The case study highlights corporate social responsibility that it undertook within the company by engaging employees in internal projects, expanding to neighboring communities and going beyond business boundaries to be the stakeholder's choice.
1. SVKMās Narsee Monjee Institute of Management Studies
Mumbai
SUZLON INDIA: Be the Stakeholderās Choice
A CASE STUDY
Report prepared by:
1. Ankur Salunke
2. Balajee S
3. Manas Ranjan Kar
4. Partho Choudhury
5. Ravi Thakur
2. INTRODUCTION:
What started with Sulzer Synthetics P. Ltd has culminated into the worldās fifth largest wind power
production company. Mr. Tulsi Tanti turned a bottleneck into a business opportunity. Quickly realizing
that the shortage of power was stunting his growth in the textile industry, he moved into the renewable
sector, and has never looked back since. Suzlon Energy founded by Mr. Tulsi Tanti, has operations in 32
countries and manufacturing facilities in countries like India, China and USA has developed a wide range
of products (Exhibit A) to cater to the wind power industry. The Company introduced the concept of total
solutions wherein, in addition to the supplies of equipment, the client is offered project execution work
comprising land acquisition, site development, erection and commissioning, foundation and other civil
work and O&M services. These services are offered in conjunction with the Associate Companies (Exhibit
B). Suzlon operates the largest wind park in the world, a 584 MW wind park in the Eastern
Ghats-Tamil Nadu.
CORPORATE SOCIAL RESPONSIBILITY AT SUZLON:
Suzlon's CSR starts from within the company, engaging employees in internal projects, expanding to
neighboring communities and goes beyond business boundaries to benefit the society at large. The Suzlon
Group has entrusted the Suzlon Foundation with the responsibility to facilitate CSR across all the
functions and locations. Suzlon is committed to practice sustainable development for āPowering a
Greener Tomorrowā. The Foundation ensures that business policies and practices support sustainability
as its guiding principle. Suzlon Foundation is registered under Section 25 of the Companies Act.
I. CSR at Workplace:
a. CULTURE:
The work culture at Suzlon hinges on the three pillars of corporate values, brand core and philosophy of
global assimilation. Agility, creativity, adding value, commitment and integrity are the base values of
Suzlonās work culture. Inducting people into Suzlonās brand core of sustainable development is a process
that involves imbibing these values and blending the best qualities of the individual with those of the
organization. Suzlonās 14,000 employees have helped raise the performance bar in professionalism,
opportunity, responsibility, belongingness and accomplishment. Suzlon has leveraged the rich operational
experience of the world's finest wind power technology to industriously harness an individual towards a
powerful āgreener tomorrowā.
As Mrs. Seemantinee Khot, Head, CSR, Suzlon Energy rightly pointed out,ā Most of the people in the
renewable energy companies strongly believe that they want to contribute to the planet, which doesnāt
harm and helps bridge the gap between the various sections of the society.ā
3. Some other key policies of Suzlon to promote workplace CSR include
ļ· Legal compliances to ensure that the suppliers are not employing any children or
following āunethicalā business practices.
ļ· Not allowing employees work for very long hours, helping employees to share a healthy
relation with their families - thus, they will be able to balance their personal and
professional life.
ļ· Ensuring fair treatment to employees and providing equal opportunities to all
employees and all applicants - without regards to their race, caste,
religion, color, ancestry, marital status, sex, age, nationality, and disability.
b. EMPLOYEE INVOLVEMENT:
The HR mandate dictates that every employee must involve themselves in at least 2 CSR days per
year. This fosters employee involvement in the core values that Suzlon believes in. Suzlon also
celebrates World Environment Day to build awareness among the workforce.
A payroll CSR is also in place, where an employee through an entirely voluntary participation
procedure, donates a certain percentage of his salary, to NGOās of their own bidding, like those
involved in education sector, orphanages, child care etc.
