Corporate Centurions say it with bonuses, surprise gifts - The Hindu Business Line
May15, 2011
When you turn 100, others give you presents; but when a company turns 100, what does it do?
It issues 1:1 bonus shares to all shareholders, gives surprise gifts to customers, rewards employees or even attempts out to make the world a better place!
A host of Indian and global business houses, including ITC, IBM, Whirlpool, Mars Incorporated and Chevrolet, are marking their centennial milestone this year. And, that's leading to some unexpected windfalls - big and small - for Indian stakeholders.
Take ITC, which issued 1:1 bonus shares to all its shareholders. In addition, a special Centenary Dividend, of Rs 10 a share, was given to shareholders at the time of results for the year ended March 31, 2010.
Meanwhile, Whirlpool India surprised consumers in the country who have 100 in their telephone numbers and who called up for service, as well as every 100th caller, by dishing out some gifts to mark its global parent's centenary year. "We also launched a special shopping portal for our employees that enables them to avail themselves of attractive offers on a variety of products," says Mr Shantanu DasGupta, Vice-President, Corporate Affairs and Strategy, Whirlpool India.
Even as they do the usual jig of anthems, films and coffee table books to mark the milestone, the corporate centurions are using the occasion for brand building and employee engagement programmes.
ITC, for instance, flagged off centenary celebrations with "Oneness" campaign among employees that promoted shared aspirations. "All employees across the organisation, irrespective of location, language and level, participated in these internal initiatives," says the ITC spokesperson.
GM India too is ringing in the 100th year of brand Chevrolet through "Family Day" events at its manufacturing facilities. "We will be hosting Family Day events with the theme being 100 years of Chevrolet. Each of the three centres in Talegaon, Halol and Bangalore will be hosting employee engagement events," says Mr P. Balendran, Vice President, Corporate Affairs, GM India.
IBM India, meanwhile, has decided to take a different route for its 100th anniversary. Big Blue has got its employees doing community service. Aligning themselves with a global IBM initiative, over 50 per cent of Indian IBMers are expected to pledge at least eight hours of voluntary service. They will work with over 100 NGOs engaged in different community programmes.
The tech major, which started life as a maker of clocks, scales and cheese slicers, will also do some crystal ball gazing - it will re-examine the history of tech innovation and predict where the world will be in the next 100 years.
'The secret of longevity'
Ask these companies what is the recipe for a company's longevity is and they serve up somewhat similar ingredients.
Integrity ranks very high. "It is a company's character and integrity. Whirlpool Corporation believes that achievement alone has no value if it isn't done the right way - through an exertion of extraordinary will and uncompromised principle," says Mr DasGupta. He also cites innovation as a factor.
GM's Mr Balendran also cites integrity and ethics, besides team spirit. Other mantras for him are innovation and continuous improvement, customer satisfaction, employee retention and engagement, and efficiency.
"Efficiency is the key factor that determines the long-term success and the bottomline of an organisation. Unless an organisation is able to minimise costs and maximise productivity, it will collapse soon. It is essential to know where and how to cut overhead costs for keeping the business alive," he says.
For confectionery and pet food major Mars too, efficiency is a big virtue - the $30 billion chocolate to pet food family-owned giant has five principles - quality, responsibility, mutuality, efficiency and freedom.
