A TERM PAPER ON

OOOOOonON
Social Corporate Responsibility of
Aditya Birla Group

Objective
This term paper is regarding the social corporate responsibility in respect of Aditya
Birla Group.

Introduction
The Aditya Birla Group is India's first truly multinational corporation. Global in vision,
rooted in Indian values, the Group is driven by a performance ethic pegged on value
creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with a market
capitalization of US$ 12 billion, it is anchored by an extraordinary force of 82,000
employees belonging to over 20 different nationalities. Over 23 per cent of its revenues
flow from its operations across the world. The Group's products and services offer
distinctive customer solutions. Its 74 state-of-the-art manufacturing units and sectoral
services span India, Thailand, Laos, Indonesia, Malaysia, Philippines, Egypt, Canada,
Australia
and
China.
A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors
in which it operates. Among these are viscose staple fiber, non-ferrous metals, cement,
viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron,
insulators, financial services, telecom, BPO and IT services.
Globally the group is:
Market leader in viscose staple fiber
The fourth largest producer of insulators

 The fourth largest producer of carbon black

The eleventh largest cement producer
Among the most cost-efficient aluminium and copper producers. The fourth
largest aluminium producer in Asia and the largest single location custom
copper smelter.
Among the best energy-efficient fertilizer plants

Vision
To be a premium global conglomerate with a clear focus on each business.

Mission
To deliver superior value to our customers, shareholders, employees and society at
large.

Values

Integrity
Commitment
Passion
Seamlessness
Speed

History
The Aditya Birla Group, India's first multinational corporation, traces its origins back to
the tiny village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started
cotton trading operations in 1857.

Sectors

The data on this page reflects the Group's operations in India for FY 2003-04

Group Companies

Grasim
Hindalko
Aditya Birla Nuvo
UltraTech
Beside these the group consists of many others.

Management Team
The Aditya Birla Management Corporation Limited is the Group's apex decision-making
body and provides strategic direction to Group companies. Its Board of Directors
comprises:
Mr. Kumar Mangalam Birla
Chairman, The Aditya Birla Group
Dr. Santrupt Misra
Director, Aditya Birla Management Corporation Ltd.
Mr. S. K. Mitra
Director, Financial Services, The Aditya Birla Group

Dr. Bharat K. Singh

Director, Corporate Strategy & Business Development, The Aditya Birla Group

Corporate Social Responsibility

Social and economic policies are becoming inextricably intertwined now a day. Societal
issues such as health, education, and livelihood increasingly influence economic
debates. So a high sense of business ethics, corporate social responsibility, inclusive of
accountability to multiple stakeholders such as shareholders, customers, employees
and the community is on top of every progressive management's agenda.
India's gross domestic product has been growing at nearly a 6 per cent real rate. This
makes it one of the fastest growing economies in the world. India is forecast to become
the world's largest economic power by 2050. This prospective growth affords great
opportunities in lifting its people out of poverty. With commitment and a sense of
urgency, together we can make this happen.
Mrs. Rajashree Birla is the Chairperson of The Aditya Birla Centre for
Community Initiatives and Rural Development

Vision
"To actively contribute to the social and economic development of the
communities in which we operate. In so doing, build a better, sustainable way of
life for the weaker sections of society and raise the country's human development
index."

Beginning
Before Corporate Social Responsibility found a place in corporate world, it was already
textured into Birla Group's value systems. As early as the 1940s, its founding father Shri
G.D Birla espoused the trusteeship concept of management. Simply stated, this entails
that the wealth that one generates and holds is to be held as in a trust for its multiple
stakeholder. With regard to CSR, this means investing part of profits beyond business,
for the larger good of society.
While carrying forward this philosophy, his grandson, Aditya Birla weaved in the concept
of 'sustainable livelihood', which transcended chequebook philanthropy. In his view, it
was unwise to keep on giving endlessly. Instead, he felt that channelizing resources to
ensure that people have the wherewithal to make both ends meet would be more
productive. He would say, "Give a hungry man fish for a day, he will eat it and the next
day, he would be hungry again. Instead if you taught him how to fish, he would be able
to feed himself and his family for a lifetime."

Taking
these
practices
forward,
companys
chairman
Mr. Kumar Mangalam Birla institutionalized the concept of triple bottom line
accountability represented by economic success, environmental responsibility and
social commitment. In a holistic way thus, the interests of all the stakeholders have
been textured into Group's fabric.

Strategy
Companys focus is on the all-round development of the communities around its plants
located mostly in distant rural areas and tribal belts. All its Group companies - Grasim,
Hindalco, Indian Rayon, Indo Gulf and UltraTech have Rural Development Cells which
are the implementation bodies.
Projects are planned after a participatory need assessment of the communities around
the plants. Each project has a one-year and a three-year rolling plan, with milestones
and measurable targets. The objective is to phase out companys presence over a
period of time and hand over the reins of further development to the people. This also
enables it to widen its reach. Along with internal performance assessment mechanisms,
the projects are audited by reputed external agencies, which measure it on qualitative
and quantitative parameters, helping the company gauge the effectiveness and
providing excellent inputs.
Its partners in development are government bodies, district authorities, village
panchayats and the end beneficiaries -- the villagers. The Government has, in their 5year plans; special funds earmarked for human development and company recourse to
many of these. At the same time, it network and collaborate with like-minded bilateral
and unilateral agencies to share ideas, draw from each other's experiences, and ensure
that efforts are not duplicated. At another level, this provides a platform for advocacy.
Some of the agencies the company has collaborated with are UNFPA, SIFSA, CARE
India, and Habitat for Humanity International, Unicef and the World Bank.

