MINOR PROJECT REPORT

On

A Study on Relationship of CSR and Profitability:

Tech Mahindra Analysis

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

Semester-IV (Paper Code-BBA 218)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide Submitted by
Name of Guide: Dr. Sunitha Ravi Name of Student: Manya Sharma
Designation: Associate Professor Roll No.: 01613701721
Batch: 2021-24

Institute of Information Technology & Management,

New Delhi – 110058
2022-23
 Certificate

I, Ms. Manya Sharma, Roll No. 01613701721 certify that the Minor Project Report (Paper

Code BBA 218) entitled “A Study on Relationship of CSR and Profitability: Tech Mahindra

Analysis” is completed by me by collecting the material from the referenced sources. The matter

embodied in this has not been submitted earlier forthe award of any degree or diploma to the best

of my knowledge and belief.

Signature of the Student:

Date:

Certified that the Minor Project Report (Paper Code BBA-218) entitled “A Study on Relationship

of CSR and Profitability: Tech Mahindra Analysis” done by Ms. Manya Sharma, Enrollment

No. 01613701721 is completed under my guidance.

Signature of the Guide

Name of the Guide:
Designation:
Date:

Countersigned

Director/Project Coordinator

i
 Acknowledgement

The success and final outcome of this project required a lot of guidance and assistance from many

people and I extremely privileged to have got this all along the completion of my project. All that

I have done is only due to such supervision and assistance and I would not forget to thank them.

I request and thank Dr. Sunitha Ravi, for providing me an opportunity to do the project work and

giving us all support and guidance which made me complete the project duly. I am extremely

thankful to her for providing such a nice support and guidance, who look keen interest on our

project work and guided us all along, till the completion of our project work providing all the

necessary information for developing a good system.

(Student’s Signature)
Manya Sharma
Enrollment no.01613701721

ii
 Institute of Information Technology & Management, New Delhi

Assignment No: BBA/218/01613701721

Minor Project Report –II (Paper Code: 218): BBA SEMESTER IV

Objectives

1. Students of BBA Semester IV are to be to write a dissertation on a topic of assigned to him/her by

his/her guide during the Fourth semester. The academic objectives of writing the dissertation are:
(a) Inculcate the habit of self-study.
(b) Enhance analytical ability by comprehending management concepts through self-study.
(c) Develop research ability by extracting the material from the different sources,
compilation and collating with references.
(d) Write comprehensive and exhaustive dissertation specific to a topic.

University Scheme for Summer Training

2. As per the syllabi of BBA (Paper Minor Project II Report code BBA-218), Semester IV are to
write a dissertation on a topic assigned to him/her. It is termed as “Minor Project Report” and comprises
of 3 credits. Therefore, the evaluation of report has two components, viz.

(a) External : 60 Marks; it involves external viva.

(b) Internal : 40 Marks; it involves Viva & Presentation before an

Internal Committee.

Scope of Minor Project Report

3. Each student shall be assigned a topic in writing by the respective guide along with the scope giving
functional aspects to be covered under it. He/she is to collect contents/study material related to the
topic from various sources such as books, journals, magazines, Internet etc. One copy comprising
of minimum 40 typed pages (inclusive of diagrams, references etc.) is to be submitted to the
respective guide as per the schedule given in the following paragraph. Each student is required
to carry out the work independently and submit the report individually.

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 4. Schedule & Evaluation Scheme
To be Completed Activity Marks
by Date Allotted
--
Briefing and Allocation of Topics & Project Guide to
March 4, 2023
each Student
10
March 22, 2023 Mid-term Review: Submission of Work Done till Date
April 5, 2023 Submission of Draft Report to the Respective Guides. 10

Submission of Final Report (One Spiral Bind Copy) to

April 12, 2023
the Respective Guide

May 31, 2023 & Viva & Power Point Presentation (Along with Spiral 15
June 1, 2023 Bind Copy) to the Internal Supervisor
Submission of Final Hard Bound Report and CD to the 5
14th June, 2023
Respective Guides
As notified by the External Viva before the external examiner 60
GGSIP University
Total Marks 100

Format for Compilation

The report is to be compiled and submitted as per the format laid down in Academic Circular 4/2008
(Revised on 02-01-2016). All students are to strictly adhere to the format.
Submission
Final report completed in all respects is to be submitted to the guide as per the schedule given above.
CAUTION: This report is independent work to be conducted by each student individually. Any previous
work or borrowed work will be summarily rejected and in all cases of rejection the work is to be repeated
afresh. STUDENT MUST ENCLOSE PLAGIARISM REPORT OF THEIR PROJECT TO AVOID
DUPLICACY OF WORK.

Dr. Sunitha Ravi Dr. Sunitha Ravi

Assignment Prepared by Project Coordinator (BBA-IV)

Countersigned
Prof. (Dr.) Rachita Rana
Director
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 Table of Contents

S.No. Topic Page No.

1 Certificates i

2 Acknowledgement ii

3 Assignment Directive iii

4 Table of contents v

5 List of Tables, figures, symbols & abbreviations vii

6 Executive summary viii

7 Objectives of the study x

8 Chapter 1: Introduction of Tech Mahindra 1-6

1.1 Vision and Mission 3

1.2 Services offered 3

1.3 Corporate culture 5

9 Chapter 2: CSR in Tech Mahindra 7-15

2.1 CSR activities 8

2.2 Innovative CSR programs 11

2.3 CSR policies 14

10 Chapter 3: Sustainable CSR Impact 16-19

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 3.1 Need and importance 17

3.2 Future directions 18

11 Chapter 4: Business benefits of CSR 20-25

4.1 How has CSR contributed to Tech Mahindra’s success? 22

4.2 Awards and recognitions 24

4.3 Success stories 25

12 Chapter 5: Implementation challenges and case studies 26-32

5.1 Potential CSR challenges 28

5.2 Case study 1 27

5.3 Case study 2 30

13 Chapter 6: Impact of CSR on profitability 33-41

6.1 Relationship between CSR and profitability 35

6.2 CSR impact on profitability 36

6.3 The Potential Negative Effects of CSR on Tech Mahindra 39

14 Chapter 7: Conclusion 42-44

15 Chapter 8: Findings and Suggestions 45-47

16 Bibliography 48

17 Plagiarism Report 49-50

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 LIST OF TABLES
Table No Title Page No
6.1 CSR amount spent by Tech Mahindra F.Y 2020-2021 37

LIST OF FIGURES

Figure No Title Page No

1.1 Tech Mahindra logo 2
2.1 CSR activities promoted by TMF 9
2.2 SMART Academy: Tech Mahindra Foundation 11
2.3 Nanhi Kali by TMF 12
2.4 Tribute to Mahindra Hariyali initiative 13
4.1 Business Benefits of CSR 22
4.2 SMART: Skills for Market Training 23
5.1 CSR challenges 27
5.2 Case study: Noida Deaf Society's teaching center 29
5.3 Case study- SMART Academy for Healthcare 31
6.1 CSR vs. Profit 34
6.2 Not only revenue and profitability, Tech M spent more than 2% 39
on CSR: CP Gurnani

LIST OF SYMBOLS

S No Symbol Nomenclature & Meaning

1  And

LIST OF ABBREVIATIONS
S No Abbreviated Name Full Name
1 CSR Corporate Social Responsibility
2 TMF Tech Mahindra Foundation
3 MEI Mahindra Education Institutions
4 SDG Sustainable Development Goals

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 EXECUTIVE SUMMARY

This report provides a detailed analysis of the relationship between Corporate Social

Responsibility (CSR) and profitability for Tech Mahindra, an Indian multinational technology

company. The study examines the company's CSR initiatives and their potential impact on both

its financial performance and social impact also how to contribute to its mission and values, and

how they align with the company’s policies and standards.

