CSR Project Report

on

VOLVO GROUP

Batch: 2012-2014

Introduction & Importance of CSR

Corporate social responsibility (CSR) is also often referred to as business

responsibility and an organisation's action on environmental, ethical, social and

economic issues. The terms in the area can seem confusing if you don't know

the jargon - but don't be put off by this.

“A well-run business is transparent in its decision-making and processes

and this makes for good governance.”

CSR can be described as an approach by which a company does the following:

Recognises that its activities have a wider impact on the society in which it

operates, and that developments in society in turn impact on its ability to

pursue its business sustainably.

Actively manages the economic, social, environmental and human rights

impact of its activities both locally and across the world, basing these on

principles which reflect both international values and the organisations own

values (ethics), reaping benefits for both its own operations and reputation as

well as the communities in which it operates.

Seeks to achieve these benefits by working closely with other groups and

organisations – local communities, civil society groups, other businesses and

home and host governments.

Where did it come from? 

In the 1970s and 80s environmental concerns such as loss of the rainforest and

the effects of pollution led to a recognition that something had to be done to

change the way we were using the planet resources. As a result, heads of state

came together at Rio, Brazil in 1992 for what was called the Earth Summit.

How and why is it relevant ?

As CSR is all about values and accountability then it is also about the

behaviour of your people and the behaviour of your suppliers. In this sense

virtually everything that is found within the HR remit - from training,

recruitment, staff retention, policies, procedures and strategy - involves CSR.

Traditionally HR and CSR have been led by the need for compliance and

keeping up with new laws on employment as well as environmental, ethical

and social issues. Increasingly HR managers are crucial to the delivery of

training to deal with these issues in terms of organisational objectives and

strategy.

Corporate governance is a board level hot topic - you only have to look at

how much publicity the Higgs report on the role of non-executive directors

received – and it will continue to develop, as there is increased recognition that

how an organisation is run is key. This can cover many areas such as financial

integrity, transparency and accountability, leadership from the board and being

employer of choice.

It is central to the implementation of policies and programmes. Having good

corporate governance means that these areas are embedded in the organisation

and deliver to the business and to stakeholder objectives, and are not just nice-

to-have. The HR manager has become central to this role in helping deliver

culturally open and transparent organisations where dialogue is celebrated not

feared.

For a business being CSR compliant is also an exercise in future-proofing its

business as risks and opportunities are identified. CSR is a crosscutting topic

under which numerous issues can be grouped including training and education,

capacity building, leadership, health and safety, working conditions, human

rights, stakeholder engagement and corporate governance.

Company Overview

The Volvo Group has its origin in 1927 when the first Volvo car rolled off the

production line at the factory in Gothenburg. Only 280 cars were built that

year. The first truck, the "Series 1", debuted in January 1928, as an immediate

success and attracted attention outside the country. In 1930, Volvo sold 639

cars, and the export of trucks to Europe started soon after; the cars did not

become well-known outside Sweden until after World War II.

Timeline of Volvo when things happened great :- Marine engines have been

part of the Group almost as long as trucks. Pentaverken, founded in 1907, was

acquired in 1935. As early as 1929, however, the U-21 outboard engine was

introduced. Manufacturing continued until 1962.

Volvos have also been known to explode due to the engine being too close to

the gas tank and igniting the tank. This myth was very popular during 1940s.

The first bus, named B1, was launched in 1934, and aircraft engines were

added to the growing range of products at the beginning of the 1940s.

On 28 January 1999 Volvo Group sold its business area Volvo Car

Corporation to the Ford Motor Company for US$6.45 billion, with the resulting

group largely set on commercial vehicles.

I have chosen this because it has great values and it takes its CSR very

seriously. Volvo Group Global has its presence across several countries and

have overtaken several big competitors in market is a giant in society. I

personally feel that this group has entered in Indian market and because of this

provides better facilities to commuters. Volvo want to ensure a proper

education safe and healthy working environment and establish a culture that is

driven by mutual respect .

Company Values & Core Ideology

The values of the Volvo Group summarize what we stand for and what we focus

on i.e. Quality, Safety and Environmental Care.

