mib questions

7/29/2019 mib questions

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QUES. Explain leadership in international context.

Global organisations face increased challenges and competition so success demands the best

performance that corporate top managers can produce. When these executives work across

multiple borders, they can become global leaders. Succeeding globally means developing a

global view while using local knowledge to understand particular business challenges inmarkets around the world. Executives need to understand different business contexts and be

able to identify opportunities, leading to better business decisions about global markets.

Challenges for global leaders include balancing the benefits of standardisation with the need

for local adaptation,managing virtual teams across geographies and time zones, dealing with

contradictory thoughts and working through ambiguous situations.

Research indicates that global leaders with the skills to deal with complexity and uncertainty

can perform well in global environments, but they can only sustain this level of performance if

they pay attention to their values.

Examples

For instance, an Indian-based multinational company hired a Brazilian executive from a

French corporation to head their China operation. This global leader had learned to build on

his Brazilian habit of developing friendly relationships so that in China he was able to build

networks within the firm and with outside stakeholders such as government, customers, and

suppliers and so expand the business. Brazilian culture highly values relationships, as do Indian

and Chinese cultures so that the need to emphasise smooth interactions and develop friendly

relationships with outside stakeholders - and so on - was familiar.

Paying attention to people this way helped him with his superiors and colleagues in India as

well, since Brazil, China and India are all relationship-based cultures. He also needed to

overcome his original discomfort with risk in order to meet the Indian's expectation of

entrepreneurialism and even more so to show his Chinese colleagues that the company was

ready to grasp opportunities.

Nestl, the Switzerland-based food company hires international management trainees each

year and some are expected to become dedicated expatriates, meaning they can change

location every few years. Additionally, they have the option to develop their careers locally.

Nestl likes its masters in management degree trainees to have international exposure and an

appreciation for local values as most of its brands are adapted for each country. Global brands

such as Kit Kat (chocolate biscuit bar) and Nescaf are localised, for example, the green tea

Kit Kat, available in Japan, reflects the Japanese taste for this beverage while Nescaf coffee

has a localised taste in different countries.


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QUES. Write a short note on any 2 global companies.

INTEL CORPORATION

For nearly 40 years, Intel Corporation has been at the forefront of silicon innovation. Today it

is the world leader in developing technologies, products, and initiatives to continually advance

how people work and live.

Intels early history is legendary. The company was established in 1968 by Robert N. Noyce,

cofounder of the integrated circuit, and Gordon E. Moore, a colleague of Noyces from

Fairchild Semiconductor, to make semiconductor memory more practical and affordable. The

pair quickly won the backing of venture capitalist Art

Rock, who raised $2.5 million in less than two days.

Because the name Moore Noyce was already

trademarked by a hotel chain, the two called theirstartup Intel, short for integrated electronics.Soon

after Intels founding, a third visionary joined the team:

Andrew S. Grove, a Hungarian migr who had played

a critical role in the development of metal oxide

semiconductor (MOS) large scale integrated (LSI)

technology. Not long after that, top engineers Ted Hoff

, Federico Faggin, and Stan Mazor joined the group. In

late 1969, when a Japanese calculator manufacturer,

Busicom, asked the new company to design 12 custom

chips for one of its products, the innovative Intel team

came up with a groundbreaking solution: one chip that

could do the work of 12.

Nine months later, the Intel 4004 was first produced, a

1/8-inch by 1/6-inch chip that contained 2,300 MOS

transistors. This computer on a chip was the worlds

first microprocessor, with all the power of the 3,000-cubic-foot ENIAC computer.

In 1980, the 4004 was followed by the 8080, which was chosen as the central processing unit of

IBMs first personal computer. In 1985 Intel introduced its next-generation Intel386

microprocessor, and in 1993 the companys focus on R&D and manufacturing expertise resulted

in the renowned Pentium microprocessor, whose descendants power performance-intensive

applications today. Intels groundbreaking achievements continue in the new century.

