Csr Project

COOPERATIVE RESPONSIBILITIES

1. Introduction 2. Definition 3. Historical definition 4. Features of CSR 5. Need of CSR 6. Determinants of CSR 7. Why CSR is so important? 8. Challenges of CSR 9. Introduction of Mahindra co. 10. Mahindra co. and it’s responsibilities 11.

Objective of Study Methodology of Data Collection

12. Limitations of Study

CHAPTER-1

INTRODUCTION

OF

CSR

INTRODUCTION OF CSR :->

CSR is stands for Cooperative Social Responsibity, which means kinds of responsibility of the organization towards the society. It is an evolving fully businesses recognized concept have aset which key ofrole criterion. is yet of job to With command and wealth the given a creation standard understanding in definition society.that or a

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 of into a

business model

corporate

self-regulation

integrated

. 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

CSR-focused businesses would

proactively

public sphere

. Furthermore,

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 of decision-making

public interest

, and the honouring of a

into corporate

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

Strategic management: a stakeholder approach that corporations make more long term profits by operating with a perspective, role attempt powerful of businesses. to pre-empt whilemultinational critics Others the role argue argue of governments that corporations CSRCSR is merely distracts as a watchdog from the economic over .

R. Edward Freeman, in 1984. Proponents argue

window-dressing, or an

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 or protecting 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 of

applied ethicsthat

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 developed the

Principles for Responsible Investment

investing 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 used interchangeably), citizenship, been suggested corporate that including ‘some…researchers…distort social ‘corporate investment,sustainability, the triplethe bottom definition corporate line, socially of

UN has

as guidelines for

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 through

the 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 includes monetary 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 fits very strongly of into our commitment Fair Tradeto our communities." tea and coffee has been adopted by various businesses including

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.

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”. ------------------------------------------------------------------------------------------

According to Wood, “the basic idea of corporate social • responsibility is that businesses and society are interwoven rather than distinct publication -----------------------------------------------------------------------------------------entities. "Making Good Business Sense" by Lord Holme and Richard

Watts, used the following definition.

"Corporate Social Responsibility is the

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

•

Business for Social Responsibility America’s largest organisation devoted to CSR,

Business decision making linked to ethical values,

compliance with legal

requirements, and respect for people,

communities, and the

environment 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. -------------------------------------------------------------------------------------------• CSR is ‘

Anonymous respondent to an

Accountancy Ireland

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 & stakeholders rights.

survey .

CSR IN SOCIETY

CHAPTER-1

HISTORICAL

DEFINITION

OF

CSR

HISTORICAL DEFINITON :->

While the term CSR may appear to be relatively new to the corporate world, the literature reveals that the evolution of the concept itself 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 the role 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 astakeholder responsiveness, rudimentary broad stewardship, approach theory. social to business audit, corporate responsibilities, citizenship including and

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

believed that management’s first responsibility to society involved making 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’. He suggested that some of the most prominent writers during that time were Keith Davis, Joseph W McGuire, William C Frederick and Clarence C Walton. Davis’s 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. Davis’s later assertion that ‘The substance of social responsibility arises from concern for the ethical consequence of one’s 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 society’s 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 corporation’s social responsibilities include that gauge business any a degree direct continues of measurable voluntarism, to puteconomic forth as today. opposed returns’. Walton to coercion’, also counselled an argument ‘the

. While Drucker

1970s The literature on CSR includes many references to Milton Friedman’s ‘minimalist’ view of corporate responsibility and his famous comment in 1970 . It is useful to include the quotation here because it is such a business-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. Friedman’s view has continued to be debated over the decades, for example McAleer, who concluded that Friedman’s 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 Development’s (CED)1971 model of CSR reveals that despite Friedman’s 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 at improving the social environment of the firm’. Carroll describes the CED’s 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 on the public’. and quality politicalofprotests management’s of the civil response rightstoand thepeace changing movements, expectations whenof

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 at free agent. To the extent that any of the

least in some measure a foregoing social objectives are

imposed on the corporation by law, the

corporation exercises no

responsibility when it implements them.

Business therefore abrogates its

responsibility to government and the wider society.

In 1974, Eells and Walton’s 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 a concern 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 business’s role in supporting and improving the social order.

In Sethi’s 1975 three-level model, the concept of corporate social performance is discussed, and distinctions made between various corporate behaviours. Sethi’s 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 Haire’s 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, social responsibility, and 1980s social social action, responsiveness’. public service, corporate citizenship, public

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 firm’s operations.

Freeman’s 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 as corporate 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 Maslow’s’. The authors developed the organisational hierarchy as a conceptual 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 and Development Common compromising Future’. (WCED) the The ability 7published report to meet states those the that Brundtland of ‘Sustainable the future’ Report, (World development ‘Our

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 solved unless 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 socially responsible 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 Hatfield’s 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’.

