The automobile sector in India is the sixth-largest in the world. The country’s share in the automobile industry is set to increase further considering the rising population, rising incomes of people and their need for private transport vehicles. With an increase in their stakes in the Indian market, the CSR investments of auto industry players are also increasing in the country. In this context, let us look at five automobile companies in India that take CSR seriously.
Tata Motors is one brand that takes CSR very seriously. According to its Corporate Social Responsibility (CSR) Report for FY 2019-20, the company made a social investment of Rs. 25.19 crore in the last Financial Year, of which 22.91 crores were toward CSR Programmes & Projects, drinking water projects that are mainstreamed in CSR agenda and one-time investment towards disaster response. A major portion of funds was spent on the CSR programmes which are deployed in the project mode and are part of our Common Minimum Programmes (CMP) and Location-Specific Programmes (LSP).
This sum also includes a part amount of 50% of the total Rs. 1.27 crore that was spent through Sumant Moolgaokar Development (as the company makes a matching contribution towards the voluntary contribution made by employees which were Rs. 65 lakhs in FY 2019-20.). In addition, a sum of ₹ 1.62 crores was dedicated towards Maharashtra Flood Response Programme. This sum was mobilised through voluntary contribution from the employees.
In line with the Tata Group’s vision of promoting community well-being, Tata Motors has actively implemented initiatives under its key thrust areas of Health (Aarogya), Education (Vidyadhanam), Employability (Kaushalya) and Environment (Vasundhara) and Rural Development. The scope and the depth of the CSR programmes of the company have consistently increased and has positively touched 8.3 lakh lives in FY19-20, out of which nearly 41% belong to the SC and ST communities.
Tata Motors has leveraged its sectoral expertise, a dense network of business associates in the value chain to positively impact the lives of the most vulnerable sections of the community. Its unique approach of More from Less for More Philosophy underpins innovative aggregation from all the stakeholders.
The company has mobilised over 59% of the resources through partnerships and collaboration for its project. Over the years, It has been working extensively with underprivileged communities, especially in the vicinity of its plants. As these are located near both rural and urban areas, the CSR programme has progressively developed to better serve their evolving needs. The scope and depth of the company’s engagement for their holistic well-being have consistently increased along with the resource allocation and capital outlay to support this expansion.
In FY19-20, the programmes designed and implemented by Tata Motors positively impacted over 8.3 lakh lives.
Maruti Suzuki has been increasing its CSR expenditure year on year. It solidifies its commitment to CSR by spending almost always, a higher amount than prescribed. For example, in 2019-20, the company spent its full budget of Rs. 168.2 crores on social initiatives.
Maruti Suzuki utilises a major chunk of its CSR energies to road safety since there isn’t much awareness about it in the consciousness of an average Indian. Pedestrians and drivers in the country are known to flout traffic rules in every small town or large metro. To address this, the company has set up driving schools across the country in collaboration with its dealers to impart quality driving training. The company has executed this with the involvement of state governments and the local administration in road safety awareness, thus reducing the number of road accidents and law enforcement.
The company has also included refresher training for autorickshaw, truck and bus drivers under the ambit of its CSR initiatives, with an aim to improve their knowledge of traffic regulation and ensure their own health and safety. Maruti Suzuki CSR projects include road safety awareness campaigns for school children, women and youngsters across various media and social modes.
Skilling is another area of focus in the CSR policy of Maruti Suzuki India, which is expanding the pool of a skilled workforce for the 4IR (Fourth Industrial Revolution). The company has initiated various skill development projects by making good use of Japanese manufacturing practices and international expertise to train and provide industry exposure to young people in India.
The company has introduced courses at the Industrial Training Institutes (ITIs) that is helping in making underprivileged youth employable and also impart soft skills in them such as Kaizen (the timeless Japanese philosophy of continuous improvement).
The company has also introduced some water stewardship and sanitation programmes including safe drinking water provisions, solid and liquid waste management, minimising ODC (Open Defecation) by constructing toilets in people’s homes.
As an automobile manufacturer, Maruti Suzuki corporate social responsibility has also been working to soften the blow for families affected by road accidents. The company has introduced scholarships to support the education and training of children who have lost a parent in an accident-related death are part of the CSR policy.
Hero Moto Corp
Hero Moto Corp has been spending more than the prescribed amount for its CSR initiatives for the last four subsequent financial years. In FY 2019-20, the company spent Rs. 130.61 crores on CSR initiatives.
Being a business leader and a leading motorcycle company in India, Hero MotoCorp believes in ‘Manufacturing Happiness’ through its factories, where there’s complete harmony between man, machine and nature to minimize the impact on the environment and develop a healthy ecosystem. Under its ‘We Care’ CSR programme, Hero MotoCorp has four flagship programmes – Happy Earth, Ride Safe India, Hamari Pari and Educate to Empower. These activities help Hero MotoCorp consolidate its position as the best two-wheeler company in the country.
Amid the COVID-19 pandemic, the company donated more than 30 crores to the PM CARES Fund in order to contribute towards the nation’s fight against pandemic in the last financial year.
The company has also spent a significant amount of more than 22 crores to ensuring environmental sustainability by conducting multiple tree plantation drives near their locations, installing more than 6000 solar street lights and saving more than 3 crore litres of water.
Bajaj auto all of its stakeholders into account in its CSR policy. It is of prime importance for the company to ensure care of human and environmental rights while being ethical. Therefore, the company’s CSR initiatives revolve around the motto – Growth with Mother Nature’s blessings. The company implements its CSR initiatives through NGOs and charitable agencies. Apart from the non-profit sector, the local authorities and civil society groups are also roped in where required for the implementation of certain CSR projects.
Bajaj Auto CSR activities contribute to nation building through empowering and upskilling. “Investment in resource creation” is an important philosophy that the company lives by. This implies benefitting future generations through long-term projects.
Bajaj auto concentrates its CSR activities in the areas where the BAL (Bajaj Auto Limited) has a presence either through offices or factories. Bajaj Auto spent about Rs. 116.23 crores for its CSR initiatives in 2019-20.
Eicher Motors spent about Rs. 55.39 crores for its CSR projects in FY 2019-20. The company has set up a Goodearth Education Foundation, to implement its mission: “To educate India’s children with a special emphasis on the girl child starting with primary education for the rural poor.”
The mission statement has emerged from the deep desire among Founder members of the company to contribute to efforts in the field of education, which they believe is a key area for facilitating change and progress in India. The work of the Foundation has, as its focus, interventions for improvement in quality of education initially in the government primary schools in rural areas.
The company has also conducts its CSR under the aegis of Eicher Group Foundation, which is focused on enhancing education and quality of healthcare facilities throughout the country. The company attributed Rs. 24.44 crores to the foundation in FY 2019-20, to actively work towards ensuring a better world with dedicated programmes focussed on providing electricity in remote villages, vocational training, livelihood, and infant care.