In January 2006, the company announced it had designed what is believed to be the fi rst fully

functional SRAM (static random access memory) chip using 45-nanometer (nm) logic

technology. Then, just a year later, Intel began to implement an innovative combination of

materials that drastically reduced transistor leakage, improving energy efficiency, and

significantly increasing performance in its 45nm process technology. Intel now uses a new


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material based on the element hafnium instead of silicon with a property called high-k for

its transistor gate dialectric, and a new combination of metals for the transistor gate in

portions of the millions of transistors inside a multi-core computer chip, which is about the size

of a postage stamp. According to Gordon Moore, the move to hafnium-based high-k and

metal gate materials marks the biggest change in transistor technology since the introduction

of polysilicon gate MOS transistors in the late 1960s.

Intels new 45nm processor technology is now in production for more than 15 products in its

next generation family of computer chips. With more than 400 million transistors for dual-core

processors and more than 800 million for quad-core, these next generation of Intel Core 2

chips provide greater performance, power-management capabilities, higher core speeds, and

larger caches for desktop, mobile, workstation, and enterprise computers.

And more milestones are ahead including a 32 nanometer (nm) technology with transistors so

small that more than 4 million of them could fit on the period at the end of a sentence on a

printed page. Intel has a long history of translating technology leaps into tangible benefits

that people appreciate, said Bill Holt, vice president and general manager of the IntelTechnology and Manufacturing Group. That forward-looking ethic is reflected in Intels Leap

ahead call to action, inspiring continuing commitment to moving silicon technology forward.

RELIANCE INDUSTRIES LTD.

Reliance Industries Limited (RIL) is an Indian conglomerate

company headquartered in Mumbai, Maharashtra, India. The

company operates through three business segments:

petrochemicals, refining, and oil and gas; other divisions of the

company include textiles, retail business, special economic zone

(SEZ) development and telecom/broadband business. RIL is one of

the largest publicly traded company in India by market

capitalisation and is the second largest company in India by

revenue after Indian Oil Corporation.[2] It is also India's largest

private sector company by revenue and profit. The company is

ranked 99th on Fortune Global 500 list of the world's biggest

corporations for the year 2012.

Products

Though the company's petrochemicals, refining, and oil and gas-

related operations form the incore of its business, other dividors of

the company include cloth, retail business and special economic zone (SEZ) development.

Reliance Retail has entered into the fresh foods market as Reliance Fresh.

RIL is to invest $10 billion over the next few years in its new aerospace division which will

design, develop, manufacture, equipment and components, including airframe, engine,


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radars, avionics and accessories for military and civilian aircraft, helicopters, unmanned

airborne vehicles and aerostats. It had applied for industrial licence in early July 2012. This

decision comes after the creation of Reliance Aerospace Technologies Pvt Ltd and Reliance

Security Solutions Ltd.

Major subsidiaries and associates

Reliance Life Sciences participates in medical, plant and industrial biotechnology

opportunities. Specifically, these relate to biopharmaceuticals, pharmaceuticals, clinical

research services, regenerative medicine, molecular medicine, novel therapeutics, biofuels,

plant biotechnology, and industrial biotechnology.

Reliance Institute of Life Sciences (Rils), established by Dhirubhai Ambani Foundation, is an

institution of higher education in various fields of life sciences and related technologies.

Reliance Logistics (P) Limited is a single-window solutions provider for transportation,

distribution, warehousing, logistics, and supply chain needs, supported by in-house state of theart telematics and telemetry solutions.

Reliance Clinical Research Services (RCRS), a contract research organisation (CRO) and wholly

owned subsidiary of Reliance Life Sciences, has been set up to provide clinical research services

to pharmaceutical, biotechnology, and medical device companies. Reliance Solar, the solar

energy initiative of Reliance, aims to bring solar energy systems and solutions primarily to

remote and rural areas and bring about a transformation in the quality of life. Relicord is a

stem-cell banking service controlled by Reliance Industries. Infotel Broadband is a broadband

service provider which gained 4G licensees for operating across India, now it is wholly owned

by RIL for 48 billion (US$907.2 million).

