Bharat Petroleum and Maruti Udyog Rank Highest for Corporate Social Responsibility

TNS Corporate Social Responsibility Study

Bharat Petroleum and Maruti Udyog rank highest for Corporate Social Responsibility (CSR), according to the inaugural study released by TNS Automotive on 16th May 2006. Corporate Social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

 
Ravi Shankar, Senior Vice President, TNS India explains, “In a country where a car is a dream possession of every middle class person - Maruti has changed the lives of millions - by making their dreams come true. Consumers rate Maruti highly for creating jobs for the country, producing products that improve quality of life, and ensuring fair prices. These are issues close to the heart of every Indian - a company that generates employment and is fair to consumers."

CSR has become the focal point for the automotive industry as the general public has become more concerned about how corporations deal with environment issues and give back to society from which they profit.

Shankar said, "In the case of BPCL, it has been at the forefront of assuring quality and quantity ("Pure for Sure" branded fuel stations) to its millions of customers. Its communication and visible steps in this area to build consumer confidence has been highly valued and appreciated by the general public. Consumers rate BPCL highly for creating a sustainable future, improving quality of life, and making environment friendly products.”

The 2006 Global Corporate Social Responsibility (CSR) study was conducted in March and April across 16 countries to understand the general public's perception of the automotive sector in regard to compliance and contribution towards corporate, social, environmental, and philanthropic activities. Consumers were asked to rate corporations from the passenger car, commercial vehicle, motorcycle, tyre, and oil sectors.

Among the global automotive corporations, BMW, Honda, Toyota, and Volvo Trucks ranked highest for corporate social responsibility in two or more markets. BMW rated highest in Spain and Italy; Honda for US, UK, and Indonesia; Toyota for Japan, Korea, and Thailand; and Volvo Trucks for Sweden and Netherlands.

Other market leaders globally were Shell in China, Michelin in France, Porsche in Germany, Nissan in Mexico, and Petronas in Malaysia.

The study shows that consumers across the world are very likely to accept or reject a corporation based on its reputation for social and environmental responsibility. In India, eight out of ten consumers indicated that they have purchased a product or service specifically because it was purchased in a responsible, ethical, or environmentally friendly way.

Shankar explains, ''These findings clearly show the values that are important to consumers in India. Corporations that realise this and strengthen their CSR activities will benefit from the goodwill they will generate with consumers in this market."

 
Thailand, India, and China have recorded phenomenal industry growth in the automotive sector and consumers in these markets see automotive companies playing an integral role in the economic and social development of their country. Conversely, the governments of some emerging markets do not fully recognise the contribution of the automotive sector in generating jobs for their country - in some cases, levying high taxes on the automotive sector because the end-products are seen to be luxury items that only a few can afford, without considering the jobs the sector creates everyday for people manufacturing, distributing, and servicing these products.