Tata CSR Corporate Social Responsibility Tata Group

Tata CSR Corporate Social Responsibility Tata assemblyIntroductionDefinition and History of CSRCorporate well-disposed responsibility (CSR) means considering the wellbeing of human race by taking responsibility of the impact of organizations actions on customers, suppliers, employees, sh atomic number 18holders, communities and other stakeholders, as well as the surroundings.Organizations have realized that in addition to growing phone linees it is withal very important to build responsible and sustainable relationships with the large community. Hence, CSR has become increasingly famous in the Indian collective scenario and is one of the key drivers of CSR.It was in the early 1970s when the term CSR came in to ordinary use after many another(prenominal) inter solid groundal corporations were formed, further rarely abbreviated. The term stakeholder means those impacted by organizations activities.Corporate Social Responsibility (CSR) defined as the principled behavior of a c ompany towards the general ordinary, evident itself in the form of such baronial programs initiated by for-profit organizations.Additional motive for this rapid acceptance of CSR is the state of the Indian club. Though India is one of the fastest growing economies, socio-economic issues like poverty, illiteracy, lack of wellnesscare and so on are still universally present and the government has limited resources to embark upon these disputes. This state of affairs has opened up several areas for businesses to contribute towards social development.CSR is non a latest notion in India. Corporates like the TATA, ITC, Aditya Birla, and Indian Oil Corporation, are few to name who are involved in helping the rescript ever since their origination. Several other organizations through donations and charity events have been doing their part for the society.Today, CSR in India has gone ahead of only charity and donations. It is approached in a to a greater extent organized and incorp orate fashion. It is now considered as an essential part of the corporate strategy. Companies have CSR teams that develop specific policies, strategies and goals for their CSR programs and set aside budgets to sustain them.These programs are ground on a clearly defined social philosophy or are closely aligned with the companys business expertise. Employees volunteer their time and contribute their skills, to go for them and are considered as the backbone of these initiatives. Overall development of a community to supporting specific causes like education, environment, wellnesscare etc. forms part of CSR programs.Organizations like Bharath Petroleum, Maruti Suzuki India, and Hindustan Unilever, fall out villages where they focus on holistic development. They provide violate medical and sanitation facilities, build schools and houses, and help the villagers become self-reliant by teaching them vocational and business skills. This is one of the examples of CSR.On the other hand Gl axoSmithKlines CSR programs primarily focus on health and healthy living. They take in tribal villages where they provide medical check-up and sermon, health camps, health awareness programs, etc. They in addition provide money, medicines and equipment to non-profit organizations that work towards improving health and education in under-served communities. to a greater extent CSR initiatives are implemented by corporate in league with Non-governmental organizations (NGOs) who are well versed in working with the local communities and are experts in tackling specific social problems.SAP India in partnership with Hope Foundation, an NGO that works for the enhancing the poor and the needy throughout India, has been working on short and long-term transformation initiatives for the tsunami victims. Together, they also started The SAP Labs Center of accept in Bangalore, which serves as a home for street children, where they provide food, clothing, shelter, medical care and education.T ake the following illustrationCompanies need to answer to two aspects of their operations1. The quality of their management both in terms of people and processes (the inner circle).2.The nature of, and quantity of their impact on society in the various areas. orthogonal 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 go, 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 foc utilise as well as past financial performance on quality of management as an indicator of likely future performance. wherefore is CSR important?Consumers investors growing expectation for organisations to behave responsiblyConsumer awareness Green and Ethical consumerismLegislation HS, EPA, Sustainability, Codes of PracticeGlo balisation Adoption of Best Practice, Consumer Legal Acceptance. care advantages of CSRHuman ResourcesRecruitment, retention and morale of StaffRisk ManagementInvestment in ethical brand equityGreenwash effect?Brand DifferentiationAs USPBuild brand loyaltyReputation and brand attractiveness handicraft DevelopmentNew markets, products and servicesResources ManagementBetter management and conservation of strategic assetsStakeholder ManagementBetter internal and outdoor(a) relationshipsFreedom of operation reduce government, public, NGO intervention in organisationHistory of Tata GroupIn a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence. Jamsetji N. Tata, Founder, Tata GroupThe Trusts VisionShri rattan Tatas thoughts, in 1913, on the manner in which the Trusts fund could be used.. for the advancement of Education, L dischargeing and Industry in all its branches, including