Reliance Industrial Infrastructure Limited (RIIL) was incorporated in September 1988 as

Chembur Patalganga Pipelines Limited, with the main objective being to build and operate

cross-country pipelines for transporting petroleum products. The company's name was

subsequently changed to CPPL Limited in September 1992, and thereafter to its present name,

Reliance Industrial Infrastructure Limited, in March 1994. It has been promoted by Mr.

Satyapal Jain and his associates. The company set up a 200-millimeter diameter twin pipeline

system that connects the Bharat Petroleum refinery at Mahul, Maharashtra, to Reliance's

petrochemical complex at Patalaganga, Maharashtra. The pipeline carries petroleum

products including naphtha and kerosene. It has commissioned facilities like the supervisory

control and data acquisition system and the cathodic protection system, a jackwell at River

Tapi, and a raw water pipeline system at Hazira. The infrastructure company constructed a

70,000 kiloliter petrochemical product storage and distribution terminal at the Jawaharlal

Nehru Port Trust (JNPT) Area in Maharashtra. ambani RIIL is mainly engaged in the business

of setting up and operating industrial infrastructure. The company is also engaged in related

activities involving leasing and providing services connected with computer software and data

processing.

Reliance Retail is the retail business wing of the Reliance business. Many brands like Reliance

Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance


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Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home

Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel come under the Reliance Retail

brand.

Reliance Industry is the world's largest polyester producer and as a result one of the largest

producers of polyester waste in the world. In order to deal with this large amount of waste,

they had to create a way to recycle the waste. They operate the largest polyester recyclingcentre that uses the polyester waste as a filling and stuffing. They developed an innovative

recycling process resulting in an award in 'Team Excellence'.

Ques. What are ethics in business. Are they universally applicable.

Ethics is a branch of social science. It deals with moral principles and social values. It helps us to

classify, what is good and what is bad? It tells us to do good things and avoid doing bad

things.So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral

and proper and improper human action. In short, ethics means a code of conduct. It is like the10 commandments of holy Bible. It tells a person how to behave with another person.

So, the businessmen must give a regular supply of good quality goods and services at

reasonable prices to their consumers. They must avoid indulging in unfair trade practices like

adulteration, promoting misleading advertisements, cheating in weights and measures, black

marketing, etc. They must give fair wages and provide good working conditions to their

workers. They must not exploit the workers. They must encourage competition in the market.

They must protect the interest of small businessmen. They must avoid unfair competition. They

must avoid monopolies. They must pay all their taxes regularly to the government.

In short, business ethics means to conduct business with a human touch in order to give welfare

to the society.

Features of Business Ethics

Code of conduct : Business ethics is a code of conduct. It tells what to do and what notto do for the welfare of the society. All businessmen must follow this code of conduct.

Based on moral and social values : Business ethics is based on moral and socialvalues. It contains moral and social principles (rules) for doing business. This includes

self-control, consumer protection and welfare, service to society, fair treatment to social

groups, not to exploit others, etc.

Gives protection to social groups : Business ethics give protection to different socialgroups such as consumers, employees, small businessmen, government, shareholders,

creditors, etc.


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Provides basic framework : Business ethics provide a basic framework for doingbusiness. It gives the social cultural, economic, legal and other limits of business. Business

must be conducted within these limits.

Voluntary : Business ethics must be voluntary. The businessmen must accept businessethics on their own. Business ethics must be like self-discipline. It must not be enforced

by law. Requires education and guidance : Businessmen must be given proper education

and guidance before introducing business ethics. The businessmen must be motivated

to use business ethics. They must be informed about the advantages of using business

ethics. Trade Associations and Chambers of Commerce must also play an active role in

this matter.

Relative Term : Business ethics is a relative term. That is, it changes from one businessto another. It also changes from one country to another. What is considered as good in

one country may be taboo in another country.

New concept : Business ethics is a newer concept. It is strictly followed only indeveloped countries. It is not followed properly in poor and developing countries.

