A Project Report On

Hyundai Motor Group

Corporate Social Responsibility Activities

CHETANAS INSTITUTE OF MANAGEMENT AND RESEARCH

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Hyundai was multinational conglomerate company headquartered in Seoul and one of the largest South Korean firm. It was founded by Chung Ju-yung in 1947 as a construction company and Chung was the CEO and directly in control of the company until the end of his life. Two of the best-known Hyundai subsidiaries were Hyundai Motor Company, the world's fourth-largest automobile manufacturer by volume as of December 2011 and Hyundai Heavy Industries, currently the world's largest shipbuilder. Hyundai branded vehicles are manufactured by Hyundai Motor Company, along with Kia comprises the Hyundai Kia Automotive Group. Headquartered in Seoul, South Korea, Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms worldwide. In 2010, Hyundai sold over 1.7 million vehicles worldwide. Popular models include the Sonata midsize sedan and Elantra compact and many more.

Hyundai Corporate Philosophy Hyundai Motor Company has created its new corporate philosophy by redefining the philosophy and values that lives on in organization since its founding.

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1. Management Philosophy

2. Core Value Customer Challenge Collaboration People Globality

3. Vision 2020

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Hyundai Corporate Social Responsibility Corporate Social Responsibility (CSR) has become the key issue in companysociety relations. CSR has taken a position of the core pillars of Hyundai Motor as the company strives to establish a new Sustainable Business Management System based on business principles.Hyundai Motor Company does not see itself as a mere profit-making entity. It is a Contributing member of global society based on the responsible corporate citizenship. It is one of the main purposes to make a better world in close cooperation with all people and groups, including stake holders, employees, customers, shareholders, suppliers, and local communities in the world. Specifically in April 2007, Hyundai Motor announced its socially responsible management plan to fulfill its responsibility to global society. 1) The Conceptual Areas Hyundai Motor socially responsible management covers three conceptual areas economic responsibility, social responsibility and environmental responsibility.

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2) Area of Strategic focus Corporate social responsibility covers three areas: trust-based management, environmental management and social contribution. For trust-based management, company will focus on enhancement of labour relations, mutually beneficial cooperation with suppliers, ethics management and transparent management. As for environmental management, company will proactively respond to global trends and regulations related to the environment. For social contribution, they plan to enlarge our capacity and obtain expertise to effectively carry out global social contribution projects and participate in volunteering programs to contribute to development of local communities.

As a leading global automaker, Hyundai Motor is pursuing a wide range of social contribution programs to achieve its philosophy of 'Moving the World Together'. Social responsibility is displayed through various programs. The Hyundai Motor Company headquarters (HMC) in Korea engages in diverse activities that capitalize on the companys expertise in automobiles. Being the major organ for executing Social Responsibility Programs in HMC it supports big number of those and has a set of 20-30 adjusted representative events.

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The major initiatives of HMC are 'Easy Move' aimed at enhancing mobility for the transportation-disadvantaged, 'Safe Move' to promote traffic safety, 'Green Move' to restore natural habitats and protect the environment, and 'Happy Move' under which HMC employees take part in volunteering activities. Wherever Hyundai Motor has its subsidiaries you can see various representative social programs conducted in the area as well. In 2008 Hope on Wheels program for fighting against paediatric cancer had its 10 year anniversary in America. In India, Chennai or Delhi you will be able to see student-volunteers actively participating in traffic control program Student Traffic Volunteers Scheme (STVS). Hyundai Motor with its 'Four Moves' is involved in various activities related to arts, sports, technical skills, education and medical help, actively establishing its strong CSR network.

Hyundai Social Contribution Philosophy Based on Management Philosophy of pursuing happiness for humanity through automobiles, social Contribution philosophy is to promote happiness for all and build a sustainable society.

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Hyundai Symbol and Slogan Befitting company position as a global enterprise, Hyundai Motor also carries put a broad range of social contribution programs around the world with the goal of promoting happiness for all people. 'Moving the World Together' means going forward together with our neighbours to a better society and better life.