education in economy, hygienical sci ence and art, or for the relief of human suffering or for other works of public benefitTo engage qualified and competent persons to study into matters that come to to the social, economic or political welfare of the Indian community, the object being to design schemes of a practical nature calculated to promote the well-being of the verbalize community, care being taken that such work is not undertaken from the stereotype point of expression but from the point of view of fresh light that is throw from day to day by the advance of science and philosophy on problems of human well-beingFurther he also directed thatNo examine and no venture should be aid or undertaken unless the scheme thereof is carefully preparedNo institution or organization should be aided of which the accounts are not subject to periodical audits and are not regularly issued and which would not be open to inspection and examination.Industry Profile of the TATA GroupThe Tata Group comprises 114 operating comp anies in seven business sectorsTata Auto Comp Systems AutomotiveTata Steel MaterialsTata Power EnergyRallis India ChemicalsTata Realty and Infrastructure ServiceTata Tea Consumer carrefoursTata Technologies Information Systems and communication theoryGlobally The Tata Group has operations in more than 54 countries. The companies export products and services to 120 nations, crosswise six continents.The Tata Group is one of Indias principal and more or less valued business multinationals, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the countrys GDP, and a market capitalization of $55.1 billion.Tata companys total employee strength is around 2,46,000.Amongst the 28 public listed enterprises of Tata Group are Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea have a combined market capitalization that is the maximum among Indian business houses in the private sector, and a shareholder base of over 2 mill ion.The five core values of Tata family are integrity, understanding, go pastlence, unity and responsibility.Purpose of the TATA GroupTo improve the quality of life of the societies they serve.The Group brings a unique set of competences through leadership in sectors of national economic significance.This requires them to grow assertively in focused areas of business.Their legacy of returning to society what they earn put forward trust among consumers, employees, shareholders and the community.The TATA represents leadership with trust in a exceptional way.Milestones1868 In the mid 19th carbon, TATA Group was started by Jamsetji Nusserwanji Tata1874 The Group entered into textiles by setting up the Central India Spinning, Weaving and Manufacturing Company.1902 Taj Mahal Palace and Tower, Indias first luxury hotel, opened in 1903.1907 Indias 1st press out and Steel plant in Jamshedpur is The Tata Iron and Steel Company (now Tata Steel) the plant began its production in 1912.19 68 Indias 1st software Services Company is established as a division of Tata Sons called Tata Consultancy Services (TCS).1995 Tata QMS institutes the JRD QV Award, copy on the Malcolm Baldrige National Quality Value Award of the United States, this laid basis of the Tata Business Excellence Model.1998 Tata Indica, started by Tata Motors is Indias first indigenously designed and construct car.2000 The first major acquirement of an international brand by an Indian business group was Tata Tea acquiring the Tetley Group, UK2006Launched Credit CardIn Kolkata, the foundation stone for the Tata Medical Centre was shown.MCA-2, Indias largest e-governance initiative was launched by TCS.For the third time, Tata Steel ranked worlds best steel maker by World Steel Dynamics.US-based octet O Clock Coffee was acquired by Tata Coffee.Tata Sky satellite television service was launched across the country.2007In a wider leap, the Anglo-Dutch steel major Corus has vaulted the spring to the fift h position from 56th in spheric steel production capacity, in the Tata Steels acquisition TATA Singur projectMB Kulkarni, General Manager (Construction) of Tata Motors, Our work plans are think in such a way that whatever are the product target dates, in 2008 rolling of the vehicle will take place. Group chair Ratan Tatas dream peoples car will be rolled out by next year.For the factory 700 acres of land will be used and manpower has been planned and organized for the construction.TATAs Corporate Social ResponsibilitySILVER LININGSThe company has streamlined its CSR activities into four major areasHEALTHEMPLOYABILITYEDUCATIONENVIRONMENTwellnessThe World Health Organization defines health as a state of complete mental, physical and social well-being and not merely the absence of sickness or disease.The health status is usually measured in terms of life expectancy at accept, fertility rate, infant mortality rate, crude birth/death rate.According to the Country Health System Prof ile, World Health Organization, public health infrastructure in rural India consists of a 3 level systemA sub centre for every 5,000 commonwealth with a male and female worker,A Primary Health Centre (PHC) for every 30,000 population with a medical doctor and other paramedical staff, andA Community Health Centre (CHC) for every 100,000 population with 30 beds and basic specialists.In urban areas, it is 2 tier systems with Urban Health Centre (UHC)/Urban Family Welfare Centre (UFWC) for every 100,000 population followed by general hospital.The existing public health infrastructure is not evenly distributed across the States.Many institutions are not functional due to staff shortage and