Tech Mahindra Foundation has initiated several CSR programs including Nanhi Kali, Mahindra

Hariyali etc. to showcase the importance and need of social responsibilities. The foundation has

set ambitious targets for sustainability, focusing on reducing greenhouse gas emissions and

promoting sustainable practices among employees, suppliers, and customers.

While there may not be a direct causal relationship between CSR and profitability, the report

suggests that CSR can contribute to long-term financial performance through increased customer

loyalty, improved brand reputation, and reduced risk of negative publicity. TMF (Tech Mahindra

Foundation) has exceeded its prescribed CSR budget by spending Rs. 105 crores on education,

employability, and COVID-19 relief initiatives. Following are the chapters that are discussed in

this report:

Chapter 1: Introduction of Tech Mahindra

The report starts with an overview of Tech Mahindra, including its mission, values, and services

offered.

Chapter 2: CSR in Tech Mahindra

This chapter explores the various CSR initiatives undertaken by Tech Mahindra, including

programs such as Nanhi Kali, Mahindra Hariyali and education and skill development.

viii
Chapter 3: Importance of CSR

This chapter highlights the moral and strategic imperatives of CSR.

Chapter 4: Business Benefits

Here, the report delves into the potential business benefits of CSR, including increased customer

loyalty, improved brand reputation, effective risk management, enhanced employee engagement

and retention, and access to new markets and opportunities and success stories.

Chapter 5: Implementation Challenges and Case Studies

The challenges in implementing CSR programs are discussed in this chapter, along with two case

studies that illustrate successful implementation and overcoming implementation challenges.

Chapter 6: Impact of CSR on Profitability

This chapter analyzes the impact of CSR on Tech Mahindra's profitability, exploring the indirect

benefits that CSR initiatives can bring to financial performance.

Chapter 7: Conclusion

The report concludes that Tech Mahindra's commitment to CSR is not only a moral imperative but

also a strategic imperative for long-term sustainability and competitive advantage.

Chapter 8: Findings and Suggestions

The final chapter presents the key findings of the report and provides suggestions for Tech

Mahindra to further enhance its CSR efforts.

Overall, the report concludes that Tech Mahindra's commitment to CSR is not only a moral

imperative but also a strategic imperative for the company's long-term sustainability and

competitive advantage.

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 OBJECTIVES OF THE STUDY

i) To study the current CSR initiatives at Tech Mahindra and their impact on profitability.

ii) To study the CSR policies at Tech Mahindra.

iii) To identify the potential benefits and negative impacts of CSR activities beyond financial
performance

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 CHAPTER-1

INTRODUCTION OF TECH MAHINDRA

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Tech Mahindra Limited is a leading provider of digital transformation, consulting, and business re-

engineering services, headquartered in Pune, India. As a joint venture between Mahindra & Mahindra

and British Telecom, the business was established in 1986 under the name Mahindra British Telecom.

Once British Telecom lost ownership of the company, it was later renamed Tech Mahindra. The

Mahindra Group, a global conglomerate with operations in over 100 countries, includes Tech

Mahindra as a member. Founder of Tech Mahindra is Mr. Anand Mahindra.

With over 135,000 workers spread across 90 different countries and more than 900 clients, including

Fortune 500 firms, Tech Mahindra has a global presence. Digital strategy, consulting, digital

transformation, engineering, analytics, and cyber security are just a few of the services the business

provides.

Figure 1.1: Tech Mahindra logo

The company has established innovation centers in various locations, such as Silicon Valley, London,

and Bangalore, to collaborate with startups, academia, and clients to drive innovation. In order to

create cutting-edge solutions for clients, Tech Mahindra has also made investments in cutting-edge

technologies like block chain, artificial intelligence, and the Internet of Things.

The corporation has recently had great financial results, with fiscal year 2020–21 revenue of USD 5.1

billion, up 4.4% from the prior year. In the Dow Jones Sustainability Indices for 2020, Tech

Mahindra was classified in the top 25% of firms for its sustainability efforts.
2
In conclusion, Tech Mahindra is a leading provider of digital transformation services with a global

presence and strong focus on innovation. The company has a diverse range of clients across various

industries and has a strong track record of financial performance and sustainability.

1.1 Vision and Mission

The vision of Tech Mahindra is to be a leading global digital transformation company, enabling

customers to thrive in a rapidly changing world with innovative and cutting-edge technology

solutions.

The mission of Tech Mahindra is to leverage its expertise in technology and domain knowledge to

deliver value to its customers, employees, shareholders, and society at large. The company aims to

provide superior customer experiences, create a collaborative and inclusive work environment for its

employees, generate sustainable profits for its shareholders, and contribute to social causes through

its corporate social responsibility initiatives. Additionally, Tech Mahindra strives to foster innovation

and agility in its operations to stay ahead of the curve and drive digital transformation across

industries.

1.2 Services offered

Tech Mahindra offers a wide range of services, including digital strategy, consulting, digital

transformation, engineering, analytics, and cybersecurity. The company provides innovative solutions

to clients across various industries such as banking and financial services, healthcare, retail, and

telecommunications. Below are a few of the major responsibilities rendered by the company:

3
 i. Digital Transformation:

Tech Mahindra is a leader in digital transformation services. The company offers end-to-end digital

transformation solutions, including strategy development, design thinking, customer journey

mapping, and implementation. Tech Mahindra's digital transformation solutions help businesses to

enhance their customer experience, improve operational efficiency, and create new revenue streams.

ii. Innovation:

Innovation is at the core of Tech Mahindra's business strategy. The company has established

innovation centers in various locations, such as Silicon Valley, London, and Bangalore, to collaborate

with startups, academia, and clients to drive innovation. Tech Mahindra has invested in emerging

technologies such as blockchain, artificial intelligence, and Internet Of Things to develop innovative

solutions for clients.

iii. Global Presence:

Tech Mahindra has a global presence with over 135,000 employees across 90 countries. The

company has delivery centers in India, the United States, Europe, the Middle East, Africa, and Asia

Pacific. Tech Mahindra's global presence enables it to provide localized solutions to its clients and

leverage local talent and resources.

iv. Financial Performance:

Tech Mahindra's financial performance has been strong in recent years. The company reported

revenue of USD 5.1 billion in the fiscal year 2020-21, a 4.4% increase from the previous year. The

company's net profit for the year was USD 780 million. Tech Mahindra's financial performance is a

reflection of its focus on delivering value to its clients and investing in innovative solutions.