Suzlon has also sensitized its employees to induct them into a āGive in Kindā sort of program, where
every month Suzlon sends out a mailer to all its employees exhorting them to donate old clothes,
woolens, mobiles and stationery. These initiatives have definitely helped in bringing employee
participation in CSR to the fore.
c. GLOBAL HSE SPHERE:
The Global HSE SPHERE is a structured method and approach to Strategize HSE themes and
strategies by following a reactive and proactive approach to initiate strategic initiatives. Suzlon HSE
(Occupational Health, Safety & Environment) is a global initiative that establishes a company-wide
practice of setting up and maintaining the highest HSE standards with a dedicated approach and
organizational commitment. With Global HSE SPHERE, Suzlon are committed to achieve zero harm
to employees, environment, contractors, communities & property and demonstrate sustainable
leadership for effective and enhanced occupational health, safety and environment practices.
Simultaneously it propagates effectively and efficiently leverages leadership commitment and
stakeholder involvement in executing Suzlon HSE business plan. Suzlonās HSE vision and mission are
being institutionalized by the Global HSE Council (EXHIBIT F) that manages its HSE agenda,
strategic initiatives, communications and etc.
4. II. COMMUNITY DEVELOPMENT
Suzlon includes considerations of all major stakeholders in their business practices, such as local
communities and the natural environment. They aim to take responsibility for negative impacts they
might have on these stakeholders and correct their actions accordingly. Going beyond legal
compliance and being accountable to higher ethical standards are aligned with Suzlonās values. Suzlon
looks at the success of business from the broader perspective of sustainable development achieving
the 5 capitals viz. Financial, Natural, Human, Social and Physical (Exhibit C). Their CSR activities are
guided by these questions,
1. What is our impact?
2. Whom do we impact?
3. What can we do to offset our impact?
Also, to ensure that CSR programs are linked with the corporate groupās strategies, the locations for CSR
interventions are selected keeping in mind their strategic importance for Suzlonās business.
The locations are measured on 4 indicators:
1. Presence of Suzlon
2. Stage of operation
3. Community engagement history
4 Local development status
Scores are given for each indicator. Once scored, the locations are categorized in High, Medium or Low
importance areas on the basis of the total scores achieved by each location. The rank will determine which
location has priority for CSR activities. (Exhibit D)
Again here, the broader perspective of sustainable development through development of 5 capitals
dictates the activities. They have been broadly classified in Exhibit C.
Also the main agenda of community development for Suzlon is making people aware. Mrs. Seemantinee
Khot echoes the same sentiment when she says.ā Our business is secure only when we are dealing with
organized and educated people. Dealing with unorganized sector is detrimental for business. Businesses
normally border on their brand and legal perspectives. In helping the people grow, we do good to look
good. In doing our duties we get the license to operate from the same community and build a long-lasting
relationship with them.ā
5. III. ENVIRONMENTAL CSR:
Suzlon is aware of its responsibility towards the environment. It has taken many initiatives to offset its
footprint in the project areas. Like the yearly beach cleaning exercise conducted by Suzlon employees at
Daman and Pondicherry where the beach is cleaned by the employees themselves. CSR Champions1
guided by the CSR managers, engage their peers and the community in the exercise. The employees upon
completion of the exercise report back to the company, to state the impact created through the exercise.
Sanitation and plantation drives are conducted regularly by Suzlon in the project areas.
The CSR activities of Suzlon results from a ātripartiteā agreement among the company, government and
the community. Suzlon takes initiatives which are in sync with the community requirements. Before the
start of any project, each stakeholder gives its assessment of their requirement, and the projects are
chosen according to corporate and community relevance. Even though the regulatory controls like, say
planting 50 trees for every wind turbine installed, are not mandatory, but desirable.
IV. CSR COUNCIL : External Agency Implementation
In each state, CSR Councils have been formed to make transparent decisions on relevance of a proposed
project and assessing the credibility of the agency. There are separate CSR Councils for three SEZs. The
Council has representatives from different verticals of Suzlon Group. The purpose behind forming the
CSR Council is twofold ā
a) Engage the Suzlonians in CSR activities, and
b) Make the decision making process transparent and rational.
