1MAJOR PROJECT REPORT ON (CORPORATE SOCIAL RESPONSIBILITY OF TATA) SUBMITTED BY ANKIT ARORA Enrollment no. 1281921708 STUDENT OF LINGAYA’S LALITA DEVI INSTITUTE OF MANAGEMENT & SCIENCES MANDI ROAD, NEW DELHI-110047 Page 1 2 FOR THE PARTIAL FULFILLMENT OF BACHELOR IN BUSINESS MANAGEMENT SUBMITTED TO Mrs. SHUSHMA SHARMA GURU GOBIND SINGH INDRAPASTHA UNIVERSITY DELHI, INDIA Table of Contents Page 2 3 Acknowledgement ……………………………………………………………..…6 Declaration ……………………………………………………………………… ……7 Introduction ..........................................................8 What Is Corporate Social Responsibility? ..........9-10 Meaning and Definition....................................11-13 Need for Corporate Social Responsibility..............14 Importance of CSR ..........................................15-16 CSR in Today’s World ......................................17-18 Implementing CSR ..........................................19-20 Arguments of CSR............................................21-24 Corporate Social responsibility in India ...........25-26 Measure for applying Corporate Social Responsibility ........................................................................27-29 TATA company profile …………………………………………………….30-49 Product and service …………………………………………………………50-63 Group holding structure…………………………………………………64-65 Page 3 4 CSR by tata …………………………………………………………………… 66-73 Tata business excellence model ……………………………………………74-74 Initiatives ……………………………………………………………………… ……76-82 Development …………………………………………………………………….8 3-85 CSR by tata steel………………………………………………………………. 86-100 About Tata Power…………………………………………………………….1 01 CSR Action Plan @ Tata Power.........................102 Integrating CSR with VMV................................103 VISION............................................................104 MISSION.........................................................104 VALUES..........................................................105 Page 4 5 CSR Mission & Approach..................................105 Mission...........................................................105 Approach........................................................105 Corporate Sustainability/Community Development Policy...............................................................106 Identification of Key Communities...................106 Key Communities...........................................106 Thrust Areas For CSR.....................................106 Energy.............................................................107 Other Areas……………………………………………………………… …….108 Partnering with Govt./NGO’s/Community for Sustainability….Error: Reference source not found9 Resettlement & Rehabilitation.........................109 Volunteering PolicyError: Reference source not found Volunteer Activity & SchemesError: Reference source not found Key Impacting Drivers for CSR Initiatives.....Error: Reference source not found Glimpses of the Events……………………………………………… Error: Reference source not found Page 5 6 Interview ………………………………………………………………...113118 Conclusion …………………………………………………………………119 References ……………………………………………………………….120 Page 6 7 ACKNOWLEDGEMENT I owe a great many thanks to a great many people who helped and supported me during the writing of this report. My deepest thanks to Lecturer, [mr. SHUSHMA SHARMA] for correcting various documents of mine with attention and care. He has taken pain to go through the project and make necessary correction as and when needed. I express my thanks to the hod of, BBA, for extending his support. My deep sense of gratitude to mr. SHEKHAR ROY (HR. MANAGER), [TATA CHEMICALS BABRALA, (BADAUN) U.P] support and guidance. Thanks and appreciation to the helpful people At tata chemicals, for their support. I would also like to thank my Institute and my faculty members without whom this project would have been a distant reality. Page 7 8 DECLARATION I hereby declare that the project work entitled “ CORPORATE SOCIAL RESPONSIBILTY OF TATA ” submitted to the GGSIPU, is a record of an original work done by me under the guidance of mrs. SHUSHMA SHARMA, Faculty Member, LINGYAS LALAITA DEVI INST. OF MGT. AND SCIENCES, and this project work has not performed the basis for the award of any Degree to the best of my knowledge. ANKIT ARORA 1281921708 [SIGNATURE OF STUDENT] Page 8 9 Introduction Although the subject “Corporate Social Responsibility” in its present form and content has gained popular attention only in recent years, its origin can be traced back to the evolution of the concept of a welfare state. As the pace of industrialization quickened employers became more and more concerned with the loss of productivity efficiency due to avoidable sickness or accidents or stoppage of work due to bad personal relationships. This gave rise to the idea of a welfare state, which was further strengthened by the growth of democracy and of respect to human dignity during the last 150 years. The frame work of a welfare state and with it the concept of social responsibility have thus come to stay in many countries of the world. The changing image of business in the recent years has lent further support to the idea of social responsibility. Some public opinion polls in the 1960’s and 1970’s in United States have left businessman disenchanted. These polls have revealed that the businessman is viewed as an individual who does not cares for others, who ignored social problems, who preys upon the population, who exploits labor, and who is a selfish money grabber. On the other hand, until these opinions were unveiled, the businessman in America believed that others viewed him as he viewed himself, as a practical, down-to-earth, hardworking, broadminded, progressive, interesting and a competitive free enterpriser. He believed that the society looked up at him as a self sacrificing community leader, pillar of society, generous to a fault, great supporter of education, patron of the arts, in short, the salt of the earth. Indeed, the businessman in the pre-poll days thought of himself as a happy mix of Plato, Gandhi, and Churchill. Page 9 10 What Is Corporate Social Responsibility? Corporate social responsibility (CSR) is a form of business self-regulation to incorporate social and environmental concerns. It represents a business model that adheres to laws, ethical standards, and international norms. As part of the business model, businesses have to take into account the impact of their activities on the environment, employees, communities, stakeholders, and other members of the public. In short, CSR represents the deliberate inclusion of the public’s interest in a business’ decision making to ensure a triple bottom line that considers the planet, people, and profits. In general, CSR involves some kind of standardized reporting that allows the business to collect information on how it is making progress on various fronts. Businesses that engage in CSR typically focus