Reference no: EM133148270

The Case of the Hungry Children

Case of the Hungry Children:

• : Do the motives behind Havells' action change the ethical nature of their programs?  In other words, if done purely out of enlightened self-interest are the programs less ethical?  Defend your answer with ethical reasoning from week one.
• : Consider Duska's example of the distinction between a purpose of education (to develop one's mind) and the motive for education (to get a job).  Now, craft a position statement (2-3 sentences) on what the purpose of a business is; being sure to support the position with reasoning you encountered this week from one of our authors.

Havells India Limited, a leading manufacturer of FMEG (fast moving electronic goods) and power distribution equipment, is a globally renowned Indian brand today.

The owner of the company, Qimat Rai Gupta, acquired a small electrical goods company named Havells in the year 1971, under the QRG Group. He had a vision of converting this small business into a superior electrical goods manufacturing plant in India.

The brand, since then, saw several mergers and acquisitions to become a global FMEG leader. In the year 2015, Havells successfully acquired a place in the world's top five lighting companies.

In the year 2004, Havells researched to find out the logic behind unavailability of sufficient human resource for its Alwar Plant. It encountered the problems of poverty, malnutrition and illiteracy in the region.

The study showed that children work in the farms instead of going to school, to earn a living. It was a challenging task for the families of Alwar, Rajasthan to get sufficient meals twice a day, which made them starve and malnourished. The most affected of all were the children of this region.

Havells decided to deal with this situation by aiming at 'Zero Hunger' in the Alwar region. The brand joined hands with the Rajasthan government to initiate a mid-day meal program in various government schools of the district.

The food is prepared in the company's state-of-the-art kitchen spread across 4 acres of area, engaging a workforce of 160 people. Havells made sure to give its best by ensuring proper control over procurement of grocery, food preparation, raw material storage and supply of prepared meals to schools.

The brand made sure that the diet chart approved by the government is strictly followed and proper hygiene and food quality are maintained.

Havells initially served 1500 students of 5 schools, and later the number increased to 60000 children studying in 693 schools in the Alwar district.

The principal idea behind this program was to motivate children to go to school by providing them with a nutritious, hygienic and fresh food as an afternoon meal daily. This initiative had met two primary CSR goals, i.e., child education and malnutrition.

The mid-day meal program brought a significant improvement in the conditions of the people in Alwar. It improved the overall health of the children and thus, transformed their lives by directing them towards a better future.

Let us now go through the other positive effects of this program:

1. Higher Enrollment Rate: The children who were unable to get proper meals at home were fascinated by the mid-day meals, provided at the school premises. Thus, there was a remarkable increase in new admissions in government schools.
2. Develops Academic Interest and Improves Concentration: The mid-day meal kept the students well-fed, which made them more active and attentive in the classroom.
3. Better Academic Performance: With the rise in student's concentration level, their interest and willingness towards learning also increased.
4. Reduced Dropout Rate of Schools: There was a gradual decrease in the students turnover and transition in the Alwar's government schools since the children cherished going to schools now.
5. Enhanced Nutritional Intake: The Body Mass Index (BMI) determines the health conditions of a person. MDM program ensured a nutritional meal for the kids, which improved their BMI within five years.
6. Decreased Teachers' Burden: Since the company had taken the responsibility of providing mid-day meals to the students, the teachers can utilize their time in academic activities.

Havells' program was initiated out of a concern of workforce scarcity; in other words it was done to serve a need they had in their business operations.  This is arguably not an act of charity, but an action of enlightened self-interest (action taken with awareness that what is in the public interest is eventually in the interest of the company).  Havells engages in other CSR initiatives around clean water, tree planting, and health care - all of which benefit the company indirectly as the environment and society in which they operate grows healthier and stronger.