a study on csr activities of bajaj auto ltd.

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR
master of management studies (MMS)

SUBMITTED BY
Atul tarwani
M-17-54, 2017 – 2019

IES MANAGEMENT COLLEGE AND RESEARCH CENTRE

BANDRA (W), MUMBAI
 IES Management College and Research Centre
Bandra (W), Mumbai

Students Declaration

I hereby declare that this report, submitted in partial fulfillment of the requirement for the award of
Master of Management Studies (MMS)
, to IES Management College and Research Cen

I further certify that without any objection or condition, subject to the permission of the
company where I did my management project, I grant the rights to IES Management College and
Research Centre to publish any part of the project, if they deem fit in journals/Magazines and
newspapers etc without my permission.

Place: Mumbai _______________________

Date: 28/06/2019 Signature
Atul Tarwani
Select your course M-17-54

i
 Certificate from the Guide

This is to certify that the dissertation submitted in partial fulfilment for the award of
Master of Management Studies (MMS)
of IES Management College and Research Centre is a res
Atul Tarwani

under my supervision and guidance. No part of this report has been submitted for award o

Date:
Place: Mumbai

Signature of the Guide: ______________________

Name of the Guide: Prof. Gazia Sayed

IES Management College and Research Centre

ii
 Acknowledgements

I would like to take this opportunity to acknowledge the effort of all the people who have
given their valuable guidance during the completion of the project. I sincerely appreciate
their support. I express my deepest gratitude and special respect for my faculty guide Prof
Gazia Sayed, , Department of Finance, IES Management College and Research Centre,
Bandra(W) for her exemplary guidance, monitoring and constant encouragement
throughout the course of this project. It is under her valuable guidance, cooperation and
constant supervision I have completed my project. I would also like to thank my family
members and my friends who have been constant source of encouragement and support.

iii
Table of Contents
Executive Summary_______________________________________________________1
1. Chapter 1____________________________________________________________3
1.1. Introduction to the Company_____________________________________________3
About Bajaj Group___________________________________________________________3
About Bajaj Auto Limited_____________________________________________________4
Bajaj Auto Products__________________________________________________________5
1.2. Introduction to the Project_______________________________________________7
2. Chapter 2___________________________________________________________19
2.1. Literature Review______________________________________________________19
3. Chapter 3___________________________________________________________21
3.1. Research Methodology__________________________________________________21
4. Chapter 4___________________________________________________________22
4.1. Data Analysis & Findings_______________________________________________22
5. Chapter 5___________________________________________________________43
5.1. Conclusions___________________________________________________________43
5.1.1. Recommendations_____________________________________________________44
6. References__________________________________________________________45

List of tables:
Table 1: Test table................................................................................................................3

List of figures:
Figure 1: Test figure.............................................................................................................4

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 Executive Summary

As a part of the curriculum of MMS (IV) semester, this project was made to
understand the importance of Corporate Social Responsibility in today’s dynamic
business world. As a management student it is very important to know the
importance of CSR. The practice of Corporate Social Responsibility (CSR) as a
paradigm for firms and businesses to follow has evolved from its early days as a
slogan that was considered trendy by some firms following it to the present day
realities of the 21st century where it is no longer just fashionable but a business
requirement to be socially responsible.

This evolution has been necessitated both due to the myriad problems that we as a
race face which has changed the environment under which firms operate as well as a
realization among business leaders that profit as the sole reason for existence can no
longer hold good.

The entire project is divided into two parts:

1. Understanding the crux of corporate social responsibility and the importance that
it has in today’s context.

2. Various initiatives taken by Bajaj Auto Ltd. that is promoting the welfare of the
society.

Corporate social responsibility refers to business initiatives that benefit the society.
These initiatives fall into three categories, often called the triple bottom line, which
are social, environment and economic. At first, many businesses didn’t take
corporate social responsibility seriously. As consumers have become more educated
and aware, they have begun demanding businesses institute policies that benefit all
of society rather than just the business’ bottom line.

Consumers want to be a part of such a company which they can trust on. Due to this,
the businesses are much inclined towards the sustainability and undertake various
CSR initiatives. In order to remain competitive in today’s marketplace, which is only

1
growing more interwoven with social and environmental issues, businesses must
practice social responsibility. Those that don’t, will be unable to attract or retain top
talent, continue to experience decreased sales, and risk going viral for all the wrong
reasons on social media leading to a damaged reputation.

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 1. Chapter 1
1.1.Introduction to the Company
About Bajaj Group

The Bajaj Group is amongst the top 10 business houses in India. Its
footprint stretches over a wide range of industries, spanning automobiles
(two wheelers manufacturer and three wheelers manufacturer), home
appliances, lighting, iron and steel, insurance, travel and finance. The
group's flagship company, Bajaj Auto, is ranked as the world's fourth
largest three and two wheeler manufacturer and the Bajaj brand is well-
known across several countries in Latin America, Africa, Middle East,
South and South East Asia. (Auto, 2019)

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About Bajaj Auto Limited

Bajaj Auto Limited is an automobile manufacturing company India. The

company is a global two wheelers and three wheeler manufacturing
company. It sells motorcycles and auto rickshaws in India and abroad.
Bajaj Auto is a part of Bajaj Group founded by Jamnalal Bajaj in
Rajasthan in 1940s. Bajaj Auto Limited is based in Pune with three plants
located in different parts of the country. The plants are located in Chakan
(Pune), Waluj (Aurangabad) and Pantnagar (Uttarakhand). The Akurdi
Plant which is Pune is now as the R&D centre for the company.
The Chairman of the company is Mr. Rahul Bajaj and the Managing
Director of the company is Mr. Rajiv Bajaj.
The company is the world’s largest three wheeler manufacturing
company and accounts for almost 84% of India’s three wheeler exports.