on some or all of the following: • Environment: This requires a look at the environmental impacts of products and services, as well as what the business does outside the company to improve the environment. Employees: It’s important to ensure that all employees are cared for adequately. Businesses usually focus on workplace conditions, benefits, living wages, and training. Page 10 • 11 • Communities: Engaging the surrounding communities is an important part of not just creating good human capital that can serve the business, but also securing a reputation that can further establish the business. Regulations: Respecting regulations to the fullest and often exceeding them is part of being socially responsible. Crisis Preparedness: Being ready to address business crises and ensure safety for employees and surrounding communities is critical. Having plans ready and tried are important in ensuring minimal losses during times of crises. • • Page 11 12 Meaning and Definition CSR is about how companies manage the business processes to produce an overall positive impact on society. Take the following illustration: Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past Page 12 13 financial performance - on quality of management as an indicator of likely future performance. Other definitions The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts, used the following definition. "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as "CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" from Ghana, through to "CSR is about business giving back to society" from the Phillipines. On the other hand, the European Commission hedges its bets with two definitions wrapped into one: "A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis". Page 13 14 Page 14 15 Need for Corporate Social Responsibility There are many situations where social responsibility of a business becomes necessary. Few of these situations which show the need for Corporate Social Responsibility are discussed below. 1. A societal approach to business is the contemporary business philosophy, which demands business organizations to be responsive to the social problems. 2. As a result of globalization of business, global companies and MNCs operate in a big way in their host countries. In order to establish a good corporate image, they include social responsibility as a corporate objective. Indigenous companies are forced to follow suit for maintaining their corporate identity. 3. In the terms and conditions of collaborations agreements, very often, social welfare terms are included which necessitates the collaborating company to take up social responsibility of business. 4. On the basis of legal provisions, companies have to concentrate on social problems. For example an industrial organization in India must obtain a certification from Pollution Control Board. 5. Corporate donations of social welfare projects of approved NGO’s are exempted from income tax in India. 6. An organizations commitment to social responsibility creates a good corporate image, and there by a better business environment. 7. Social responsibility of business enables the organization to improve its product positioning and thereby improve its market share. Page 15 16 8. Very often situations demand due to natural calamities, accidents and so on. For example, gas leak at the Union Carbide plant in Bhopal, wherein the company had to monetarily compensate through medical treatment. Importance of CSR CSR is an important business strategy because, wherever possible, consumers want to buy products from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and NGOs, increasingly, want to work together with companies seeking feasible solutions and innovations in areas of common concern. Satisfying each of these stakeholder groups allows companies to maximize their commitment to another important stakeholder group—their investors, who benefit most when the needs of these other stakeholder groups are being met: I honestly believe that the winning companies of this century will be those who prove with their actions that they can be profitable and increase social value—companies that both do well and do good….Increasingly, shareowners, customers, partners and employees are going to vote with their feet—rewarding those companies that fuel social change through business. This is simply the new reality of business—one that we should and must embrace. Carly Fiorina Chairman and Chief Executive Officer Hewlett Packard Company Page 16 17 The businesses most likely to succeed in the globalizing world will be those best able to combine the often conflicting interests of its multiple stakeholders, and incorporate a wider spectrum of opinions and values within the decision-making process and objectives of the organization. Lifestyle brand firms, in particular, need to live the ideals they convey to their consumers: CSR is increasingly crucial to maintaining success in business—by providing a corporate strategy around which the company can rally, but also by giving meaning and direction to day to day operations. Page 17 18 CSR in Today’s World CSR as a strategy is becoming increasingly important for businesses today because of three identifiable trends: • Changing social expectations Consumers and society in general expect more from the companies whose products they buy. This sense has increased in the light of recent corporate scandals, which reduced public trust of corporations, and reduced public confidence in the ability of regulatory bodies and organizations to control corporate excess. • Increasing affluence This is true within developed nations, but also in comparison to developing nations. Affluent consumers can afford to pick and choose the products they buy. A society in need of work and inward investment is less likely to enforce strict regulations and penalize organizations that might take their business and money elsewhere. Page 18 19 • Globalization The growing influence of the media sees any ‘mistakes’ by companies brought immediately to the attention of the public. In addition, the Internet fuels communication among like-minded groups and consumers—empowering them to spread their message, while giving them the means to co-ordinate collective action (i.e. a product boycott). These three trends combine with the growing importance of brands and brand value to corporate success (particularly lifestyle brands) to produce a shift in the relationship between corporation and consumer, in particular, and between corporation and all stakeholder groups, in general. The result of this mix is that consumers today are better informed and feel more empowered to put their beliefs into action. From the corporate point of view, the market parameters within which companies must operate are increasingly being shaped by bottom-up, grassroots campaigns. NGOs and consumer activists are feeding, and often driving, this