Need or Importance of Business Ethics

Stop business malpractices : Some unscrupulous businessmen do businessmalpractices by indulging in unfair trade practices like black-marketing, artificial high

pricing, adulteration, cheating in weights and measures, selling of duplicate and

harmful products, hoarding, etc. These business malpractices are harmful to the

consumers. Business ethics help to stop these business malpractices.

Improve customers' confidence : Business ethics are needed to improve thecustomers' confidence about the quality, quantity, price, etc. of the products. The

customers have more trust and confidence in the businessmen who follow ethical rules.

They feel that such businessmen will not cheat them.

Survival of business : Business ethics are mandatory for the survival of business. Thebusinessmen who do not follow it will have short-term success, but they will fail in the

long run. This is because they can cheat a consumer only once. After that, the consumer

will not buy goods from that businessman. He will also tell others not to buy from that

businessman. So this will defame his image and provoke a negative publicity. This will

result in failure of the business. Therefore, if the businessmen do not follow ethical rules,

he will fail in the market. So, it is always better to follow appropriate code of conduct

to survive in the market. Safeguarding consumers' rights : The consumer has many rights such as right to

health and safety, right to be informed, right to choose, right to be heard, right toredress, etc. But many businessmen do not respect and protect these rights. Business

ethics are must to safeguard these rights of the consumers.

Protecting employees and shareholders : Business ethics are required to protectthe interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects

them from exploitation through unfair trade practices.

Develops good relations : Business ethics are important to develop good andfriendly relations between business and society. This will result in a regular supply of


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good quality goods and services at low

prices to the society. It will also result in

profits for the businesses thereby

resulting in growth of economy.

Creates good image : Business ethicscreate a good image for the businessand businessmen. If the businessmen

follow all ethical rules, then they will

be fully accepted and not criticised by

the society. The society will always

support those businessmen who follow

this necessary code of conduct.

Smooth functioning : If the businessfollows all the business ethics, then the

employees, shareholders, consumers,

dealers and suppliers will all be happy.

So they will give full cooperation to the

business. This will result in smooth

functioning of the business. So, the

business will grow, expand and

diversify easily and quickly. It will have

more sales and more profits.

Consumer movement : Businessethics are gaining importance because

of the growth of the consumer movement. Today, the consumers are aware of their

rights. Now they are more organised and hence cannot be cheated easily. They take

actions against those businessmen who indulge in bad business practices. They boycott

poor quality, harmful, high-priced and counterfeit (duplicate) goods. Therefore, the

only way to survive in business is to be honest and fair. Consumer satisfaction : Today, the consumer is the king of the market. Any business

simply cannot survive without the consumers. Therefore, the main aim or objective of

business is consumer satisfaction. If the consumer is not satisfied, then there will be no

sales and thus no profits too. Consumer will be satisfied only if the business follows all

the business ethics, and hence are highly needed.

Importance of labour : Labour, i.e. employees or workers play a very crucial role inthe success of a business. Therefore, business must use business ethics while dealing with

the employees. The business must give them proper wages and salaries and provide

them with better working conditions. There must be good relations between employer

and employees. The employees must also be given proper welfare facilities.

Healthy competition : The business must use business ethics while dealing with thecompetitors. They must have healthy competition with the competitors. They must not

do cut-throat competition. Similarly, they must give equal opportunities to small-scale

business. They must avoid monopoly. This is because a monopoly is harmful to the

consumers


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While business ethics emerged as a field in the 1970s, international business ethics did not

emerge until the late 1990s, looking back on the international developments of that

decade.[204] Many new practical issues arose out of the international context of business.

Theoretical issues such as cultural relativity of ethical values receive more emphasis in this field.

Other, older issues can be grouped here as well. Issues and subfields include:

The search for universal values as a basis for international commercial behaviour. Comparison of business ethical traditions in different countries. Also on the basis of their

respective GDP and [Corruption rankings].

Comparison of business ethical traditions from various religious perspectives. Ethical issues arising out of international business transactions; e.g., bioprospecting and

biopiracy in the pharmaceutical industry; the fair trade movement; transfer pricing.

