A Project Report Merc

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A PROJECT REPORT

ON

Corporate Social Responsibility on

MERCEDES-BENZ

By

PARAG RANE

PGDM (2011-13)

Roll no. 56

IN PARTIAL FULFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT PROGRAME

OF

Atharva School Of Business, Mumbai,Maharashtra

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DECLARATION

I hereby declare that the Project Report titled

An Corporate Social Responsibility On

MERCEDES-BENZ is an original work done

by me, submitted in partial fulfillment of the

requirement for the award of the degree of

Master of Business Administration to Atharva

Institute of management Studies, Mumbai,

under the guidance of Prof. Dr. Rekha

Shenoy. The Information submitted is true &

original to the best of my knowledge.

Place: Mumbai

Date: Signature:

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CERTIFICATE

This is to certify that the Project titled Corporate

Social Responsibility On MERCEDES-BENZ

submitted in partial fulfillment of the requirements for

the award of degree of Master of Business

Administration to Atharva Institute of management

Studies, Mumbai is a record of original work carriedout byMr. Parag Rane underthe guidance ofProf.

Dr. Rekha Shenoyduring the academic year 2011-

2013. This has not been submitted to any other

university or institution for the award of any degree/

diploma/ certificate.

___________ __________

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(Director) (Project Guide)

Date: Date:

ACKNOWLEDGEMENT

Success is not a destination, but a journey it is often

said. I realized it even better during my Project at

CSR in MERCEDES-BENZ. When I completed this

journey, I may not have come this far in my learning

without help, guidance and support of certain people

who acted as guides, friends and torch bearers along

the way. We wish to express our gratitude to our

faculty Atharva Institute of management Studies,

Mumbai, for having given us an opportunity to gothrough this project and extend our learning beyond

the academic curriculum and to my guide

___________________________ who has been a source of

constant inspiration for me. I shall be indebted to him

for his guidance, co-operation and confidence .The

guidance and support received from all colleagues

and classmates who contributed to this project, was

vital success of the project.

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CONTENTS

1. Introduction Corporate Social responsibility (CSR)..Page 06

2. Objective of theReportPage11

3. Methodology..Page 12

4. Corporate Social Responsibility- IndiaPerspective..Page 13

5. About Company MERCEDES BENZ(a) History

..Page 15(b) Subsidiaries and

Alliances........Page 15(c) Quality

Ranking.............

Page 16(d) Models..Page 17

6. CSR Activity in INDIA(a) Role of

CSR.Page 19

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(b) CSRUnderstanding..Page 20

(c) Expectations towards

Company.Page 20(d) BasicConditions.Page 21

7. Area of ActivityA.Poverty...

...........Page 24B.Education

Page 26C.Health

Page 29D.Participation in

Society.Page 32E. Environment

.Page 34F. Others

Page 368. CSR Activities in Rest of the

WORLD..Page 39

9.Conclusion.Page 50

An Introduction - Corporate Social

Responsibility

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Corporate Social Responsibility (CSR) is the commitment by

business to behave ethically and contribute to economic

development while improving the quality of life of workforce

and their families as well as of the local society.

CSR is not charity. Charity means selflessly donating money,

effort, time for needy. CSR is also aiming at social cause but

is not a total selfless act.

Looking at the individual words and their contextual

meaning:

Corporate organized business

Social dealing with people/ society

Responsibility accountability between corporation and

society

At one end of the spectrum, CSR can be viewed simply as a

collection of good citizenship activities being engaged by

various organizations. At the other end, it can be a way of

doing business that has significant impact on society. Some

might say that it is easy for corporate houses to support CSR

when the economy is growing at 8-9 per cent. The real test

is what happens to CSR budgets during an economic

downturn.

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Most villages in India need basic infrastructures like schools,

medical facilities, vocational centers, parks, computer

centers, counseling centers for employment. This needs the

cooperation of NGOs, government organizations and

corporations that can together create complete and

empowered villages. With the involvement of more and

more companies, a sense of competition would arise as they

would eventually vie for honors that would create a win-win

situation for all.

In the context of CSR, another very important issue is

Sustainability. A very recent move by the Ministry of

Company Affairs deserves a special mention here. The

Ministry of Corporate Affairs (MCA) has taken the "Green

Initiative in the Corporate Governance" by allowing paper

less compliances by companies through electronic mode.

This move by the Ministry is welcome since it will benefit the

society at large through reduction in paper consumption and

would contribute towards a sustainable greener

environment.

In 2008, for the first time in India, a move to measure

performance of businesses in sustainable development was

launched and the measure was termed Sustainable

Development Index (SDI)

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Objectives of CSR Policy

CSR policy aims to uphold commitment to complement

the efforts of the Government in the nation-building

process.

The policy aims at providing localized rural employment

and livelihood opportunities to empower rural

communities. It also aims at improving the lifestyle of

rural people.

The policy aims at creating business leadership

ensuring social and environmental sustainability in a

responsible manner.

The policy adopts triple bottom line accounting

methods expanding the traditional reporting framework

to take into account environmental and social

performance in addition to financial performance. The policy aims to create sustainable economies and

transform stagnant lives into active partnerships

through synergized proactive handholding in areas of

infrastructure, education, training, health and

environment. The policy also aims at fostering

innovation by partnering with Indian universities and

providing digital inclusion for people who do not have

access to Information and Communication Technologies

(ICT).

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The policy pledges to work with international

communities towards mitigating global, human and

environmental concerns.

CSR Virtue Matrix

It depicts the forces that generate CSR

Civil foundation CSR at most meets the societysbaseline expectations.

Instrumental CSR serves the cause of maintaining orenhancing shareholders value.

Frontier Innovations in CSR

Intrinsic CSR practices are a result of behaviortowards advancing corporations strategy

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Motivation for Corporate SocialResponsibility

Because of the growing size and power of multinational

corporate houses, bond rating agencies and investment

funds are exerting increasing influence. In particular, they

are demanding an accounting for non-financial measures of

value creation as they seek to determine risk premiums.

These include an assessment of CSR activities, as well asgovernance practices, management of intellectual capital,

and transparency in reporting. The FIIs now consider CSR

activity when deciding whether to invest in public traded

companies.

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OBJECTIVE OF THE REPORT

I have created this report to provide an integratedover all view of

All the aspects such as Economic, Environmental andSocial aspects of MERCEDES-BENZ business activitiesand products. This report gives us the externalreflection of the companies CODE OF BUSINESSCONDUCTS AND ETHICS.

This CORPORATE SOCIAL RESPONSIBILITY consists of

the action taken for:

Giving more care to environmentalparameters.

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Promoting the health and well being of thesociety.

Healthy and Hygiene Education.

Economic Empowerment.

Methodology

The research on this project has been done by

using secondary data. Secondary data is a

data which is already collected by someone

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and then it is reused by some one else for their

research work.

The secondary data used in this project

research is the MERCEDES-BENZ and different

books on CSR.