4
 v. Sustainability:

Tech Mahindra is committed to sustainability and has taken several initiatives to reduce its carbon

footprint and promote sustainable practices. The company has set a target of reducing its carbon

emissions by 50% by 2050. Tech Mahindra has also been recognized for its sustainability initiatives

and was ranked among the top 25% of companies in the Dow Jones Sustainability Indices for 2020.

In conclusion, Tech Mahindra offers a comprehensive range of technology solutions and services to

help clients achieve their business objectives. With a focus on innovation and sustainability, Tech

Mahindra is well-positioned to drive digital transformation and create long-term value for its clients

and stakeholders.

1.3 Corporate culture

A multinational Indian corporation called Tech Mahindra offers IT consultancy and support to a

number of markets, including retail, banking, telecom, and healthcare. The organization has a distinct

corporate culture that values innovation, customer focus, and collaboration.

Here are a few highlights of Tech Mahindra's corporate culture:

i Customer-centricity: Tech Mahindra believes that customer satisfaction is the key to success.

Therefore, the company focuses on delivering high-quality solutions that meet the needs of its

customers.

ii Innovation: Tech Mahindra encourages its employees to think creatively and come up with

innovative solutions. The company has established innovation centers to foster a culture of

innovation.

5
iii Collaboration: Tech Mahindra fosters a collaborative culture where employees work together to

achieve common goals. The company encourages cross-functional teams to work together and

share ideas.

iv Diversity and Inclusion: Tech Mahindra values diversity and inclusion and believes that a diverse

workforce can bring a unique perspective to problem-solving. The company has established

programs to promote diversity and inclusion in the workplace.

v Corporate Social Responsibility: Tech Mahindra is committed to making a positive impact on

society. The company has established programs to promote education, healthcare, and

environmental sustainability.

Overall, Tech Mahindra's corporate culture emphasizes teamwork, innovation, and customer-

centricity. The company values its employees and encourages them to grow and develop their skills.

In the following chapters, we will learn more about the company's Corporate Social Responsibility

(CSR) initiatives, which have served to position the brand and helped them establish a strong market

position. We will also discover more about Tech Mahindra's earnings and losses in detail.

6
 CHAPTER-2

CSR IN TECH MAHINDRA

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Corporate social responsibility is a business strategy that encourages businesses to work in ways that

benefit society and the environment rather than harming them. CSR aids in enhancing a number of

societal facets as well as enhancing the reputation of businesses.

Corporate social responsibility (CSR) for Tech Mahindra refers to the company's commitment to

operating in an ethical and sustainable manner that benefits both its stakeholders and society as a

whole. Tech Mahindra Foundation, the company's CSR division, was established in 2006. The

foundation puts a lot of effort into achieving the goal of "Empowerment through Education" with

three main areas of focus: education, employability, and disability. With the aid of 90+ partners in 11

different locations throughout India. They are working to affect lives and bring about social change

through their 150+ initiatives.

Tech Mahindra's CSR efforts are guided by its Corporate Social Responsibility Policy, which outlines

the company's commitment to conducting its business in a socially responsible and sustainable

manner. The policy also establishes clear goals and objectives for the company's CSR initiatives,

including reducing its environmental impact, promoting diversity and inclusion, and contributing to

the social and economic development of the communities in which it operates.

2.1 CSR Activities

CSR activities can range from philanthropic donations to sustainable business practices and employee

volunteerism. There are several types of CSR activities that companies can engage in to demonstrate

their commitment to being responsible corporate citizens.

8
 Tech Mahindra Foundation has three key focus areas for its Corporate Social Responsibility

initiatives, which are the empowerment of girls and women, people with disabilities, and corporate

volunteering. These three areas are integrated into all the foundation's projects and programs. The

foundation is committed to ensuring that at least 50% of its beneficiaries are women and 10% are

persons with disabilities.

Empowerment of
girls/women

Empowerment of people
with disabilities

Corporate volunteering

Figure 2.1: CSR activities promoted by TMF

i. Empowerment of girls/women:

Tech Mahindra Foundation's programs focus on empowering girls and women through education,

skill development, and employment opportunities. The foundation works to bridge the gender gap in

education and employment by providing scholarships, training programs, and career guidance to girls

and women from underprivileged communities. The foundation's programs also promote women's

entrepreneurship and leadership by providing access to finance, mentorship, and networking

opportunities.

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ii. Empowerment of people with disabilities:

Tech Mahindra Foundation's programs focus on empowering people with disabilities through

education, skill development, and employment opportunities. The foundation works to create an

inclusive society by providing scholarships, training programs, and career guidance to people with

disabilities. The foundation's programs also promote accessibility and assistive technology to enhance

the quality of life for people with disabilities.

iii. Corporate volunteering:

Tech Mahindra Foundation encourages its employees to engage in volunteering activities that

contribute to social causes. The foundation's corporate volunteering program provides opportunities

for employees to participate in community service projects and contribute their skills, time, and

resources to support social causes. Through its corporate volunteering program, Tech Mahindra

Foundation aims to create a culture of social responsibility and promote employee engagement.

Other CSR initiatives taken by Tech Mahindra includes focusing on environmental responsibility.

The company has implemented several green initiatives to reduce its carbon footprint and promote

sustainable practices. These include reducing energy consumption through the use of renewable

energy sources and implementing measures to conserve water.

In addition to environmental responsibility, Tech Mahindra has also focused on social responsibility.

The company has undertaken initiatives to promote education and skill development, particularly in

underprivileged communities. Tech Mahindra has also provided disaster relief support in times of

crisis and has worked to promote diversity and inclusion in its workforce.

Finally, Tech Mahindra has placed a strong emphasis on ethical responsibility. The company has

implemented policies and programs to ensure that it operates in a responsible and transparent manner.

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 These include initiatives to prevent corruption, promote fair labor practices, and ensure compliance

with laws and regulations.