non- benefitability of drugs and consumables and essential equipment.As a resolution of such inadequate public health facilities, it has been estimated that less than 20 percent of the population, which seek OPD services, and less than 45 percent of that which seek indoor patient treatment, avail of such services in public hospitals.A large portion of population seek medical care services from private sector disdain the fact that most of these patients do not have the means to make out-of-pocket payments for private health services (National Health Policy 2002).Keeping these figures in mind, the Company has launched several initiatives for improving the health status of community members in the CSR project areas across locations.The initiatives include both preventive as well as curative health care services.In addition, infrastructural development for ensuring a perennial supply of clean drinking water and change health through better sanitation facilities is also included in the CSR program of the Company.Figures for 2006 junction to Millennium Development GoalsImpact in 2007-08Millennium Development Goals 5Improve maternalistic HealthInstitution of Village Health Workers established Community members identified and trained for providing basic health care to village com munitiesAntenatal cate and anaemua detection and treatment for 590 womenMillennium Development Goals 6Combat HIV/AIDS, Malaria and other diseasesCurative Preventive health services were provided to over 92,390 people through the Companys community health programmes, including immunization drives for polio, measles.Special country-wide programmes were conducted for drivers during service camps. 46,548 drivers availed of the free general health and eye check-up camps and AIDS awareness programmesEmployabilityEmployability factsAnnually Indias labour force is growing at a rate of 2.5% and employment only by 2.3%Indias workforce is self-employed by 60%.Around 30% are casual workers i.e. they work only when they are able to get jobs and remain unpaid for the rest of the daysIn the Unorganized sector Approximately, approximately 90% of the labour force is employed, i.e. sectors which do not provide other benefits of employment combined with the social security Organized sector.In additio n to the Apprenticeship programmes that are run within the premises of the manufacturing units, as per the Apprenticeship personation 1961, the Company has also initiated several efforts to enhance employability of youth.To upgrade the quality of Industrial Training Institute (ITIs), the company has built public-private partnership with government authorities. In the year 2007-08, the upgradation process has been initiated in four it is, who are equipped with latest machines and tools. To understand the manufacturing processes, the students have been taken on exposure visits and for their faculty, Train the Trainer programmes have been organized. skillful and vocational programmes are run for rural youth from the project areas, like Motor Mechanic Vehicle Trade Course, electrical, welding, a/c refrigeration, computer skills, bee-keeping, etc. Special programmes are also run for women including sewing training, beautician courses, manufacturing food products and utility items and c able harnessing and assembly work. More than 9,000 youth and women have benefited from these programmes across Companys locations. concurrence to Millennium Development GoalsImpact in 2007-08Millennium Development Goals 1Eradicate extreme poverty and hungerThe Company has identified 10 ITIs across the country to upgrade their facilities and enhance the relevance of their programmes to industry needs, as a part of its skill development programme, In 2007-08, four ITIs have been covered.Training in various technical and vocational trades was inclined to around 1,085 youth from areas adjecent to the Companys plants. Over 350 local youth have been trained in partnership with the government and the social sector, making them employable at the red-hot plant location of Singur.All 18 students of the Company-supported Mechanic Motor Vehicle Trade Course, 2007-08, in association with the Ramakrishna care at Sakwar, Thane district, Maharashtra, have been successfully placed at the Companys dealerships. Two students from the previous batch have been facilitated to become entrepreneurs and have opened their own workshop on the Mumbai-Ahemedabad HighwayMillennium Development Goals 3 Promote gender equality and empower womenTo make the women economically independent, around 1,058 women have been trained in utility items, manufacturing food products and, beautician courses, sewingEducationThe root of poverty often lies in illiteracy. Social infrastructure like education is as important as physical infrastructure, not only for sustaining high growth but also for enhancing welfare.Education Facts About IndiaLess than half of Indias children between the age 6 and 14 go to schoolA little over one-third of all children who enroll in grade one reach grade eightChildren vulcanised 6 14 age do not attend school, the count of which is atleast 35 million52% of girls in the age group of 5 to 9 years are illiterate53% of habitation has a primary school20% of habitation has a secon dary schoolIn near 60% of schools, not more than one or two teachers are there to teach Classes I to VThe reasons for leaving given by 3 in every four drop-outs are need to work to support their families, little interest in studies and high cost of private education role of Tata Motors towards improving education through infrastructural development