Top management of the company:

Rahul Bajaj, Chairman: Mr Rahul Bajaj is recognized as one of the

most successful business leader of India. He heads the Bajaj Group of
Companies which is a leader in a variety of manufactured products and
financial services in India and abroad including motorized 2 and 3-
wheelers, home appliances, electric lamps, wind energy, special alloy and
stainless steel, cranes, forgings, infrastructure development, material
handling equipment, travel, general and life insurance and investment,
consumer finance & asset management. Mr. Bajaj holds an Honours
Degree in Economics from Delhi University, a degree in Law from
Bombay University and an MBA from Harvard Business School. Mr.
Bajaj is the Chairman of the Board of many companies. He was elected to
the Upper House of Parliament (Rajya Sabha 2006 - 2010). Mr. Bajaj
spear-heads the CSR initiatives of the Bajaj Group which include
Jamnalal Bajaj Foundation and Shiksha Mandal and a number of social
organizations including Bharatiya Yuva Shakti Trust and Ruby Hall
Clinic, a large hospital in Pune as their Chairman.

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 Rajiv Bajaj, Managing Director: He graduated first in class, with
distinction, in Mechanical Engineering from the University of Pune in
1988, and then completed his masters in Manufacturing Systems
Engineering, with distinction, from the University of Warwick in 1990.
He has since worked at Bajaj Auto in the areas of Manufacturing &
Supply Chain (1990-95), R+D and Engineering (1995-2000), and
Marketing and Sales (2000-2005), and has been its Managing Director
since April 2005. He has been on the board of Bajaj Auto Ltd since
March 5, 2002. (Auto, 2019)

Shareholding Pattern:

Table 1: Shareholding Pattern

CATEGORY SHAREHOLDING (%)

Promoters 49.3%
FIIs 17.2%
Mutual Funds 2.17%
Insurance Companies 6.24%
Other DIIs 0.1%
Non Institutional Investors 24.99%

Bajaj Auto Products

Motorcycles manufactured by Bajaj Auto:

1. Bajaj CT 100
2. Bajaj Boxer
3. Bajaj Platina
4. Bajaj Discover
5. Bajaj V
6. Bajaj Avenger Street 180
7. Bajaj Avenger Street 220

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8. Bajaj Avenger Cruise 220
9. Bajaj Pulsar 135
10. Bajaj Pulsar 150
11. Bajaj Pulsar 150 Classic Black
12. Bajaj Pulsar 150 Twin Disc
13. Bajaj Pulsar 180
14. Bajaj Pulsar 220F
15. Bajaj Pulsar NS160
16. Bajaj Pulsar NS200
17. Bajaj Pulsar RS200
18. Bajaj Dominar
19. Bajaj KTM

Bajaj Pulsar and Bajaj CT include in the Top 10 Motorcycles sold in

India in 2016-17 and 2017-18.

Three-wheelers manufactured by Bajaj Auto:

1. Bajaj RE Maxima
2. Bajaj RE Optima
3. Bajaj RE Compact
Bajaj Auto has got government approval to sell its Quadricycle ‘Qute’.

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1.2.Introduction to the Project

Corporate social responsibility (CSR) is also often referred to as business

responsibility and an organisation's action on environmental, ethical, social
and economic issues. The terms in the area can seem confusing if you don't
know the jargon - but don't be put off by this. You need to think of CSR
simply as ensuring that your business is aware of its impacts, is accountable
for its actions, and that it undertakes these actions in a responsible manner.
Furthermore, a well-run business is transparent in its decision-making and
processes and this makes for good governance.

CSR can be described as an approach by which a company does the

following:

 Recognises that its activities have a wider impact on the society in

which it operates, and that developments in society in turn impact on
its ability to pursue its business sustainably.
 Actively manages the economic, social, environmental and human
rights impact of its activities both locally and across the world,
basing these on principles which reflect both international values
and the organisations own values (ethics), reaping benefits for both
its own operations and reputation as well as the communities in
which it operates.
 Seeks to achieve these benefits by working closely with other groups
and organisations – local communities, civil society groups, other
businesses and home and host governments.

Where did it come from?

In the 1970s and 80s environmental concerns such as loss of the rainforest
and the effects of pollution led to a recognition that something had to be
done to change the way we were using the planet resources. As a result,

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heads of state came together at Rio, Brazil in 1992 for what was called the
Earth Summit.

At Rio, governments pledged action to stop the unsustainable use of

resources and to promote sustainable development. Put simply, sustainable
development is about society growing in such a way that future generations
are not compromised and have access to the same resources that we have.

For this to happen social, environmental and economic considerations

should be assessed together and not in isolation. The Earth Summit
produced various United Nation conventions including conventions on
biological diversity and climate change. CSR is now sometimes considered
as the business response to the challenge of sustainable development.

The 1990s saw social concerns come to the fore. Poverty and disease
became global concerns, as did examples of poor business practice in
dealing with social issues such as child labour, bribery and corruption that
were exposed by the media. Society began to recognise that governments
alone could not solve these problems.

Indeed the outcomes from the Earth Summit's successor – the World
Summit for Sustainable Development in 2002 – focused on partnerships.
There appeared to be a role for everyone – governments to provide fair and
socially just laws, business to behave responsibly and consumers to think
about their actions by reducing waste or asking questions about how and
where their goods came from.

How and why is it relevant?

As CSR is all about values and accountability then it is also about the
behaviour of your people and the behaviour of your suppliers. In this sense
virtually everything that is found within the HR remit - from training,
recruitment, staff retention, policies, procedures and strategy - involves
CSR.

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Traditionally HR and CSR have been led by the need for compliance and
keeping up with new laws on employment as well as environmental, ethical
and social issues. Increasingly HR managers are crucial to the delivery of
training to deal with these issues in terms of organisational objectives and
strategy.

Equally important is the importance CSR has to recruitment: 75% of UK

professionals take social or ethical considerations into account when
changing employment. Whilst over half of graduates will not work for
companies they believe to be unethical.

Corporate governance is a board level hot topic - you only have to look at
how much publicity the Higgs report on the role of non-executive directors
received – and it will continue to develop, as there is increased recognition
that how an organisation is run is key. This can cover many areas such as
financial integrity, transparency and accountability, leadership from the
board and being employer of choice.

It is central to the implementation of policies and programmes. Having good

corporate governance means that these areas are embedded in the
organisation and deliver to the business and to stakeholder objectives, and
are not just nice-to-have. The HR manager has become central to this role in
helping deliver culturally open and transparent organisations where
dialogue is celebrated not feared.