Quality: - Focus on the customers' needs, Our goal is to exceed their

expectations and Hybrids on broad front

Safety: - Safety is part of our soul , Our vision is Zero accidents and Safety

innovations.

Environment care: - We all depend on transports and Volvo has a

responsibility. 

C orporate values of the Volvo Group, each reflected in

How we develop our products

How we act in society

How we approach our customers and employees. 

Our vision :- The Volvo Group's vision is to become the world leader in sustainable

transport solutions by:-

creating value for customers in selected segments

pioneering products and services for the transport and infrastructure

driving quality, safety and environmental care, working with energy,

passion and respect for the individual.

CSR Framework & Goals

Volvo global group have several programs and goals framed for global concerns

In respect for community :-

A home for Brazil’s orphans - Today 48 children live with ‘staff parents’

at the orphanage. Today the orphanage, built on land donated rent-free for

50 years by the city, includes five houses, a football field, a vegetable

garden, farm animals and recreational and teaching buildings .Volvo

Group employees in Sweden and Brazil continue to support the project

with collections of toys, clothing and money. Health, education and

environment are also important pillars of its work.

Major focus of Hand in Hand's activities - based around female

entrepreneurship. Women are mobilized in so called Self Help Groups

where they pool their savings, learn how to read and write and receive

training in entrepreneurship and bookkeeping. So far Hand in Hand has

helped to start more than 370 000 companies in the Indian state of Tamil

Nadu alone, where also 13 000 children have been assisted out of factory

labour and into schools. Hand in Hand is a charitable trust in India and

has now spread its enterprise creation programme to other countries.

Cash and equipment to disaster area - The earthquake which struck in

Wenchuan, China, on May 12, 2008 claimed more than 69,000 lives,

injured more than 370,000 people, and left at least 17,000 people

unaccounted for. Of those who survived, millions were left homeless by

the most powerful earthquake to hit the region for 30 years.

Homes for the homeless - While Romania has a growing middle class and

large natural resources, poverty remains a major issue in this country of

21.6 million people. Heavy floods during the last five years have added to

the problem of homelessness in the country, and those that do have a roof

over their head often live in cramped conditions without access to piped

water.

Employees at Volvo Construction Equipment in Konz in Germany decided to

support the charity’s efforts to build homes in Romania.

In Education :-By encouraging education, learning and training among young people we hope

to improve both their future prospects – and our own, as a knowledge- and

technology-based organization.

Volvo Group employees think pink - Breast cancer is the most frequently

diagnosed cancer and is the leading cause of death among women

worldwide. A woman dies of breast cancer every 68 seconds. The

Passionately Pink for the Cure campaign raises money for research into

the disease, and three Volvo Group employees .They sold pink T-shirts

and encouraged co-workers to dress in pink every Friday and to donate

five US dollars or more to the foundation. At the end of the month they

had raised nearly €3,000.

Giving poor school children new hope - The Volvo Group has a

commitment to play an active role in the communities in which it

operates. The schools are part of the Hope Project which for 20 years has

been helping children in poverty-stricken areas. To date more than 15,000

schools have been built within the Hope Project – two of them with

financial support from the Volvo Group. But while the infrastructure for

teaching has been established, a shortage of qualified

In Environmental care :-

Unchoking the Chesapeake - Rubbish pollutes waterways, kills marine

and other wildlife and makes communities unattractive. Clean the Bay

Day is an annual statewide event organized by the Chesapeake Bay

Foundation, in partnership with many municipal and business partners

working together to restore the Chesapeake Bay and its rivers and

streams. To date, nearly 90,000 volunteers have picked up nearly 2

million kilograms of trash along 7,000 kilometers of shoreline. Last year

alone 7,000 people took part.

CO2 neutral factories - The climate change has become an important

issue across the globe. Industrialisation and the growth of the world’s

population has brought with it more transport needs, more energy

consumption, more food and more waste, which in turn has lead to an

increase in emission of CO2 and other greenhouse gases.

As one of the world’s leading commercial vehicle manufacturers, we have a

responsibility to reduce the environmental impact of our operations and the

products we deliver.