Meaning of Slogan

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Hyundai Social Contribution Structure Social contribution by category With its Key Social Contribution Program Hyundai Motor also promotes various social activities divided by categories throughout the world. Being not only just a company but a serious Global player, HMC is going overseas to accomplish its motto of "Moving the World Together" in collaboration with its neighbours. Except for the 4 move Key Social Contribution Programs, Hyundai Motor is continuing its activities in various social responsibility projects. Social Welfare, Education, Art & Culture, Sports are all included in Hyundai Motor Company's activities. HMC is willing to Help anywhere, where help is in need.

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Hyundai Environmental Resposibilty Hyundai Environmental Management Centered around Blue Drive Starting with the development of the FGV-I in 1995, followed by the official announcement of the Company's environmental management philosophy and global environmental management policy in 2003 and the launch of the Environment Technology Centre in 2005, Hyundai Motor has been continuing its efforts to reduce the impact of cars on the environment. These efforts have led to the development of eco-friendly models based on the Company's strategic Blue Drive technology. Rooted in Hyundai Motor Company's corporate philosophy to contribute to enriching human lives through automobiles and the innate mission of cars to provide mobility, Blue Drive aims to create values that blend with the environment and society. With Blue Drive at its heart, Hyundai will do its best to create a future where human beings, society, and earth can coexist in harmony. Hyundai Development of Alternative Fuels The development of alternative energy sources as well as the development and supply of alternative fuel vehicles is important in responding to the depletion of oil and reducing greenhouse gas emissions.The ultimate goal of developing new and renewable energy sources is developing and supplying non-polluting vehicles that have zero gas emissions. At present, hybrid electric vehicles, which use internal-combustion engines and electricity as their power source, are gaining attention as a powerful alternative. HMC is doing more than simply developing new technologies. They are concentrating to develop and supply practical and truly environment-friendly alternative fuel vehicles. Hyundai Reduction of Gas Emissions Reducing tailpipe emission in urban areas, where there is a concentrated population, is an important task that needs to be tackled for the improvement of air quality. They strictly manage its vehicles tailpipe emissions, such as NOx and PM, around the world to conform to the relevant regional regulations, therby improving air quality in urban areas. They are increasing investments for the development of new technologies to create vehicles with ultimately zero gas emmisons.

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Hyundai Increased Recyclability Automobile is the basic essential of human life. An important goal of HMC is to prevent environmental pollution by recycling resources that are used for manufacturing of automobiles and enhancing the value of end-of-life vehicles. They are prohibiting the use of hazardous substances for the new vehicle development phase to prepare the recycling process of end-of-life automobiles. To verify the recyclability of all models, they are operating the Recyclability Assessment Information System for Homologation (RAIS-H). The company is thus responding to recycling laws and regulations that are being strengthened all across the globe. Moreover, HMC is recycling scrap materials such as plastic parts and waste PET bottles that are generated during the automobile parts manufacturing process. HMC is making efforts to boost research and development through the Automobile Recycling Centre in order to increase recyclability. Hyundai Clean Production An important task that needs to be addressed by automobile companies is to minimize environmental pollutant emissions and optimize the use of resources during the automobile manufacturing process. The use of raw materials, subsidiary materials, energy, water resources, among others, in the process of manufacturing vehicles results in byproducts such as waste heat, wastewater, gas, waste, and stench. It is thus essential to establish a clean production system to effectively manage byproducts. The adoption of the Bali Roadmap during the 13th Conference of the Parties to the United Nations Framework Convention on Climate Change is leading to forecasts that domestic plants will also be forced to reduce greenhouse gas emissions by a certain level after 2013. HMC is actively making efforts for the preparations. They are standardizing the management of harmful materials so that they are not contained in raw materials and not used in the manufacturing process. By establishing a clean production system that encompasses all partner companies, HMC is contributing to the preservation of the global environment and enhance environment-friendliness of the automobile industry. They are managing the material balance between inputs and outputs. In 2007, their domestic business facilities used 308 thousand tons of raw materials, 30.88 million GJ of energy, 11.683 million tons of water resources, and 2,635 tons of chemical substances, in the process of manufacturing 1.707 million automobiles

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and 2.376 million engines. During this process, 1.526 million tons of CO2 were emitted. In addition, 639 tons of air pollutants, 192 tons of water pollutants, and 198 thousand tons of waste were generated.