For a business being CSR compliant is also an exercise in future-proofing

its business as risks and opportunities are identified. Quite often changes
lead to performance improvements such as increased staff retention and
customer satisfaction. Adding this value is one of the main reasons why
CSR is of increasing relevance to the HR manager.

CSR is a crosscutting topic under which numerous issues can be grouped

including training and education, capacity building, leadership, health and
safety, working conditions, human rights, stakeholder engagement and
corporate governance. Large multi-national companies were the first to
identify CSR as a potential tool to improve performance and now through
their supply chain they are asking suppliers to comply to their standards.

9
It is here to stay. In the UK there is a minister responsible for CSR within
the Department for Trade and Industry and there are a plethora of
guidelines, indices, benchmarks, standards and legal codes. The HR
function is becoming central in the delivery of CSR and governance in
organisations, and this series will help you understand why.

Prescribed CSR Spend to Cross INR 50,000 Cr. Mark

As stipulated in the Section 135 of the Companies Act, companies having a

net worth of INR 500 crore (Cr.) or more, a turnover of INR 1000 Cr. or
more, or a net profit of INR 5 Cr. or more in a given financial year are
required to spend 2 percent of their average net profit (of previous three
years) on CSR programmes. Indian companies responded well to the
mandatory CSR with almost INR 8800 Cr. CSR spend in the 1st reporting
year of the CSR compliance.

If we look at the overall CSR ecosystem in India, the total CSR fund
investment by companies in India would cross INR 50,000 Cr. by 31st
March 2019, since the applicability of the mandatory CSR. A large chunk of
this is towards education and skills development projects, followed by
healthcare and sanitation initiatives, both of which are top priorities for the
central government as well

1. CSR compliance in-line with the prescribed CSR/year is going to

increase and would reach in the range of 97-99% by FY 2019-20.
2. Education is the most preferred intervention area for companies,
especially companies with medium CSR budget, and this is expected
to remain the most preferred theme for years to come.
3. CSR compliance level is set to increase, and in-depth (detailed)
disclosures in the annual reports will be a common practice.
4. The average ticket-size of the CSR projects has shown downwards
movement from 2014-15 to 2016-17, but gradually, this will reverse.

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List of CSR Activities as per Schedule VII:

- Eradication of extreme hunger and poverty

- Promotion of education

- Promotion of Gender equity

- Women empowerment

- Reducing child mortality

- Improving maternal health

- Combating HIV-AIDS, malaria and other diseases

- Environmental sustainability

- Employment enhancing vocational skills

- Contribution to Prime Minister’s relief fund and other such state and central
funds

- Social business projects and such other matters as may be prescribed.

Frame-working CSR strategy:

 who it wishes to address i.e. the target group

 where it wishes to work i.e. the geography
 what sectors or issues it wishes to address

The company can implement its CSR activities through the following
methods:

 Directly on its own

 Through its own non-profit foundation set- up so as to facilitate this
initiative
 Through independently registered non-profit organisations that have a
record of at least three years in similar such related activities
 Collaborating or pooling their resources with other companies

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 Only CSR activities undertaken in India will be taken into
consideration
 Activities meant exclusively for employees and their families will not
qualify. (Ltd., October )

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 BAJAJ HOLDINGS & INVESTMENT LIMITED CORPORATE
SOCIAL RESPONSIBILITY POLICY

CSR Policy
A detailed CSR Policy was framed by the Company on 14 May 2014, with approvals
of the CSR Committee and Board of Directors. The Policy, inter alia, covers the
following:

 Philosophy
 Scope
 List of CSR activities
 Modalities of execution of Projects/Programmes
 Implementation through CSR Cell
 Monitoring Assessment of Projects/Programmes

CSR Policy gives an overview of the projects or programmes, which are proposed to
be undertaken by the Company in the coming years. (Auto, Supplementary report to
annual report, 2014)

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 PHILOSOPHY
The Corporate Social responsibility (CSR) activities of Bajaj Group are guided by
the vision and philosophy of its Founding Father, late Shri Jamnalal Bajaj, who
embodied the concept of Trusteeship in business and common good, and laid the
foundation for ethical, value-based and transparent functioning. Bajaj Group, thus,
took the unprecedented step of using business to serve society over a century ago.
Shri Jamnalal Bajaj strongly believed that “common good was more important than
individual gain”. His philosophy has stood the test of time as it has been successfully
taken forward by the succeeding generations i.e. firstly by his sons, Shri Kamalnayan
Bajaj and Shri Ramkrishna Bajaj and now spearheaded by his grandson Shri Rahul
Bajaj. This philanthropic approach has taken the Group to higher levels of success
and respect. Though the Group stands tall in the corporate world, with high ranking
in terms of market capitalization, turnover, profits, range of products and services
and various other parameters, Bajaj Group believes that the true and full measure of
growth, success and progress lies beyond balance sheets or conventional economic
indices. It is best reflected in the difference that business and industry make to the
lives of people. Through its social investments, Bajaj group addresses the needs of
communities residing in the vicinity of its facilities, taking sustainable initiatives in
the areas of health, education, environment conservation, infrastructure and
community development and response to natural calamities. For society, however,
Bajaj is more than a corporate identity. It is a catalyst for social empowerment. It is
the reason behind the smile that lights up a million faces. Its goodwill resonates in
the two simple words that live in the collective consciousness of Indians – Hamara
Bajaj. (Auto, Supplementary report to annual report, 2014)

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 PREAMBLE
The Policy outlines the company’s responsibility as a corporate citizen and lays
down the guidelines and mechanism for undertaking activities for welfare &
sustainable development of the community at large. The core elements of CSR is the
continuing commitment by business to ethical principles, protection of human rights,
care for the environment while improving the quality of life of all the stakeholders
including the local community and society at large. It is Company’s conscious
strategy to design and implement Social Investments / CSR programs, by enriching
value chains that encompass the disadvantaged sections of society, especially those
residing in rural India, through economic empowerment based on grass-root capacity
building. This Policy shall apply to all CSR initiatives and activates taken up at the
various work centres and locations of the company, for the benefit of different
segments of the society, specifically the deprived, under privileged and differently
abled persons. (Auto, Supplementary report to annual report, 2014)

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 SCOPE / LIST OF CSR ACTIVITIES

The company would carry out its CSR activities with the objective of overall
National and Community Development. At the same time, the company would give
preference to the local areas around the locations where it operates in India and in
Wardha (Maharashtra) and Sikar (Rajasthan) districts. where it already has
philanthropic activities, as these two places are the Janmabhoomi and Karmabhoomi
of our founder Jamnalalji Bajaj, for spending the amount earmarked for CSR
activities. The company will undertake CSR activities to do overall good to the
community, with special emphasis on activities for the benefit of the poor and needy
sections of the society.