Issues such as globalization and cultural imperialism. Varying global standardse.g., the use of child labor. The way in which multinationals take advantage of international differences, such as

outsourcing production (e.g. clothes) and services (e.g. call centres) to low-wage

countries. The permissibility of international commerce with pariah states.

The success of any business depends on its financial performance. Financial accounting helps

the management to report and also control the business performance.

The information regarding the financial performance of the company plays an important role

in enabling people to take right decision about the company. Therefore, it becomes necessary

to understand how to record based on accounting conventions and concepts ensure

unambling and accurate records.

Foreign countries often use dumping as a competitive threat, selling products at prices lower

than their normal value. This can lead to problems in domestic markets. It becomes difficult for

these markets to compete with the pricing set by foreign markets. In 2009, the International

Trade Commission has been researching anti-dumping laws. Dumping is often seen as an

ethical issue, as larger companies are taking advantage of other less economically advanced

companies.


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QUES. What are social responsibilities of Corporate of Business houses. Name a few initiatives

of 5 global companies.

INTRODUCTION

Corporate Social Responsibility is on the rise all over the world and in India also. Over the past

decades a growing number of companies have recognized the business benefits of CSR policies

and practices..

Civil Societies, consumers and other actors have increased pressure on companies to adhere to

social and environmental standards and this pressure has impact on the business in India.

The ideas of CSR can be discerned from the three words contained within its title phrase:Corporate' ,'Social' and 'Responsibility. Therefore in a broader senses CSR covers the

responsibilities corporations have towards society within which they are based and operate,not denying the fact that the purview of CSR goes much beyond this.

Over the past decades a growing number of companies have recognized the business benefitsof CSR policies and practices.

Their experiences have been bolstered by a growing body of empirical studies whichdemonstrate that CSR has a positive impact on business Economic performance and it is notharmful to shareholder value.

Companies have also been encouraged to adopt and/or expand CSR efforts as a result of

pressures from Customers, suppliers, Employees, Communities, investors, activist, organization,and other stakeholders.

Relevance of CSR today

CSR as a strategy is becoming increasingly important for businesses today because of theseidentifiable trends.

1. Changing Social ExpectationsConsumers and society in general expect more from the companies whose products they buy.This sense has increased in the light of recent corporate scandals, which reduced public trust of

corporations, and reduced public confidence in the ability of regulatory bodies andorganizations to control corporate excess.

2. Increasing Affluence

This is true within developed nations, but also in comparison to developing nations society inneed of work and inward investment is less likely to enforce strict regulations and penalize

organizations that might take their business and money elsewhere.


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Benefits of CSR

1. Improved Financial Performance

An recent study has found that Stake holder balanced companies showed four times the

growth rate and eight times employment growth ,when compared to companies that focusedonly on shareholders and profit maximization.

2. Enhanced Brand Image and Reputation

A company considered socially responsible can benefit both by its enhanced Reputation withthe Public as well its reputation within the business.

3. Increased sales and customer loyalty.

A number of studies have suggested a large and growing market for the products and services

of companies to be socially responsible.

4. Increased ability to attract and retain employees.

Companies perceived to have strong CSr commitments often found it easier to recruit

employees particularly in tight labour markets. Retention levels are higher too.

5. Reduced Regulatory oversight

Companies that demonstrate that they are engaging in practices that satisfy and go beyondregulatory compliance requirements are given less scrutiny and more free reign by both

National and Local Government Entities.

6. Easier access to Capital

It is clear that companies addressing ethical, social and environmental responsibilities have

rapidly growing access to capital that might not otherwise have been available.

CSR in India

Corporate Social Responsibility is on the rise all over the world and in India also. Civil Societies,consumers and other actors have increased pressure on companies to adhere to social andenvironmental standards and this pressure has impact on the business in India. Limits of

regulatory initiatives, changing nature of judicial activism, governments greater relevance onprivate enterprises etc. places greater responsibility on voluntary approaches as an alternativemeans of building social rights.