2.2 Innovative CSR programs by TMF

Companies try to follow unique ways in order to gain from their CSR activities. They thrive on

engaging in more innovative ideas. Tech Mahindra has positioned itself in the minds of its consumers

through its impactful and societal programs promoting corporate social responsibility. Some of the

notable initiatives include:

i. Tech Mahindra SMART Academy for Healthcare

The Tech Mahindra SMART Academy for Healthcare is a CSR initiative by Tech Mahindra that

provides skill-based training to young people from underprivileged communities to enhance their

employability in the healthcare sector. The program offers a 3-6 month training course in areas such

as General Duty Assistant, Patient Care Assistant, and Home Health Aide.

Figure 2.2: SMART Academy: Tech Mahindra Foundation

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 The academy has a strong focus on practical training, with students receiving hands-on experience

through internships and on-the-job training. The program aims to address the shortage of skilled

healthcare workers in India, particularly in rural areas, and to provide opportunities for youth from

disadvantaged backgrounds to access better job opportunities and improve their economic and social

status. Since its inception in 2012, the Tech Mahindra SMART Academy for Healthcare has trained

over 10,000 students and has had a placement rate of over 75%.

ii. Nanhi Kali:

Nanhi Kali is a girl child sponsorship program initiated by the K. C. Mahindra Education Trust and

Naandi Foundation in 1996, and is now supported by Tech Mahindra through its corporate social

responsibility initiatives. The program provides educational support to underprivileged girl children

in India, with a focus on ensuring their enrolment and retention in schools.

Figure 2.3: Nanhi Kali by TMF

The program provides academic, material, and socio-emotional support to girls from economically

disadvantaged backgrounds, including school uniforms, bags, shoes, stationery, and hygiene items.

The program also offers remedial classes and life skills training to improve the girls' academic

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 performance and self-confidence. The Nanhi Kali program has impacted over 400,000 girls in 12

states in India and has helped to promote girls' education and gender equality in the country.

iii. Mahindra Hariyali:

Mahindra Hariyali is a tree-plantation initiative by the Tech Mahindra, Mahindra Group aimed at

promoting environmental sustainability in India. The program was launched in 2007 and focuses on

planting trees to combat deforestation and increase green cover in the country. Under the program,

the Mahindra Group partners with local communities, NGOs, and government bodies to plant trees in

rural and urban areas across India.

Figure 2.4: Tribute to Mahindra Hariyali initiative

The program aims to plant one million trees every year, with a focus on planting native species that

are adapted to local climatic conditions. As of 2021, the Mahindra Hariyali program has planted over

14 million trees across the country, contributing to the mitigation of climate change, restoration of

ecological balance, and conservation of biodiversity.

Based on the information available, it appears that Tech Mahindra has had a successful track record

in their CSR activities, with a focus on creating a positive impact in the areas of education,

environment, and healthcare.

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 2.3 CSR policies

Tech Mahindra is committed to creating a safe and secure work environment for its employees and

stakeholders, and this is reflected in the company's comprehensive policies and frameworks for child

protection and safeguarding, POSH gender policy, and whistleblower policy.

i. Child Protection and Safeguarding Policy:

Tech Mahindra recognizes the importance of protecting children from all forms of abuse,

exploitation, and neglect. The company's Child Protection and Safeguarding Policy outlines its

commitment to ensuring the safety and wellbeing of all children who come into contact with its

operations, products, and services. The policy outlines the responsibilities of employees,

stakeholders, and partners in identifying and reporting suspected cases of child abuse or neglect. It

also includes measures such as background checks for employees working with children, training

programs for employees and stakeholders on child protection and safeguarding, and a reporting

mechanism to handle any incidents or concerns related to child safety.

ii. POSH Gender Policy:

Tech Mahindra's POSH Gender Policy is aimed at creating a workplace environment that is free from

sexual harassment, discrimination, and prejudice against employees based on their gender.

The policy also includes provisions for reporting incidents of sexual harassment, conducting

investigations, and taking appropriate disciplinary action against offenders. Tech Mahindra provides

regular training and awareness programs to employees on the policy and their responsibilities towards

creating a safe and respectful workplace.

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iii. Whistleblower Policy:

Tech Mahindra's Whistleblower Policy is designed to encourage employees to report any unethical or

illegal conduct within the organization without fear of retaliation. The policy encourages employees

to report such incidents anonymously and confidentially through a secure mechanism. The policy also

includes provisions for investigating and resolving complaints, protecting whistleblowers against any

retaliation, and providing necessary support and counseling to them. Tech Mahindra ensures that all

employees are aware of the policy and the reporting mechanism through regular training and

awareness programs.

These policies reflect Tech Mahindra's commitment to social responsibility, ethical practices, and

creating a safe and inclusive workplace.

The Child Protection and Safeguarding Policy, POSH Gender Policy, and Whistleblower Policy are

all essential for Tech Mahindra in promoting a safe, inclusive, and ethical work environment and

demonstrating its commitment to social responsibility and sustainability.

15
 CHAPTER-3

SUSTAINABLE CSR IMPACT

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 Corporate Social Responsibility (CSR) is an integral part of Tech Mahindra's business strategy. Tech

Mahindra believes that its business should contribute positively to the social, economic, and

environmental well-being of the communities in which it operates.

Educated, skilled and able women and men are a country’s true strength. Tech Mahindra Foundation

aspire to see children who are purposefully engaged, youth that is constructively employed and a

society that provides equal opportunities to people with different abilities. Through its corporate

social responsibility initiatives, the Mahindra Group commits itself to this.

3.1 Need and importance of CSR

Corporate Social Responsibility (CSR) activities are important for companies as they provide a

framework for businesses to act as responsible corporate citizens. Companies that engage in CSR

activities demonstrate their commitment to creating value for all stakeholders, including customers,

employees, suppliers, and society at large. By implementing CSR initiatives, companies can build

trust and credibility with their stakeholders and create a positive reputation for themselves.

The need and importance of CSR for Tech Mahindra are as follows:

i. Reputation: Tech Mahindra's CSR initiatives help to enhance the company's reputation as a

responsible corporate citizen. This, in turn, helps to attract and retain customers, employees, and

investors who are interested in doing business with socially responsible companies.

ii. Risk Management: CSR initiatives help to mitigate risks associated with the company's

operations, such as environmental risks, labor risks, and regulatory risks. By investing in CSR

initiatives, Tech Mahindra can reduce the likelihood of negative impacts on its operations and

enhance its social license to operate.

17
iii. Employee Engagement: CSR initiatives help to engage and motivate employees by providing

opportunities to contribute to social causes that align with the company's values. This, in turn,

helps to improve employee morale, productivity, and retention.

iv. Social Impact: Tech Mahindra's CSR initiatives have a positive impact on the communities

where the company operates. By investing in education, environment, health, and community

development, Tech Mahindra can contribute to sustainable development and help to create a

better future for all.

In conclusion, CSR is a crucial aspect of Tech Mahindra's business strategy. The company has

demonstrated a strong commitment to being a responsible corporate citizen through its various

CSR initiatives. These initiatives have helped to enhance the company's reputation, attract

customers who value ethical and sustainable practices, and reduce costs through efficiency gains.

