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Home » MBA Case-Studies » SPIC Group: Social initiatives by MAC Foundation and ACM Trust Research Project Background

SPIC Group: Social initiatives by MAC Foundation and ACM Trust Research Project Background MBA Case Studies

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Introduction
This case study is one of ten that were chosen as part of the Enhancing Business-Community Relations project in India implemented in collaboration with The Energy and Resources Institute (TERI). These cases document examples of engagement between businesses and communities and can be used as learning tools for the promotion of responsible business practice and sustainable development. The Enhancing Business-Community Relations project is a joint international initiative between United Nations Volunteers (UNV) and the New Academy of Business. Implemented in seven developing countries, the purpose of the initiative was to collect and document information on business-community practices as perceived by all stakeholders, build partnerships with them and promote corporate social responsibility practices. It is also intended to enhance international understanding of business-community relations through information sharing and networking with other countries especially those participating in the project - Brazil, Ghana, India, Nigeria, Philippines, South Africa and Lebanon. The findings and recommendations reflected in the case study are those of the author and do not necessarily reflect those of UNV, TERI or the New Academy of Business. It is important to note that these cases were written as examples of business-community initiatives. They do not constitute a comprehensive assessment of the company's social responsibility. This case study concerns social investments undertaken by the MAC (Medical) Foundation and the A. C. Muthiah Trust under the auspices of the SPIC Group, India. Projects in healthcare and education were initially implemented in only one village this has since developed to three villages with perhaps more in the future. Each project is discussed in turn with details of the structure and implementation procedures. The SPIC Group has undertaken its social investment through charitable trusts and foundations, yet these organisations remain largely financed, and administered, through the company itself. For this reason there is discussion about the pros and cons business can bring to the public sector by investing in community projects such as these.
1.Company Profile
The Southern Petrochemical Industries Corporation (SPIC), is a front ranking industrial conglomerate of India. SPIC is first and foremost a fertiliser company, but it also produces biotechnology, pharmaceuticals, industrial, heavy and fine chemicals, adhesives, detergents and house care products. It offers services in electronics, engineering and IT through its strategic business units, groups companies and joint ventures in India and abroad SPIC's annual turnover is over Rs. 2,000 crores. When SPIC was incorporated in 1969, it was the first joint sector project ever in India. In 1975, as SPIC s Fertiliser Complex in Tuticorin went on stream, it was as the largest naptha based plant in Asia and largest urea plant anywhere in the world. Today, SPIC has capacities to manufacture nitrogenous, phosphate and ammonia fertilisers, sulphuric and phosphoric acids. The fertiliser complex also generates by-products in the form of gypsum and aluminium fluoride (over 3,000 tonnes p.a.). SPIC s partners in different sectors include the Technip Group of France (Technip India Ltd.); the Jordan Phosphate Mines Company Ltd., Jordan, and the Arab Investment Company (Indo Jordan Chemicals Company Ltd.); Jurong Engineering Ltd.(SPIC JEL Engineering Construction Ltd.) and the Emirates Trading Agency, Dubai (SPIC Fertilizers and Chemicals FZE). SPIC s corporate leadership has created its own distinct attitude towards society in general and rural society in particular. SPIC and its affiliated Trusts and Foundations firmly believe that the nation can progress only on the It must be the responsibility of not only the strength of a strong, prosperous and Government but also of the society, including healthy rural society. NGOs and Corporate houses such as ours, to find The MAC (Medical) Foundation was and create the ways and means for meaningful established by Dr. M. A. economic opportunities for the rural populace. Chidambaram, founder of the SPIC We need to provide the right inputs at the right Group, in 1983. Dr. Chidambaram s time, guide them with the know how at the son, Dr. A. C. Muthiah who is the grassroots level and empower them with adequate present Chairman, later founded the knowledge, information and skills which will ACM Trust to expand upon his automatically lead to improved quality of life. father s work. It is these foundations that have undertaken SPIC s health Dr. A.C. Muthiah, Chairman, SPIC Group and education initiatives.
2.Project History and Development
This case study is in two parts; the first of which provides insight into health initiatives undertaken by the MAC Foundation; the second of which considers the ACM Trust s work in the education sector.
3.Health Initiatives MAC (Medical) Foundation
SPIC s Primary Health Care initiative is an attempt to increase the availability of (and accessibility to) health services in rural areas. It is a comprehensive package with an integrated approach of curative, preventive and promotional services involving health education, which encompasses education on better nutrition, proper sanitation, optimal maternal and child health care, communicable disease control, immunisation and other measures.

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