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Observations from Full O Dreamz CSR Rating of India's 500 largest companies:

Most companies are not doing any CSR. Many companies are only making token gestures towards CSR in tangential ways such

as donations to charitable trusts or NGOs, sponsorship of events, etc.

Most companies believe that charity and philanthropy equals to CSR; very fewcompanies are using their core competence to benefit the community.

Most companies use CSR as a marketing tool to further spread the word about theirbusiness. For instance, donation of a token amount to some cause on purchase of a

particular product. The fact that companies are hiring advertising agencies for their

CSR further highlights this.

Only Few Indian companies (from this study) publish a Corporate Sustainability Reportto measure and assess the impact of their business on the environment.

Very few companies openly state the processes followed by them, the damage causedby these processes, and the steps taken to minimize this damage.

Very few companies state how much they spend on CSR. There is no mention of theamount spent in any of their balance sheets or annual reports. Most companies just list

and describe their CSR activities and seem to be spending minimal amounts on CSR.

Very few companies are engaged in CSR activities in the local communities where theyare based.

Very few companies have a clearly defined CSR philosophy. Most implement their CSRin an ad-hoc manner, unconnected with their business process.

Most companies spread their CSR funds thinly across many activities, thus somewherelosing the purpose of undertaking that activity.

Most companies appear reluctant to themselves fulfill their CSR unless it is mandatoryby law.

Generally speaking, most companies seem either unaware or dont care about CSR.However, all companies can be considered to be an upward learning curve with

respect to CSR and it is expected that the situation will improve.

Initiatives in some Indian Companies

ACC Limited -CSR Activities

ACC has undertaken social volunteering practices almost from its inception, long before the

term corporate social responsibility was coined. The companys earliest initiatives in community

development date back to the 1940's in a village on the outskirts of Mumbai while the first

formal Village Welfare Scheme was launched in 1952. The community living around many of

our factories comprises the weakest sections of rural and tribal India with no access to basicamenities.

Corporate Social Responsibility Policy

The Company shall continue to have among its objectives the promotion and growth ofthe national economy through increased productivity, effective utilization of material andmanpower resources and continued application of modern scientific and managerial


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techniques, in keeping with the national aspiration; and the Company shall continue to bemindful of its social and moral responsibilities to consumers, employees, shareholders, societyand the local community.

Community & Rural Welfare

ACC community development activities revolve around the under-privileged community that

lives in the immediate vicinity of our cement plants and is thus more dependent on us. Therange of our activities begins with extending educational and medical facilities and goes on tocover vocational guidance and supporting employment-oriented and income-generationprojects like agriculture, animal husbandry, cottage industries by developing local skills, usinglocal raw materials and helping create marketing outlets. At all our cement factories we shareour amenities and facilities with members of the local community. This includes sharing

education and medical facilities, sports and recreation. Wherever possible we share access toBore Wells, drinking water and the usage of colony roads.

Education

Education is imparted not only to children of ACC employees but also more importantly tochildren from rural areas who do not have access to any medium of information or education.ACC schools maintain high standards and are open to other children of the vicinity. Often

these schools are the most preferred centers of learning in the district and adjoining areas.Wherever possible, ACC provides funds and infrastructure to help set up local schools, collegesand centers for learning and education.

Healthcare

ACC takes pride in providing various forms of medical assistance to the families of our

employees and also to all those living in surrounding villages. Each factory has a medicalcenter with full-fledged doctors and the latest of basic equipment. Mobile medical services areprovided in the vicinity and regular medical camps are held to eradicate diseases, offers

medical help, treatment and preventive care.

ACC has come out to provide support to the State and National health initiatives such as the

eradication of malaria, dengue fever and the dreaded HIV.

Hindustan Latex Limited - CSR Activities

Hindustan Latex Limited, a public sector company established more than three decades ago,came to occupy a premier position in the countrys family planning and health care programs.The company not only established itself as the leader in the segment of manufacture ofcontraceptives, but also diversified into manufacturing and marketing of other related health

care products . Social marketing became one of the key areas of the company to ensure thatquality contraceptives are available to the people at an affordable price at an arms length of

desire.