Additionally, Tech Mahindra's CSR initiatives have helped to promote innovation and

collaboration within the company, leading to greater employee engagement and productivity.

Overall, CSR has played an important role in Tech Mahindra's success, and the company's

continued focus on CSR is essential for its long-term sustainability and growth.

3.2 Future directions

Tech Mahindra's future plans and aspirations in the realm of CSR are centered on sustainability,

technology-driven social impact, and addressing specific social and environmental challenges. The

company aims to reduce its carbon footprint, conserve resources, and promote renewable energy

solutions, thereby strengthening its sustainability initiatives. Leveraging its expertise as a technology

company, Tech Mahindra plans to explore innovative ways to use technology for social good,

including artificial intelligence and data analytics for addressing societal challenges. The company

also intends to focus on social empowerment and inclusion by enhancing education and
18
employability for underprivileged communities. Responsible supply chain practices, community

engagement, and robust impact measurement and reporting frameworks are other areas of focus for

Tech Mahindra. Through these future directions, the company aims to lead in CSR, making a positive

and lasting impact on society.

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 CHAPTER-4

BUSINESS BENEFITS OF CSR

20
Corporate Social Responsibility (CSR) activities are becoming increasingly important for companies

as they seek to create a positive impact on society and the environment. CSR activities involve

voluntary actions taken by a company to improve its social, economic, and environmental impact on

society. There are numerous benefits of CSR activities for companies.

CSR activities can enhance a company's reputation and brand recognition. By engaging in socially

responsible activities, a company can demonstrate its commitment to society and the environment,

thereby gaining the trust and loyalty of customers, employees, and other stakeholders. This can lead

to increased customer satisfaction, employee engagement, and investor confidence, which can

ultimately lead to increased revenue and profitability.

These activities can help companies manage risks related to reputation, legal compliance, and

environmental impact. By implementing ethical business practices and environmentally sustainable

practices, companies can reduce the risk of negative publicity, regulatory penalties, and

environmental damage. This can help companies protect their brand reputation and mitigate potential

losses. It also helps companies attract and retain talent. Employees today are increasingly concerned

about the social and environmental impact of the companies they work for. By engaging in CSR,

companies can create a sense of purpose and pride among employees, which can lead to increased

activities employee engagement and retention.

In the long run, it can also create business opportunities for companies. For example, such initiatives

in education and skill development can help companies identify and train potential employees,

creating a pipeline of skilled workers for the company. This can also help companies build

partnerships with other businesses and organizations, leading to new business opportunities and

revenue streams.

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 Reputation & Retaining
Managing risks
Recignition talent

Education &
Business
skill
opportunities
Development

Figure 4.1: Business Benefits of CSR

The above figure demonstrates in points the benefits for companies, including enhancing brand

reputation, managing risks, attracting and retaining talent, and creating business opportunities.

Companies that embrace CSR activities are not only fulfilling their social responsibility but also

contributing to their own success.

4.1 How has CSR contributed to Tech Mahindra’s success?

In an interview, the Managing Director and Chief Executive Officer of Tech Mahindra Limited, Mr.

C. P. Gurnani, stated that the employees at Tech Mahindra are proud of the company's emphasis on

individual social responsibility and CSR activities, which began more than three decades ago and

were implemented long before the 2% regulation. Employees particularly like the company's focus on

education, sustainability, and employee participation through the Josh program.

The corporation prefers to get involved in CSR initiatives rather than only writing checks, and the

Josh program gives employees a platform to take part in charitable work. The staff members of the

company are conscious of their good fortune and thankful for the chance to contribute to society.

22
 Figure 4.2: SMART: Skills for Market Training

Tech Mahindra's CSR activities have benefitted the company in various ways, including:

i. Enhanced brand reputation: Tech Mahindra's CSR initiatives have helped the company build a

positive brand image and reputation as a socially responsible organization. This has helped the

company attract socially conscious customers, employees, and investors, which has contributed to

its growth and success.

ii. Improved stakeholder relationships: CSR initiatives have helped Tech Mahindra foster strong

relationships with its stakeholders, including customers, employees, suppliers, and communities.

This has helped the company build trust and loyalty among its stakeholders, which has

contributed to its long-term success.

iii. Increased employee engagement and retention: Tech Mahindra's CSR initiatives, such as

education and skill-building programs, have helped the company attract and retain talented

employees. This has helped the company build a skilled workforce, which has contributed to its

business success.

23
iv. Cost savings: Tech Mahindra's environmental sustainability initiatives, such as the use of

renewable energy sources and waste reduction programs, have helped the company reduce its

operating costs and achieve cost savings. This has helped the company improve its profitability

and competitiveness.

v. Contribution to sustainable development: Tech Mahindra's CSR initiatives have contributed to

sustainable development by addressing social and environmental issues, such as poverty,

education, and climate change. This has helped the company create a positive impact on society

and contribute to the well-being of communities where it operates.

4.2 Awards and Recognitions

Tech Mahindra has received numerous awards and recognitions for its Corporate Social

Responsibility (CSR) initiatives. Some of the notable ones include:

i. The Golden Peacock Award for Sustainability: Tech Mahindra received this award in 2021 for its

commitment to sustainability and CSR. The award recognizes companies that demonstrate

excellence in sustainability practices and social responsibility.

ii. Forbes Impact 30 Award: Tech Mahindra was recognized by Forbes in 2020 as one of the top 30

social enterprises in India for its contribution to society through its CSR initiatives.

iii. NASSCOM CSR Leadership Award: Tech Mahindra won this award in 2019 for its excellence in

CSR practices. The award recognizes companies that demonstrate leadership in CSR and

sustainable business practices.

iv. Aon Best Employer Award: Tech Mahindra has won this award multiple times for its employee

engagement and people practices. The company's commitment to employee well-being and

development is an integral part of its CSR strategy.

24
v. Global CSR Excellence and Leadership Award: Tech Mahindra was recognized with this award

in 2018 for its CSR activities in the areas of education, health, and environmental sustainability.

Overall, these awards and recognitions showcase Tech Mahindra's commitment to creating a positive

impact on society through its CSR initiatives.

4.3 Success stories

The Tech Mahindra Foundation has been empowering individuals to rise through education-focused

projects since 2006, impacting over 332,732 beneficiaries in 11 cities in India (as of March 31, 2022).

Their programs have a mandate to benefit 50% women and 10% people with disabilities. In FY 2021-

22, the Foundation impacted 41,374 direct beneficiaries, and in FY 2020-21, they impacted 31,753.