Corporate Social Responsibility - India Perspective

The first concern of a company is the happiness to

people connected to it.

The companies have understood that the retention of

market depends upon productivity, goodwill, quality of their

product, which can be expected from the people associated

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to them. "The first concern of a company is the happiness to

people connected to it" explains clearly about the major

concern related to people of the organization, future

challenges, corporate insight and corporate involvement in a

community.

Many Companies are not doing any CSR activities

Most Companies are only making token towards CSR in

tangential ways such as donations to charitable trusts

or NGOs, Sponsorship of events, etc.

Most companies use CSR as a marketing tool to further

spread the word about their business. For instance,

donation of a token amount to some cause on purchase

of a particular product. The fact that companies are

hiring advertising agencies for their CSR further

highlight this. Only few Indian companies publish a corporate

sustainability report to measure and assess the impact

of their business on the environment.

Very few companies openly state the processes

followed by them, the damage caused by these

processes and the steps taken to minimize thisdamage.

Very few companies state how much they spend on

CSR. There is no mention of the amount spent in any of

their balance sheet or annual reports. Most companies

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just list and describe their CSR activities and seem to

be spending minimal amounts on CSR.

Very few companies are engaged in CSR activities in

the local communities where they are based.

Very few companies have a clearly defined CSR

philosophy. Most implement their CSR in an ad-hoc

manner, unconnected with their business process.

Most companies spread their CSR funds thinly across

many activities, thus somewhere losing the purpose of

undertaking that activity

Most companies appear reluctant to themselves fulfill

their CSR unless it is mandatory by law

Generally speaking, most companies seem either

unaware or dont care about CSR. However, all

companies can be considered to be an upward learning

curve with respect to CSR and it is expected that thesituation will improve.

3. about Company Mercedes Benz

(a) History:

Mercedes-Benz traces its origins to Karl Benz's creation ofthe first petrol-powered car, the Benz Patent Motorwagen,

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patented in January 1886 and Gottlieb Daimler and engineerWilhelm Maybach's conversion of a stagecoach by theaddition of a petrol engine later that year. The Mercedesautomobile was first marketed in 1901 by Daimler Motoren

Gesellschaft. The first Mercedes-Benz brand name vehicleswere produced in 1926, following the merger of Karl Benz'sand Gottlieb Daimler's companies into the Daimler-Benzcompany. Mercedes-Benz has introduced manytechnological and safety innovations that later becamecommon in other vehicles. Mercedes-Benz is one of the mostwell-known and established automotive brands in the world,and is also the world's oldest automotive brand still inexistence today. For information relating to the famous 3-pointed star, see under the title Daimler Motoren

Gesellschaft including the merger into Daimler-Benz.

Subsidiaries and Alliances:

As part of the Daimler AG company, the Mercedes-Benz Cars

division includes Mercedes-Benz, Smart and Maybach car

production.

Mercedes-Benz AMG

Mercedes-Benz AMG became a majority owned division ofMercedes-Benz in 1998. The company was integrated intoDaimlerChrysler in 1999, and became Mercedes-Benz AMGbeginning on 1 January 1999.

Mercedes-Benz McLaren

Main article: Mercedes-Benz SLR McLaren

Between 2003 and 2009 Mercedes-Benz produced a limited-

production sports car with McLaren Cars, an extension of thecollaboration by which Mercedes engines are used by the

Team McLaren-MercedesFormula One racing team, which ispart owned by Mercedes. McLaren ceased production of theSLR in 2009 and went on to develop its own car, the McLarenMP4-12C, launched in 2011.

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http://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Wilhelm_Maybachhttp://en.wikipedia.org/wiki/Mercedes_(car)http://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Mercedes-Benz#Innovationshttp://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Smart_(automobile)http://en.wikipedia.org/wiki/Maybachhttp://en.wikipedia.org/wiki/Mercedes-Benz_AMGhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLR_McLarenhttp://en.wikipedia.org/wiki/Sports_carhttp://en.wikipedia.org/wiki/McLaren_Carshttp://en.wikipedia.org/wiki/McLaren_(racing)http://en.wikipedia.org/wiki/Formula_Onehttp://en.wikipedia.org/wiki/McLaren_MP4-12Chttp://en.wikipedia.org/wiki/McLaren_MP4-12Chttp://en.wikipedia.org/wiki/Gottlieb_Daimlerhttp://en.wikipedia.org/wiki/Wilhelm_Maybachhttp://en.wikipedia.org/wiki/Mercedes_(car)http://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Brand_namehttp://en.wikipedia.org/wiki/Mercedes-Benz#Innovationshttp://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Daimler_Motoren_Gesellschafthttp://en.wikipedia.org/wiki/Daimler_AGhttp://en.wikipedia.org/wiki/Smart_(automobile)http://en.wikipedia.org/wiki/Maybachhttp://en.wikipedia.org/wiki/Mercedes-Benz_AMGhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLR_McLarenhttp://en.wikipedia.org/wiki/Sports_carhttp://en.wikipedia.org/wiki/McLaren_Carshttp://en.wikipedia.org/wiki/McLaren_(racing)http://en.wikipedia.org/wiki/Formula_Onehttp://en.wikipedia.org/wiki/McLaren_MP4-12Chttp://en.wikipedia.org/wiki/McLaren_MP4-12C


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Studebaker-Packard

In 1958 Mercedes-Benz entered into a distributionagreement with the Studebaker-Packard Corporation of

South Bend, Indiana (USA), makers ofStudebaker andPackard brand automobiles. Under the deal, Studebakerwould allow Mercedes-Benz access to its dealer network inthe U.S., handle shipments of vehicles to the dealers, and inreturn, receive compensation for each car sold. Mercedes-Benz maintained an office within the Studebaker works inSouth Bend from 1958 to 1963, when Studebaker's U.S.operations ceased. ManyU.S Studebaker dealers convertedto Mercedes-Benz dealerships at that time.

Quality R ankings :

Since its inception, Mercedes-Benz had maintained a

reputation for its quality and durability. Objective measures

looking at passenger vehicles, such asJ. D. Power surveys,

demonstrated a downturn in reputation in these criteria in

the late 1990s and early 2000s. By mid-2005, Mercedes

temporarily returned to the industry average for initial

quality, a measure of problems after the first 90 days of

ownership, according to J.D. Power. In J.D. Power's Initial

Quality Study for the first quarter of 2007, Mercedes showed

dramatic improvement by climbing from 25th to 5th place,

surpassing quality leaderToyota, and earning several

awards for its models. For 2008, Mercedes-Benz's initial

quality rating improved by yet another mark, to fourth place.

On top of this accolade, it also received the Platinum Plant

Quality Award for its Mercedes Sindelfingen, Germany

assembly plant. In April 2011, Consumer Reports of the ratessix of thirteen Mercedes-Benz models as "below average".

However, J.D. Power's 2011 US Initial Quality and Vehicle

Dependability Studies both ranked Mercedes-Benz vehicles

above average.