In Safety :- Safety first on Brazil’s roads- In the late 1980s Brazil’s roads were

extremely dangerous. Each year there were many thousands of deaths and

tens of thousands of serious injuries, and awareness of traffic safety

issues such as drunk driving and use of seatbelts was low.

None for the road - Alcohol is a factor in between one-quarter and one-

third of all road traffic accidents on Europe’s roads. That means that

about 10,000 people each year are killed as a direct result of drunk

driving.Volvo Trucks is also taking its own steps to cut accidents

involving alcohol, such as offering alcolock technology in its trucks,

where the driver has to blow into a mouthpiece in order to be allowed to

start the vehicle.

Impact on Customers and Employees

Global reach - local presence

With more than 100, 000 employees and business all over the world, our

operations are part of every day life of numerous people worldwide. As a global

company we focus on our responsibility as an employer, responsible sourcing

practices and building relations with stakeholders.

Promoting diversity -

We strive to promote a diverse workforce. No form of discrimination is

tolerated. We actively work to recruit and retain a broad spectrum of employees

with different backgrounds, experience and perspectives. 

Competence development -

Securing and enhancing competences is crucial to being competitive and

profitable. A Human Resources function works at Group level to secure and

develop our employees, our culture and the organization.

A safe place to work -

Health, workplace safety and employee wellbeing is a priority for Volvo

Group.  We are committed to developing work places that increases

productivity, reduce costs and contribute to an attractive workplace.

Freedom of association -

Volvo Group recognizes everyone's right of freedom of association and

collective bargaining. Cooperation with unions complies with national laws and

regulations in each country. 

Responsible sourcing   -

Ensuring good standards in the supply chain is important to Volvo Group and

our stakeholders. Responsible supply chain management means managing risk,

promoting responsible behaviour and building long-term relationships with our

suppliers. 

Our achievements :-

Here you will find a selection of the awards and engagements, related to

responsible enterprise, that Volvo Group has received or been involved in

recently. Read more on our pages on Corporate Social Responsibility (CSR).

Dow Jones Sustainability Indexes

Volvo Group has qualified to be included on DJSI World,

Euro Stoxx and Nordic

 

Nordic Sustainability Stars

SIX STAR is a Nordic sustainability index launched in 2009

by SIX and Ethix SRIAdvisors. Volvo Group is ranked among

the top 25 Swedish companies

ECPI Global Carbon Equity Index and ECPI Ethical Index

Global is designed to select the 300 top capitalized companies

in the global market best equipped to tackle a world of rising

carbon emissions. Volvo is included in the two indexes.

Sustainable Value CreationThe Volvo Group has gained top ranking in a survey on responsible business

practices conducted by Sweden’s largest institutional investors. The survey

studied the 100 largest corporations listed on the Nasdaq OMX Nordic

Exchange in Sweden.

 Global Challenges Index

In 2007, the Hanover Exchange and Oekom research AG

introduced the Global Challenges Index, in which Volvo

is included. 

The 2010 , Folksam Index shows that its a responsible

business enterprise drawn up by the Swedish insurer ,

Folksam ranked companies listed on the Nasdaq OMX

Nordic Exchange in Sweden. Volvo Group received seven

out of seven stars on the work on Environment issues.

Conclusion

We recognize the value of sound corporate governance as a fundamental basis

for achieving a trusting relationship with shareholders and other key parties.

Volvo Group applies the Swedish Corporate Governance Code, which aims to

empower shareholders and create a sound balance of power between

shareholders, the Board of Directors and senior management relations with the

local society .We are involved in communities both as a company as well as on

an individual basis. Committed colleagues within Volvo Group around the

world often identify needs and projects in communities in which we operate that

we can contribute to or support. Our culture and values form the basis of this

involvement. Volvo Group encourages and rewards groundbreaking research on

environmental issues, and supports the development of cutting-edge solutions

for future transport systems. We are committed to raising awareness of the

environmental challenges that face us, and to explore solutions for a more

sustainable world.

Transport -related products and services of a superior level of quality, while

ensuring safety and environmental care for demanding customers in selected

segments.

We act responsibly towards our employees and business partners, and strive to

contribute to the societies in which we operate to help advance sustainable and

social development.