Corporate responsibility of honda

Introduction:

Hero Honda Motors Limited, based in Delhi, India is a joint venture between the Hero Group of India and Honda of Japan. It has been referred to as the world's biggest manufacturer of 2wheeled motorized vehicles since 2001, when it produced1.3 million motorbikes in a single year. During the fiscal year 2008-09, the company has sold 3.28 million bikes and t he net profit of the company stood at Rs.1281.7 crore , up 32% from the previous fiscal year. The company's most popular model is the Hero Honda's Splendor, which is the world's largest-selling motorcycle, selling more than one million units per year.

"Desh ki Dhadkan" Hero Honda is the World's No.1 two-wheeler manufacturing company having the trust of more than5 million customers. The company is a joint venture of Hero Cycles of India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure and Splendor are its famous brands on Indian roads. HISTORY

India became the second largest two wheeler manufacturer in the world starting in the 1950s with the Automobile Products of India (API) that manufactured the Lambrettas and Bajaj Auto Ltd. with its association with Piaggio of Italy (manufacturer of Vespa scooters) as the largest manufacturers within the country. The license raj that existed between the 1940s to 1980s in India did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a sellers market. Customers in India were forced to wait up to 12years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters. The motorcycle segment had the same long wait times with three manufacturers: Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350ccBullet with the only four-stroke engine at that time and took the higher end of the market but there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda). The entry of these foreign companies changed the Indian

market dynamics from the supply side to the demand side. With a larger selection of twowheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.

Definition of Mission Statement:

A mission statement is a formal short written statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated. Mission statements often contain the following: *Purpose and aim of the organization. *The organization's primary stakeholders: clients, stockholders, congregation, etc. *Responsibilities of the organization toward these stakeholders. *Products and services offered.

HEROHONDAS MISSION STATEMENT

"Its our mission to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities."

Hero Honda should have this type of Mission statement from our point of view:

Hero Honda is committed to being a highly profitable, socially responsible, and leading manufacturer with maintains the highest standards of ethics and societal responsibilities, to produce products and services with environmentally friendly, lifetime personal transportation products under the Hero Honda brand and to provide fulfillment and prosperity for employees, dealers and suppliers.

Definition of Vision Statement:

A Vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria.

Vision:

Defines the desired or intended future state of an organization or enterprise in terms of its fundamental objective and or strategic direction. Vision is a long term view, sometimes describing how the organization would like the world in which it operates to be.

Hero Hondas Mission & Vision Statement are same:

Hero Honda should have this type of vision statement from our point of view: Hero Honda pioneered Indias motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.

SWOT ANALYSIS OF HEROHONDA COMPANY

A) STRENGTH:-

a) Achievement:

Retained the coveted position of World No 1 Two-wheeler Company for the seventh consecutive year.

b)High Sales Growth:

Hero Honda experienced great growth throughout its early days. The Munjal family started a modest business of bicycle components. By 2002 Hero Group had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of nine different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. HUNK is the latest offering from the HHML stable.

c) Quality policy:

Total quality management is the chore philosophy of the company and it isthus always focussed on product innovation and performance.

d) Service schedule:

Hero Honda offers free services on all its two-wheelers. Customer should avail all these service within the stipulated time period or km range, whichever condition gets satisfied earlier from the date of purchase. After the completion of free services or its validity period one must continue availing paid services as per there commended service schedule

e) High financial performance:

The Hero Honda financial chart clearly shows that it has strong financial background in terms of asset, sales, profit moreover, Hero Honda Motors Ltd.(HHML), the worlds largest twowheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275 corer for the third quarter (October-December) of this financial year (2007-08). Hero Hondas profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore. Total Turnover (sales turnover plus other income, net of excise) grew to Rs2795.17 crores, a growth of 3.54 per cent over Rs 2699.63 crores recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin in the previous quarter (July-September07) was 12.39%.

This strong financial performance comes close on the heels of the companys good overall sales even in the face of the prevailing slowdown in the two wheeler industry. Hero Hondas cumulative total turnover for the first three quarters (April-December 2007) of this financial year stood at Rs. 7673.43 crores. Hero Honda's strategy for aggressive top line growth through new product launches, brand building initiatives backed by innovative communication has resulted in market share gain across every segment. Indeed, Hero Hondas share in domestic motorcycles market has been growing upward of 50 per cent, despite the slowdown in the two-wheeler industry.