Hyundai Motor India Limited (HMIL) It is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 8 models of passenger cars across segments. The A2 segment includes the EON, Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMILs total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMC's global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 115 countries across EU, Africa, Middle East, Latin America and Asia Pacific. It has been the number one exporter of passenger car of the country for the sixth year in a row. To support its growth and expansion plans, HMIL currently has a 336 strong dealer network and 721 strong service points across India.

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CSR-Hyundai Motor India (HMI) Community Development Hyundai Motor India (HMI) established a trust called HMIF (Hyundai Motor India Foundation) to carry forward such activities, mostly related to Community Development program which includes various fields of health, education and road safety. Undertaking social works make not only societal needs fulfil but also Hyundai satisfied as a neighbour. The objectives are mention below; Health Care -To work with Government, Private and Non-profit Agencies in providing Primary Health Care in rural areas Increase health awareness and ensure efficient delivery of drugs and medicines. Reduce communicable diseases Education and Vocational Training - To provide quality and life-skills education to the lesser-privileged. To develop a world class automobile service training institute. Road Safety - Facilitate safety management capacity building at regional levels. To build capacity to act as a lead agency for Government to guide the enforcement of traffic laws and regulations and campaign for national road traffic safety effort. Environment - To assist various participants to create awareness regarding vehicle pollution and control. Based on these objectives, HMIF initiates medical health checkup for villages, school up-gradation, picnic for village school students, student traffic volunteers etc. Cultural Exchange - Cultural Exchange Program of HMIF(Hyundai Motor India Foundation) is for encouraging cultural exchange and understanding between Korea and India. A slew of Korean companies set shop in India along with HMIL (Hyundai Motor India Limited). Business understanding can never be complete without cultural understanding. To have a chance to learn not only business culture but also general society, HMIF supports various events and activities which are related to art, science and culture of Indian tradition. At the same time, HMIF puts the best effort to interact two

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different cultures through introducing and giving the opportunity to experience Korean art, music, performance, etc. To maximize the availability of access, Hyundai Motor India Limited delightedly undertakes a main partnership of making the cultural exchange spot. In May 2006, Indo-Korean Cultural & Information Centre (InKo Centre) was inaugurated to become a cultural pluralism and intercultural dialogue between India and Korea. Financial support from HMIL to InKo Centre is rooted through HMIF. InKo Centre has been set up with an aim to promote intercultural dialogue between India and Korea by facilitation a consistent program that draws on the rich traditions of both these countries. The center will focus on language, culture and information, through performances, conversations and research. Besides, it will look at the global dimensions of such a dialogue even while showcasing the local and national characteristics that underpin such exchange. In the future, it will give more place and chance to enhance communication in practice through running the various programs from language to wellness, calligraphy, film screenings and much more. Besides, it will be a connection between India and Korea in a meaningful and sustained manner harmoniously. Scholarship Abdul Kalam, President of India believes education is the future of India, HMI (Hyundai Motor India) also considers that it is one of the most important objectives of HMIF (Hyundai Motor India Foundation). On 10, April, 2006, the inauguration of HMIF, we showed our will to support education by handing over Rs 3,500,000 to Madras University to enhance the educational infrastructure in Tamilnadu. Since HMIF is in charge of handling foundation activity,they are able to plan for providing quality primary, secondary & higher education and vocational training more systematically and professionally. HMIF has been initiating various scholarship programs for instance, an Internship through academicindustrial cooperation with relating training programs, contribution to life skills education for women through an organization Y.W.C.A. and supports the schools, colleges and universities even to non-governmental organizations such as awareness and campaign programs.