The Council meetings are held once in a quarter to share the progress of CSR programs. Extra meetings
are arranged whenever there are new proposals to be considered. Along with the Council members and
CSR State Head, a representative from the Central Team will also be present in the meetings.
One person among the employees is chosen by his peers, who is delegated the responsibility of
representing the SBU in the council. He is called upon to attend a one day workshop of Sustainability
Sensitization Programme, to assess his proclivities towards the field. Upon satisfactory completion of the
same, he is authorized to become a member of the CSR Council.
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1 CSR Champions are chosen amongst the employees to motivate them towards CSR.
6. V. P.A.L.S.: Bringing the Winds of Change
Social Networking seems to be the new way for Corporate Social Responsibility. Suzlon has launched a
new brand campaign called P.A.L.S. - the Pure Air Lovers' Society. P.A.L.S. is a movement to emphasize
the importance of clean air, while helping to educate people on how to live a more environmentally
responsible life. The social media campaign, not only helps spread awareness about the brand, but also
helps in engaging new participants.
Identifying the need for a campaign of this nature, P.A.L.S. has already found support from prominent
members of Indian society like RJ Malishka, Milind Soman, Garson da Cunha and Anil Dharker, who are
the first P.A.L.S. champions. These champions have been tasked with the responsibility of outlining
recommendations and sustaining momentum to ensure the success of the movement.
The innovativeness of the campaign can be gauged from the fact that Suzlon would be planting one tree
for every registration at their website, www.pals.in. The P.A.L.S. campaign aims to increase in intensity
over the coming months with innovative activations and initiatives that aim to drive traffic towards
registrations, thereby escalating the magnitude and success of the movement.
VI. CSR Publications
Suzlon regularly updates its employees regarding the CSR activities undertaken by the company.
LIVEWIRE, a global e-magazine of Suzlon group, always carries a section regarding the CSR activities
undertaken by the business units. Adding to that, a quarterly newsletter in every state of operations is
published in the regional language. The newsletter is sent out to the district heads, the local community
and other stakeholders to keep them informed regarding the CSR activities.
VII. AWARDS AND RECOGNITIONS
Year Awarding Authority Details
2010-11 6th in Indiaās list of Cohn and Wolfeā IPGBS Top 10 Ranked 6th best green brand of India
Green Brands 2011 based on its environmental
initiatives.
2010-11 Suzlon wins Global Leadership Award for Wins Gigaton Award for global
sustainability at COP16 leadership in emissions control
and sustainability practices .
Suzlon recognized among top six
global companies that includes
Vodafone Group, Reckitt Benckiser
Group, Nike, 3M and GDF Suez.
2009-10 Tulsi Tanti awarded Champion of the Earth Mr. Tulsi Tanti was honoured with
Champion of the Earth title for
Entrepreneurial Vision by the United
Nations Environment Program
7. 2008-09 Suzlon bags Golden Peacock National Training Award The award function was held at the
2008. 9th International Conference on
Corporate Governance at London
and the award was given by Dr Ola
Ullsten, former PM of Sweden.
2007-08 TIME's Heroes of the Environment Awards Mr. Tulsi R. Tanti, CMD, Suzlon
Energy Limited - for initiating action
on Global Climate Change
2006-07 Wind India Conference Awards Best Company - for Corporate Social
Responsibility
2006-07 India Tech Foundation and Power Stream Journal For Project Management & Energy
ENPOWER Award Efficiency and Sustainability
2006-07 TERI Alumni Award Entrepreneurship in Energy
Environmental Technologies
2006-07 The Solar Energy Society of India Award SESI Renewable Energy Pioneer -
2005-06 Mr. Tulsi R. Tanti, CMD, Suzlon
Energy Limited
VIII. ROADBLOCKS
Suzlon Foundation involves community, concerned Government department and Civil Society
Organizations in planning, implementation and monitoring development programs. The six monthly 360
degree reviews are transparent mechanisms for improving the sustainability of the CSR projects. (75% of
the projects were rated as "excellent", 15% as "good", the remaining 10% projects rated as "un-
satisfactory" would be either closed or revamped next year.). Even though the company tries its best to
provide for the community in the best possible manner through it CSR initiatives, some projects are also
shelved due to their failure to achieve their goals. We mention two such projects which were shelved
during the last year due to such constraints,
1. Project SAFAL: Youth employability programmes in Daman and Pondicherry were closed down
due to failure to achieve targets. The initial target was to employ 500 youths, but only 300 youths
turned up for the programme. In the end, only a handful of them were actually employed. The
reasons cited were that the curriculum of the programme was not suited to the youthās
temperament. Also, the skills taught to the youth were not enough to make them employable.
