1. CSR Activities of TVS Group
(Case: Business Ethics & Corporate Governance)
Submitted to:
Prof. Biswajit Chowdhury
Submitted by:
Shubha Brota Raha
Roll no. 23041, EMBA 2011-14, SIBM-B

2. Case Facts:
Corporate Social Responsibility (CSR) is a concept whereby firms integrate social and
environmental concerns in their business operations and the interactions with their primary
and secondary stakeholder. TVS motors and Sundaram Clayton ltd performs its CSR activities
through Srinivasan Services Trust (SST). SST is the social arm of TVS motors, established in
1996, which works for the economic development, education, infrastructure, environment
and health care of villagers and helps to make villagers self reliant. Over the 14 years of
service, SST has played a pivotal role in changing lives of people in rural India by creating
self-reliant communities that are models of sustainable development.
SST is working in partnership with a number of research organizations, NGOs, financial
bodies, Governmental agencies and local institutions. The purpose of developing such
relationships is to work towards a mutual goal in such a way as to bring together in depth
technical knowledge and local expertise to help the people in a cohesive and effective
manner. At present, SST is working in more than 700 villages, spread over in the States of
Tamil Nadu, Karnataka, Maharashtra, Gujarat and Himachal Pradesh. One of the ways to
involve rural women in community development has been through Self Help Groups (SHG).
CSR initiatives have helped TVS build brand reputation, bring employee satisfaction and
loyalty. It has given the community and the industry a sense of mutual trust and belonging.
Today the environment around the industry is friendly and protective of each other. This
becomes obvious from the fact that the attrition rate is low and the employee morale is
high
Answers to Questions:
Q.1.What is wrong if TVS Group uses CSR to build its brand or uses it as a branding strategy?
Ans. SST is the social arm of TVS motors which works for the economic development,
education, infrastructure, environment and health care of villagers and helps to make
villagers self reliant. TVS, by indulging in CSR is definitely giving a lot back to the society, it is
also gaining a lot back in terms of publicity, coverage, tax benefits and goodwill to name a
few. All this helps to build a positive image for TVS, boosts the morale of its employees and
gets it more customers and investors. Thus brand building comes naturally with CSR
activities. But if CSR is done solely as a PR activity for advertisement stint and the motive is
to do it just for the sake of doing, while at ground level nothing substantial is being done,
then it is completely wrong. The prime objective of CSR activity should be to give back to the
society and gain business sustainability in return. So there’s nothing wrong in TVS, using CSR
to build its brand until its prime intention to do CSR is to do good to the environment and
society.
Q.2 How is BE & CG correlated to CSR?
Ans. Ethics is a branch of philosophy that studies moral and immoral behaviours and arrives
at suggestions or recommendations. Business ethics is a form of applied ethics that
examines ethical principles and moral or ethical problems in a business environment. Like a

3. society is able to function if its members adopt a code of behaviour and restrain their self
interests for the greater long term good of the society, similarly a business will be able to
sustain only if it helps in the sustainability of the community.
Corporate Governance deals with adherence to standards, compliance, guidelines and
principles mandated by legal frameworks.
CSR is an umbrella term under whose ambit comes the ethical rights and duties of a firm or
company. Business Ethics is about moral awakening to do good to the society and
environment, while Corporate Governance is about doing things that are legally right.
Business Ethics is about doing things right and Corporate Governance is about doing right
things, while CSR is all about doing right things right so that the entire community and
environment has greater sustainability and the business in turn also has a greater
sustainability. Business Ethics and Corporate Governance is part of CSR.
Q.3 Can TVS use this communication to convince stakeholders that they are doing CSR for
long term benefits than short term profits?
Ans. Stakeholders for TVS are people who have interest or are affected by its business.
There are two types of stakeholders, primary and secondary. Primary are the shareholders,
employees, suppliers, etc while secondary are the society, government, etc. The activities of
SST does not reap immediate business benefits but helps in the society becoming self reliant
and sustainable and thus in the long run helps TVS become sustainable, because any
business can be alive only when the society is alive. By involving in CSR activities and ethical
practices, TVS can send out the message of trust. By trust I mean, trust that financial reports
and other disclosures are correct, trust that the production of its motorcycles is not harming
the society or environment, trust of giving back to the society through SST, trust that it
complies with the standards and laws of the nation. This trust is important for both the
primary and secondary stakeholders. It can boost the morale of its employees and reduce
attrition rate. It can lure investors. It can make its suppliers proud of their association with
TVS and lead to long term relationship. It helps the business owners in risk management
because the records are clean. It helps to establish positive brand image in the minds of
consumers. There are many such benefits which ultimately result in TVS remaining
profitable without negative impact on the society. And this is exactly what any stakeholder,
primary or secondary wants from a business. Thus TVS can very well use this communication
to convince its stakeholders that it is doing CSR for long term benefits than short term
profits.