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Especially, HMIF renovated a technological training centre for giving the students an opportunity to learn through improvement of educational environment in Assam Sate which is located in Northeast India. On September 20, 2006, Hyundai Group Chairman, Mr M K Chung had a meeting with the President Dr A.P.J. Abdul Kalam and Prime Minister Manmohan Singh. During the discussion about technological and educational supports to the rural student, technical support to Assam was suggested. Meeting with the officials revealed that support was required to improve the functions in ITI, modernize the aggregates such as engines & transmissions and revamp of training facilities. HMIF planned to modernize and supplement the educational infrastructure of Assam it is in three phases. First of all, it starts from 2007 for training facility renovation. Second phases will start in 2008 and third one in 2011 for the employment opportunity. As a vocational learning, it will also provide several job opportunities to certified ITI students. DONATION OF DESKS AND CHAIRS TO PUBLIC SCHOOLS Hyundai Motor India Foundation (HMIF) has been continuously donating chairs and desks to public schools since 2007 to impoverished Tamil Nadu for the improvement of the learning environment. As many as 21,000 students were able to study in an environment that is much more pleasant, stimulating and conducive to learning after a total of 6,200 desk and chair sets were provided to 35 Govt Hr Sec Schools. The accumulated number of desks and chair sets donated so far almost reaches 19,200 sets. In line with the Green Message in which the environmentally friendly recycling of resources is very much encouraged and sought after, HMIF recycled thrownaway wooden boxes used for cars in order to directly manufacture desks and chairs for donation. Natural Calamity and Disasters Relief - Hyundai Motor Foundation (HMF) has been established to provide the financial aid, relief activities, and reconstruction support for areas that have been affected by such natural disasters as earthquakes, tsunami, flood, and so forth. No one would forget what happened in the southeastern coast of India on

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December 26, 2004. The tsunami on the Indian Ocean caused incalculable devastation in terms of human lives and properties in the Indian province of Tamiladu where the Indian corporation of HMC is located. As the biggest investor in Tamilnadu, HMI delivered a relief aid to the local citizens, along with donations of money and goods from HMC employees that filled two trucks. HMI then dispatched the employees in the medical unit of the company as well as doctors and nurses of Sudar Hospital to the most affected area of Nagapattinam to take care of over 5,000 locals and give vaccinations against water-born infections. The medical services were soon expanded to incorporate areas surrounding Nagapattinam as well. HMI volunteers then went on to repair cars in the flooded areas of Kalpakkam and Andaman in an effort to alleviate burdens on the locals. HMI delivered another disaster relief aid in 2005, as parts of Tamiladu were flooded and ruined by heavy rainfalls.

Hyundai Motor India Foundation(HMIF) HMIF was formed in the year 2006 with the purpose of 'giving back' to society and to initiate Corporate Social Responsibility (CSR) activities in the areas of health care, educational and vocational training, environment, road safety, art, science, technology, etc. HMIF gets its direct funding from HMIL's earnings as it contributes Rs.100 for every car sold in the Indian market to enable HMIF to carry out its social activities. Happy Move Hyundai Motor India Foundation (HMIF), as part of its Corporate Social Responsibility program recently organises the 'Happy Move Global Youth Volunteers camp'. As part of the initiative, students from India and Korea are work together towards a common cause of community development. The activities in the camp are focused on education and renovation activities. The 'Happy Move Global Youth Volunteers Camp' is also supported by Field Services and Intercultural Learning (FSL), an Indian NGO India, and International Workcamp Organisation (IWO), an NGO from Korea.

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 Hyundai Traffic Squad Students Traffic Volunteer Scholarship Scheme is an initiative by HMIF to sponsor the 'economically backward' college students and also help in managing traffic better. A group of carefully chosen students, after proper training by the local traffic police, work as traffic marshals at busy intersections in conjunction with the traffic police to control and manage traffic The students are paid a stipend for their efforts and this scheme is successfully running in the cities of New Delhi, Chennai and Kolkata. HMIL will further expand the scheme to other cities of India Educational and Vocational Training Program HMIL, under the aegis of HMIF is committed to the task of improving conditions in local schools around Sriperumbudur as well as nationally. At regular intervals it donates chairs, tables, computers to the schools to create a better environment for educating children. Till date, over 20,000 school students have benefited through this program. HMIF has adopted ITI's in Assam and Ulundurpet to equip them with latest infrastructure facilities and also provides employment opportunities to students who graduate from here Medical Camps for Neighbourhoods HMIF conducts a number of free Medical Camps. Apart from this, the Foundation has also entered into an agreement with Sri Ramachandra Medical University for operating a Mobile Health Clinic in villages between Poonamalee and Kanchipuram. The mobile clinic will have a Medical Officer, Pharmacist, Nurse, Attendant and maintain a regular supply of medicines. The van has a Satellite link which enables it to be in direct contact with the hospital and get assistance and advice even in the remotest of villages. Hyundai Driving School As part of skill development, driving school was started by HMIF to train unemployed youth in Kancheepuram & Thiruvallur Dist. Three batches (100) had been trained during 2009 and this will be an ongoing programme.

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