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http://en.wikipedia.org/wiki/Studebaker-Packard_Corporationhttp://en.wikipedia.org/wiki/South_Bend,_Indianahttp://en.wikipedia.org/wiki/Studebakerhttp://en.wikipedia.org/wiki/Packardhttp://en.wikipedia.org/wiki/Passenger_vehicleshttp://en.wikipedia.org/wiki/J._D._Powerhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Studebaker-Packard_Corporationhttp://en.wikipedia.org/wiki/South_Bend,_Indianahttp://en.wikipedia.org/wiki/Studebakerhttp://en.wikipedia.org/wiki/Packardhttp://en.wikipedia.org/wiki/Passenger_vehicleshttp://en.wikipedia.org/wiki/J._D._Powerhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Consumer_Reports


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Models:

Current model range

Mercedes-Benz carries a full range of passenger, light

commercial and heavy commercial equipment. Vehicles are

manufactured in multiple countries worldwide. The Smart

marque ofcity cars and Maybach luxury cars are also

produced by Daimler AG.

Passenger cars

The following passenger vehicles were in production in 2011:

A-ClassHatchback B-ClassMulti-Activity C-ClassSaloon, Estate & Coupe CL-ClassCoupe CLS-ClassCoupe E-ClassSaloon, Estate, Coupe & Cabriolet G-ClassSports Utility Vehicle (SUV) GL-ClassSports Utility Vehicle (SUV) GLK-Class - Sports Utility Vehicle (SUV) M-ClassSports Utility Vehicle (SUV) R-ClassLuxury Tourer Vehicle (LTV) S-ClassSaloon SL-ClassRoadster SLK-ClassRoadster SLS AMGCoupe

SLS AMGRoadster VianoMulti Purpose Vehicle (MPV)

Trucks

Mercedes-Benz Trucks is now part of the Daimler Trucks

division, and includes companies that were part of the

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http://en.wikipedia.org/wiki/Smart_(automobile)http://en.wikipedia.org/wiki/Marquehttp://en.wikipedia.org/wiki/City_carhttp://en.wikipedia.org/wiki/Maybachhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Mercedes-Benz_A-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_B-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_C-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_CL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_CLS-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_E-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_G-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_GL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_GLK-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_M-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_R-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_S-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLK-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLS_AMGhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLS_AMGhttp://en.wikipedia.org/wiki/Mercedes-Benz_Vianohttp://en.wikipedia.org/wiki/Smart_(automobile)http://en.wikipedia.org/wiki/Marquehttp://en.wikipedia.org/wiki/City_carhttp://en.wikipedia.org/wiki/Maybachhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Mercedes-Benz_A-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_B-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_C-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_CL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_CLS-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_E-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_G-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_GL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_GLK-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_M-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_R-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_S-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SL-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLK-Classhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLS_AMGhttp://en.wikipedia.org/wiki/Mercedes-Benz_SLS_AMGhttp://en.wikipedia.org/wiki/Mercedes-Benz_Viano


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DaimlerChrysler merger. Gottlieb Daimler sold the world's

first truck in 1886.

Buses and vans

Mercedes-Benz also produces buses, mainly for Europe andAsia. Mercedes-Benz produces a range of vans. The first

factory to be built outside Germany after WWII was in

Argentina. It originally built trucks, many of which were

modified independently to buses, popularly named

Colectivo. Today, it builds buses, trucks and the Sprinter

van.

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4. CSR Activity in INDIA(a) The Role of CSR:

India is widely regarded as a country in which corporatesocial responsibility has long played an important role.National nongovernmental organization and UN agencies areinvolved in public debate in the business communication andthe media. However, the involvement of the businesscommunity is concentrated among a few long-established

family-owned companies that contribute a significantamount in the field of CSR. The Indian subsidiaries ofGerman companies are bound by their parent companiesguidelines for social responsible behavior, but now theseguidelines are actually implemented is left up to eachsubsidiaries. Their CSR activities focus on their employees(providing training and improving social security), theenvironment and aid efforts within India or in the region,which are currently concentrating on providing help to

tsunami victims. Public policymakers are seeking to achieveinclusive and sustainable growth, and calling on privateenterprise to contribute its share.

There is no evidence of CSR activities in the informal sectorof the Indian economy, which is responsible for slightly lessthan half of GDP and employs some 93 percent of Indiasworkforce. Indeed, workers in this sector are afforded norights or protections whatsoever, and all indications are thatno efforts are being made to fight poverty, promoteeducation or health, protect the environment or encourageemployee participation in business development.

The UN Global Compact seeks to promote the CSR activitiesof businesses in India. However, it has not succeeded ininvolving important NGOs, or most importantly, the unions.

The UN Global Compact is not well known within the

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business sector or the NGO community. For some time now,German development organizations (GTZ, InWent) havebeen cooperating closely with the countrys important tradeassociations. The Indo-German Chamber of Commerce has

developed its own approach to CSR, and providesconceptual and advisory support for German companies inIndia.

While CSR is not at the top of the agenda of German politicalfoundations, some of them are starting to devote moreattention to this area. The German government, representedby the Ministry of Labor, is working to achieve greaterinternational cooperation on CSR under the HeiligendammProcess, which includes India as one of five outreach

countries. Talks have been held in the context of aformalized partnership between Germany and India.Representatives of the German business community meetwith embassy officials at least once a year, during theirmonthly business lunches, to discuss CSR.

Source: German Embassy, New Delhi

(b) CSR Understanding:

Indias socialist approach to economic policy until the late1980s required Indian businesses to make significantcontributions to society, and strict controls were put in placeto that end.

This situation has changed considerably since economicreform policies were introduced; today few limits are placedon the independence of the business sector. This has largelymet with approval among the populace.

The cultural and religious beliefs that shape peoplespersonal lives appear to carry little weight when it comes tobusiness activities. Religious and cultural behavioral normsapply primarily to the individual realm (cleanliness, respectfor others and for nature, etc.), but not to behavior withinthe larger community or the political system.

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Thus CSR activities tend to be dominated by religious orphilanthropically oriented minorities such as the Parsi or

Jains, which play a disproportionately influential role inprivate industry relative to their percentage of the overall

population.

(c) Expectations towards Companies:

More than anything else, policymakers and society at largeexpect companies to manage their affairs successfully andto produce goods to meet the existing demand. However,the relationship between NGOs and the business sector issometimes a difficult one, as many of the large industrialfirms behave paternalistically toward Indian society.

Efforts by German businesses in India to promote educationand training garner a great deal of respect, but with theexception of two projects of the Indo-German Chamber ofCommerce, they are limited to employee-oriented measuresonly. Unlike companies from English-speaking countries,German companies have not yet participated to anysubstantial degree in the discussion of CSR that is currentlyunder way in the major Indian trade associations.

Source: German Embassy, New Delhi

(d) Basic Conditions:

Implementation of international regulations and guidelines.