B) Weakness:

a) Less promotion: The promotions and ads of Hero Honda are very less as compared to its competitors.

b) High maintenance: Some of the products of hero Honda like Karizma require high maintenance.

c) Lack of recycling scrap: It expected that by 2020 scrap generated by end of life vehicles in India would be about 2.5 million tonnes and 40% of it will come from two wheeler. But hero honda is not capable

enough to recycle the scrap generated and may impose environmental threat. TVS Company has this facility and is future threat to this company as it can affect the future sales as well.

d) Labor relations: In Hero Group there is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." Hero workers receive a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits include medical checkups not just for workers, but also for the immediate family members. For the majority of the production workers, who are hired through contractors, these benefits are out of reach. This and other problems lead to a strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring2006.

C) Opportunities:

a) High GDP & increasing income level of consumer:

Supported by strong demand impulses, especially in the manufacturing and service sector, Indias gross domestic product grew at 8.9 per cent. This is the fourth successive year in which

the country growth has exceeded 8 per cent growth, and India is now in a select club of 12 countries with a trillion dollar plus economy. As a nation, India has prospered. People living in households with incomes ranging from 2 lakh - 10 lakh a year has grown from 15 million in 1991 to 100 million in 2005-06. Not surprisingly, therefore, between 1991 and now, the two wheeler market has grown more than four times. Urban India is growing at a rapid pace. NCAER data for top 24 cities in India shows migration to higher income levels growing at over 40 per cent per annum. Prosperity in rural India is also a significant phenomenon, with 43 per cent of households in middle and the high income groups coming from rural India. More incomes per person, more persons will lead to a quadrupling of Indias consumer markets in the next two decades, a 2007 study by McKinsey Global institute has projected. And this will provide Company the ballast to sustain and consolidate its leadership position.

b) Good will of the company:

If the company utilizes the good will they have gained so far from their customers, they can increase the sales performance by economizing the cost and few technical renovation of the product. With new launch they can be benefited at present market scenario like Karizma, Hunk

has huge attraction towards the younger generation because of its style, sporty look, and high accelerating power and is stable at its feet even at high speeds. United Business Institutes of Brussels, Belgium HERO HONDA12

D) Threats:

a) Finance assistance:

Easy availability of finance is the main cause of sales growth and any restriction will hamper its growth prospects.

b) Inflation:

If inflation increases cost of raw material used in production will go high and selling price may go high that may decrease demand of the two wheeler.

c) Technical renovation aspect:

Competitor bike like pulsar and apache are threat to Hero Honda product like Karizma and Hunk in respect to fuel economy. So if they dont short out in the new launches and give

something extra in its engineering performance it may affect in demand of this company product.

ENVIRONMENTAL FACTORS OF HEROHONDA

There are mainly five Environmental factors that are affects Hero Honda. 1 .Economic Environment 2. Political -legal Environment 3. Technological Environment 4 .Socio cultural Environment 5. International Environment

1. ECONOMIC ENVIRONMENT

Like any other emerging country, India experienced the knock-on effects of the global crisis during the year in review. The effects were felt through the monetary, financial and real channels. Drying up of global finance impacted from the middle of the fiscal impacted domestic capital finance; and corporate earning scame off peaks. In April2009, Reserve Bank of India predicted that the Indian economy's growth for 2008-09 would slow to6.6per cent, breaking an excellent five-year growth sequence.