1990s The 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 broader context model the apex, was than are onjust discussed outcomes a standalone inordepth performance’. definition. in the literature, An The important CSP framework emphasis in her

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 processes help 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 O’Rourke has described as the ‘primary’ stakeholders – the shareholders – ‘the boundary zone of CSR is currently being negotiated’ with companies. O’Rourke writes that: that of shareholder financial

A trend also noteworthy in the late 1990s was activists linking their environmental or social issue to

performance 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 out of the realm traditional Shareholders An issues ofexample for “ethics” Social of profitability, ofResponsibility or shareholder good versus risk activism and bad shareholder behaviour, is the group value and into that,of which was formed in 1994 as aBHP .

result of shareholder concerns about

environmental damage done by the

company in Papua New Guinea. The group has 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, and PaperlinX.

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 governments…The more powerful business becomes in the world, the more responsibility for the wellbeing of 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 highlypublicised 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 Solomon’s opinion that multinational corporations ‘should take responsibility for the improvement of world-wide social and environmental conditions’. Western is quotedoil Windsor as production sayingtakes that projects ‘it this is point socially currently further responsible operating by investigating forina acorporation number examples of toof

concerns about

invest in certain places that some elements of popular opinion find objectionable’. Clearly this illustrates Windsor’s conclusion that ‘There are fundamental differences of opinions and values in the global economy’. Oketch’s 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 more questions 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 that have influenced this move include the appointment of a UK Minster for Corporate Social Responsibility in March 2000; the release of the European Commission’s Green Paper,

Promoting a European

Framework for Corporate Social Responsibility Global Compact regarding

; and the United Nations human rights, labour and the environment.

Such developments are also reflected in between government and CSR has been explored. Corporate Social Responsibility and Financial Implications The 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 ‘The Enron and wealth] collapse Heisbelieves never is a reminder far that away there that inhas the such been increasingly deviation ‘A marked [between competitive tendency responsibility landscape in the

the literature, where the linkage

relevant literature…to 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 that organisations 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, examining the correlation between social responsibility and their stock market performance. He concluded that ‘the public’s 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 company’s 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. positive reputation stakeholders Theattribute authors in the blame suggested eyestoof the that stakeholder company ‘Social investment, concerned’. groups, helps byto establishing mitigate a

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 of

Business

Ethics

Corporate 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-Mart’s environmental reforms and its retrograde labour policies as symbolising was he sees as ‘the selective business ethics that prevail today’. The difficulty in discussing moral/ethical responsibility, of course, is whose morality/ethics? Ryan asks ‘who should be the judge of a company’s 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 of decisions. 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, …in this less-than-perfect-world…, almost might provide exclusively the impetus by financial for real where performance, change success in many the for ability business organizations’. to is show measured that

magazine’s ‘100 Best

Social Licence A recent addition to the vocabulary of CSR is the concept of ‘social licence’. Gunningham et al offered the following description: … social licence…is 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 its activities are accepted by local communities, the wider society, and various constituent groups. Sweeney compares society’s 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 of which 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 that will 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’ is about and with development the ‘social which government, operating acknowledges licence of strong inand to a manner operate’ more andthat sustainable broadly that businesses is anisunwritten attuned society, communities. have tosocial acommunity help shared facilitate contract Simply responsibility expectations defined the

…

Similarly, the Ministerial Council on Mineral and Petroleum Resources defines social licence as:

…the recognition and acceptance of a

company’s contribution to the beyond meeting basic legal maintaining the constructive

community in which it operates, moving requirements, towards developing and relationships with stakeholders necessary for

business to be sustainable. 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 Monsanto’s failure to appreciate the European consumer backlash against genetically modified food and the perception of Nike as an exploiter of labour in impoverished 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 Improving theof company responsibilities status intowards the market. the employees.

•

Helping to solve the social problem.

CHAPTER-1

NEED

OF

CSR

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 for corporate decisions making, which clearly constructs and upholds a organization’s 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 a part.

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.

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.

CHAPTER-1

DETERMINANT

OF

CSR

CHAPTER-1

WHY CSR IS SO

IMPORTANT

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 firm’s 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 people’s 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.

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 good business.

Improve overall management :-> The CSR improving the whole department wise management of the organization.

Improve organization effectiveness.

Decrease risk of adverse publicity.

CHAPTER-1

CHALLENGES

OF

CSR

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 ensure successful implementation There ofisCSR non-availability of well governmental organizations in remote and activities. rural areas that can organized assess andnon

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 leads many non-governmental organizations to involve themselves in eventbased 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 a result, 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, the larger 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 company’s abilities to undertake impact assessment of their initiatives from time to time.