changing relationship between consumer and company. CSR is particularly important within a globalizing world because of the way brands are built—on perceptions, ideals and concepts that usually appeal to higher values. CSR is a means of matching corporate operations with stakeholder values and demands, at a time when these values and demands are constantly evolving. CSR can therefore best be described as a total approach to business. CSR creeps into all aspects of operations. Like quality, it is something that you know when you see it. It is something that businesses today should be genuinely and wholeheartedly committed to. The dangers of ignoring CSR are too dangerous when it is remembered how important brands are to overall company value; how difficult it is to build brand strength; yet how easy it can be to lose brand dominance. CSR is, therefore, also something that a company should try and get right in implementation. Page 19 20 Implementing CSR CSR is about common sense policies that represent a means of integrating a complete ‘social perspective’ into all aspects of operations. The goal is to maximize true value and benefit for an organization, while protecting the huge investments corporations make today in their brands. Page 20 21 CSR asks companies to ensure their business operations are clean and equitable, and contribute positively to the society in which they are based. Otherwise, they leave themselves open to too much danger from a potential consumer backlash. CSR is good business sense, and a total approach to doing business, in a globalizing world where companies are increasingly relying on brand strength (particularly global lifestyle brands) to add value and product differentiation, and where NGO-driven consumer activism is increasing. Many believe the issue of how corporations integrate CSR into everyday operations and long-term strategic planning will define the business marketplace in the near future. It will become a key point of brand differentiation, both in terms of corporate entities and the products that carry their brands. Key steps on the road to integrating CSR within all aspects of operations include: • Ensure the commitment of top management, and particularly the CEO, is communicated throughout the organization • Appoint a CSR position at the strategic decision-making level to manage the development of policy and its implementation • Develop relationships with all stakeholder groups and interests (particular relevant NGOs) • Incorporate a Social or CSR Audit within the company’s annual report • Ensure the compensation system within the organization reinforces the CSR policies that have been created, rather than merely the bottom-line • Any anonymous feedback/whistle-blower process, ideally overseen by an external ombudsperson, will allow the CSR Officer to operate more effectively Corporations today are best positioned when they reflect the values of the constantly shifting and sensitive market environment in which they operate. It is vital that they are capable of meeting the needs of an increasingly demanding and socially-aware consumer market, especially as brands move front and center of a firm’s total value. Global firms with global lifestyle brands have the most to lose if the public perception of the brand fails to live up to the image portrayed. Page 21 22 Integrating a complete ‘social perspective’ into all aspects of operations will maximize true value and benefit for an organization, while protecting the huge investments companies make in corporate brands. Arguments of CSR Page 22 23 Arguments offered in favor of CSR can be broadly split into two camps—moral and economic. 1. A moral argument for CSR While recognizing that profits are necessary for any business entity to exist, all groups in society should strive to add value and make life better. Businesses rely on the society within which they operate and could not exist or prosper in isolation. They need the infrastructure that society provides, its source of employees, not to mention its consumer base. CSR is recognition of that inter-dependence and a means of delivering on that obligation, to the mutual benefit of businesses and the societies within which they are based: CSR broadly represents the relationship between a company and the wider community within which the company operates. It is recognition on the part of the business that ‘for profit’ entities do not exist in a vacuum, and that a large part of any success they enjoy is as much due to the context in which they operate as factors internal to the company alone. Charles Handy makes a convincing and logical argument for the purpose of a business laying beyond the goals of maximizing profit and satisfying shareholders above all other stakeholders in an organization: The purpose of a business is not to make a profit, full stop. It is to make a profit so that the business can do something more or better. That “something” becomes the real justification for the business….It is a moral issue. To mistake the means for the end is to be turned in on oneself, which Saint Augustine called one of the greatest sins….It is salutary to ask about any organization, “If it did not exist, would we invent it?” Only if it could do something better or more useful than anyone else” would have to be the answer, and profit would be the means to that larger end. Advocates of CSR believe that, in general, the goal of any economic system should be to further the general social welfare. In advanced economies, the purpose of business should extend beyond the maximization of efficiency and profit. Increasingly, society expects businesses to have an obligation to the society in which they are located, to the people they employ, and their customers, beyond their traditional bottom-line and narrow shareholder concerns. Page 23 24 At a minimum, businesses operating in a community benefit from the infrastructure of that community (tangible, practical elements such as the roads, other transport infrastructure, the police, firefighters, etc) as well as more intangible benefits, such as a safe or clean environment. But, in most cases, businesses also draw their most important resource, its employees, largely from the local community. Any business will be more successful if it employs a well-educated workforce that can attend good hospitals if they become sick, and who have grown up in a positive environment. This is not to mention consumers, also often members of the local community, without whom no business could survive. CSR advocates point out that no organization exists in isolation. They believe that businesses, without exception, have an obligation to contribute as well as draw from the community, on which they rely so heavily. 