Core labor standards of the International Labor

Organization (ILO)

1. Freedom of association and the right to collectivebargainingFreedom of association and the right to collective bargainingare protected by law and are respected in the organized

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(formal) sector. Disputes can be, and are, settled in thecourts, but this avenue is problematic because of the lengthof the proceedings. There are no unions or wage agreementsin the unorganized (informal) sector. Attempts to assert

rights are often brutally suppressed. There is no evidencethat the government or the unions attempt to intervene;NGOs are working to raise awareness of this problem.

2. Elimination of forced laborForced labor is prohibited, but is nonetheless practiced inthe unorganized sector. There is no evidence that thegovernment or the unions have taken measures against it.Forced labor plays no role in the organized sector.

3. Abolition of child laborChild labor violates the constitutional right to age-appropriate development, but it is not prohibited. Instead, itis merely regulated by law (children are not allowed to workin certain high-risk areas). Enforcement is poor. The policeoccasionally carry out sensational actions to free childworkers, but they have no effect on the overall problem.Consent to ILO standards is not to be expected.

4. Elimination of discrimination with respect toemployment and occupation

The prohibition is formally in place, but poorly enforced.Owing to the caste system and the widespread treatment ofreligious and ethnic minorities, discrimination is commonthroughout the country.

Industry initiatives

GLOBAL COMPACT NETWORK

On-site contact:Mr. Uddesh KohliGlobal Compact Special Advisor in India/GC Society in India

Tel: +91-9811273142E-mail: uddeshkohli (at) gmail (dot) com

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Mr. Arun MairaGlobal Compact Special Advisor in India/Chairman BostonConsulting Group, IndiaE-mail: Maira.Arun (at) bcg (dot) com

Ms. Seema AroraPrincipal Counsellor & HeadCII-ITC Center of Excellence for Sustainable DevelopmentE-mail : seema.arora (at) ciionline (dot) org

India Partnership Forum(Collaboration between the Confederation of Indian Industryand UNDP India to promote and strengthen CSR in India.)http://www.indiapartnershipforum.org/unglcomp_india.htm

UNDPMomin JaanE-mail: momin.jaan (at) undp (dot) org

Harsh SinghE-mail: harsh.singh (at) undp (dot) org

GC Office Country CoordinatorMs. Melissa PowellE-mail: Powell1 (at) un (dot) org

Tel: +1 212-963-0566

WORLD BUSINESS COUNCIL FOR SUSTAINABLEDEVELOPMENT

On-site network since 2002

On-site contact:TERI-BCSD IndiaMr. R. K. NarangConvenor, TERI-BCSD IndiaDistinguished Fellow

The Energy and Resources Institute

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Darbari Seth BlockIndia Habitat Place, Lodhi RoadNew Delhi, 110003 India

Tel: +91 11 2468 21 00

Fax: +91 11 2468 21 45E-mail: core (at) teri.res (dot) inWebsite: http://bcsd.teri.res.in

Ms. Annapurna VancheswaranAssociate Director Sustainable Development Outreach

The Energy and Resources InstituteE-mail: avanche (at) teri.res (dot) in and core (at) teri.res(dot) in

5. Areas of Activity

1. Poverty

2. Education3. Health4. Participation in society5. Environment6. Others

1. Poverty:

More than a quarter of the Indian population lives below theofficial poverty line, which is just under 330 rupees (INR) permonth (= EUR 5.23) in rural areas and INR 455 (= EUR 7.21)in the cities. There has been an increase in the two incomecategories just above the poverty line those in marginaland economically at risk circumstances. A March 2008study of Indias Common People found that about two-

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thirds of all Indians either live in abject poverty or havebarely enough income to meet their basic needs. Thesepeople cannot afford to pay for social security or forunforeseen expenses, for example because of illness.

Poverty forces millions of people to work in circumstances inwhich they have absolutely no rights.

Basic information

Life expectancy: Total population: 69.25 years; males:66.87 years; females: 71.9 years (2008 EST.)

Iinfant mortality: Total: 32.31 deaths/1,000 births;males: 36.94 deaths/1,000 births; females: 27.12

deaths/1,000 births (2008 EST.) Malnutrition: 20% (2002/2004) Access to clean water: 86% (2004) Access to sanitary facilities: 33% (2004) Human Poverty Index: 62nd of 108 (2007/2008) Gini Index: 36.8 (2004)

Areas of particular concern are bonded and child labor. Inmost cases, children who are working in rural India are notsupplementing their family income, but simply working at

jobs under worse conditions than adults and taking work thatmight otherwise be available to adults.

Participants

Possible participants include organizations fordevelopment cooperation (GTZ, CIM, etc.), chambers of

commerce, trade associations, trade unions, ministries(Ministry of Industry, Ministry of Small and Medium-SizedEnterprises) and political foundations (such as theFriedrich Ebert Foundation, the Friedrich NeumannFoundation and the Konrad Adenauer Foundation).

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GTZ Indiahttp://www.gtz.de/en/aktuell/607.htm

InWenthttp://www.inwent.org/v-ez/lis/indien/index.htm

Indo-German Chamber of Commercehttp://www.indo-german.com

Konrad Adenauer Foundation, India officehttp://www.kas.de/proj/home/home/38/2/index.html

Opportunities for fighting poverty

Companies might help to provide children with literacytraining, improved overall education and vocational trainingso that they are able to get a good job. This would alsoallow parents access to jobs now performed under worseconditions by children.

Risks in fighting poverty

German companies located in India are reluctant to talkabout their involvement in this area; some have specifically

asked that their involvement not be publicized.

COMPANY EXAMPLE

Bayer AG

Bayer Crop Science has developed Learning for Lifeprogram intended to help children in rural India escapethe vicious circle of child labor and illiteracy. This program

focuses on eliminating child labor in supplier companiesand involving the children concerned in the Crop Scienceprogram.

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Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO VoluntaryService Overseas

2. Education:

Vocational training is inadequate even in the formal sectorof the economy; in the informal sector it is practicallynonexistent.

The problem begins in the schools, where India spends little

money even compared with the developing countries. Thereis a lack of teachers, schools and instructional materials. Halfof all children leave school after no more than five years;two-thirds of those who complete primary and secondaryschool are not qualified for vocational training in the publicsystem. Meanwhile, most graduates of public and privatevocational schools are not employable.

Three years after completing school, half are stillunemployed and the majority of those who are employedhold a job that is completely unrelated to their education.

Basic information

Public spending on education (share of GDP): 3.2%(2005)

Compulsory school attendance: ages 6 14 Rate of school enrollment: 90% of children who are

required to attend school (2004)

Literacy (definition: those over the age of 15 who canread and write): Total population: 61%; males: 73.4%;females: 47.8% (2001 census)

HDI Education Index: Rank 128 out of 177 (1 = max., 0= no education) Average years of education: Totalpopulation: 10; males: 11; females: 9 (2005)

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The Indian government has recognized that this is a seriousproblem for the countrys development. In the area ofeducation, India has fallen behind not only China, but alsoregional competitors such as Indonesia and Malaysia. In

some sectors it ranks behind even Sri Lanka andBangladesh. It has developed an array of programs toimprove training opportunities and recognize informaltraining, but is determined to avoid any fundamentalchanges in the existing system.