for promoting schooling among the villagers and through upgradation of educational facilities like building computer laboratories, sports ground, etc. and organising training to teachers programmes to better the quality of education.Alignment to Millennium Development GoalsImpact in 2007-08Millennium Development Goals 1Achieve universal primary educationFrom over 25 villages, infrastructure was improved in 13 schools, promoting high education for 2,000 children.From across 33 schools, Shiksha Prasar Kendra, a Tata Motors society at Jamshedpur, supported 18,000 students of which 7,500 are girlsQuality of education improvedIn 4 schools Te achers training programme was conductedWith participation from over 4,300 students, extra-curricular activities was organised in 31 schoolsIn West Bengal at Beraberi High School, Singur, computer labratory was built375 students were awarded with scholarships for higher studiesEnvironmentClimate Change is the environmental issue facing the world today, which is any long-term significant change in the average weather experient by a given region.Facts on EnvironmentReports concluded by the Intergovernmental Panel on Climate Change (IPCC) areSince the mid-20th century most of the sight increase in globally averaged temperatures is very likely due to the observed increase in anthropogenic greenhouse gas concentrations.From new estimates of the combined anthropogenic forcing due to greenhouse gases, land surface changes and aerosols, it is likely that human activities have exerted a substantial net warming influence on mode since 1750.anthropogenic aerosols produce a net negative radia tive forcing (cooling influence) with a greater magnitude in the Northern Hemisphere than in the Southern HemisphereThe IPCC, which represents consensus in the scientific community, defines extremely likely, virtually certain, very likely, and as indicating probabilities greater than 90%, 95%, and 99%, respectively.Tata Group places a special emphasis on environmental and bionomic issues in view of the threat to environment. The Groups efforts to preserve and regenerate environment find expression in the slew of projects and programmes it has undertaken in and around its facilities and operations. In this context a focus area for the group is the climate change crisis. Tata Motors beliefs on sustainability have led to a corporate policy that emphasises environment preservation, the Company works on projects that include reducing effluents and emissions, maintaining local ecologies, repairing green cover and improving long term corporate sustainability.Alignment to Millennium Develop ment Goals and Bharat Nirman TargetImpact in 2007-08Millennium Development Goals 7 Ensure environment sustainablityWith an 80% survival rate, over 175,242 saplings have been planted.To promote use of environment-friendly practices smokeless chullahs has been constructed. Agricultural training was given to minimize the use of environmentally hazardous methods and materials. Provide awareness camps on environment related issues.Bharat Nirman Target 10 million hectares of additional irrigarion capacity to be created by 2009Check dams and community irrigation wells have been constructed at villages near Pune, improved irrigation to augmenting incomes of families. In Jamshedpur, in over 152 acres tree plantation has extensively been carried out and 85 acres of land has been brought under irrigationOther CSR ObjectivesSumant Moolgaokar Development FoundationSumant Moolgaokar Development Foundation (SMDF) has been founded in memory of our ex-chairman Late Shri Sumant Moolgaokar with a view to perpetuate his exemplary work in rural development.Tata Steel has evolved, over the years, an encompassing culture of social responsibility that not only sustains but also enriches the lives of the communities it supports.The companys corporate social responsibility (CSR) strategy was inspired by Jamsetji Tatas conviction that, In a free enterprise, the community is not just another stakeholder, but is, in fact, the very purpose of its existence. Tata Steels approach to its business has evolved from this concept and the wealth it has created is continuously returned to the people through its community initiatives.And they are following the saying of their ancestors asTata Steel CSR team was to work for the welfare of the socially and economically disadvantaged communities living in and around its areas of operation, including the mines and collieries serving the plant.The basic concept of Tata Steel Parivar originates from the century old Corporate Social Responsibility of the C ompany, which is aptly defined asTata steel believes that the primary purposes of the business is to improve the quality of the life.New Life with a New HopeThe Commitment of Tata Steel for improving the quality of life of the displaced families has led to the creation of the Tata Steel Parivar concept and each displaced family will be a member of the Tata Steel Parivar.Over the years, its initiatives have encompassed provision ofHealthcare services,Drinking water,Rain water harvesting,Tribal development,Relief and rehabilitation endeavors,Income and employment generation,Womens health and education, sense programmers on the ill-effects of drugs,Alcohol and HIV/AIDS, andPatronage to sports and cultural activities.Achievements of TATA Groups CSRTata Steels Corporate Social Responsibility (CSR) initiatives have earned the steel giant the UK trade Investment (UKTI) India Business Award 2009.Besides acquiring businesses around the world, the Tata group now plans to introduce