2. An economic argument for CSR An economic argument in favor of CSR can also be made. It is an argument of economic self-interest that there are very real economic benefits to businesses pursuing a CSR strategy—and is designed to persuade those business managers who are not persuaded by the moral case. Proponents of this argument believe that CSR represents an holistic approach to business. Therefore, an effective CSR policy will infuse all aspects of operations. They believe the actions corporations take today to incorporate CSR throughout the organization represent a real point of differentiation and competitive market advantage on which future success can hinge: CSR is an argument of economic self-interest for a business. In today’s brand-driven markets, CSR is a means of matching corporate operations with stakeholder values and demands, at a time when these parameters can change rapidly. One example is a company’s customers: CSR adds value because it allows companies to better reflect the values of this important constituent base that the company aims to serve. CSR covers all aspects of a business’ day-to-day operations. Everything an organization does in some way interacts with one or more of its stakeholder groups, Page 24 25 and companies today need to build a watertight brand with respect to all stakeholders. Whether as an employer, producer, buyer, supplier, or investment, the attractiveness and success of a company today is directly linked to the strength of its brand. CSR affects all aspects of all operations within a corporation because of the need to consider the needs of all constituent groups. Each area builds on all the others to create a composite of the corporation (its brand) in the eyes of all stakeholder groups. 3. Arguments against corporate social responsibility If the arguments for a socially responsible approach were widely accepted, nobody would even using the label "CSR" because everyone would be doing it. Those of us who spend our time marshalling the case for would do well to spend a little time hearing the case against, and considering what should be the response. Of course, one of the challenges in considering cases "for" and "against" CSR is the wide variety of definitions of CSR that people use. We assume here we are talking about responsibility in how the company carries out its core function - not simply about companies giving money away to charity. Below are some of the key arguments most often used against CSR and some responses. • Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners The leading companies who report on their social responsibility are basket cases - the most effective business leaders don't waste time with this stuff Our company is too busy surviving hard times to do this. We can't afford to take our eye off the ball - we have to focus on core business It's the responsibility of the politicians to deal with all this stuff. It's not our role to get involved Page 25 • • • 26 • • I have no time for this. I've got to get out and sell more to make our profit line. Corporations don't really care - they're just out to screw the poor and the environment to make their obscene profits Corporate Social responsibility in Page 26 27 India • Most companies are not doing any CSR • Many companies are only making token gestures towards CSR in tangential ways such as donations to charitable trusts or NGOs, sponsorship of events, etc. • Most companies believe that charity and philanthropy equals to CSR; very few companies are using their core competence to benefit the community. • Most companies use CSR as a marketing tool to further spread the word about their business. For instance, donation of a token amount to some cause on purchase of a particular product. The fact that companies are hiring advertising agencies for their CSR further highlights this. • Only Few Indian companies (from this study) publish a Corporate Sustainability Report to measure and assess the impact of their business on the environment . • Very few companies openly state the processes followed by them, the damage caused by these processes, and the steps taken to minimize this damage. • Very few companies state how much they spend on CSR. There is no mention of the amount spent in any of their balance sheets or annual reports. Most companies just list and describe their CSR activities and seem to be spending minimal amounts on CSR. • Very few companies are engaged in CSR activities in the local communities where they are based. • Very few companies have a clearly defined CSR philosophy. Most implement their CSR in an ad-hoc manner, unconnected with their business process. • Most companies spread their CSR funds thinly across many activities, thus somewhere losing the purpose of undertaking that activity. • Most companies appear reluctant to themselves fulfill their CSR unless it is Page 27 28 mandatory by law. • Generally speaking, most companies seem either unaware or don’t care about CSR. However, all companies can be considered to be an upward learning curve with respect to CSR and it is expected that the situation will improve. Measure for applying Corporate Page 28 29 Social Responsibility Sustainability reporting It is recommended that every company should publish a separate Corporate Sustainability Report (as per the Global Reporting Initiative (GRI) framework) along with their Annual Report. At the very least, every company must include a Corporate Sustainability section in its Annual Report (similar to the mandatory section on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo). CSR philosophy to be defined and articulated Every company must clearly define its own CSR philosophy and objectives, stating which issues it intends working on or contributing to. It is recommended that a company first takes up areas that directly concern its business processes, and thereafter any other related or unrelated issues. These can also yield strategic benefits to the company. Minimum annual CSR expenditure Every company must spend a minimum of 0.2% of its annual income on CSR activities. The CSR spending of a company should not be linked to the profit made by the company because this would vary from year to year and the CSR activities would thus not be consistently maintained. The scale of operations of a company and its impact is connected with its sales, and not with its profits. The larger the company, the greater is the damage it is doing to the environment. Conversely, the greater is the company's ability to do good. Protection and restoration of the environment Every company must be engaged in CSR activities that minimise its harm to the environment, and which help restore damage done to the environment because of the company. For example, all companies should use energy-efficient technologies for their factories and offices, and adopt rainwater harvesting irrespective of the production process they are engaged in. Page 29 30 Employment for marginalized groups Every company should provide inclusive employment opportunities and include the physically-challenged