In particular, the company will undertake CSR activities as specified in Schedule

VII to the Companies Act, 2013, but will not be limited to the following:-

(i) eradicating hunger, poverty and malnutrition, promoting preventive health

care and sanitation and making available safe drinking water;
(ii) promoting education, including special education and employment
enhancing vocation skills especially among children, women, elderly, and
the differently abled and livelihood enhancement projects;
(iii) promoting gender equality, empowering women, setting up homes and
hostels for women and orphans; setting up old age homes, day care centres
and such other facilities for senior citizens and measures for reducing
inequalities faced by socially and economically backward groups;
(iv) ensuring environmental sustainability, ecological balance, protection of flora
and fauna, animal welfare, agro forestry, conservation of natural resources
and maintaining quality of soil, air and water;
(v) protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up
public libraries; promotion and development of traditional arts and
handicrafts;
(vi) measures for the benefit of armed forces veterans, war widows and their
dependents;
(vii) training to promote rural sports, nationally recognized sports, paraolympic
sports and Olympic sports

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(viii) contribution to the Prime Minister’s National Relief Fund or any other fund
set up by the Central Government for socio-economic development and relief
and welfare of the Scheduled Castes, the Scheduled Tribes, other backward
classes, minorities and women;
(ix) contributions or funds provided to technology incubators located within
academic institutions which are approved by the Central Government;
(x) Rural development projects. (Auto, Supplementary report to annual report,
2014)

Without prejudice to the above, following activities, by way of illustration, may also
be carried out by the company, if it deems fit:-

1. Curative health care, surgery, eye donation camps, skin donation camps,
blood donation activities, therapy camps, dental camps, acupressure camps,
cataract camps, etc.
2. To participate in building a healthy community through continuing initiatives
in several areas of healthcare, with a focus on mother & child care and
HIV/AIDS awareness.
3. Literacy / Awareness programmes and activities in various social & well-
being areas.
4. Research activities, economic, industrial, social research, research
professorships, research chair, etc.
5. Furtherance & promotion of recognized ideologies like the Gandhian and
Sarvodaya ideologies, Swami Vivekananda Missions, national integration,
communal harmony etc.
6. Furtherance and promotion of practice of alternative Indian traditional
medical practice such as homeopathy, Ayurveda, siddha, naturopathy and
yoga therapies, for the benefit of community at large.
7. Hostels and boarding rooms, reading rooms, convalescence / asylum rooms
for poor and the needy.
8. Restoration & beautification of a city, town, village, museum, gardens,
parks, public recreation centres etc.
9. Disaster management activities and Relief to victims of natural calamities.

17
 10. Activities relating to irrigation, wells, dams etc. for improving livelihood of
farmers and agriculturists.
11. Promotion of nationally recognized sports (not only training).
12. Infrastructure activities, essentially for helping the poor and the needy

WHAT IS NOT CSR

CSR activities will not, however, include the following:-

 Activities undertaken in pursuance of Company’s normal course of business;

 Activities which benefit only the employees of the company and their
families;
 Contribution directly or indirectly to any political parties.
 Activities undertaken outside the country (Auto, Supplementary report to
annual report, 2014)

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 2. Chapter 2
2.1.Literature Review

The notion of corporate social responsibility has existed for a long period of
time in the literature (Bowen, 1953; Carroll, 1979; Sethi, 1975) and in the
practices of working organizations. Since late 1880s the discussion of social
responsibility has continued and in the last decade companies have started
to take more and more social responsibility (Adamsson & Johansson,
(2008). Originally, businesses were seen strictly as economic entities with
the primary responsibility for producing goods and rendering services
required by a society. This is the classical view held by Milton Friedman
and Hayek, Theodore Levitt and others. However, over time, business came
to see their role in broader perspectives. According to Goyder (1951),
industry in the twentieth century can no longer be regarded as private
arrangement for enriching shareholders. It has become a joint enterprise in
which workers, management, consumers, the local government and trade
union officials, all play a part. Goyder sought to equate the suggestion of a
responsible company with the trusteeship concept advocated by Gandhiji,
the aim of which is to ensure that private property is used for the common
good. Bowen (1953) the first person to initiate the modern attempt to
characterize the doctrine of Corporate Social Responsibility. For Bowen,
the prominence of corporate organizations in society does not only give
them vital power and decision-making, but their activities also affect the
lives of people in great many ways. For these and other reasons, sound
business-society relations are supposed to be established in order for
business activities to conform to societal expectations. Monsen (1963) has
undertaken a study on the level of hierarchy of business activity. He found
out that there are four levels. At the base are managers who feel that society
is well-served as long as the firm obeys the law. At the next level, managers
who go beyond the legal minimum, accepting the need to cater to public
expectation as well and responding to public opinion. At the third level,