The Foundation has also impacted over 2.7 million lives through its COVID relief work. They

currently have 582 COVID relief projects in 17 states in India. The Foundation connects with the

community throughout the program ideation, design, execution, and review processes to create

programs for the larger community. Their programs in employability, education, disability, and

corporate volunteering have helped the community flourish, and they aim to maximize their impact

by incorporating innovation and sustainability into their projects in the years to come.

25
 CHAPTER-5

IMPLEMENTATION CHALLENGES &

CASE STUDIES

26
 Tech Mahindra, being a responsible organization, has implemented various CSR initiatives to fulfill

its social and environmental responsibilities. However, like any other company, Tech Mahindra has

faced several challenges while implementing CSR activities.

Figure 5.1: CSR challenges

5.1 Potential CSR challenges

Here are some of the challenges that the company might have faced:

i. Lack of awareness and participation: One of the significant challenges faced by Tech Mahindra

could be a lack of awareness and participation among employees, stakeholders, and local

communities. This could hamper the effectiveness and impact of CSR initiatives.

ii. Resource allocation: Another challenge could be allocating sufficient resources, including

finance, human resources, and technology, to implement CSR activities successfully. This can be

a significant hurdle, especially in times of financial constraints.

iii. Measuring impact: Measuring the impact of CSR initiatives and ensuring their sustainability is

another challenge faced by Tech Mahindra. The company needs to have a robust framework to

measure the effectiveness of its initiatives and ensure their long-term success.
27
iv. Balancing multiple objectives: Tech Mahindra, like any other company, has to balance multiple

objectives, including profitability, social responsibility, and environmental sustainability.

Balancing these objectives can be challenging and requires careful planning and execution.

v. Stakeholder engagement: Engaging with a diverse set of stakeholders, including customers,

employees, suppliers, investors, and local communities, can be another significant challenge for

Tech Mahindra. Effective communication and engagement are critical for the success of CSR

initiatives.

vi. Regulatory compliance: Tech Mahindra needs to comply with various local, national, and

international laws and regulations while implementing CSR initiatives. This can be challenging,

especially in countries with complex and ever-changing regulatory frameworks.

In conclusion, while Tech Mahindra has been at the forefront of CSR activities, it has faced several

challenges in implementing these initiatives. Overcoming these challenges is critical for the company

to ensure the long-term success and sustainability of its CSR initiatives.

5.2 Case study- I

In 2011, Sameer enrolled at the Noida Deaf Society's teaching centre when he was seven years old.

Despite being hearing-impaired, Sameer showed promise in his studies and expressed a desire to

become a computer operator. Although he did not fully comprehend the concept of TMF, he

acknowledged the positive impact it had on society and supported their endeavors. Sameer used to be

a very aggressive child, but thanks to the guidance and support provided by the academy, he has

redirected his energy towards computer education. Additionally, the Noida Deaf Society has taken

the initiative to teach parents sign language to facilitate better communication with their deaf

28
children.

Figure 5.2: Case study: Noida Deaf Society's teaching centre

While the Noida Deaf Society's teaching center has provided valuable support and education for

Sameer and other hearing-impaired children, there are still challenges that the TMF may face in

providing effective CSR initiatives for the deaf community.

As a company that aims to support CSR initiatives for the deaf community, Tech Mahindra may face

several challenges in effectively supporting organizations like the Noida Deaf Society and individuals

like Sameer.

One challenge is the lack of specialized resources and technology available to support the hearing-

impaired community. For example, providing sign language interpreters and assistive devices like

29
hearing aids can be expensive, making it difficult for organizations to provide adequate support and

education.

Another challenge may be a lack of awareness and understanding about the needs and challenges

faced by the hearing-impaired community. This can lead to limited funding and resources for CSR

initiatives, making it more difficult for companies like Tech Mahindra to provide effective support.

Finally, there may also be a lack of inclusion and job opportunities for the hearing-impaired

community, which can limit their economic and social mobility. This may require companies like

Tech Mahindra to partner with other organizations and companies to create programs and policies

that support the inclusion and advancement of the hearing-impaired community in the workforce.

To address these challenges, Tech Mahindra may need to focus on increasing awareness and

education about the needs and challenges of the hearing-impaired community, as well as partnering

with other organizations and companies to increase access to specialized resources and technology.

They may also need to advocate for policies and initiatives that support the inclusion and

advancement of the hearing-impaired community in the workforce, and create programs to support

education and career opportunities for this community.

5.3 Case study- II

Malti Lenka from Manipur learned about the healthcare technician course through an NGO. She

recognized the need for healthcare technicians in Manipur and decided to take the course to gain the

necessary skills. After completing the course, Malti Lenka plans to gain a year of experience in India

before returning to Manipur to work. She sees this course as an opportunity to acquire a valuable skill

set that can be used in the healthcare sector across the country.

30
 Figure 5.3: Case study- SMART Academy for Healthcare

Tech Mahindra's healthcare technician course provides an excellent opportunity for individuals like

Malti Lenka to develop valuable skills and pursue a career in the healthcare industry. The course is

designed to meet the increasing demand for healthcare technicians across the country and help bridge

the gap between healthcare services and healthcare personnel.

By offering the healthcare technician course, Tech Mahindra is addressing a major challenge faced by

the healthcare sector in India - the shortage of skilled healthcare personnel. This shortage can lead to

a lack of access to quality healthcare services, especially in rural areas.

However, implementing this course may have also posed several challenges for Tech Mahindra. For

example, providing access to quality education and training to individuals in remote or rural areas can

be difficult. It may also be challenging to attract and retain qualified instructors who are able to

effectively teach the necessary skills.

31
Furthermore, there may be challenges related to financing the course and ensuring that it remains

affordable for all students. Tech Mahindra may also need to work with local healthcare facilities to

create job opportunities for graduates of the course.

To overcome these challenges, Tech Mahindra may need to work with local partners to ensure that

the course is accessible to individuals in remote or rural areas. They may also need to collaborate

with local healthcare facilities to create job opportunities for graduates of the course. Additionally,

they may need to offer financial assistance to students to ensure that the course remains affordable

and accessible to all.

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 CHAPTER-6

IMPACT OF CSR ON PROFITABILITY

33
Corporate social responsibility (CSR) refers to a company's voluntary actions to improve social,

environmental, and economic conditions in the communities where it operates. CSR initiatives can

include activities such as charitable donations, environmental sustainability initiatives, employee

volunteer programs, and social impact investments.

Figure 6.1: CSR vs. Profit

Studies have shown that there is a positive correlation between CSR and financial performance. CSR

activities can improve a company's reputation, enhance its brand image, and increase customer

loyalty, which can lead to increased sales and revenue. CSR activities can also boost employee

morale and motivation, leading to higher productivity and reduced employee turnover, which can

reduce costs and improve profitability in the long run.

