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CSR REPORT ON TATA GROUP

VIEWS: 122 PAGES: 16

									TATA GROUP




                     REPORT
                 ON CSR ACTIVITIES




               UNDERTAKEN BY TATA




  Submitted To
      Miss Kiran Verma            Submitted By
                                      Group No. 3
                                      MCA( Hons.)
                                      Sec. DE845




                         Page 1
TATA GROUP

                    INTRODUCTION TO CSR
              (CORPORATE SOCIAL RESPONSIBILTY)




       Corporate social responsibility (CSR) is a concept whereby organizations
consider the interests of society by taking responsibility for the impact of their
activities on customers, suppliers, employees, shareholders, communities and other
stakeholders, as well as the environment.

Corporate social responsibility (CSR) is:

      An obligation, beyond that required by the law and economics, for a firm to
       pursue long term goals that are good for society.

      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 that of the local community and
       society at large.

      About how a company manages its business process to produce an overall
       positive impact on society.




                                      Page 2
TATA GROUP

Corporate social responsibility means:

  I.   Conducting business in an ethical way and in the interests of the wider
       community.

 II.   Responding positively to emerging societal priorities and expectations.

III.   Balancing shareholder interests against the interests of the wider community.

IV.    Being a good citizen in the community.

   More stress on our social and educational system on the need for work for our
society can increase the social responsibilities of corporate organizations.

However social responsibility can also be defined as:

      An organization’s obligation to maximize its positive impact on stakeholders
and to minimize its negative impact.

     It includes legal, ethical, economic, and philanthropic (discretionary)
dimensions.

      CSR is like a hot air balloon, takes a long time to prepare before the actual
launch. A tree grows stronger with a well-established root. And this can only occur
with good soil, careful fertilizing, watering, and time. Companies having long term
vision are likely to take into consideration not just a profit motive having a
skimming policy; rather, they intend to stay in the market with a vision of
capturing the heart share.




                                       Page 3
TATA GROUP

Two views of corporate social responsibility:

The shareholder view:

  • The only social responsibility of business is to create shareholder wealth.
  • Corporate management cannot decide what is in the social interest.
  • The costs of social responsibility which do not increase the value of stock
    will be passed on to consumers.



The multiple stakeholders view:

  •   All customers and employees are treated with dignity.
  •   Relationships with suppliers must be based on mutual trust.
  •   Belief in fair economic competition.
  •   Business can contribute to social reform and honor human rights.




                                     Page 4
TATA GROUP

                           COMPANY PROFILE




                               TATA GROUP

Guiding Mission of the Tata group by JRD Tata:

 "No success or achievement in material terms is worthwhile unless it serves
            the needs or interests of the country and its people”.

The Tata Group comprises 96 operating companies in seven business sectors:

         i.   Information systems and communications;
        ii.   Engineering;
      iii.    Materials;
       iv.    Services;
        v.    Energy;
       vi.    Consumer Products;
      vii.    Chemicals.

      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 capitalization
of $55.1 billion.




                                     Page 5
TATA GROUP

      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 capitalization that is the highest among Indian business houses in
the private sector, and a shareholder base of over 2 million.

      The Tata family of companies shares a set of five core values: integrity,
understanding, excellence, unity and responsibility.

Purpose:

   • At the Tata Group their purpose is “to improve the quality of life” of the
     communities they serve.
   • They do this through leadership in sectors of national economic significance,
     to which the Group brings a unique set of capabilities.
   • This requires them to grow aggressively in focused areas of business.
   • Their heritage of returning to society what they earn evokes trust among
     consumers, employees, shareholders and the community.
   • The Tata name is a unique asset representing leadership with trust.

Foundation of TATA Group ( In 1868 )
       Founded by Jamsetji Nusserwanji Tata (JN Tata) in 1868, the Tata group has
developed into one of India's largest business conglomerates.
       The 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.
       Tata Sons, which was established as a trading company by JN Tata in 1868,
is the promoter of the Tata group.