2. A Biodiversity Project in Karnataka was also shut down due to financial constraints. Also the long
term commitment to the project did not support Suzlonās lack of technical expertise. Even though
the project was pretty ambitious, it failed to take off due such unaccounted-for factors.
8. IX. CONCLUSION
What is complicating things for Suzlon is the widespread suspicion in the industry circles that it is facing
serious cash-flow problems post the 2008 global financial crisis, which has led the investors to dump their
shares at the exchange subsequently decreasing its credit ratings. When international crude oil prices
were surging in the recent past, Indiaās biggest wind power equipment manufacturer, Suzlon Energy, used
to be a favorite with investors betting big on the future of clean wind energy amid growing climate change
concerns. However, the widening global crisis with the falling global crude prices has led to a tightening
financial squeeze for the wind power projects across the world as investors feel that the fight against
climate change is going to take a backseat. So it remains to be seen, does the condition of the parent firm
stagnate Suzlon Foundationās initiatives towards society improvement and its ongoing CSR activities?
Only future will tell.
9. EXHIBIT A
PRODUCT COUNTRY SPECIFICATION
AVAILABILITY
Rated power 2100 kW
Cut-in wind speed 4 m/s
All Markets India, Brazil,
Rated wind speed 14 m/s
Italy, Nicaragua, Portugal,
S88-2.1 MW Cut-out wind speed 25 m/s
Romania, Spain, Turkey,
America, Australia & China 50 years gust wind
59.5m/s
speed
Rated power 1500 kW
Cut-in wind speed 4 m/s
S82-1.5 MW India & China Rated wind speed 14 m/s
Cut-off wind Speed 20 m/s
Survival wind speed 52.5 m/s
Rated power 1250 kW Cut-
in wind speed 3 m/s
S66-1.25 MW India Rated wind speed 14 m/s
Cut-off wind speed 22 m/s
Survival wind speed 52.5 m/s
Rated power 1250 kW Cut-
in wind speed 3.5 m/s Rated
S64-1.25 MW India & China wind speed 14 m/s Cut-off
wind speed 25 m/s
Survival wind speed 59.5 m/s
Rated power 600 kW Cut-in
wind speed 4 m/s Rated wind
S52-600 KW India speed 13 m/s
Cut-off wind speed 25 m/s
Survival wind speed 59.5 m/s
Rated Power 2250 KW Cut-
in Wind Speed 4 m/s Cut-out
S88 MARK- II DEFIG China Wind Speed 25 m/s Wind
ClassIIA / IIBRotational Speed
12.0-18.0 (rpm)
10. EXHIBIT B
The Associate companies and Market Share
1. Suzlon Towers and Structures Limited, 2. Suzlon Power Infrastructure Limited,
3. Suzlon Infrastructure Services Limited, 4. Suzlon Gujarat Wind Park Limited,
5. Suzlon Structure Limited, 6. SE Forge Limited,
7. SE Composites Limited, 8. Suzlon Wind International Limited,
9. SE Electricals Limited 10. Suzlon Rotor Corporation
11. AE Rotor Holding B.V. and 12. Suzlon Energy A/S
11. EXHIBIT C
2010-2011 CSR
Budget Allocation
Financial
15% 1%
Capital
4%
43% Natural Capital
17%
18%
Social Capital
Human Capital
Enhancing Local Community's Financial Resources
ā¢ Livestock health care services and fertility treatment to increase productivity.