and marginalized groups in their workforce. The number of employment opportunities offered to such groups should be stated in the Annual Reports as is done by Public Sector Undertakings. Local community development It is recommended that a company first undertakes projects in the places where it functions, and helps those local communities and environments that are affected by its work. Use of core competence Every company should use its core competence to benefit its stakeholders and society. For instance, banks can use their expertise to identify and counsel debtors who are likely to run into financial trouble Extending profile and area of businesses A company should attempt to stretch its business beyond its existing profile and into areas where it does not normally work so as to reach out to under-served groups and populations. While this may sometimes mean smaller profit margins or marginal losses for the company, it will invariably result in valuable business learning's as well as effective CSR for the company. Developing internal CSR implementation systems A company may choose to develop an in-house CSR team or division that undertakes the CSR activities for the company. This is desirable as it leads to greater sensitization and awareness within the company about it's processes, responsibilities, role, etc. and leads to the internalization of the company's CSR philosophy. Instead of contributing to the trust of the CEO or the promoter family, a company should set up its own trust/foundation as a matter of proper business ethics. It is recommended that a company set up a committee that includes an external Director, an NGO and local stakeholders for selecting, monitoring and evaluating its CSR activities. Page 30 31 Focused CSR activities for greater impact It is recommended that a company identifies a few issues for it's CSR activities and works on these areas for a sustained period of time so that measurable results and improvements can be achieved, rather than undertaking or supporting several small initiatives across several areas thereby reducing effective impact. Page 31 32 Page 32 33 TATA GROUP PROFILE • The Tata Group comprises 96 operating companies in seven business sectors: • information systems and communications; • engineering; materials; • services; energy; • consumer products; and • chemicals. • Steel. Page 33 34 • The Tata Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. • The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the country's GDP, and a market capitalisation of $55.1 billion. • Tata companies together employ some 2,46,000 people. • The Group's 28 publicly listed enterprises — among them stand out names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea — have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million Page 34 35 • The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity and responsibility. MILESTONES 1868 Page 35 36 The TATA Group was founded by Jamsetji Nusserwanji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. 1874 Page 36 37 The Central India Spinning, Weaving and Manufacturing Company is set up, marking the Group's entry into textiles. 1902 The Indian Hotels Company is incorporated to set up the Taj Mahal Palace and Tower, India's first luxury hotel, which opened in 1903. Page 37 38 1907 The Tata Iron and Steel Company (now Tata Steel) is established to set up India's first iron and steel plant in Jamshedpur. The plant started production in 1912. Page 38 39 1910 The first of the three Tata Electric Companies, The Tata Hydro-Electric Power Supply Company, (now Tata Power) is set up. Page 39 40 Page 40 41 Page 41 42 Page 42 43 Page 43 44 Page 44 45 Page 45 46 Page 46 47 Page 47 48 Page 48 49 Page 49 50 Page 50 51 Page 51 52 Page 52 53 PRODUCTS AND SERVICE For homes and individuals Page 53 54 Page 54 55 Page 55 56 Page 56 57 Page 57 58 • Insurance (Tata AIG Life, Tata AIG General) Jewellery (Tanishq) Leather products (Tata International) Multi-utility vehicles (Tata Motors) Passenger cars (Tata Motors) Tea (Tata Tea, Tetley) Telecommunications (Tata Indicom, VSNL) Watches, clocks (Titan) Hotels (Indian Hotels) • • • • • • • • Page 58 59 For industries and companies • Agricultural inputs • Agrochemicals (Rallis) Fertilisers (Tata Chemicals) Automotive Automotive components (TACO) Automotive services (TACO, Tata Technologies) Page 59 • • • • 60 • Commercial vehicles (Tata Motors) Diesel engines (Tata Cummins) • Page 60 61 Page 61 62 Page 62 63 Page 63 64 Page 64 65 Electronics • Digital disc recorder (Tata Elxsi) Energy • Oil and gas (Tata Power) Power (Tata Power, Tata Projects) Solar energy (Tata BP Solar) • • Engineering • Air-conditioning products and services (Voltas) Bearings (Tata Steel) Page 65 • 66 • Construction equipment (Telcon, Voltas) Engineering consultancy (TCE Consulting Engineers) Engineering equipment and services (TRF, Voltas) Engineering projects and project services (Tata Projects, Voltas) • • • • Industrial electronics (Nelco) Industrial machinery (Voltas) Manufacturing engineering (TAL Manufacturing Solutions) • • • Mining and material handling equipment (Voltas) Precision equipment (Tata Precision Industries) Turbochargers (Tata Holset) • • Financial services • Insurance (Tata AIG General, Tata AIG Life) Page 66 67 • Investment (Tata Asset Management, Tata Investment Corporation, Tata International AG) Food products • Coffee (Tata Coffee) Food additives (Tata Chemicals) Spices (Tata Tea, Tata Coffee) Tea (Tata Tea, Tata Tea Inc) • • • Hospitality Page 67 68 • Hospitality (Indian Hotels) Indian Hotels and its subsidiaries, collectively known as the Taj Group, are recognised as one of the world's finest hospitality chains. Page 68 69 Information technology • IT-enabled services (SerWizSol) IT products and solutions (TCS, CMC, Tata Infotech, Nelito Systems, Tata Interactive Services) • • IT services (TCS, CMC, Tata Infotech, Tata Technologies, Nelito Systems) Infrastructure • Construction services (Tata Projects, Voltas) Realty (THDC) • Page 69 70 Publishing E-learning (Tata Interactive) Publishing (Tata McGraw-Hill) Trading • E-trading (mjunction services) Trading (Tata International, Tata AG, Tata Incorporated, Tata Limited) • Page 70 71 Page 71 72 Page 72 73 Page 73 74 Page 74 75 Page 75 76 Page 76 77 Page 77 78 Page 78 79 Approach amshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is that 'give back to the people what you have earned from them'. So from the very inception, Jamshetji Tata and his family have been following this principle." Moreover he says that for any business to sustain in the long run they have to look beyond business. he organisation believes that India is far away from J T reaching that phase of economic development where government is solely responsible for the basic needs of the public. We don't have a social security, Page 79 80 adequate health and education services. So till