Focus Areas
Its rural development activities span five key areas and its single-minded goal here is to
help build model villages that can stand on their own feet.
Education
Health & Family welfare
Sustainable development and livelihood and agriculture and watershed
development.
Infrastructure Development

 Social Causes

1. Education

Balwadis (pre-school)
Adult education

Non-formal education

Continuing education

Scholarships for girls, merit and technical education

The Aditya Birla Group of Schools

The Aditya Birla Group of schools has been functioning in 12 states across India,
within the environs of our group companies. Currently, 40,000 children receive
quality education towards a personally fulfilling and socially useful life.
Every year, group set aside an annual budget of Rs. 20 crore to educate
several thousand rural children and ensure that no compromises are made on
the quality of education imparted.
Aditya Birla Scholarship

The Aditya Birla Scholarship program is not just about academic excellence;
aspiring scholars are evaluated on holistic parameters that take on board their
extra-curricular activities, leadership qualities, values, vision and their dreams.
The 106 Aditya Birla Scholars incubated through this program so far, are doing
us proud with their achievements.

2. Health & Family welfare

Mobile clinics - doctors visit once a week

Medical camps - general and issue-based

Health training and awareness

Sanitation - toilets, training, smokeless chullahs, biogas

Mother and child health

Reproductive health

Awareness building

Aditya Birla Memorial Hospital

The Aditya Birla Memorial Hospital (ABMH) is a multi-speciality medical centre.

The aim is to create a centre of life where elements of nature will augment the
healing environment and offer holistic healthcare under one roof.
In keeping with the traditions of the Aditya Birla Group, ABMH will offer
comprehensive healthcare facilities to all strata of society. Special provisions
will be made for those unable to afford high medical costs.

3. Sustainable development and livelihood and agriculture and watershed

development

Farmer training
Horticulture

Social forestry/ plantation activities/ nursery

Pasture development

Soil and water conservation

Land development

Irrigation

Check dam

SGSY - dairy, readymade garments, jute project, basket making, aggarbati

making, bee keeping, durrie making.

Self-help groups

4. Infrastructure Development

Schools
Water channels

Health centres

Electricity

Culverts

Houses

Community centres

Dams

Roads

5. Social Causes

Awareness drives on knowledge, attitude and practices

Women empowerment

Widow / dowry-less mass marriages

Analysis & Summry

Due to the following basic factors Birla group is motivated for their social responsibility:

Firstly, shareholders expect the Companies in which they invest to be sensitive to

the needs of the society.

Secondly, professionals want increasingly to align with a company that not only
enjoys a reputation for quality products and services but is also committed to
social causes. There is a tremendous feel good factor about such companies.

Customers show a definite preference for companies with a social conscience.

Social projects are also a means of sharing with the community, the values that
an organization stands for.

Benefits to the company itself

Every project when successfully executed brings a humble sense of happiness to

the workers of the company.

A way of living its values.

Above all playing a leadership role even as a respectable caring, corporate

citizen.

Another forward-looking step has been to get its projects audited by reputed external
agencies. They look at its projects and evaluate it on qualitative and quantitative
parameters. They get in touch with its beneficiaries and all of its project partners. Often
the measurement provides them with additional insights. These assist them to retread
their projects going forward.

Comparison between thinking of different heads of the group about social

responsibility

Shri G.D. Birla

He believed in the concept of trusteeship in management. He was the champion of
reforms in the community. He espoused causes like widow remarriages and dowryless
marriages which in the 1930s was viewed as blasphemous. He was opposed to
meaningless rituals. He furthered the cause of the harijans and was President of The All
India Harijan Sevak Samaj. In 1932, he set a new record by proclaiming that all harijans
be given free access to the Birla Schools. He felt that people must be made to stand on
their own feet.

Kumar Mangalam Birla

His vision of Corporate Social Responsibility (CSR) is far more expansive, to include not
only the community but employees, customers and shareholders. Apart from this, his
seminal contribution, has been mandating that a social vision be embedded in the
business vision of each of our Companies, and that social projects be viewed with the
same seriousness as business projects. Hence, for all of us in the Aditya Birla Group,
CSR is very much a part of the overall business portfolio.

Footprints
3700 villages

5 million people
60% BPL (Below Poverty Level) SC (Schedule Casts)/STs (Schedule Tribes)
Annual Spend Rs. 90 crores (equivalent to US$ 20 millions)

Going Forward
1 200 model villages 80 already converted
2 Self reliance in all aspects
1 Ensuring a development stage with village
committees

Recognitions
1 The 1stCSR Asian Award His Excellency
TakshinShinwatra, PM of Thailand Hindalco
2 3rdCSR Asian Award Grasim Nagda
1 The ET Award conferred on our Chairperson as the
Best Corporate Citizen
2 The Prime Ministers Award for Family Planning
3 The FICCI SEDF Award

4 The Bombay Chamber of Commerce Best

Corporate Citizen Award
5 ICMA Award -Grasim

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