However, India is working closely with Germany to adoptbest practices aimed at improving vocational training.

Participants

Possible participants include organizations fordevelopment cooperation (GTZ, CIM, etc.), chambers ofcommerce, trade associations, trade unions, ministries(Ministry of Industry, Ministry of Small and Medium-SizedEnterprises) and political foundations (such as theFriedrich Ebert Foundation, the Friedrich NeumannFoundation and the Konrad Adenauer Foundation).




Konrad Adenauer Foundation, India office

http://www.kas.de/proj/home/home/38/2/index.html

Opportunities and risks A general risk of providingoccupational training in German companies is that trainedworkers may then be lured away by offers of high salaries,which is why many German companies are ambivalent aboutsuch training.

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COMPANY EXAMPLE

Indo-German Chamber of Commerce, Mumbai

The Indo-German Chamber of Commerce operates Indo-German Training Centers (IGTC) that provide practical 18-month training in business administration based on theGerman dual system, in partnership with BerufsakademieKarlsruhe. Contact: Director IGTC, Radhieka R. Mehta

Opportunities:Practical, high-quality training using up-to-dateoccupational education materials and curricula. This willfurther reinforce the positive public image of German

companies.

Risks: Little impact on the Indian vocational educationsystem.

Daimler India, Pune; Government Polytechnic,

Pune; CIM Deutschland

Partnership between Daimler and the Polytechnic College,Pune, in developing curricula and training instructors.Daimler provides additional instructors from Germany andsupplies training materials and Mercedes Benz vehicles.

The goal is to provide a model of public-privatepartnership in education and vocational training.

Opportunities: High-quality education/training geared tothe needs of the business world and the job market; anopportunity for a successful public-private partnership.

Daimler AG, Metro Group, IHK Koblenz

Active participation by private German firms andchambers of commerce in developing an ongoing Indo-German partnership in vocational education. So far thishas meant being part of the German presence at a GlobalSkill Summit in New Delhi and participating in

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negotiations on formalizing Indo-German partnership.There are plans to join an Indo-German task force.

Opportunities: Demonstration of the sustained PPPcharacter of German vocational education, introduction ofimportant aspects of PPP to the Indian setting, andgeneral development and broadening of the Indo-Germanrelationship.

Risks: Problems with implementation and a lack of Indiancompanies willing and able to provide training.

Global Reporting Initiative

CSR WeltWeit case study (English):Transparency in theSupply Chain



3. Health:

Basic information

Public spending on health (share of GDP): 0.9% (2004) Medical care: 60 physicians per 100,000 residents

(2000-2004) Infant mortality: Total: 32.31 deaths/1,000 births; male:

36.94 deaths/1,000 births; females: 27.12 deaths/1,000

births (2008 EST.) Maternal mortality: 540 deaths/100,000 births (1990-

2004) Child malnutrition: 47% of children under the age of 5

(1996-2005) HIV/AIDS prevalence rate (>15 years): 0.9% (2001) HIV/AIDS cases: 5.1 million (2001 est.)

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HIV/AIDS deaths: 310,000 (2001) Life expectancy: Total population: 69.25 years; males:

66.87 years; females: 71.9 years (2008 EST.)

Progress has clearly been made in healthcare during the 60years since Indian independence. Nonetheless, a relativelylarge share of the population suffers from easily avoidableillnesses. Child mortality and malnutrition rates are amongthe highest in the world. It appears likely that India will notachieve its millennial development goals in this area.

Participants

Possible participants include organizations for

development cooperation (GTZ, CIM, etc.), chambers ofcommerce, trade associations, trade unions, ministries(Ministry of Industry, Ministry of Small and Medium-SizedEnterprises) and political foundations (such as theFriedrich Ebert Foundation, the Friedrich NeumannFoundation and the Konrad Adenauer Foundation).





The regional and class differences in the populations healthstatus have worsened; the situation is particularly dire in thenorthern Indian states. Illnesses such as AIDS, leprosy andothers are highly stigmatized; those affected are ostracized.Because of the weak structures and poor quality of thepublic healthcare system, most of the money spent onhealthcare goes to the private sector and in rural areas often

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to unqualified providers. Unexpected expenses resultingfrom illness are among the leading causes of financialinsecurity and household poverty.

COMPANY EXAMPLE

Deutsche Post/DHL with UNICEF

An integrated project to promote childrens survival anddevelopment in the Nan durbar district of the state ofMaharashtra, where 60% of the population lives in abjectpoverty. It includes regularly scheduled health andnutrition days, child daycare groups and systematictraining in infant and child care for 2,000 healthcare

workers and midwives. Goals for 2010 include a 50-percent reduction in the rate of malnutrition amongchildren under six, a reduction in infant mortality to lessthan 30 deaths per 1,000 live births and a 30 percentreduction in maternal mortality, as well as a 75-percentdrop in the number of child marriages.

Opportunities:Public recognition for the project

Risks: None are known; sustainability problems arepossible

Siemens AG

Nationwide AIDS Walk for Life with employeeparticipation, accompanied by a mobile healthcare vehicle

Opportunities: Raising public awareness of AIDS and

other stigmatized illnesses; public recognition for thecompany

Risks: Sustainability problems; short-term nature

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CompWare Medical GmbH

CSR WeltWeit case study (German): Flchendeckendehochwertige Methadontherapie als Mittel der AIDS/HIV-

Prvention und Versorgung

Randstad Deutschland GmbH & Co. KG


4. Participation in Society:

Employee participationIn the formal (organized) sector of the Indian economy,sophisticated labor laws are in place to regulate workplacerequirements (light, ventilation, safety, sanitary facilities,lounge areas/cafeterias, social security, minimum wages).

The respective unions which are organized at the companylevel are basically responsible for representing employeeinterests. Beyond serving as a kind of works council, they

are also able to engage in collective bargaining, so they cancarry out negotiations on earnings, work hours, vacationperiods and the like. German companies prefer to excludethe unions from their operations because they often lead toconflict, sometimes including violent confrontations anddamage to property. Because of the lack of well qualified oreven minimally qualified workers, German companiesgenerally offer wages and benefits that significantly exceedwhat is required by law.

Basic information

Ethnic groups: Indo-Aryan 72%, Indo-European 25%,Mongolian and others 3% (2000)

Rights of individuals with severe disabilitiesDisability policy is still in its infancy. Fewer than 130 of the

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countrys more than 600 districts offer facilities for thedisabled. The World Bank charges that people withdisabilities are often shut out of public, cultural and sociallife. Households with disabled family members are

significantly poorer than average. The situation of thementally handicapped and mentally ill is especially dismal;they are particularly stigmatized, and this is true in ruralareas more than in the cities. Barrier-free access appears tobe practically nonexistent. There is little willingness to hirethe disabled in private industry.