ā¢ Promotion of sustainable agriculture practices.
ā¢ Forming and linking women's savings, credit groups and micro enterprises to banks (SHGs).
ā¢ Product development and marketing support to indigenous artisans".
Conserving and Enhancing Natural Resources in Business Surrounding
ā¢ Soil and water conservation on wind farm lands.
ā¢ Rain harvesting and recharging of ground water.
ā¢ Plantation of local tree species to increase green cover and biomass.
ā¢ Promotion of natural farming and eco-friendly enterprises.
Strengthening Social Capital
ā¢ Forming and strengthening of Community Based Organizations (CBOs).
ā¢ Empowering women through Self Help Groups (SHGs).
ā¢ Gender sensitization for women's empowerment.
ā¢ Influencing Health Behavior Change.
Enhancing Human Resources
ā¢ Imparting functional literacy to rural women.
ā¢ Providing quality teaching material in primary schools.
ā¢ Giving technical training to youths to increase employability.
ā¢ Giving life skill education to children especially those out of school.
ā¢ Availing quality medical treatment.
Improving Physical Resources
ā¢ Reviving drinking water sources.
ā¢ Improving village sanitation.
ā¢ Decentralized health clinics.
ā¢ Rural (solar) electrification
13. EXHIBIT E
Status of Various Projects undertaken by Suzlon Foundation
PROJECT STATE TIME PARTNERS
FRAM
E
Animal Vaccination Daman Ongoing
Computer Literacy for Daman Aug'08- NIIT
Teachers. Oct '09
Anandshala. Gujarat Jul'08- Centre for Environmental Education
Jul'10 (CEE)
Deepening of Village Gujarat May- Suzlon Infrastructure Limited
Pond June'08
Fighting Anemia for Girls Gujarat July- Arogya
Dec'08
Bio-Diversity Park Karnataka Ongoing Suzlon Infrastructure Limited and
Applied Environmental Research
Foundation
PEHCHAN. Karnataka Ongoing PCI
Distribution of Solar Madhya May- Suzlon Foundation Team
Lanterns. Pradesh June'08
Empowering women for Madhya April'08 Concept Society
sustainable livelihood. Pradesh -Mar'11
Rain Water Harvesting. Maharashtra June'08 Supa Business Unit Team and Gram
-July'09 Gourav Pratishtan ( Pani Panchayat
Pune)
Providing Skill Based Maharashtra Nov'07- Indian Institute of Education-Vigyan
Training Oct'10 Ashram
PEHCHAN Maharashtra Ongoing PCI
Reuse, Reduce, Recycle Maharashtra June'08 Supa Business Unit Team
Canteen Waste & Water -July'09
14. Enhancing Rural Water Maharashtra April- Government of Maharashtra
Resources. Oct'08
PEHCHAN Pondicherry Ongoing PCI
Green Hands - Tree Pondicherry June'08 ISHA Foundation
Plantation. -May'09
Rural Electrification Rajasthan May- Suzlon Foundation Team
through Solar Lanterns. June'08
Shrijan Rajasthan July'08- NA
June'11
PEHCHAN Tamil Nadu Ongoing PCI
Green Hands - Tree Tamil Nadu June'08 ISHA Foundation
Plantation. -May'09
16. ANNEXURE A: CORPORATE GOVERNANCE AT SUZLON
Suzlon Energy Limited claims that its philosophy of corporate governance rests on the 5 pillars of
integrity, accountability, equity, transparency and environmental responsibility. Suzlon strives to build an
inclusive business model ā which takes into account the interests and concerns of employees, customers,
vendors, service providers, local communities and government.