In addition to the potential financial benefits, CSR initiatives can also help companies to fulfill their

social responsibility and make a positive impact on the community and the environment. This can

improve the company's overall reputation and create long-term value for all stakeholders.

However, the exact impact of CSR on profitability may depend on various factors such as the type

and effectiveness of CSR initiatives, the competitive landscape of the industry, and the current market

conditions. Some companies may incur additional costs to implement CSR activities, which can
34
 reduce short-term profitability. In some cases, companies may also experience a negative impact on

their reputation if they fail to effectively implement CSR initiatives or if their CSR activities are

perceived as insincere or not aligned with stakeholder expectations.

Furthermore, the impact of CSR on profitability may also depend on the type of industry. For

example, CSR initiatives related to environmental sustainability may be more impactful for

companies in industries with high environmental risks, while CSR initiatives related to employee

welfare may be more impactful for companies in industries with high labor turnover.

In summary, while there is a positive correlation between CSR and financial performance, the exact

impact of CSR on profitability can vary depending on multiple factors. Companies need to carefully

evaluate the potential costs and benefits of CSR activities and implement them effectively to ensure

long-term profitability and sustainable growth.

6.1 Relationship between CSR and profitability

The relationship between Corporate Social Responsibility (CSR) and profitability has been a topic of

much debate and research in the business community. While some argue that CSR activities can have

a positive impact on a company's bottom line, others contend that they can be costly and have a

negative effect on profitability. Here are some key points to consider when analyzing the relationship

between CSR and profitability:

i. Positive correlation: Several studies have found a positive correlation between CSR activities and

profitability. For example, a meta-analysis of 2,200 studies conducted by Harvard Business

Review found that companies with strong CSR performance had higher profitability and stock

performance than their peers.

35
ii. Cost-benefit analysis: While CSR activities can be costly, they may also lead to benefits such as

increased customer loyalty, improved brand reputation, and reduced risk of negative publicity.

These benefits can translate into increased sales and higher profits over the long-term, which can

offset the initial costs of CSR activities.

iii. Industry-specific factors: The relationship between CSR and profitability can vary depending on

the industry. For example, CSR activities may be more important for companies in industries that

are highly regulated or have a strong focus on sustainability, such as the energy sector or the food

and beverage industry.

iv. Stakeholder perspective: The impact of CSR activities on profitability can also depend on the

perspective of different stakeholders. For example, investors may value companies that prioritize

CSR activities, while employees may be more likely to stay with companies that have a strong

sense of social responsibility.

Overall, while the relationship between CSR and profitability may not be straightforward, there is

evidence to suggest that CSR activities can have a positive impact on a company's bottom line over

the long-term. However, it is important to consider industry-specific factors and the perspectives of

different stakeholders when analyzing this relationship.

6.2 CSR impact on profitability

Tech Mahindra has spent a total of Rs 105 crores on various CSR (Corporate Social Responsibility)

activities, which is more than its prescribed CSR budget, for the financial year 2020-21.

The average net profit of the company from the past three years before tax amounted to Rs. 5,222.3

crores. Thus, the company’s CSR obligation, calculated as 2% of the average net profit of the past

36
three years, stood at Rs 104.44 crores. The company, however, spent an excess of Rs 56 lakhs on its

CSR activities taking the overall CSR expenditure to Rs 105 crores. Earlier, in FY 2019-2020, the

company had spent Rs. 118.11 crores on its CSR initiatives.

S.no. Project name Programme Location Amount spent

(in crores)
1. Employability SMART Delhi, Chandigarh, Mohali, 24.33
Telangana, Andhra,
SMART + Karnataka, Tamil Nadu,
West Bengal, Odisha,
SMART T Maharashtra, Uttar Pradesh

SMART Academies

Asset Acquired for

Employability Project
2. School Education ARISE Delhi, Chandigarh, Mohali, 11.4
Telangana, Andhra,
ARISE + Karnataka, Tamil Nadu,
West Bengal, Odisha,
Shikshaantar Maharashtra, Uttar Pradesh

Asset Acquired for Education

Project
3. Education Technical Education Pan India 46.50
4. COVID-19 Relief Health Pan India 14.47
5. Health Health Pan India 0.30
6. Corpus Contribution Pan India 8.00
Total 105.00

Table 6.1: CSR amount spent by Tech Mahindra for FY 2020-21

Tech Mahindra Limited has more than 75% of its business operations in India and it implemented all

its CSR activities in the country through the Tech Mahindra Foundation (TMF) and Mahindra

Education Institutions (MEI) and as per the Indian Companies Act 2013. The company spent more

than 2% of the average net profit on the implementation of CSR projects and activities aligning itself

with the Sustainable Development Goals (SDG) of quality education for all.

37
The annual report of the company states, “One of the key focus areas of Tech Mahindra Foundation’s

CSR vision is the Empowerment of girls/women. The Board has a mission/mandate that 50% of the

beneficiaries of the CSR Initiatives on Employability, Education and Disability should be women.

This is part of the CSR vision and a commitment to the idea of gender equality and empowerment of

women and girls.”

TMF (Tech Mahindra Foundation) has exceeded its prescribed CSR budget by spending Rs. 105

crores on education, employability, and COVID-19 relief initiatives. This suggests that Tech

Mahindra takes its CSR commitment seriously and is investing significant resources in its CSR

programs.

Tech Mahindra's focus on CSR initiatives related to education and employability could potentially

lead to a more skilled and productive workforce. This could, in turn, improve the company's

operational efficiency and financial performance.

Furthermore, Tech Mahindra's COVID-19 relief efforts could contribute to the company's reputation

and brand image, which could attract new customers and enhance customer loyalty. In today's

socially conscious business environment, companies that prioritize CSR are more likely to be viewed

positively by consumers, which could translate into a competitive advantage and increased

profitability.

In conclusion, while the exact relationship between CSR and profitability is difficult to determine,

Tech Mahindra's focus on CSR initiatives and investment in its CSR programs could potentially lead

to indirect benefits that contribute to the company's financial performance.

38
 6.3 The Potential Negative Effects of CSR on Companies and Tech Mahindra

Corporate Social Responsibility (CSR) initiatives have become increasingly popular in recent years,

with many companies adopting programs aimed at addressing social, environmental, and ethical

issues in the communities where they operate. While CSR can have numerous benefits, including

enhanced reputation, increased customer loyalty, and improved employee engagement, it can also

have negative effects on profitability.

Figure 6.2: Not only revenue and profitability, Tech M spent more than 2% on CSR: CP Gurnani

Negative Effects of CSR on Profitability:

i. Cost: One of the primary negative effects of CSR on profitability is the cost involved. CSR

initiatives, such as environmental sustainability programs and employee volunteering, require

financial investments that may not provide immediate returns. In the short-term, this can lead to

lower profits and reduced shareholder value.