There were two dimensions to the economic slowdown. In the first half, inflation ran into double digits as a result of the global crude shock and the global food grain shortage. To control inflation, the RBI clamped down on money supply, and reduced liquidity in the economy. By the time inflation started coming under control, domestic interest rates started shooting up. Meanwhile, the global crisis erupted, putting further pressure on liquidity levels. By October 2008, slowdown was clearly apparent in export-intensive sectors, both in the manufacturing and service side. By December, the slow downturned into de-growth. The cutback in demand from Europe and the US was so sharp that even a competitive rupee, which devalued by around 12 per cent during the year, couldn't act as a buffer. By December 2008, the growth momentum of the first six months was lost. Planned investment projects were shelved; live projects faced a shortage of funds as credit flows dried up. As money became dearer, pay packets becames limmer and risk aversion grew both from the demand and supply side. Compulsions of coalition politics at the Centre and the impending Lok Sabah elections didn't help either, and slowed down reforms and implementation of projects, particularly in critical sectors like roads, ports and power. The worst hit was the manufacturing sector. From the second half of the financial year, the index of industrial production contracted on three occasions, remained close to zero on two occasions, and was mildly positive only once. There was moderation across other sectors as well. Growth in the service sector slipped from double digits to single digits.

Agriculture growth once again slipped to less than 2 per cent, mostly on account of indifferent production of cotton and pulses. On its part, the government came out with three rounds of fiscal measures to revive the economy. Yet the effects hadn't begun to show, at least till the financial year had ended. While the year in review was disappointing by Indian standards, India was still an outperformer by global standards. Along with China, India still provided a beacon of light to the world. There were in fact, some signs of some sort of recovery taking shape towards the end of the financial year, and this momentum continued in the first quarter of 2009-10as well. Cement despatches in April were the highest in five years, thanks to revival in construction activity. The World Steel estimated that India would be the only major country in 2009 with a positive consumption trend. The overall economy continues to remain a bit volatile, and yet a positive feel-good sentiment does seem to have returned, especially with the coming of a stable government at the centre. In the previous year, the domestic two-wheeler industry entered a period of de-growth. However, this was arrested in 2008-09, largely on the back of Hero Honda's performance. After the blip of last year, the two-wheeler industry went back to a growth phase, largely driven by Hero Honda and exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 percent in the previous year. The pace of growth was lower in the domestic market, where the industry clocked sales of 7.43

million, a rise of only2.60 per cent. This, however, was a significant improvement over the previous year when the industry had shrunk by 8 percent. Motorcycles continue to constitute the largest chunk of the two-wheeler industry, and during the year in review, accounted for four fifth of sales. Interestingly, for the second year in succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the twowheeler pie had been shrinking. Changing lifestyles among women, and the introduction of feature-rich, high-quality scooters possibly has much to do with the revival in demand. The entry segment - made up of basic 100 cc bikes -had started slowing two years ago, and during the year in review, sales in this segment were down by more than 15 per cent. This could be attributed to the fact that Deluxe segment bikes have become affordable on account of a 4% excise cut 1% reduction in CST and the special package of reduction in excise duty in December, which most manufacturers passed on to the consumers. The deluxe segment-made up of value for money and feature-rich bikes in the 100-125 cc category- grew by 15.2 per cent. The 125-250 cc category-grew at8.8 per cent. The pace of growth has fallen from last year's levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless, this segment was still able to clock a growth rate in high single digits mainly because of the excitement caused by a slew of new models that came into this segment during the year.

The bigger story, of course, is that buyers in small-town India and rural India, as well as employees of the state and Central government, were relatively less affected by the slowdown, and this benefited the two wheeler industry. Hero Honda expects sales to continue to grow in the 2009/ 10fiscal year, in spite of a tough economic and financing environment. Hero Honda is looking to maintain growth and continue to gain market share in the fiscal year starting in April by focusing on the rural market and continuing to carry out an aggressive marketing campaign. 2. POLITICAL - LEGAL ENVIRONMENT

Political and Legal environment is an important factor particularly in a mixed economy like ours, and affect the working of business organization significantly. ARAI provides technical expertise in R&D, testing, certification, homologation and framing of vehicle regulations. ARAI is a co-operative industrial research association established by the automotive industry with the Ministry of Industries, Government of India. It works in harmony and complete confidences with its members, customers and the Government of India to offer the finest services, which earned for itself ISO 9001, ISO 14001, OHSAS 18001 and NABL accreditations. ARAI is well-equipped with state-of-the-art infrastructural facilities and highly qualified manpower.