the world to the Tata way of doing business. The group plans to take overseas the Tata trusts and all the community work that it does as part of its international corporate social responsibility.Tatas Endeavour to strengthen the fabric of India has manifested itself in multiple ways. A crucial component of the Tata idea of nation building was, and remains, the creation and sustaining of exceptional institutions of learning, research, knowledge and intellectual capital. It had created a land markin educational sector and environmental sector, this can be seen asTATA GROUP is boomining in every sector whether it is business or corporate social responsibility becauseTATAS Commitment to the EnvironmentThe Tata ethos places a special emphasis on environmental and ecological issues. Its efforts to preserve and regenerate the environment find expression in the slew of projects and programmers it has undertaken in and around its facilities and operations. A focus area, in this context, is the climate change crisis.Tata companies work on projects that include repairing green cover, reducing effluents and emissions, maintaining local ecologies and improving long term corporateThe Tata group has a set of univocal guidelines on environmental and ecological issues, and a broad range of policies aimed at helping Tata companies protect, conserve and restore our natural resources.The Three Pillars of Sustainability 2020Adapting to New Markets Internal SustainabilityJamsetji Tata, the crock up of the Tata Group, predicated economic success on putting the community first and investing patiently in social initiatives 140 years ago. Till date, this strategy has enabled Tata to excel in India. A big reason for this is the brand recognition that Tata enjoys in India. However, brand recognition is less of a competitive advantage as Tata expands globally. Many argue that given the current heightened pace of globalization and change in technology, Tatas tenet of investing in long-term social initiatives threatens its short-term competitiveness.The first challenge that Tata must(prenominal) address is to align its existing Corporate Social Responsibility policies, both internal (in regards to the treatment of its workers and green initiative) as well as external (support for surrounding communities) with the customs and challenges of the new markets in which it operates. While Tata created a synergy between Corporate Social Responsibility and profits in India, it must bring in that, going forward, no one-size-fits-all Corporate Social Responsibility strategy exists.In order to facilitate a more effective alignment of local concerns with Tatas global Corporate Social Responsibility efforts, we propose setting up a New Markets Corporate Social Responsibility perpetration under the TCCI that will be tasked with collaborating with local executives, as well as civic and governmental leaders to identify and drive social initiatives that will best benefit the communities in the new markets that Tata operates in. As the Tata Groups operations grow physically segregated, it becomes more difficult to align activities with their values and purpose. To ensure this, we propose that the voluntary Tata Index be made mandatory and moved under the TQMS group. To ensure fairness across companies that have different levels of operations within and outside India, the New Markets Corporate Social Responsibility Committee will be responsible for formulating the New Markets Multiplier Factor, which will normalize the Tata Index to a common denominator for all group companies.The next 10 years will be vital in the evolution of Tata as a global brand, and these steps will ensure that domestic operations support the proceed growth of Tatas global brand and its reflection of leadership in the field of corporate social responsibility.Stepping it up a Notch Evaluating Product Lifecycle Impact on SocietyThroughout its history, the Tata group has been considered a poster ch ild of ideal corporate citizenship throughout India. As Tata continues to expand globally, its responsibilities towards its stakeholders investors, employees, and communities are changing. If anything, they are on the rise. Tata must increasingly look beyond its own operations, and consider the impact of its products, both good and bad, on not just the groups direct shareholders, but on the society as a whole. This focus on stakeholders will lead to a sustainable competitive advantage and increased profits both.To this we propose a Product Lifecycle Impact Metric (Exhibit 3). This metric will quantify the projected impact of the Tata Groups products and services over their expected lifetimes. While taking the positive impact of the products and services (such as increased customer productivity, above average fuel mileage, more affordable products etc.) into consideration, this metric will also account for the negative impacts on society (such as increased traffic clogging, environ mental effects etc.). While an exact measurement would be impossible to obtain, by working within a structured framework, and with the input of social and civic leaders, Tata could effectively estimate these impacts across their various industries.We are aware that certain businesses or products, though highly profitable, are more prone to have higher negative impacts on society. For instance, while some concerns regarding the Nano have already been mentioned, one would be hard pressed to find many negative lifecycle impacts of the watches manufactured by Titan Industries (besides the manufacturing, shipping, and eventual dispos