19
managers anticipate public expectations, while at the fourth and highest
level, managers themselves create new public expectations by voluntarily
setting and following idealistic standards of moral and social responsibility.
The researcher observed that though the public has set a very low bar for
social responsibility, the organizations have the opportunity to take a more
proactive approach. The study indicated that most people expect
organization to achieve the first two levels of the model suggested by
Monsen. According to Friedman (1971) “Corporate social responsibility is
beyond the basic purpose of business and violates the responsibility of
business to its owners, the stockholders”. He further stated that if the owner
or a manager of a business has independent wealth, he or she is free to
contribute his or her own resources to improve society. However, if the
owner or manager uses corporate funds for the benefit of society without
improving the company’s economic performance, then the shareholders are
being taxed and the company’s resources are being 50 misused. In such a
case, the acceptance of social responsibility by business undercuts economic
performance and borders on illegality because the money that belongs to the
stockholders is being spent without their approval and perhaps in ways that
they would oppose. He rejected any discretionary Corporate Social
Responsibility in favour of strict fiduciary responsibility focused on
economic wealth creation as the best contribution of business i.e. CSR to
the general welfare. Sidney Jones (1971) conducted a study using secondary
data published in Fortune 500 of 55 larger companies (1960-1970) covering
topics such as air pollution control, water pollution control, employee-
disadvantaged worker hiring, visual pollution control, safety, community
involvement – civic, support of education and non-company basic research,
employee – external education and training, community involvement –
urban development and charities and corporate organization for social
responsibility and found that the dominant concerns in 1960 were support of
education, employee education and safety. By 1970, the emphasis had
shifted to pollution control and hiring of the disadvantaged although
concern in almost all areas was up.

20
 Marcel van Marrewijk (2003) has narrowed down the concept of corporate
social responsibility so that it covers three dimensions of corporate action:
economic, social and environmental management. (Shodhganga)

3. Chapter 3

3.1.Research Methodology

The research methodology used in this project is secondary in nature. The

research is done by collecting data from various sources like IBEF reports,
industry research reports, various annual reports and equity research reports.

21
 4. Chapter 4

4.1.Data Analysis & Findings

Bajaj Auto CSR

Bajaj Group believes that the true and full measure of growth, success and progress
lies beyond balance sheets or conventional economic indices. It is best reflected in
the difference that business and industry make to the lives of people.

Through its social investments, Bajaj Group addresses the needs of communities
residing in the vicinity of its facilities, taking sustainable initiatives in the areas of
health, education, environment conservation, infrastructure and community
development, and response to natural calamities.

For society, however, Bajaj is more than a corporate identity. It is a catalyst for
social empowerment. It is the reason behind the smiles that light up a million faces.

Its goodwill resonates in the two simple words that live in the collective
consciousness of Indians Hamara Bajaj.

The Corporate Social Responsibility (CSR) activities of Bajaj Group are guided by
the vision and philosophy of its Founder, late Shri Jamnalal Bajaj, who embodied the
concept of Trusteeship in business and common good, and laid the foundation for
ethical, value-based and transparent functioning.

Bajaj Auto Ltd is involved in the following areas as a part of its CSR:

1. Education
2. Environment and natural Resources
3. Health
4. Women’s Empowerment & Self Reliance
5. Supporting Armed Forces & Veterans

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6. Rural Development (Ltd, 2017)

1. Education

The two flagship projects for Bajaj Auto have been the Bajaj Education Initiative
(BEI) and the e-Learning Project. The BEI covers 76 low cost schools (a mix of
private and government schools) in Pimpri-Chinchwad area of Pune, and
supports them with infrastructure development and capacity building. The e-
Learning project has reached more than 1550 schools till date- covering
Maharashtra and Rajasthan. Both of these are implemented by Jankidevi Bajaj
Gram Vikas Sanstha, our own NGO.

In addition Bajaj Auto has supported school infrastructure development,

vocational training for entrepreneurship, teach-to-lead as well as scholarships for
meritorious students.

Bajaj Auto is also supporting Bhartiya Yuva Shakti Trust (BYST) in training
25000 young persons in Aurangabad and Wardha to create 1000 entrepreneurs in

23
5 years. Over 177 entrepreneurs have been created in first 2 years of the project.
(Ltd, 2017)

2. Environment and natural Resources

The extreme drought faced by many parts of the country, including in

Maharashtra in 2014-15 and 15-16, have highlighted the need for water
conservation and increasing water availability. Bajaj Auto has been working with
Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) on this for a long time and has
now expanded the size and scope of this activity to make it a focus area in the
coming years.

Bajaj Auto, in partnership with other Bajaj group companies, is supporting

JBGVS in launching the Bajaj Water Conservation Project (BWCP) at
Aurangabad. BWCP aims to cover an area of 21,500 ha over the next 4 years
with JBGVS and looking for partner NGO to take up additional 44,000 ha under
Bajaj Water Conservation Project.

In addition Bajaj Auto has supported Paani Foundation for water conservation
work in Maharashtra.

Bajaj Auto has continued its support to Swachh Bharat Abhiyan by taking part in
‘Bajaj Majhi City Taka-Tak’ programme run by CRT, Municipal Corporation,
Aurangabad and CII. This programme aims to make Aurangabad a clean city,
with minimal quantity of garbage going to landfills. Bulk of the wet garbage will
be composted or used for bio-gas production and recyclable wastes will be sent
to a recycling agency. The process is on and is likely to be completed by end
2017.

Bajaj Auto also supported ICRIER in construction of a new Green Building

starting in 2016-17. (Ltd, 2017)

3. Health

24
Bajaj Auto works with a wide array of partners on issues related to Health. The
supported projects include projects on mid-day meals, clean drinking water,
sanitation, blood banks, and path lab services in remote mountain villages, breast
cancer research, and vision care.

Bajaj Auto and YCMH Hospital Pune, in collaboration with NACO, have also
been operating the ART center in YCMH hospital. This center supports more
than 5000 patients currently.

Bajaj Auto has also supported Sri Aurbindo Society, Puducherry, to set up the
“International Center of Excellence for Integral Yoga”. (Ltd, 2017)

4. WOMEN’S EMPOWERMENT & SELF RELIANCE

Bajaj Auto has supported IISER, one of India’s leading research institutes, in
constructing a dedicated Hall of residence for Women Research Scholars. Bajaj
Auto has continued to support the Banasthali Vidyapeeth (a women’s university)
in setting up a Hostel and a Bajaj center for Automation and Bajaj Law School.

Bajaj Auto also supports the Kailash Satyarthi Children’s Foundation in its work
on holistic development and empowerment of children.