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Though the direct marketing operations of the company were doing very well, over the years,the company realized that its social obligation being paramount, the company could not lookat profitability alone, which was however being sustained through its exports and directmarketing. The company realized the need for family planning and healthcare programs

aimed at the poor and disadvantaged sections of the society. Hindustan Latex Limited thusventured into social sector projects aimed at creating a planned social change. It was with thisobjective that HLL formed the Hindustan Latex Family Planning Promotion Trust, a non-

profit organization promoted by HLL.

Since its establishment in 1992, HLFPPT has been undertaking the conceptualization andimplementation of various Social Sector Projects. The Trusts area of operations extends to thevarious states of India. Although the Trust was established for promoting the agenda of family

planning, the Trusts activities have now been broad based to focus on reproductive andsexual health. The Trust is expected to develop into a major civil society participant working inthe health sector, in partnership with a range of development actors.

Kanoria Chemicals Industries Limited

Kanoria Chemicals Industries Limited is a major player in the Indian Chemical Industry,generating a sales turnover of about US$ 70million. The company's history dates back to 1962,

starting its operations in Renukoot ( the eastern region of India) as a single product company.At present, KCIL has transformed itself into a multi-product, multi-location group and hasestablished itself as a pioneer in its field. Working on the philosophy of 'Pioneering growththrough technology' every single plant at KCIL has been set up with the best technology the

world has to offer. Without compromising the core values of business ethics, the group hasachieved impressive value additions resulting from the strategy of forward and backward

integration in its manufacturing operations.

The company is involved in various community development initiatives and has adoptedvillages around their plants for development activities. The focus areas are community services

which include social development schemes like educational activities, medical programmesand cultural activities. Agricultural and environmental activities which include tree plantationdrives and water resource programmes, self employment schemes which include training

programmes for various income generation activities like tailoring, basket making, waxfarming etc.

The company has built a nationally recognised school and an in-house hospital that caters tothe educational and health needs of the local community in which it operates. The company

has also planted around 2.75 lakh trees in its premises reiterating the company's commitmenttowards environment.


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HEG Limited - Environmental & Social Initiatives

Ecological impact: The Company is completely conscious of the environmental impact its

operations and actions can have on its surroundings. To counter this effect, HEG has in placeefficient systems to reduce any undesirable fallout from its processes. HEG is an ISO-14001

certified company since June 2005. The Company has taken up the responsibility to furtherimprove the ecological conditions around its facilities, by implementing a widespread

forestation programme.HEG's Mandideep manufacturing complex is testimony to how serious the Company is

towards improving the environment around its facilities. The Mandideep facility is considered

one of the cleanest graphite electrode plants in the world, when seen in the light of thematerials used and the products manufactured in the graphite plant.

The Company also believes in recycling and reusing any byproducts from its manufacturingprocesses. The Waste Heat Recovery System (WHRS) power plant is a fine example of this fact,as it makes productive use of the heat generated by waste gases that are released during the

manufacture of sponge iron.

Community Outreach

HEG believes that local communities have a vital role to play in creation of wealth and todevelop local society. HEG has various programmes to better their standard of living. To

encourage education and the general welfare of people in Mandideep and its surroundings, anon-profit body Graphite Education & Welfare Society, was established in 1981. The Companyoperates a Graphite Primary School in HEG, Mandieep. HEG and its employees regularly

come together to conduct medical camps, socio-cultural activities and other community work,often in partnership with local authorities and NGOs undertaking several CSR activities on a

significant scale since its establishment in 1991.

The Foundation works with the deprived sections of society wherever the Group starts businessoperations. It focuses on four specific areas: Education; Health, Hygiene and Sanitation;Empowerment & Livelihoods and Community Based Programme.

Today the Foundation activities span the length and breadth of the country with ongoing

initiatives in Rajam, Rajamundry, Chennai, Hyderabad, Delhi, Mangalore, Uttaranchal,Bangalore.

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