The Indian Auto Industry is harmonizing both Safety & Emission regulations with International Standards for sustained growth of the Industry for combating the environment and become a global export hub. India has a well established and Regulatory Framework under the Ministry of Shipping, Road Transport and Highways in which SIAM (SOCIETY OFINDIAN AUTOMOBILE MANUFACTURERS) plays a very important role. All the stake United Business Institutes of Brussels, Belgium HERO HONDA17holders are part of the regulation formulation setup. The ministry issues the notifications under the Central Motor Vehicle Rules and Motor Vehicles Act. The Safety Regulations are being aligned with the ECE regulation and the Road Map prepared by SIAM (SOCIETY OFINDIAN AUTOMOBILEMANUFACTURERS) envisages alignment by 2010.The In use Vehicle Emission norms have been tightened with effect from1st October 2004 and computerization model has been developed by SIAM(SOCIETY OFINDIAN AUTOMOBILE MANUF ACTURERS, which is already in place in the Major Metro Cities and would be extended throughout the country in a phased manner.

KEY POLICIES FOLLWED BY HERO HONDA AN ENVIRONMENTALLY AND SOCIALLY,AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Honda takes a standas a socially responsible enterprise respectful of its environment and respectful of the important issues. Hero Honda has been strongly committed not only to environmental conservation programmers but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind."We must do something for the community from whose land we generate our wealth ." A famous quote from our Worthy Chairman Mr. Brijmohan Lall MunjalUnited Business Institutes of Brussels, Belgium HERO HONDA18

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy. To achieve this we commit ourselves to:

*Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain. *Continue product innovations to improve environmental compatibility. *Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable). *Institutionalize resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals. *Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management.

Example of ethical practice: Among the two and three wheelers, both selected models of Hero Honda (Splendor and CD 100) are the most eco friendly two wheelers. They have scored above average in vehicle and engine design and are one of the very few four-strokes two wheeler fitted with any kind of pollution control equipment. United Business Institutes of Brussels, Belgium HERO HONDA19

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy. We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing a spirations through: *Innovation in products processes and services. *Continuous improvement in our total quality management systems. *Teamwork and responsibility.

Example of ethical practice: On the comparative performance undertaken for two-stroke and four-stroke two wheelers, the outcome clearly established that four stroke two-wheelers are better that two stroke twowheelers with respect to both emission and fuel efficiency. The carbon monoxide (CO) and hydro carbons and nitrogen oxides (HC-NOx) emitted by two-stroke two-wheelers (with catalytic converter) are 23 per cent and 38 per cent, respectively higher than their equivalent four-stroke two-wheelers without catalytic converter.

Safety Policy

Hero Honda is committed to safety and health Of its employees and other persons who may be affected by its operations. We believe that the safe work practices lead to better business

performance, motivated work force and higher productivity. We shall create a safety culture in the organization by: * Integrating safety and health matters in all our activities. *Ensuring compliance with all applicable legislative requirements. *Empowering employees to ensure safety in their respective work places. *Promoting safety and health awareness amongst employees, suppliers and contractors. *Continuous improvements in safety performance through precautions besides participation and training of employees.

Example of ethics followed: The performance and safety of your bike not only depends on the world class design and workmanship assured by Hero Honda but also on the parts being used in the assembly line. Even the finest components manufactured need replacement from time to time. And to ensure the continued impeccable performance of your vehicle, the spare parts should also be made and replaced as good as the components fitted by Hero Honda. To ensure this, we manufacture and procure the replacement parts according to the specifications and standards set by us and Honda Motor Co. As a responsible Hero Honda bike owner, we recommend that for your safety, long life and high performance of your bike, use only Hero Honda genuine parts

HERO HONDA FOLLOWS E s IN FORM OF ETHICS

As a socially responsible company we urge you to join us in making this world a safer, healthier and more environment friendly place. At Hero Honda we like to promote the three Es. Engineering- which is the right technology, specifically designed for Indian customer requirements, and road conditions? It is exemplified in the 4-stroke Hero Honda engines that give you amazing reliability and fuel-efficiency, year after year. We have always manufactures 4-stroke engines, ever since inception in 1985.

Environment- which is about ensuring that the high technology 4-stroke Hero Honda motorcycles continue to meet the most stringent pollution control norms at every level -as they have since the very beginning?