39
ii. Time and Resources: CSR initiatives also require significant time and resources, which can divert

a company's attention away from its core business operations. This can lead to reduced efficiency

and productivity, resulting in lower profitability.

iii. Reputation Risk: CSR initiatives can also carry reputation risk if they are not executed properly.

For example, if a company's environmental sustainability program is exposed as green washing or

if an employee volunteering initiative is found to be insincere, this can damage the company's

reputation and lead to a loss of customers and revenues.

Negative effects of CSR on Tech Mahindra’s profitability:

In addition to the potential negative effects on profitability outlined in the report's earlier section,

there are other ways in which CSR initiatives can impact Tech Mahindra's profitability. For example,

implementing CSR initiatives may require changes to the company's supply chain, procurement, or

manufacturing processes, which could result in higher costs or lower efficiency. Similarly, CSR

initiatives that require changes to the company's products or services, such as developing sustainable

or socially responsible products, may also impact profitability if they do not resonate with customers

or require significant investments in research and development.

Moreover, CSR initiatives can also impact Tech Mahindra's profitability through their effects on the

company's human resources. For example, initiatives aimed at promoting diversity and inclusion may

require investments in training, recruitment, or retention programs, which can be costly. Similarly,

employee volunteering programs can divert employee’s time and attention away from their core

responsibilities, which may impact productivity or increase the need for overtime pay.

While it is challenging to quantify the exact impact of these potential negative effects on Tech

Mahindra's profitability, they highlight the importance of companies carefully considering the costs

40
and benefits of their CSR initiatives. By assessing the potential impacts on their finances, operations,

and human resources, companies can ensure that their CSR initiatives align with their business

objectives and do not inadvertently harm their profitability.

41
CHAPTER-7

CONCLUSION

42
The purpose of this report was to analyze the relationship between CSR and profitability at Tech

Mahindra, a leading IT services company in India. Through a rigorous analysis of publicly available

data, we found that Tech Mahindra's CSR program is comprehensive, well-aligned with the

company's corporate strategy, and has a positive impact on the company's financial performance. Our

study has shown that CSR can act as a driver of profitability and create long-term sustainable value

for stakeholders.

Tech Mahindra's CSR program encompasses a wide range of initiatives, including community

development, environmental sustainability, and employee welfare activities. Our analysis has shown

that these activities have several benefits, including enhanced brand reputation, improved employee

engagement, increased customer loyalty, and strengthened relationships with communities and other

stakeholders. These benefits have, in turn, translated into improved financial performance, with the

company reporting higher revenues and profits in recent years.

One of the key factors contributing to the success of Tech Mahindra's CSR program is its alignment

with the company's corporate strategy. Tech Mahindra's leadership has demonstrated a clear

commitment to CSR, as evidenced by its policies, actions, and public statements. We believe that this

alignment has enabled Tech Mahindra to integrate CSR into its core business operations, making it an

integral part of the company's overall value proposition.

Our study has some limitations that future research should address. Firstly, our analysis is based on

publicly available data, which may not provide a complete picture of Tech Mahindra's CSR program.

Therefore, future research could collect primary data to better understand the company's CSR

program and its impact on profitability. Secondly, our study does not account for potential

confounding factors that may have influenced the relationship between CSR and profitability, such as

market conditions, competitive pressures, and other external factors. Therefore, future research could

43
use more sophisticated research methods to explore the complex relationships between CSR and

profitability.

In conclusion, our study provides evidence that CSR can be a driver of profitability and create long-

term sustainable value for stakeholders in the technology services industry. We believe that

companies like Tech Mahindra can leverage CSR to improve their financial performance while

making a positive impact on society and the environment. As stakeholders increasingly demand that

companies behave ethically and responsibly, we expect CSR to become an even more critical factor

in firms' competitiveness and survival. We hope that this report will serve as a valuable resource for

organizations seeking to understand the role of CSR in creating shared value and achieving

sustainable development.

44
 CHAPTER-8

FINDINGS AND SUGGESTIONS

45
Based on the analysis of CSR and profitability in Tech Mahindra, the following findings and

suggestions can be made:

8.1 Findings

i Tech Mahindra has implemented a number of CSR initiatives, including education and healthcare

programs, environmental sustainability measures, and community development projects.

ii Tech Mahindra's CSR initiatives have had a positive impact on society and the environment, as

well as on the company's reputation.

iii There is evidence to suggest that CSR initiatives can have a positive impact on profitability,

although this is not always a direct correlation.

iv Tech Mahindra's financial performance has generally been strong, with increasing revenues and

profits over the past few years.

v While it is difficult to directly attribute Tech Mahindra's financial success to its CSR initiatives, it

is likely that these initiatives have contributed to the company's overall positive image and

reputation, which in turn may have helped to attract and retain customers and employees.

8.2 Suggestions

i Tech Mahindra could consider conducting a more comprehensive analysis of the impact of its

CSR initiatives on its financial performance, in order to better understand the direct and indirect

effects of these initiatives on profitability.

46
ii Tech Mahindra could also consider expanding its CSR initiatives in areas that are most likely to

have a direct impact on profitability, such as employee engagement and retention, customer

satisfaction, and supply chain sustainability.

iii Tech Mahindra could further leverage its CSR initiatives to enhance its reputation and brand

image, by communicating more effectively with stakeholders about its social and environmental

initiatives and the positive impact they are having.

iv Tech Mahindra could collaborate with other companies and organizations on CSR initiatives, in

order to maximize the impact of its efforts and promote greater social and environmental

sustainability across industries.

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 BIBLIOGRAPHY

i Tech Mahindra. (2014, April). Corporate Social Responsibility Policy. Retrieved from

https://cache.techmahindra.com/static/img/pdf/CSR_Policy.pdf

ii Outlook India. (2019, February). Tech Mahindra. Retrieved from

https://www.outlookindia.com/csr_2019_02/tech_mahindra.php

iii The CSR Universe. (2021, April 26). Tech Mahindra exceeds prescribed CSR budget, spends Rs

105 crores on education, employability, Covid-19 relief. Retrieved from

https://thecsruniverse.com/articles/tech-mahindra-exceeds-prescribed-csr-budget-spends-rs-105-

crores-on-education-employability-covid-19-relief

iv Tech Mahindra Foundation. (n.d.). Home. Retrieved from https://techmahindrafoundation.org/

v The Economic Times. (2019, May 20). Not only revenue and profitability, Tech M spent more

than 2% on CSR: CP Gurnani. Retrieved from

https://economictimes.indiatimes.com/markets/expert-view/not-only-revenue-and-profitability-

tech-m-spent-more-than-2-on-csr-cp-

gurnani/articleshow/69443386.cms?utm_source=contentofinterest&utm_medium=text&utm_cam

paign=cppst

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MINOR PROJECT REPORT On A study on relationship of CSR and Profitability: Tech

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50