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Social Initiatives at Thermax Ltd.
Abstract
In India, the Companies Bill, 2013, mandated that firms spend 2% of their average net profits on corporate social responsibility (CSR) activities. This led to an increase in social activities by firms that were more socially relevant and effective. Thermax claimed to be one of the few companies that undertook CSR activities that were well beyond its functional imperatives. It avoided spending on common CSR causes such as the environment and alternative energy but looked into areas like education and skill-building. Going beyond the mandated 2%, Thermax spent about 3% of its net profit on CSR activities. Among its various activities, it set up a model school to provide free education to underprivileged children to train them in non-formal education, mentor adolescents for personality development and career counselling, etc. |
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Issues
The case is structured to achieve the following teaching objectives:
- The why, what, and how of CSR
- The role of different stakeholders in the process of CSR
- The concept of CSR and its practice
- The arguments in favor of a company to practice CSR
- The different stakeholders that can be addressed
- The process of CSR
| Contents |
| INTRODUCTION |
| ABOUT THE COMPANY |
| ORGANIZATIONAL STRUCTURE |
| BEYOND THE BUSINESS ZONE |
| OUTLOOK |
| EXHIBITS |
Keywords
Business Ethics; Corporate social responsibility; CSR Pyramid; Mandatory CSR; Philanthropy; Economic; Environmental; Social