Education- which is about promoting comfortable and safe driving, through a wide dealer network and service centers; as well as in educating people on road safety, in association with the traffic police and the transport department? Do remember that you and your family are not only riders, but pedestrian as well. It is as part of the Hero Honda family that We Care to drive home the message of Road Safety and a Healthy Environment. Our Hero Honda, the environment and you. It is a three-way relationship that yous hould nurture, to reap the benefits for years to come. A well tuned bike keeps the environment

healthy. Good riding practices will keep you healthy. Taking good care of your bike will always keep your bike healthy. Here are simple steps to a healthy bike, healthy environment, and a healthy you. * Health and Environment *Safety *Facts and Information *Social Responsibility

Key Issues and Problems: 1. Management approach to practicing a non-union model made them blind to reality DID NOT LISTEN TO WORKERS 2. Workers viewed Mgmt activity as coercive and repressive 3. Incompetent people mgt. by Indian Middle managersIndifference 4. Indian mgmt. blocking direct access to top company executive 5. The 3 joys of HONDA were used as a means of control 6. Issues in cross-cultural management 7. Japanese didn't understand issues in Diwali in Indian IR 8. Tokenism of conciliation in resolving collective issues 9. Managing Indian people 10. Failure of mgt. to realize importance of

11. Complacency on the part of Indian mgrs about labour power

3. TECH NOLOGICAL ENVIRONMENT:

a)Hero entered a joint venture for technical and financial participation with one of the world's largest automotive makers, Honda Motor Company Limited of Japan, in 1984 for the manufacture of 100ccmotorcycles in India.

b) Hero's quest for a low-budget, fuel-efficient and environment-friendly two-wheeler led Hero Motors to enter into a Technical Collaboration with Steyr Daimler Puch of Austria in 1987 for the manufacture of the 65cc, Porsche-design mini-motorcycles.

c) Munjal Showa Limited was formed in Technical and Financial Collaboration with Showa Corporation, Japan, to design, develop and manufacture of front forks, shock absorbers, struts and gas struts.

d) Sunbeam Auto Limited has set-up a state of the art piston manufacturing facility in technical collaboration with M /S Honda Foundry Company Limited of Japan, the pioneers in the world for manufacturing high-strength lightweight pistons used in light, powerful fuel-efficient engines.

e) Munjal Auto Industries Limited has a joint venture with the State-owned Gujarat Industrial Investment corporation, to cater to the needs of the overseas market. f) Hero Cycles CR Division was set up in consultation with MECON, Asia's largest engineering consultants and in Technical Collaboration with Wean United , USA.

g) Hero Cycles Cold Rolling Division has also entered into a technical collaboration with Kawasaki Steel Corporation ,Japan for the improvement of production yield, elimination of defects, reduction of customer returns and enhancement of maintenance operations against certain predetermined targets.

India is harmonizing its Emission Norms from Apr 1, 2005. For Two Wheelers, which constitutes 70% of the vehicle population unique Indian emission norms, which are one of the tightest in the world have been adopted.

The Fuel Quality plays a very important role in meeting the stringent emission regulation. The fuel specifications of Gasoline and Diesel have been aligned with the Corresponding European Fuel Specifications for meeting the Euro II, Euro III and Euro IV emission norms. The use of alternative fuels has been promoted in India both for energy security and emission reduction Delhi and Mumbai have more than100,000 commercial vehicles running on CNG fuel. Delhi has the largest number of CNG commercial vehicles running anywhere in the World. India is planning to introduce Biodiesel; Ethanol Gasoline blends in a phased manner and has drawn up a roadmap for the same. The Indian auto Industry is working with the authorities to facilitate for introduction of the alternative fuels. India has also setup a task force for preparing the Hydrogen road map. The use of LPG has also been introduced as an auto fuel and the oil industry has drawn up plans for setting up of Auto LPG dispensing station in major cities. The latest technology is being adopted by the companies and is being launched in India as well. One of the latest technologies is the Hybrid Engines which are launched by Honda motors in India. A lot of new safety measures are now taken into consideration before the car or any other motor vehicle is launched to ensure its safety and reliability. Programmed Electronic Fuel Injection (PGM - FI) for the best drivability& lesser gear changes in traffic