CHAPTER-2

INTRODUCTION

OF

MAHINDRA CO.

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 world’s most Reputable companies & in the Top 10 of Most Reputable Indian Companies.

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 the first 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 tractor in the developes, to India USA with manufacturers and substain other nation. market andMahindra leadership market tractors &ofMahindra over as 25 well year. has as farm aIt100% designs,

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 India for 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 effective from from 1stLtd., November 1st April, the 1977. wholly subsidiary Mahindra Engineering Co. was merged with owned the Company. International

1970 - The name was changed from Mahindra Van Wijk & Visser Ltd. to Mahindra & Mahindra Ltd. This was merged with the Indian National Diesel 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 MSL were share S. A.,allotted of anMML associate 1,88,166 for every of Forasol equity 6 shares S.A., shares held for ofin purchase MML MSL.in of theIle ratio d' Amsterdam of 1 equity

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 and technical 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 to Mahindra & 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 was foracquired one landarig for drilling operations Jwalamukhi, - Thereceived Company off-shore drilling rig Ile d'atAmsterdam

Himachal Pradesh against a tender from ONGC. The Company already entered into an agreement with Forasol S.A., for purchase of a land rig 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 pressing unit 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, the MDI 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 was -rendering convertible The Company service zero issued interest to ONGC 48,16,012-12.5% bonds with ofeffect Rs 90from each. fully9th convertible AnNovember. option was debentures given of

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 the ratio 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 an option 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 debentures of 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 crores of 5% on to UTI, 1stnon-convertible May LIC,1997. ICICI, Army debentures Group for Insurance a total value Fund of andRsGIC 20 and

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 vehicle Armada 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 India Holding, 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, conversion from the date of of debentures the allotment. Company andallotted 34,84,420 49,90,354 equity shares equity on shares conversion on

- 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 and Financial 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-convertible redeemable 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 detachable warrants 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 of debentures. end 1993 of 7th year Thebut debentures not later than werethe to be endredeemed of the 10th notyear earlier from than thethe

- 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 plant owned 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. Accordingly 1,00,47,043 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 11,14,682 per shares allotted allotted against to the erstwhile the detachable sharehodlers warrants. of MNAL

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 the manufacture 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 1996 of

- 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 Disc Brakes 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% convertible note 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 and ISO 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 power and 585-C, operation Thane to strengthen were 585introduced. DI model its technology with constant and designing mesh transmission capacities.for ease

- 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 meeting organised 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) is an amalgamation of latest work measurement techniques and Toyota which 1998

- 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 near Chennai 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 a venture joint hub port.to develop Colachel on western coast of south Tamil Nadu into

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

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 of models 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 agreement the

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 in its 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 `Bhoomi Putra' 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 latest -UV, end Theof the Company the Bolero year. GLX. will launch Scorpio, its urban utility vehicle, by the

- 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 with its 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 of new 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, has launched 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. of equity shares to the Mahindra & Mahindra Employee Stock Option 2001 Trust.

- 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 alliance with 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 92month low on the Bombay Stock Exchange (BSE) on june 14 fuelled by market -apprehensions multi-utility Mahindra &vehicle, Mahindra of a steep Bolero launched fall GLX. in thethe company’s premiumsales version in May of its2001 7 seater

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.Consequently Mr 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 the vacancy 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 -M&M launches & Mahindra two variants delisting of Bolero of shares utility fromvehicle DSE in TN

-The former managing director of Rallis India, Mr Rajeev Dubey, is joining Mahindra & Mahindra Ltd (M&M) as Executive VicePresident (Human Resources & Corporate Services). Mr Dubey has previously held senior positions at Tata Steel and was the managing director of Tata Metaliks.

-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 market on May & Mahindra 17 Ltd has informed that HSBC Global Investment

-- 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 American markets 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 -M&M, in Nasik Renault unveiledink in MoU Malaysia to setonupMay Rs 550 4, 2005 crore car manufacturing

-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 & Engine Corporation, USA

-Mahindra & Mahindra enters into agreement with Plexion Technologies, Mauritius

-M&M has signed a memorandum of understanding with the Saigal family of 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 manufacturing -plant 2007 Mahindra in India & within Mahindra fiveinks years. deal with Global Vehicles USA Inc

- 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 is an 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. - Mahindra 2010 18,000 due to &the Mahindra in excise has duty hiked announced prices ofinitsthe products Budget.by up to Rs

- Anand Mahindra, vice-chairman and managing director, M&M, is keen on attaining companies that boost M&M’s 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 hold of a majority stake in Ssangyong Motor Company (SMC).