.

-Mahindra & Mahindra (M&M) and French automaker Renault have

joined

hands yet again to establish a greenfield passenger car manufacturingplant in India within five years.

- Mahindra & Mahindra inks deal with Global Vehicles USA Inc

2007


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- Mahindra & Mahindra acquires a leading German Forging Company

Schoneweiss & Co. GmbH.

- Mahindra unveils new Bolero in Gujarat.

-Mahindra and Mahindra (M&M) has launched the line of sports

utility

vehicles (SUV) and pick up trucks that it plans to begin selling in

the United States starting from 2009.

- M&M unveils Mahindra Pik-Up in Australia.

-The latest product from Mahindra Defence Systems, the Axe FAV isan

extreme offroading multi terrain defence purpose vehicle.

2008

-Mahindra & Mahindra acquires renowned Italian design house, GRD

Italy.

2009

- Mahindra & Mahindra unveiled its fourth generation Scorpio at an

unbeatable price.

- Mahindra & Mahindra (M&M) signed a memorandum of

understanding with

the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance.

2010

- Mahindra & Mahindra has hiked prices of its products by up to Rs

18,000 due to the in excise duty announced in the Budget.


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- Anand Mahindra, vice-chairman and managing director, M&M, is

keen

on attaining companies that boost M&Ms global aspirations. This can

be done by giving a combination of facilities, technology and dealer

network. Meanwhile, M&M came out as the ideal bidder for getting

holdof a majority stake in Ssangyong Motor Company (SMC).

a project report on csr new sagar

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