 Late Jamsetji Nusserwanji Tata


                                     Page 6
TATA GROUP

       Tata Industries, initially established in 1945 as a managing agency for the
businesses promoted by Tata Sons, propelled the group's entry into new and high-
tech industries during the early 1980s. The Tata group generated total revenues of
Rs. 614.34 billion during the year 2003-04 through its various companies in seven
key industry sectors. The group has 80 companies in diverse sectors, and has been
moving from product-driven businesses to brand-driven businesses. The group
listed its materials, chemicals, energy and engineering products as product-driven
while engineering services, automotive, communications and IT, services and
consumer goods have been identified as brand-driven businesses.

      The shift in the focus is also reflected in the contribution of different sectors
to group revenues. While the materials sector comprised of the flagship company -
TISCO and contributed 19% of the group's total revenues in 2003-04, as much as
24% came from the automotive & engineering sector i.e. Tata Engineering and
Locomotive Company Limited (TELCO).


       Companies like TCS and Tata Tele Services, operating in the IT and
telecommunication industry contributed the largest share of 27% in the group's
earnings in 2003-04. A pioneer in several areas, the Tata group has consistently
followed the path of innovation, growth and development. Tata is credited with
pioneering India's steel industry, civil aviation and starting the country's first power
plant. Tata was the market leader in several diverse fields - it had the world's
largest integrated tea operation, was Asia's largest software exporter, and the
world's sixth largest manufacturer of watches (Titan). The guiding mission of the
Tata group was stated by JRD Tata in the following words: "No success or
achievement in material terms is worthwhile unless it serves the needs or interests
of the country and its people.

      The group has always been recognized as a value-driven organization. The
company's values were imbibed from the founder of the group and his successors
who took on the leadership of the group.

       All the individuals who headed Tata institutions emphasized the importance
of philanthropy and the utilization of wealth to enhance the quality of public life.



                                        Page 7
TATA GROUP

      The core values espoused by the group included integrity, understanding,
excellence, unity and responsibility.

      The values of the founders are reflected in the mission statement of the
group, which lays great emphasis on CSR.

      The group's mission statement states, "At the Tata group, our purpose is
“To improve the quality of life” of the communities we serve. We do this through
leadership in sectors of national economic significance, to which the group brings a
unique set of capabilities.

PRODUCTS AND SERVICES:

          1. Agricultural appliances (Tata Agrico)
(Tata Agrico, a division of Tata Steel, manufacture hand tools and implements that
are used primarily in agriculture)
          2. Agrochemicals (Rallis)
          3. Books (Tata McGraw-Hill)
          4. Cellular products and services (Tata Indicom)
          5. Ceramics (Tata Ceramics)
          6. Charter flights (Taj Air)
          7. Coffee (Tata Coffee)
          8. Cooling appliances (Voltas)
(Voltas, a standout engineering enterprise in the Tata family, manufactures top-
notch air-conditioning and refrigeration products for homes.)
          9. Credit card (Tata Sons)
          10.Electronics (Infiniti Retail)




                                      Page 8
TATA GROUP

Some other fields where TATA Group has marked their presence:

(For homes and individuals)

  • Fertilizers (Tata Chemicals)
  • Entertainment (Tata Sky)
  • Financial services (investment: Tata Asset Management, Tata Investment
    Corporation)
  • Food products (food additives: Tata Chemicals; spices: Tata Tea, Tata
    Coffee)
  • Garments and home products (Westside)
  • Holiday homes (Tata Coffee)
  • Home appliances (Tata BP Solar)
  • Hotels (Indian Hotels)
  • 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)

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)




                                  Page 9
TATA GROUP

Infrastructure:

  •   Construction services (Tata Projects, Voltas)
  •   Realty (THDC)

Financial services:

  •    Insurance (Tata AIG General, Tata AIG Life)
  •    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)

Publishing:

  • E-learning (Tata Interactive)
  • Publishing (Tata McGraw-Hill)

Trading:

  •   E-trading (mjunction services)
  •   Trading (Tata International, Tata AG, Tata Incorporated, Tata Limited)




                                     Page
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TATA GROUP

Group holding structure:




                           Page
                           11
TATA GROUP

COMPANY AT CORPORATE SOCIAL RESPONSIBILITY

TATA GROUP - “The Mother of CSR”

CSR has been part of the Tata Group ever since the days of Jamshetji Tata.