5. SUPPORTING ARMED FORCES & VETERANS

Bajaj Auto has contributed Rs 1 Crore to the Armed Forces Flag Day Fund. Bajaj
Auto Has also supported Paraplegic Rehabilitation Center at Khadaki, Pune, with
20 State of the Art wheelchairs.

6. RURAL DEVELOPMENT & OTHER PROJECTS

25
Bajaj Auto has supported Sevagram Pratishthan at Wardha for renovation of
Bapu Kutir and associated buildings. Bajaj Auto has also initiated a partnership
with Raja Dinker Kelkar Museum at Pune for renovation of the museum.

Other supported organisations include Social Work Research Center - Barefoot

College (Tilonia), Development Initiative for Self-Help and Awakening –
DISHA (Pune), Chinmaya Organization for Rural Development (New Delhi),
Prafulla Dahanukar Arts Foundation (Mumbai) etc. (Ltd, 2017)

26
CSR Guiding Principles

The Bajaj Group believes that social investments should

1. Benefit Generations

Bajaj Group believes in “investment in resource creation” for use over

generations. They try and identify sustainable projects which will benefit the
society over long period.

2. Educate for Self-Reliance and Growth

To usher in a growth oriented society and thereby a very strong and prosperous
nation- best way is to educate each and every Indian.

3. Encourage for Self Help

To guide and do hand holding for self-help individually and collectively to create
excellence for self and for the team work.

4. Be Focused

Bajaj Group believes that activities should be focused around locations where
they have their presence and hence effectively guide, monitor and implement
specific projects.

5. Target those who need it most

Care for the section of the society, which is socially and economically at lowest
rung irrespective of their religion or caste or language or color.

6. Sustain natural resources

Bajaj as a group encourages balanced development and ensures least adverse

impact on environment- “Growth with Mother Nature’s blessings”. (Ltd, 2017)

27
Bajaj Grant Programme

The philosophy of social responsibility and commitment to give back to the

society underlines the Bajaj way of conducting its businesses for a number of
decades. Bajaj Group in its quest for nation building has undertaken various
philanthropic activities and social work through its corporate and non-corporate
entities besides providing financial support to such causes. The wide spectrum of
community development endeavors undertaken by Bajaj companies —
embracing everything from health and education to women’s empowerment to
water conservation and more — has touched, and changed, many lives. As a part
of its ongoing social responsibility, Bajaj Auto Ltd proposes to expand its
support to voluntary activities in development sector.

The adjoining sections detail the application process to access Bajaj Grants under
CSR.

Eligibility Criteria

The eligibility criterion for applicant organisation are as follows:

 Is a registered NON-Profit organization in India (Society/ Trust/ Sec.8 or old

Sec.25)
 Has Income Tax registration under 12A AND 80G.
 Complies with any additional requirements for implementing organisations in
the CSR Rules (under Section 135 of Companies Act 2013).
 Has a track record of at least 3 years in working in the thematic area
AND/OR in the proposed geography. Organisations having both will be
preferred. (Ltd, 2017)

28
Preferred thematic areas and Geographies

The preferred sectors (and sub-sectors) for support are:

 Environment & Natural Resources (Soil and Water conservation; farm based
livelihoods; energy)
 Health (Preventive and Curative Health; Drinking Water; Sanitation;
Malnutrition)
 Children (Setting up homes, hostels and shelters; Special education for
differently abled; Healthcare targeted at Children)
 Education (School and Technical education; Out of school education;
Livelihood enhancement;)

Preference will be given to organisations and projects located in the following

geographies:

 Maharashtra
 Uttarakhand and
 Rajasthan (Ltd, 2017)

29
30
CSR for FY18

Sr No Name of the Agency CSR Project Location of the Amount

Project Approved(Cr)
1 Indian Institute of For construction of Pune 20
Science Education and hall of residence for
Research (IISER), Pune girl students

2 Action for Food Bajaj water Aurangabad 7.88

Production (AFRO) conservation project
3 Action for Agricultural Bajaj water Aurangabad 7.79
Renewal in Maharashtra conservation project
(AFARM)
4 RTM Nagpur University, Nagpur university Nagpur 4.75
Nagpur building an
administrative bldg
5 JBGVS – PAAN 1. To render Maharashtra 5
assistance for The
Satyamev Jayate
Water Cup2018. It
covers 100 Talukas
from Vidharbha,
Marathwada and
Western Maharashtra.

2. Paani foundation
will train 5 people per
village on watershed
management and
water conservation
and will encourage the
villagers to do
“Shramdaan”.

3. The top three

villages will get cash
prize of H 50 lakh, H
30 lakh and H 20 lakh
respectively
6 BAIF Institute for Bajaj water Aurangabad 19.09
Sustainable Livelihood conservation project
Development
7 Development Support Bajaj water Aurangabad 15.49
Centre conservation project

31
8 Kailash Satyarthi To render support for PAN - India 2.50
Children’s Foundation, their on-going planned
New Delhi activities that include:
1. Forming child
friendly villages in six
states of India, viz.
Jharkhand, Uttar
Pradesh, Madhya
Pradesh, Karnataka,
Rajasthan and Bihar;

2.Campaigning against
child sexual abuse-
Bharat Yatra; and

3. Conducting
Research in the
domain of Child Abuse
9 Sri Chaitanya Seva Trust, To provide assistance Thane 6
Thane for construction of
new building with
Oncology, Super
Specialty units etc
10 Foundation for To restore water Nine districts of 27
Ecological Security, resources in water Rajasthan,
Anand scarce and ecologically Maharashtra,
degraded dryland Karnataka and
regions Andhra Pradesh
11 Shramjivi Janata To render assistance Man (Dahiwadi) 11.85
Sahayak Mandal (SJSM), for undertaking Tehsil, Satara
Satara Watershed
Development works in
severely drought
affected 4 villages
12 Others Through For different projects, PAN-India 32.68
Implementing agencies, such as Water
such as JBGVS,BAIF Conservation Project,
Institute for Sustainable promotion of
Livelihood livelihood, fostering
Development, Bharatiya entrepreneurship,
Yuva Shakti Trust, sanitation, Education
Teach-to-lead (teach for for slum and deprived
India), Sri Aurobindo children, tree
Society etc. plantation, welfare of
armed forces veterans
etc.