Participants

Possible participants include organizations for

development cooperation (GTZ, CIM, etc.), chambers ofcommerce, trade associations, trade unions, ministries(Ministry of Industry, Ministry of Small and Medium-SizedEnterprises) and political foundations (such as theFriedrich Ebert Foundation, the Friedrich NeumannFoundation and the Konrad Adenauer Foundation).





COMPANY EXAMPLE

SAP Ltd., Bangalore

SAP offers its skilled workers wages that far exceed thoserequired under collective bargaining agreements andlarge pay increases each year, along with free cafeteria

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meals and such benefits as family days to promote socialintegration. After five years with the company, employeesare entitled to a company car. The company has its ownbus service; after dark, women are escorted to their

homes.

This improves and stabilizes the social position ofemployees and their families, increases their sense ofresponsibility and belonging, and makes them lessinterested in leaving the company.

Siemens Ltd. India and Gurgaon, Ability Foundation

(NGO)

The Siemens companies in India make active efforts tohire disabled people who have the necessary training.

They currently (as of 2007) employ 45 disabled persons,two of them with hearing impairments and the others withphysical disabilities.

This is an effort to integrate the disabled into society andthe working world, as well as fulfilling statutory quotas fordisabled employees.


CSR WeltWeit case study (English)):Transparency in theSupply Chain

5. Environment:

Basic information

CO2 emissions: 4.6% of total world output (2004) CO2 emissions per capita: 1.7 metric tons (2004) Energy consumption: 488.5 million kWh (2005)

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Water consumption (households/industry/agriculture):Total: 645.84 km3/year (8%/5%/86%); per capita: 585m3/year (2000)

Hydropower, solar, wind, geothermal energy: 1.7 % of

primary energy consumption (2005)

Large areas of India have serious environmental issues. Thecountrys water reserves, which are scarce in any case (4%of the worlds water supply for 17% of the worldspopulation), are largely polluted, and demand forgroundwater is much too high, particularly in denselypopulated areas.

Participants

Possible participants include organizations fordevelopment cooperation (GTZ, CIM, etc.), chambers ofcommerce, trade associations, trade unions, ministries(Ministry of Industry, Ministry of Small and Medium-SizedEnterprises) and political foundations (such as theFriedrich Ebert Foundation, the Friedrich NeumannFoundation and the Konrad Adenauer Foundation).




Konrad Adenauer Foundation, India office

http://www.kas.de/proj/home/home/38/2/index.html

Deforestation has reached an advanced stage and airpollution is a serious problem. Despite widespread religiousand cultural beliefs that require respect for nature, far lessimportance is attached to environmental protection than toeconomic growth. Because it lacks domestic sources of raw

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materials, and because of its careless handling of energyresources (outdated production, defective distributionsystems, outdated and energy-intensive consumptionpatterns, machines and cars), India is particularly hard hit by

energy shortages. The search for other sources of energies(nuclear power, renewable energies) is a high politicalpriority.

COMPANT EXAMPLES

Bayer AG

CSR WeltWeit case study (German): Bayer AG -Strategische Partnerschaft mit United Nations

Environment Programme im Bereich Jugend und Umwelt

Daimler India

Partnership between Daimler India, Pune, the University ofHohenheim and the Council on Scientific & IndustrialResearch, New Delhi.

Jatropha biodiesel project to obtain biodiesel from the fruitof the jatropha plant, which grows on soil that has erodedand is no longer cultivatable. A feasibility study has beencompleted to determine whether it can be used in vehicleengines; an efficiency review is under way.

Opportunities: Job creation and additional income forrural areas, less use of fossil fuels and a reduction in COemissions, use and recultivation of eroded soil,consolidation of the vehicle market.

Risks: Indias cultivatable areas are used veryintensively, so there is a risk of competition betweengrowing food and growing renewable raw materials, andof confrontation with environmental advocacy groups.

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CSR WeltWeit case study (English):Transparency in theSupply Chain



6. Others:

Disaster aid after the tsunamiThe number of deaths caused by the tsunami is unknown,but certainly far exceeds 100,000, and there have beenuntold injuries and property damage. The Indian governmentrejected aid from other countries as always in the case ofnatural disasters but agreed to accept aid from privatesources.

The German business communityThe German business community, led by Siemens,ThyssenKrupp, Bayer and Deutsche Bank, joined with theGerman embassy and general consulates to establish afoundation that has worked together with an Indian NGO(Srinivasan Services Trust, SST) to finance and organize therebuilding of five villages in two districts of Tamil Nad. Thegoal is to help 80 percent of those affected to rise above thepoverty line by approximately 2010. This effort includes thefollowing projects, costing EUR 2.2 million:

Construction of two centers, one for first aid and theother for treating trauma, each able to treat 150 to 200patients daily

Establishment of a civic center in each village Fishing equipment and training programs to help

secure long-term income Training in the repair of damaged equipment

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Training programs for other types of marinemanagement (cultivation of kelp and fish farming)through cooperative self-help groups

Construction of 150 homes per village

Repair of public facilities such as roads, sewagesystems, preschools and schools, as well as educationand professional development for teachers

Contact:German Business Community, c/o GermanConsulate General, Mumbai

Opportunities and risks:Opportunities: Restoring opportunities for those affectedby the tsunami to earn a living; public recognition

Risks: Sustainability after the project is concluded

SiemensEmergency aid in the amount of EUR 50,000 for 5,000people in partnership with the Indian Red Cross, in the formof family kits (clothing, food, essential articles of daily use,beds, etc.), with voluntary participation by companyemployees. Long-term development in cooperation with theGerman Business Group.

Opportunities and risks:Opportunities: Immediate aid in acute emergencies; publicrecognitionRisks: Sustainability problems

Data & facts

Country: Republic of India

Capital: New Delhi

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Area: 3,287,000 km

Population: 1.027 billion (2001 census)

Economic system: Market economy with a high proportion

of state-owned companies

Polity: Federal republic

Unemployment rate: 7.2 % (2007 EST.)

Inflation rate (CPIX): 6.4 % (2007 est.)

GDP: 1.099 trillion USD (2007 est.) = 870 billion EUR

GDP/Head: 2,800 USD (PPP, 2007 est.) = 2,000 EUR

Religions: Hindu (ca. 80.5%), Muslim (ca. 13.4%), Christian

(ca. 2.3%), Sikh (ca. 1.8%) as well as Buddhist, Jain, Parsi

and others

HDI: 128th of 177 (2007/2008)

CPI: 72nd of 179 (2007)

BTI: Status Index: 25th of 125; Management Index: 19th of125 (2008)

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6. CSR activities in rest of the world

Business success and CSR go hand-in-hand

Protecting the giant pandas is one of Daimler's CSR initiatives in China.

Defining the true success of a corporation today goesbeyond business growth and product excellence.Increasingly, more companies are recognizing theimportance of giving back to the societies where theyoperate, demonstrating their deep, long-term commitmentto the market.