then corporate houses should fill the gaps. he group's policy is to provide livelihood instead of giving money. T ata group has instituted the Tata Council for Community Initiatives – TCCI, a central body that acts as a facilitator for the entire group’s social initiatives ormation of the TCCI has given a common direction to the Tata group’s CSR activities of guidelines that would form the basic framework Page 80 T F T o achieve it’s aim, the TCCI planned to draw up a set 81 within which individual companies who worked closely with TCCI contributed their core competencies for the betterment of the community. CCI has brought about a more structured approach to the CSR activities at the Tata group. CSR is implemented through the management system T P-D-C-A Model – a T he common approach to community development ensures that every activity or project is checked out on certain important aspects of development and values the group collectively agrees upon. Integration With Business Strategy Page 81 82 ince inception, the Tata group has placed equal importance on maximizing financial returns as on S fulfilling its social and environmental responsibilities popularly known as the Triple Bottom Line (TBL) hrough its TBL initiative, the Tata group aimed at harmonizing environmental factors by reducing the negative impact of its commercial activities and initiating drives encouraging environment-friendly practices. n Tata group companies, the management is encouraged to make a declaration of policy, strategy and budgets for environment and community development, and run activities as part of a nonnegotiable minimum programme aimed at generating the reputation for the Tata Brand. Page 82 T I 83 Integration With Business Strategy Page 83 84 Tata Business Excellence Model (TBEM) • ommunity: The strategy that each Company evolves, needs to be focused on the real needs of the communities in which the company operates and which it seeks to serve. • Overall Development: There needs to be a dovetailing of the skills and strengths of the Company and its employees with the immediate and long-term gaps in the overall development of those communities - be they in the field of education, health, environment, civic amenities, infrastructure, family planning, vocational skills etc. C Page 84 85 • Minimum programme: TATA Brand: In Tata companies we encourage the management to make a declaration of policy, strategy and budgets for environment and community development, and run activities as part of a non-negotiable minimum programme aimed at generating the reputation for the Tata Brand. • SR expenditure budgeted before preparation of profit and loss account by companies • Active volunteering programme in Group • Over 11,500 registered volunteers in 20 companies C • Page 85 86 • 150,000 volunteer man hours • Initiatives Page 86 87 TATA CONSULTANCY SERVICES (TCS) TCS is committed to reducing the environmental impact of its operations through appropriate ongoing material management. • eduction of waste at source • euse of material wherever possible • ecycling • urchasing of products with recycled content P R R R Tata MOTORS Page 87 88 The Company is engaged in community and social initiatives on labor and Environment . • educing Pollution • estoring Ecological Balance • nd of Life Vehicle Treatment and Recycling • ATA Group companies have always displayed a keen interest in the welfare of the communities in which they operate. As pioneers in the area of CSR, TATA has played an important role in nation building and socio-economic development since the early 1900s. • R R E T A survey conducted by the website indianngos Page 88 89 revealed that Tata’s spent Rs. 1.5 billion on community development and social services during the fiscal 2001-02 - the highest by any corporate house in India. Page 89 90 • T ata Chemicals Society for Rural Development (TCSRD) Tata Chemicals set up TCSRD in 1980 to promote social uplift projects for communities in and around Mithapur (Gujarat), Babrala (U.P.) and Haldia (West Bengal). The initiatives that TCSRD is involved in include: – – – – – – – Agricultural development Education Women's programmes Animal husbandry Rural energy Watershed development Relief work Page 90 91 Through TCSRD, Tata Chemicals works to improve the quality of life of the people and communities around its operations, and to support sustainable development, a theme that is central to the company's corporate philosophy. Tata Chemicals employees endorse this philosophy by helping empower rural communities chart their own developmental course. Page 91 92 Initiatives – Institutions I ndian Institute of Science (IISc): IISc has produced Nobel laureates, trained many of India's greatest scientists and helped nurture some of the country's finest scientific institutions. J RD TATA Ecotechnology Centre (JRDTEC): Page 92 93 JRDTEC is devoted to seeding and encouraging sustainable development, that protects the environment while benefiting the people who depend on it. T ATA Institute of Fundamental Research (TIFR): Founded by Homi J Bhabha and JRD TATA in 1945 with objective to improve India's scientific temper and strengthen the nation's science infrastructure. T ATA Institute of Social Sciences (TISS): Set up in 1936, TISS is a pioneer in the field of social-work education in Asia-Pacific region. PARTNERSHIP Page 93 94 Page 94 95 Page 95 96 DEPLOYMENT Although it seems too early to have an elaborate system and convention to collect information, analyze and measure performance, our previous experience encourages us to suggest the following line of action. • ouncil and Policy Support Level • xecutive Committee / Secretariat action plan level • egional Group Level • ompany Level • mployee commitment and volunteering level Page 96 C E R C E 97 • eployment of resources level • he Tata Process for documentation of case studies • otivating Community Champions • articipatory Networking - a model for group level resourcing D T M P DEPLOYMENT The Process is segmented as follows: The Minimum Programme to measure the commitment at the Company level Page 97 98 The reconstituted Council has decided that the Community Initiatives of the Company shall be integrated as part of the regular business plan every year. Moreover, as a one time effort, certain basic steps will be taken by the Company to institutionalize community development work with the aim of involving a large number of employees. The following are the major steps to be taken by every Company: I) The Case Study documentation procedure to measure the impact at Programme/Activity level II) The scheme for Tata volunteers to measure the performance of talent and resource made available to the community. III) A suggested convention for Regional Group Management This document contains the common approach and this section is about some operating conventions for Regional Groups for them to function more cohesively. Page 