32
Sector-wise/Category-wise summary of direct CSR expenditure
during the year ended 31 March 2017

Sr no. Sector Schedule 7 clause Amt spent during

reference 2019-2017(in
crores)
1 Heathcare (i)
 Sri Aurobindo 5.00
Society, Kolkata
 Grampanchayat 0.60
Mahalunge (via
JBGVS)
 Dr. Babasaheb 0.45
Ambedkar
Vaidyakiya Pratisthan
 Rural Development 0.42
Trust
 Others (ART, Vision 1.28
Spring, Nandalal
Medical Foundation,
etc.)
Sub-Total 7.75
2 Education (i)
 Jankidevi Bajaj Gram 4.16
Vikas Sanstha
(JBGVS)-PCMC
Schools, Pune
 Shiksha Mandal-MP 2.00
Campus
 JBGVS-Waluj 1.21
Schools, Aurangabad

 Sri Aurobindo 1.56

Society, Puducherry
 JBGVS-Sikar, 1.16
Rajasthan

 Bharatiya Yuva 1.05

Shakti Trust (BYST)
 Auroville Foundation, 1.00
Tamil Nadu
 Others (All India Nai 3.25
Talim Samiti,
SAMPARC, Teach-

33
 to-Lead, etc.)
Sub-Total 15.39
3 Welfare of women, children, (iii)
socially and economically
backward groups etc.
 Indian Institute of 20.00
Science Education
and Research (IISER),
Pune
 Kailash Satyarthi 5.50
Children's
Foundation, Delhi
 Banasthali 4.50
Vidyapeeth,
Banasthali, Jaipur
 Others (Valluvar 0.19
Orphanage, SOFOSH
etc.)
Sub-Total 30.19
4 Environment, conservation of (iv)
natural resources etc.
 JBGVS – (BWPC - 30.75
water conservation)
 JBGVS – Paani 2.50
Foundation
 ICRIER – Indian 1.00
Council for Research
on International
Economic Relations
 Others (Gram Vikas 0.18
Trust, Canine Control
and Care etc.)
Sub-Total 34.43
5 Protection of national (v)
heritage, art, culture etc
 Sevagram Pratishthan 1.20

 Prafulla Dahanukar 0.50

 Others (Laxminarayan 0.34

Devasthan, Raja
Dinkar Kelkar
Museum etc.)
Sub-Total 2.04
6 Armed forces veterans' (vi)

34
 welfare
 Armed Forces Flag 1.00
Day Fund
 Paraplegic 0.16
Rehabilitation Centre,
Kirkee, Pune
Sub-Total 1.16
7 Technology incubators (vii)
 Dr. B.A. 0.25
Marathawada
University
Sub-Total 0.25
8 Rural development projects (x)
 Chinmaya 0.50
Organisation for
Rural Development,
Delhi
 JBGVS – Tisgaon 0.25
Kham Project
 Barefoot College, 0.25
Jaipur

Sub-Total 1.00
9 Others (including overheads) 2.53
Sub-Total 94.98

35
Through Group Trusts

Jamnalal Bajaj Sewa Trust

It all began in 1942. The Jamnalal Bajaj Sewa Trust was the first charitable
trust to be formed after Jamnalal’s death at the initiative of Kamalnayan
Bajaj. His entire share in the family wealth made up the initial corpus of the
trust.

 International Sarvodaya Centre - Vishwaneedam

In 1960, at the suggestion of Acharya Vinoba Bhave, the Trust purchased

about 400 acres of land on the outskirts of Bangalore to establish an
International Sarvodaya Centre - Vishwaneedam for promoting agriculture,
dairy development, rural development and training local women and youth
for self-employment by providing them training in the field of tailoring,
computers and knitting. The Trust continued running Balwadis, Gaushala and
English Speaking courses.

 Kamalnayan Bajaj Hall and Art Gallery

The Trust has also been contributing to the promotion of art and culture
through Kamalnayan Bajaj Hall and Art Gallery. Paintings and sculptures
exhibitions, handicrafts display as well as conferences and seminars are
common activities conducted at the Kamalnayan Bajaj Hall.

 Balwadi

Balwadi is a pre-school, where under-privileged children are taught by

trained teachers. The Trust continued running five Balwadis i.e. Bal Sanskar
Kendras in rural areas of Wardha district for poor children below six years of
age.

36
 Hamaara Sapna project

‘Hamaara Sapna’ project, initiated by the Trust, endeavors to uplift the slum
residents of South Mumbai. It has extended its activities from South Mumbai
to Pune by setting up a new center at Aundh, Pune to cover slum residents of
Pune as well. The project involves imparting skill training along with overall
knowledge and hands-on experience to foster a better tomorrow.

37
Jamnalal Bajaj Foundation

In 1976, the Jamnalal Bajaj Foundation was established for promoting

Gandhian constructive programmes and assisting constructive workers, who
devoted themselves to the national cause.

Awards

The Foundation gives four Awards annually - each of the value of H 10 lakh.
Of these, three are given to individuals in India:

 For outstanding contribution in the fields of constructive work on

Gandhian lines
 For application of science and technology for rural development
 For uplift and welfare of women and children
One International Award is given to individuals, other than Indian
citizens from foreign countries for their contribution to the promotion of
Gandhian values outside India

Other charitable activities

The Foundation has given donations to various Institutions / NGOs from time
to time for strengthening their various community welfare activities and
charitable objects of welfare of general public utility, based on Gandhian
philosophy and ideals

38
Some CSR Projects Details:

(i) Project Sector: Environmental Sustainability

Restoring Water Resources

Project budget: Rs 43.69 Cr

Implementing Partners: Paani Foundation, Foundation for Ecological Security ,

Shramjivi Janata Sahayak Mandal (SJSM), BAIF Development Research
Foundation, Bhartiya Yuva Shakti Trust, Teach to Lead, Sri Aurobindo Society

Project Description

Bajaj Auto, in partnership with other Bajaj group companies, is supporting JBGVS
in launching the Bajaj Water Conservation Project (BWCP) at Aurangabad. BWCP
aims to cover an area of 21,500 ha over the next 4 years with JBGVS and looking for
partner NGO to take up additional 44,000 has under Bajaj Water Conservation
Project.