The Board of Directors (āthe Boardā) of Suzlon Energy Limited is made up of 6 members, of which 2 are
executive positions, while 4 are non-executive (independent) positions, implying that more than 50% of
the directorship positions are that of Independent Directors, as required by Clause 49(I)(A). The
companyās Board maintains and operates 5 Board Committees (āCommitteeā) to focus on specific areas
and make informed decisions within the delegated authority. Each committee functions according to the
charter that defines its composition, scope, power and role in accordance to the Companies Act, 1956 and
the Listing Agreement. All the committees have been suggested to be set up by Annexure 1C of Clause 49,
whose membership and her considerations are in accordance with Clause 49(II)(A).
Currently, the 5 committees are:
1. Audit Committee (Mandatory)
2. Investorsā Grievance (Shareholdersā) Committee (Mandatory)
3. Remuneration Committee (Non-mandatory)
4. Securities Issue Committee (Non-mandatory)
5. ESOP Committee (Non-Mandatory)
Minimum
Composition of
Name of Director Position Requirements
Board
(as per Clause 49)
Chairman &
Mr. Tulsi R Tanti
Managing Director 33.33% -
Mr. Girish R Tanti Executive Director
Mr. Ajay Relan Independent Director
Mr. Ashish Dhawan Independent Director
Mr. Pradip Kumar 66.67% 50%
Independent Director
Khaitan
Mr. V Raghuraman Independent Director
Management Code of Ethics:-
Suzlon has disclosed (under Clause 49(1) (D)(i) and Clause 49(1)(D)(ii)) a Management Code of Ethics
applicable to all members of the Board and other members of senior management (this comprises of all
members of management one level below the executive directors, including all general managers and
functional heads). This code discusses issues regarding personal and professional integrity and honesty,
conflict of interest coming in the way of dispersal of fiduciary responsibilities of the affected parties
(including outside employment, directorships and business interests), corporate opportunities, insider
trading and compliance with government laws, rules and regulations, as well as any violations of the code
(Suzlon Energy Limited Code Of Conduct for Prevention of Insider Trading (SEL COCPIT)). The focus of
this code are encompassed in three words: āRenewableā (ethical behavior must be repeatable day after
day), āRespectā (have respect for all stakeholders keeping in mind the cultural diversity of the company)
and āRefreshingā (strive to inspire fresh thinking and practices).As part of its open-door Corporate
Governance policy, and under Annexure 1D(7) of Clause 49, the company has instituted an Ombudsman,
since 1st February 2010, to act as an intermediary between the concerned company official and any
employee who might want to discuss any perceived or real malpractice, impropriety, abuse or wrongdoing
by any stakeholder in the company, and also expects employees to come forward and voice these concerns
without fear of retribution.
17. References
1. Suzlon Foundation .Strategy (n.d.).Retrieved August 26, 2011, from
http://www.suzlonfoundation.org/strategy.html
2. Suzlon Knowledge Book .Knowledge Book . Retrieved August 26, 2011, from
http://www.suzlon.com/pdf/Knowledge%20Book.pdf
3. Annual Report .Annual Report 2010-11 .(2011, July 30) Retrieved August 26, 2011, from
http://www.suzlon.com/images/investor_annual_result/12_Annual-Report-1011.pdf
4. Awards .Awards . (n.d.). Retrieved August 27, 2011, from
http://www.suzlon.com/about_suzlon/awards.aspx?l1=1&l2=1&l3=66
5. Suzlon Energy . Wikipedia. (n.d.). Retrieved August 26, 2011, from
http://en.wikipedia.org/wiki/Suzlon_Energy
6. Khot, S (2011, August 30). Telephone interview.
7. p.a.l.s . What do p.a.l.s do?. (n.d.). Retrieved August 27,2011, from http://pals.in/#what-palsdo
8. Market Share. World Wind Market: Record Installations, But Growth Rates Still Falling. (2011,
August 4). Retrieved August 27, 2011, from
http://www.renewableenergyworld.com/rea/news/article/2011/08/world-wind-market-record-
installations-but-growth-rates-still-falling?cmpid=rss