98 99 IV) Building Partnerships and Networking TATA’s believe in Networking not only as an important technology for expanding community-development work, but more as a way of life. We believe in creating partnerships which can harness the synergy within the various departments of the company, within the TATA Group of companies and extending this to encompass NGOs, government, development agencies and others, in order to strengthen our professional, organisational and resource base Page 99 100 CSR BY TATA STEEL Page 100 101 Page 101 102 Page 102 103 Page 103 104 Page 104 105 Page 105 106 Page 106 107 Page 107 108 Page 108 109 Page 109 110 Page 110 111 Page 111 112 Page 112 113 Page 113 114 Page 114 115 Page 115 116 Page 116 117 CSR BY TATA POWER Page 117 118 About Tata Power Lighting up Lives! Recognised as India’s largest private sector power utility, with a reputation for trustworthiness, built up over nearly nine decades, Tata Power surges ahead into yet another year with plans of sustained growth, greater value to consumer and reliable power supply. Led by a powerful vision, Tata Power pioneered the generation of electricity in India. It has now successfully served the Mumbai consumers for over ninety years and has spread its footprints across the nation. Today, it is the country’s largest private player in the sector. Apart from Mumbai and Delhi, the company has generation capacities in Jojobera, Jharkhand and Karnataka. Tata Power has an installed power generation capacity of about 3000 Mega Watts, with the Mumbai power business, which has a unique mix of Thermal and Hydro Power, generated at the Thermal Power Station, Trombay, and the Hydro Electric Power Stations at Bhira, Bhivpuri and Khopoli, accounting for 1797 MW. Its diverse generation capability facilitates the company in producing low cost energy, thereby giving its consumers a greater value for money. Among its many achievements that Tata Power can proudly boast of are the installation and commissioning of India’s first 500 MW unit (at its Thermal Power Generating Station, Trombay) the 150 MW Pumped Storage Unit at its Hydro Generating Station, Bhira, and environmental control systems like the Flue Gas Desulphurisation plant. Tata Power has a first of its kind joint venture with Power Grid Corporation of India for the 1200 km Tala Transmission Project. Page 118 119 CSR Action Plan @ Tata Power Integrating CSR with VMV VISION - To be the most admired Integrated Power & Energy Company delivering sustainable value to all stakeholders MISSION - To become the most admired company delivering sustainable value by: • • • • Providing world class power and energy solutions that exceed customer expectations Innovating and deploying cutting edge eco-friendly technologies Capitalizing on global opportunities and exploring synergy in entire value chain Empowering our employees and creating an environment for them to perform at their highest potential Page 119 120 • • Caring for the safety, environment and well-being of employees and the communities Ensuring profitable growth and enhancing value to stakeholders VALUES - Integrity, Agility, Respect for People, Collaboration, Empowerment, Trust CSR Mission & Approach Mission • To provide path breaking sustainable solutions to improve quality of life of our communities in a proactive and sensitive manner Approach Committed to • • • • • Focusing on Energy-related programmes Environment enrichment Community services Conservation of ecological systems Sustainable development Corporate Sustainability/Community Development Policy At Tata Power, Sustainability Policy integrates economic progress, social responsibility and environmental concerns with the objective of improving quality of life. We believe in integrating our business values and operations to meet the expectations of our customers, employees, partners, investors, communities and public at large. • uphold values of honesty, partnership and fairness in our relationship with stakeholders Page 120 121 • • • provide & maintain a clean, healthy and safe working environment for employees, customers and the community strive to consistently enhance our value proposition to the customers and adhere to our promised standards of service delivery respect the universal declaration of human rights, International Labour Organizations's fundamental conventions on core labour standards and operate as an equal opportunities employer encourage and support our partners to adopt responsible business policies, Business Ethics and our Code of Conduct Standards • They will continue to serve our communities by:• • By implementing sustainable community development programmes including through public/private partnerships in and around its areas of operations By constantly protecting ecology, maintaining and renewing bio-diversity and wherever necessary conserving and protecting wild life, particularly endangered species By encouraging our employees to serve communities by volunteering and by sharing their skills and expertise By striving to deploy sustainable technologies and processes in all our operations and use scarce natural resources efficiently in our facilities They also help communities that are affected by natural calamities or untoward incidence, or that are physically challenged in line with Tata Group's efforts • • Identification of Key Communities Key Communities Communities in and around the current and prospective areas of operations of TATA Power in Mumbai License Area, Hydro Divisions, Jojobera, Belgaum and Projects at various locations Page 121 122 Thrust Areas for CSR Energy Page 122 123 Other Areas Page 123 124 Page 124 125 Partnering with Govt./NGO’s/Community for Sustainability • Relook/Revise/Align the existing CSRR schemes by partnering with Govt./NGO’s/Other enabling agencies in line with sustainable efforts in thrust areas Identify schemes launched by Govt./NGO’s/Other enabling agencies in our thrust areas Partner with Govt./Communities to create sustainable activities relevant to the needs of the communities In case of no such available schemes, we will develop a self-reliant initiatives for communities in line with needs • • • Resettlement & Rehabilitation • • • • • • Providing employment to deserving people in local community, as per HR policy Helping in areas of health & education Helping in income creation by providing vocational training thereby improving employability of the community Helping to create entrepreneurship opportunities Supporting various community programs by local citizens Helping in cultural & sports development Volunteering Policy Tata Power is committed to create a culture of volunteering by encouraging, engaging and recognizing employees’ contributions in terms of their time and talents towards improving the quality of life of the people in and around its areas of operation. Page 125 126 Volunteer Activity & Schemes Non-Monetary Recognition system Highlighting Significant Achievement Organize Training for employees Communicati on of Calendar of activities well in advance Page 126 127 Glimpses of the Events Keeping the above in view Tata Power conducted various programmes to contribute to the society and a few of them are:1. Programme in association with Rotary club of North Island at the Kanya Vidya Mandir school, Santacruz In the two sessions which were held, 950 students .A brief idea about Tata Power was given and a leaflet on Tata Power was distributed to the students. 