Maruti Suzuki India Limited (MSIL) has seen its establishments being saved from recent Jat agitation in Haryana and the Patel agitation in Gujarat. Seeing the benefits, the company has hence decided to invest more in Corporate Social Responsibility activities.
Following the attack on company plant in 2012, MSIL has decided to invest more than the requisite 2% of net profits on CSR activities as has been stipulated in Company Law 2013.
While in FY15, MSIL had spent only INR 37.25 crores as against required amount of INR 50.01 crores, in FY16, the company increased spending to the extent of INR 78.46 crores on CSR activities as against stipulated amount of INR 64.50 crores.
This increased spending reaped benefits during the recent Jat agitation in the Rohtak area. The entire village surrounded the MSIL R&D facility from danger by agitators while they kept round the clock vigil. Even in the Manesar area, MSIL has invested heavily on CSR activities with special emphasis on skill development, road safety and community development. In the event of agitations, trade unions appeal to local communities for support and this could lead to negative impact on the plant.
Besides embarking on increased CSR activities on its own and limiting activities to areas around company plant and R&D centers, MSIL also plans to align with company dealerships so as to expand CSR operations throughout the country.
To date, MSIL has supported 13 ITIs in 27 states offering skill development and training to 14,000 youths each year. In 2015, 44% of trainees were hired from Automobile Skill Enhancement centers while in 2015-16. 2,500 technicians found employment at Maruti Suzuki service networks.