Bajaj Auto has contributed some amount to restore the water resources in water
scarce and ecologically degraded dry land regions, render the assistance for
undertaking watershed development works in severely drought affected 4 villages
and carried out different projects such as water conservation projects, promotion of
Livelihood, Fostering entrepreneurship, sanitation, education for slum and deprived
children, tree plantation, welfare of armed forces veterans etc.

Project Location: Marathwada-Maharashtra, Rajasthan, Karnataka, Andhra

Pradesh, Uttarakhand (Ltd R. C., 2018)

39
(ii) Bajaj Water Conservation Project (2017-18)

Project Budget: INR 24.01 Cr

Implementing Partners: Action for Food Production (AFPRO), Action for

Agricultural Renewal in Maharashtra - AFARM , BAIF Development Research
Foundation, Development Support Center

Project Description

Bajaj Auto has render assistance for The Satyamev Jayate Water Cup 2018. It covers
100 Talukas from Vidharbha, Marathwada and Western Maharashtra.

Paani Foundation trains 5 people per village on watershed development and water
conservation and will encourage the villagers to do Shramdaan

Bajaj Auto has also contributed some amount of money for Water Conservation
Project through Action for Food Production (AFRO), Action Agricultural Renewal
in Maharashtra (AFARM) and Development Support Centre.

Project Location: Aurangabad-Maharashtra

(iii) Child Abuse

Project Sector: Gender, Equality and Women Empowerment, Senior Citizens Care

Project Budget: INR 2.50 Cr

Implementing Partners: Kailash Satyarthi Children’s Foundation

Project Description

Bajaj Auto supports the Kailash Satyarthi Children’s Foundation in its work on
holistic development and empowerment of children. The Projects aims to form child
friendly villages in six states of India viz. Jharkhand, Uttar Pradesh, Madhya
Pradesh, Karnataka, Rajasthan & Bihar. They campaign against child sexual abuse
and conducting research in the domain of child abuse.

40
Project Location: Jharkhand, Uttar Pradesh, Karnataka, Madhya Pradesh,
Rajasthan

(iv) Setting up Homes and Hostels for Women

Project Sector: Gender, Equality and Women Empowerment, Senior Citizens Care

Project Budget: INR 20.00 Cr

Implementing Partners: Indian Institute of Science Education and Research

Project Description

Bajaj Auto has supported IISER, one of India’s leading research institutes, in
constructing a dedicated Hall of residence for Women Research Scholars. Bajaj Auto
has continued to support the Banasthali Vidyapeeth (a women’s university) in setting
up a Hostel and a Bajaj center for Automation and Bajaj Law School. (Ltd R. C.,
2018)

Project Location: Pune-Maharashtra

(v) Education Infrastructure

Project Sector: Education, Employability and Livelihoods Enhancement

Project Budget: INR 5.00 Cr

Implementing Partners: RTM Nagpur University

Project Description

The company has spent some amount of money for building an administrative blog
at Nagpur University

Project Location: Nagpur-Maharashtra, (Ltd R. C., 2018)

41
(vi) Healthcare Infrastructure

Project Sector: Preventive Healthcare and Sanitation

Project Budget: INR 3.00 Cr

Implementing Partners: Sri Chaitanya Seva Trust

Project Description

The company has spent some amount of money for providing assistance for
construction of new building with Oncology, Super Speciality units etc.

Project Location: Thane-Maharashtra. (Ltd R. C., 2018)

42
 5. Chapter 5
5.1.Conclusions

 It is observed that Bajaj Auto Ltd. is enthusiastically involved in social activities

rather than just a profit.
 The company has extended their help in different segments of the society for
the upliftment of people and sustainable development.
 Education, Community development, employment, health and environment
are the major areas where Bajaj Auto Ltd. has showed its concern.
 Bajaj Auto is one of the few companies that has identified the issues of
stakeholders and tried in addressing to meet their expectations.
 Other areas like women empowerment, rural development, tree plantation,
infrastructure, food etc. are the major other areas, where companies can
extend its services.

43
5.1.1. Recommendations

 Constituting a separate committee, preparing exclusive budget,

encouraging employees to involve in their practices are the initiatives can
be taken by the companies.
 Companies can do social benefit programmes in association with NGO’s
and Government institutions.
 Ultimately company can be projected as a good corporate citizen in
protecting the interest of stakeholders.

44
 6. References

Auto, B. (2014). Supplementary report to annual report. Bajaj Auto.

Auto, B. (2019, February). Bajaj Auto Ltd. Retrieved from Bajaj Auto Ltd:
https://www.bajajauto.com/about-us/the-company

Last Name, F. M. (Year). Article Title. Journal Title, Pages From - To.

Last Name, F. M. (Year). Book Title. City Name: Publisher Name.

Ltd, B. A. (2017). Bajaj Auto. Retrieved March 2019, from Corporate Social Responsibility
Areas Bajaj Auto Motorcycles, a Leading Motorcycles Manufactures in India, We
are carrying out various CSR Activities, : https://www.bajajauto.com/corporate-
social-responsibility

Ltd, R. C. (2018, October). CSRBOX. Retrieved March 2019, from CSR projects in India,
Companies CSR activities in India, list of CSR Foundations and CSR Implementing
Agencies, NGOs, social enterprises in India, CSR budget of Indian companies:
https://csrbox.org/India_Company_Bajaj-Auto-Ltd-Maharashtra_57

Ltd., R. C. (October , 2018). CSRBOX. Retrieved March 2019, from CSR projects in India,
Companies CSR activities in India, list of CSR Foundations and CSR Implementing
Agencies, NGOs, social enterprises in India, CSR budget of Indian companies:
https://csrbox.org/

Shodhganga. (n.d.). Literature Review. Retrieved from

http://shodhganga.inflibnet.ac.in/bitstream/10603/5311/10/10_chapter%202.pdf

45