Daimler Northeast Asia Ltd, a company that has experiencedexponential growth in China over the past few years, has

always been ahead of the game in this respect, with its firstphilanthropic efforts dating back to 1994.

"Our heart clearly remains close to the development ofChina through our firm commitment to economic, ecologicaland social responsibilities here - both now and in the future.

This is where we have been given the opportunity to achieve

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remarkable results - and it is here that we also give our bestto the Chinese people and society," said Ulrich Walker,chairman and CEO of Daimler Northeast Asia Ltd.

The company takes pride in its corporate socialresponsibility (CSR) program, which received a further boostin June last year through the establishment of the Mercedes-Benz Star Fund, an integrated, systematic and long-termcharity platform focusing on five key pillars: environmentalprotection; education; music, arts and sports; culture ofdriving; as well as charity and disaster relief.

"Our CSR approach here is sustained, comprehensive and intandem with the needs of the Chinese society. We have

demonstrated our long-term commitment throughestablishing the Mercedes-Benz Star Fund in collaborationwith our nationwide dealers, having a 30-million-yuan start-up fund. We see ourselves as a positive driving force,engaging dealers, customers and employees alike, to bepart of this cause and extend the influence of our programs,"said Klaus Maier, president and CEO of Mercedes-Benz(China) Ltd.

Five core areasWith such all-encompassing causes, Daimler and Mercedes-Benz continue to touch the lives of many people, achievingimpressive outcomes in their chosen five core areas:

Environmental protection - Since 2007, the Green LegacyProgram has seen the effective preservation of WorldHeritage Sites in China, including the Sichuan Giant PandaSanctuaries, South China Karst, Mount Lushan, Mount

Sanqingshang, Dujiangyan and Mount Qingcheng.

Now in its second three-year cooperation with UNESCO forthis program, Mercedes-Benz has pledged a total of 29million yuan towards protecting heritage sites, successfullypaving the way for sustainable preservation.

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As such, Mercedes-Benz launched two new programs: the"This, I Promise" campaign, which advocates road safety bytaking pledges from road users, and the Mercedes-Benz Cup2011 China Best Driver Contest, a safe driving skills

competition that traveled to the major cities of Beijing,Shanghai, Guangzhou and Chengdu, spreading the safetymessage.

Charity and disaster relief - Daimler and Mercedes-Benzhave extended help when most needed.

After the deadly earthquake hit Sichuan in 2008, over 5million yuan was raised to help build the new Mercedes-BenzElementary School in Shifang.

In 2010, when another earthquake hit Yushu City, Daimlerand its partners donated 5 million yuan towards reliefefforts.

In a bid to ensure the sustainable development of its variousinitiatives, the company took a further step this year byfounding the Mercedes-Benz 'Star Ambassador' programduring the ceremony marking its first anniversary of the StarFund in June.

This program serves as a volunteer initiative to drive greatersocial participation from employees, dealers, customers, andother like-minded individuals, for its charitable activities.

More recently, the company embarked on a brand newproject - the Mercedes-Benz Star Base - to give professional,targeted and regular training for teachers in Hope Schoolsequipped with music classrooms provided by Mercedes-

Benz, so as to enhance overall education quality.

Its first base was established jointly with Harbin NormalUniversity's music college and the China Youth DevelopmentFoundation just last week.

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Chairman and CEO of Daimler NortheastAsia Ltd Ulrich Walker with students at the

Mercedes-Benz Elementary School inShifang, Sichuan province.

Bright night for Mercedes-Benzphilanthropy

Mercedes-Benz executives, dealer representatives and program partners of the

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Mercedes-Benz Star Fund jointly launch its volunteer ambassador program by

lighting up the three-pointed star. Photos provided to China Daily

Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd and chairman of the

Mercedes-Benz Star Fund, shares the story of the CSR initiative's journey.

Auto icon announces new corporate social responsibilityinitiative

Under a ceiling painted with blue skies and twinkling withshimmering stars at the National Center for the PerformingArts (NCPA) in Beijing, Mercedes-Benz celebrated the firstanniversary of its Star Fund yesterday, marking a milestonein the carmaker's long-term commitment to China.

Since June 30 last year, the Mercedes-Benz Star Fund hasembraced the company's core corporate social responsibility(CSR) programs - nature protection, music, arts and sports,

culture of driving, education as well as social care anddisaster relief programs.

Following the Star Fund's many achievements in the pastyear, Mercedes-Benz announced the official launch of its'Star Ambassador' Volunteer Program, the latest initiative to

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further develop its CSR program through encouraging publicinvolvement.

Acting as a bridge between the Mercedes-Benz Star Fundand the public, the 'Star Ambassador' program providesindividuals with a passion to serve with the opportunity towork with the company's CSR causes.

Under the program, the company will develop and sharevolunteer resources with its partners to increaseengagement.

Mercedes-Benz also plans to further its efforts in educationby rallying celebrities, employees, dealerships and like-

minded individuals from all over the country to help upliftmusic education in 125 Hope Schools across China throughthis volunteer initiative.

At the ceremony, the NCPA hall was lit up with twinklingstars symbolizing the launch of the 'Star Ambassador'Volunteer Program - along with the first group of Mercedes-Benz Star Ambassadors including violinist Lu Siqing, Li Biaoand his youth percussion group, famous singer Shang Wenjieand volunteers from various music institutions who pledged

their support for this program.

Representatives from Mercedes-Benz's Star Fund partnerssuch as NCPA, China Youth Development Foundation,UNESCO, dealers, and other guests were also present towitness the launch.

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Klaus Maier, president andCEO of Mercedes-Benz(China) Ltd and chairman ofMercedes-Benz Star Fund,

said: "From our past years ofCSR actions to theestablishment of the StarFund last June; and to thereview of our achievementstoday with our valuedpartners, we have laid avery solid foundation infulfilling our socialresponsibilities and long-

term commitment in China.The success from the'Inspiring the Future' HappyMusic Classroom Program isone such milestone in ourCSR program."

"We are excited to launchthe new 'Star Ambassador'

Volunteer Program as aforward-looking, open modelthat will further increase our positive contribution to societythrough promoting public participation in our variousactivities. This perfectly supports our goal of sustainableCSR," Maier said.

In another move, the carmaker now has its 'StarAmbassador' Program website online at www.csr.Mercedes-benz.com.cn for volunteers to register.

CSR initiatives

The automaker is no stranger to CSR with its relatedactivities dating back to the 1990s.

Li Biao and his youthpercussion group,

accompanied by studentsfrom Hope Schools, onstage at the National

Center for the Performing

Arts.

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Today the company continues to drive the development ofCSR through many projects.

As an integrated, systematic and long-term platform tomanage its social responsibility programs in China, theMercedes-Benz Star Fund has achieved successesthroughout the past year.

Its Green Legacy Program achieved a milestone as itrenewed another three-year cooperation with UNESCO toprotect the World Heritage sites with improvedmanagement.