CORPORATE RESPONSIBILITY (CR) OF HERO HONDA

*STAKE HOLDER TIES AT THE GRASSROOTS:

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream. An Integrated Rural Development Centre has been set up on 40 acres of land along the DelhiJaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community. The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development. This includes: * Installation of deep bore hand pumps to provide clean drinking water. *Constructing metalled roads and connecting these villages to the National Highway (NH -8). *Renovating primary school buildings and providing hygienic water and toilet facilities. *Ensuring a proper drainage system at each of these villages to prevent water-logging. *Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants. Other key projects taken up by the Foundation include:

* Raman Munjal Memorial Hospital

Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital Provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-Jaipur highway.

*Raman Munjal Vidya Mandir

TheRaman MunjalVidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated coeducational school with over 1200students and 61 teachers. The school has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer centre.

*Raman Munjal Sports

Complex The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and football grounds are used by the local villagers. In the near future, sports academies are planned for volley ball and basket ball, in collaboration with National Sports Authority of India.

*Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational Training Centre. So far 26 batches comprising of nearly 625women have been trained in tailoring, embroidery and knitting. The Company has helped women trained at this centre to set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of the women are now self-employed.

*Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults.

*Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by the Foundation by providing financial help and other support to the families.

*Rural HealthCare

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care

*Corporate Responsibility (CR)

Program, the company has lined up several initiatives that promise to bring about significant improvements in the lives of people residing in Haridwar and neighboring areas. This is

reflective of the sustainability mantra that Hero Honda has always believed in and followed wherever it does business. A group company will be setting up a Technology Park, two Industrial Parks and a shopping mall within the plant complex over the next two years. Housing issues will be addressed with the construction of two residential complexes. Accessibility of quality healthcare and education are other priority areas, and accordingly the company plans to set up 200-bed hospital and a school within the plant complex. All this envisions creation of an industrial cluster in Uttarakhand which will multiply generation of wealth and prosperity in the region.

*Honda Battle of the Bands

Honda has a long-standing commitment to the support and success of the nation's Historically Black Colleges and Universities (HBCUs). As part of this commitment, in 2002 Honda founded the Honda Battle of the Bands to showcase the heritage and showmanship of the HBCU college marching bands and provide scholarship funds for HBCU music education programs. Each year, Honda awards over $200,000 in grants to participating HBCU music programs.

*Honda Campus All-Star Challenge

As part of its long-standing commitment to the support and success of the nation's Historically Black Colleges and Universities, Honda established the Honda Campus All-Star Challenge, the largest annual academic competition between the nation's leading HBCUs. Since 1989, the annual academic challenge has touched more than 50,000 HBCU students and awarded more than $5 million in grants to HBCUs to build new facilities and expand academic resources.

*United Way

Through the company's United Way campaign, Honda's manufacturing Associates in Ohio have raised over $30 million for local United Way agencies since the campaign started in 1982. Each Associate contribution is matched 50 cents per dollar by the company. A large majority of Associates participate in the annual campaign that provides assistance to dozens of community organizations across the state.

*Detroit Symphony Orchestra

Honda is working with the Detroit Symphony Orchestra to help bring music into the lives of underserved local students. The Power of Dreams Music Education Fund was established by Honda with a $5 million grant to provide students with instruments and instruction that cultivate personal development and musical skills.

*Honda Foundations

Each year, the American Honda Foundation and Honda of America Manufacturing Foundation provide grants to organizations that offer unique approaches to teaching and developing youth in minority and underserved communities. Since its inception in 1984, the American Honda Foundation has supported organizations across the United States while the Honda of America Manufacturing Foundation (established in 1981) contributes toward youth and education programs in ohion

*Coastal Cleanup

Every September, a volunteer team of Honda Associates spends a Saturday at Torrance Beach, California picking up trash and debris during the Annual California Coastal Cleanup Day. The one-day event brings Honda's team together with tens of thousands of volunteers across California to pick up debris from

beaches, creeks, lakes and inland waterways. Nearly a million pounds of trash and over 100,000 pounds of recyclable material are collected annually.