2. Programme in association with Rotary club of Mumbai North Island at Utpal Sanghvi International School Page 127 128 This programme was attended by around 650 students. This CSR team was guided by. Mr. A.Thamankar gave a talk on Trombay power plant and Mr. Shibu George on Energy Conservation followed by a power point presentation on 'Save Energy' , a film on" The Power of Future" and CSR activities within Tata Power. A live demonstration on saving energy was also presented by Mr.Prasanna Patharkar followed by Question and Answer sessions which were very effective. 3. Programme at S S Mahavidyalaya This programme was attended by 100 students and 3 teachers. Mr Prassanna Patharkar gave the talk on Energy conservation and also spoke about the importance of Electrical Safety in our daily life. A Demonstration on saving Energy as well as Safety in handling electrical equipments/gadgets was also given. 4. Horticulture Training Course A Horticulture Training Course was conducted from 15th to 19th Oct at the Horticulture Training Centre at Talegaon. 24 girl students from 12 villages were identified and selected from our key communities. 5. Eye Check-up camp An Eye Check-up camp was held on 28th Sept 2007 at the Dharavi Municipal School. The number of students examined was 157. A follow-up of 24 children needing further investigations will be followed up with the Bombay City Eye Institute and Research Centre and spectacles required by 15 children will be provided to them free of cost. All this led to Tata Power bagging the BCCI 'Good Corporate Citizen Award 2001-2002' & many more awards. Page 128 129 INTERVIEWS Page 129 130 INTERVIEW WITH HR MANAGER. INTERVIEW WITH MR. SEKHAR ROY. HR. TATA CHEMICALS (BABRALA) Q1 how important is CSR for any company ? Ans. Today consumers, investors, governments and even employees have become more sophisticated and more aware of good corporate Page 130 131 behavior, or lack thereof. In this new business environment, a company's reputation has become one of its most valuable assets, and CSR has become one of the key components of corporate reputation. Q2. What sum tata chemicals spends on CSR? Ans. Firstly for csr we don’t stand alone as a company, U may ask for what amount TATA SONS spends on CSR. I cant tell excat amount,, but I can just say tata sons is at no.1 for csr in India. Page 131 132 Q3 can u please tel me some of the events or programmes undertaken by company as CSR. Ans. Right now we have life line express train in our town.. I think u may know about lifeline train.. And 6 months back we have floods in town ,, we supplied packed foods to villagers in near by area,, n gave them shelters, We provide electricity to near by area for 17 hours a day at very low cost. Q4- your comments on next chairman of tata sons.? Ans. Uuummmm… no comments. You wil let you know before me ,, Whenever next chairman is declared? Page 132 133 INTERVIEW WITH A EMPLOYEE. Mr. bhatiya. Q What is the importance of CSR in sales..? Ans. CSR creates reputation and goodwill of a company… If you have good repo , some how it affect your sales in positive way. I think I have given answer to your question. Page 133 134 Q being in sales dept..,,, you also take care for CSR? Ans. Not me every person in tata family some how work for CSR. And we are “The Human Touch of Chemistry”. INTERVIEW WITH TRUCK DRIVER. MR. mansood khan. Q1 If you know anything about CSR.? ANS. Don’t know much,, but in tata we celebrate all festivals. Page 134 135 And we are the members of tata family. Q2. Can u tell me any social responsibility of tata? Ans. Driverline express. Well. One thing I wana say they to my family.. n also about life provide insurance ME- so wats a big deal every company provide insurance to their employees. Dirver – sir I think you are mistaken,, m a driver not a employee. And every company don’t provide insurance facility to their drivers…. It’s a big deal na? Me- hhmmm it’s a big deal. Page 135 136 Driver – that’s why we say we are the part of tata family. Me – thanks a lot,, Table of Contents.............................................................................................................. 2 About Tata Power.......................................................................................................... 118 CSR Action Plan @ Tata Power......................................................................................119 Page 136 137 Integrating CSR with VMV..............................................................................................119 CSR Mission & Approach................................................................................................120 Mission ...................................................................................................................... 120 Approach ................................................................................................................... 120 Corporate Sustainability/Community Development Policy.............................................120 Identification of Key Communities.................................................................................121 Key Communities.......................................................................................................121 Thrust Areas for CSR.................................................................................................. 122 Energy........................................................................................................................... 122 Other Areas...................................................................................................................123 Partnering with Govt./NGO’s/Community for Sustainability...........................................125 Resettlement & Rehabilitation.......................................................................................125 Volunteering Policy........................................................................................................ 125 Volunteer Activity & Schemes.......................................................................................126 ............................................................................................................. 127 Glimpses of the Events..................................................................................................127 Page 137