In education, the 'Inspiring the Future' Happy Music

Classrooms program successfully saw 125 Hope Schoolsreceiving brand new music equipment in their classroomsand their teachers also underwent specialized musictraining.

Two unique programs were also launched under the Cultureof Driving CSR initiative - Mercedes-Benz Cup 2011 ChinaBest Driver Contest and 'This I Promise' road safetyawareness campaign that have since been rolled out acrossthe country to promote proper road conduct among the

public.

"As a co-partner of the Mercedes-Benz Star Fund and its keyprograms, we, have witnessed Mercedes-Benz's passion anddedication in carrying out the professional work to fulfill theircorporate responsibility to the society. This serves as a rolemodel for other corporations and reinforces our confidencein our future cooperation," said Tu Meng, secretary-generalof China Youth Development Fund.

Through its CSR initiatives, Mercedes-Benz said it has beenproactive in its duties as a responsible corporate citizenthrough its unique competitiveness in sustainabledevelopment that in turn enriches its 125-year-old brand.

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First Anniversary of the Mercedes-BenzStar Fund and Star AmbassadorVolunteer Program Launch Ceremonyheld in Beijing

The Mercedes-Benz Star Fund, theautomakers largest start-up amount for acharity fund worldwide outside Germany,

today commemorated its first anniversary. Distinguished byits past year achievements in the five core areas ofenvironmental protection, education, music, arts and sports,culture of driving and social care, the Mercedes-Benz Star

Fund announced another boost to its corporate socialresponsibility (CSR) efforts by launching the new StarAmbassador Volunteer Program. This is also its latestinitiative to enhance its CSR program in China throughencouraging greater participation and providing a moresustained and strategic development of its socialcontribution efforts.

At the commemoration event held at the starlit theatre ofthe National Center for the Performing Arts (NCPA), Mr. Klaus

Maier, president and CEO of Mercedes-Benz (China) Ltd., andchairman of the Mercedes-Benz Star Fund, said: From ourpast years of CSR efforts to the establishment of the StarFund last June; and to the review of our achievements todaywith our valued partners, we have laid a very solidfoundation in fulfilling our social responsibilities and long-term commitment to China. The success from the Inspiring

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the Future Happy Music Classroom Program is one suchmilestone in our CSR program.

We are excited to launch the new Star AmbassadorVolunteer Program as a forward-looking, open model thatwill further increase our positive contribution to societythrough promoting public participation in our variousactivities. This perfectly supports our goal of sustainableCSR, Mr. Maier said.

These Star Ambassadors will first get the opportunity toparticipate as volunteer teachers at the Mercedes-BenzInspiring the Future Happy Music Classrooms in a bid totackle the challenge of the lack of qualified music teachers

in Hope Schools. As such, top music institutions including theNational Center for the Performing Arts, Central MusicConservatory, music colleges from Beijing Normal Universityand Shanghai Normal University, and China National Masterof Fine Arts Supervisory Committee, have all pledged theirfirm support with Mercedes-Benz towards this initiative, tocontribute to the students music education. The NCPA hallwas lit up with glittering stars symbolizing the launch of theStar Ambassador Volunteer Program along with the first

group of Mercedes-Benz Star Ambassadors pledging theirsupport, including Li Biao and his youth percussion group,singer Shang Wenjie, representatives from NCPA, etc.

Those interested can also now register to become a StarAmbassador at the program website at csr.mercedes-benz.com.cn. Volunteers can leverage this platform toexchange information with each other and receive the latestprogram updates. This will foster a systematic platform forMercedes-Benz to develop and share volunteer resources

with more program partners and publicize volunteerengagement.

As an integrated, systematic, long-term platform to manageits social responsibility programs in China, the Mercedes-Benz Star Fund, which was set up jointly by the automakerand its nationwide dealers, has achieved great success

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throughout the past year. Its Inspiring the Future HappyMusic Classrooms program successfully saw 125 HopeSchools receiving brand new music equipment in theirclassrooms ahead of schedule, and the music teachers also

underwent professional music teaching courses.

The Green Legacy Program achieved a milestone asMercedes-Benz renewed its three-year cooperation withUNESCO to protect the World Heritage Sites with improvedmanagement. Furthermore, two unique programs were alsolaunched under the Culture of Driving CSR pillar: Mercedes-Benz Cup 2011 China Best Driver Contest and This, IPromise road safety awareness campaign that have alreadybeen launched across the country to promote proper road

conduct among the public.

Program partners of the Mercedes-Benz Star Fund includingthe National Center for the Performing Arts, Tennis SportsManagement Center of National Sports GeneralAdministration, UNESCO, dealer representatives andemployees were invited to the commemorative event. Otherbeneficiary organizations, such as the China Conservationand Research Center for the Giant Panda, as well as a

number of CSR personalities, and academia and were alsopresent.

Commenting on the past year of partnership, Mr. Tu Meng,Secretary-General of the China Youth Development Fund(CYDF) said: As a co-partner of the Mercedes-Benz StarFund and its key pillar programs, we have witnessedMercedes-Benzs passion, dedication in carrying out theprofessional work in fulfilling their social responsibility,including its efforts in bringing music and hope to 40,000

children. This serves as a role model for other corporationsand reinforces our confidence in our future cooperation.

Through all its innovative CSR initiatives, Mercedes-Benz hasbeen proactively fulfilling its duties as a responsiblecorporate citizen and developing its unique competitiveness

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in sustainable development, all to enrich its 125-year brandheritage.

Conclusion

Organizations are coming to realize the bottom-line benefitsof incorporating sustainability into their DNA. Its beneficialfor attraction and retention and its the right thing to do. HR

is the key organizational leader and can take the lead orpartner with other executives to work cross-functionally tointegrate CSR objective into how business gets conducted.HR practitioners can act as translators of the organizationsCSR commitment vertically or horizontally acrossdepartments. Most will find upon reading this report thatthey have many good practices underway. Many will find

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they have a new structure for their thinking they can applypractically in the wok place. Some will believe the currenteconomic downturn will put these ideas on the backburneruntil the economy rebounds, while others will think that

organization which abandon the CSR integration in thedownturn will lose ground and breed cynicism in biggertimes. Regardless of the point of view, all agree thateffective HR leadership on CSR integration requires Board,CEO and Executive commitment to be successful. Indeed theroad map is predicted on the assumption of this top levelcommitment. However more and more organizations arecommitting to sustainability and to embedding CSR into allthat we do, so it is hoped the 11 steps provide someguidance as to how to go about doing this.

The firm of the future is expected to have undergonesignificant transformation such that CSR no longer becomesmanaged as a separate deliverable, but is part of theexperience of being an employee in an organization thatlives its value. For human resource professionals embarkingon CSR and deepening their CSR experiences, this roadmapcan help them understand their role in sustainability andCSR and how they can foster an environment that embeds a

CSR ethic in the way we do business around here.

Documents

A Project Report Merc