What the group has done it all for employees and society:

   ◦ Granted scholarships for further studies abroad in 1892
   ◦ Supported Gandhiji's campaign for racial equality in South Africa
   ◦ Country its first science centre, hospital and atomic research centre
   ◦ Established Welfare Department in 1917 and many more…..

In 2008,Tata Steel spend Rs 200crore a year on CSR and the Tata Group as a
whole spends some Rs 800-1,000crore on that per annum,“
First company in the country to start “Social Audit”.

SILVER LININGS:

The company has streamlined its CORPORATE SOCIAL RESPONSIBILITY
(CSR) activities into four major areas of:-

      HEALTH
      EMLPOYABILITY
      EDUCATION
      ENVIRONMENT




                                       Page
                                       12
TATA GROUP

HEALTH:

 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 improved health through better sanitation facilities is also
  included in the CSR programme of the Company.

EMPLOYABILITY:

 The Company has initiated several efforts to enhance employability of youth in
  addition to the Apprenticeship programs that are run within the premises of the
  manufacturing units, as per the Apprenticeship Act 1961.
 The Company has built public-private partnership with government authorities
  to upgrade the quality of Industrial Training Institutes (ITIs). The up gradation
  process has been initiated in four ITIs in 2007-08. These ITIs have been
  equipped with latest machines and tools, students have been taken on exposure
  visits to understand manufacturing processes and ‘Train the Trainer’ programs
  have been organized for their faculty.
 In addition, several technical and vocational programs are run for rural youth
  from the project areas, including Motor Mechanic Vehicle Trade Course,
  electrical, welding, a/c refrigeration, computer skills, bee-keeping, etc. Special
  programs are also run for women including sewing training, beautician courses,
  manufacturing food products and utility items and cable harnessing and
  assembly work. So far, more than 9,000 youth and women have benefited from
  these programs across Company’s locations.

EDUCATION:

“Social infrastructure like education is as important as physical infrastructure, not
only for sustaining high growth but also for enhancing welfare. The root of poverty
often lies in illiteracy.”



                                       Page
                                       13
TATA GROUP

FACTS ON EDUCATION:

1. Less than half of India's children between the age 6 and 14 go to school.
2. A little over one-third of all children who enroll in grade one reach grade eight.
3. At least 35 million children aged 6 - 14 years do not attend school.
4. 53% of girls in the age group of 5 to 9 years are illiterate.
5. In India, only 53% of habitation has a primary school.
6. In India, only 20% of habitation has a secondary school.
7. In nearly 60% of schools, there are less than two teachers to teach Classes I to
   V.
8. High cost of private education and need to work to support their families and
   little interest in studies are the reasons given by 3 in every four drop-outs as the
   reason they leave.

       Tata Motors has contributed towards improving education through
infrastructural development for promoting schooling among the villagers and
through up gradation of educational facilities (building computer laboratories,
sports ground, etc.) and organizing teacher’s training programs to better the quality
of education

ENVIRONMENT:

   The environmental issue facing the world today is that of Climate Change,
which is any long-term significant change in the “average weather” that a given
region experiences.

   In view of the threat to environment, the Tata Group places a special emphasis
on environmental and ecological issues.

   The Group's efforts to preserve and regenerate environment find expression in
the slew of projects and programs it has undertaken in and around its facilities and
operations. A focus area for the Group, in this context, is the climate change crisis.
Tata Motors’ beliefs on sustainability have led to a corporate policy that
emphasizes environment preservation.


                                        Page
                                        14
TATA GROUP

      The Company works on projects that include reducing effluents and
emissions, maintaining local ecologies, repairing green cover and improving long
term corporate sustainability.

ACHIEVEMENT OF TATA GROUP IN CSR:

       Tata Steel's 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.

      Tata's 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 mark in
educational sector and environmental sector.

TATA GROUP is booming in every sector whether it is business or corporate
social responsibility because:




                            Mr. RATAN N. TATA




                                     Page
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TATA GROUP

                                CONCLUSION

Tata is a window into the rise of India.
Good CSR is good marketing. That’s the only way it should be seen.
Yes, we can say this is an Organization which truly believes in the mankind and is
Ethical.

The following points are behind the Tata’s Success Story:

   • Leadership with trust.
   • Sound HR.
   • Failure is an option - as long as you have initiative. Initiative will lead to
     success.
   • You can't achieve anything on your own; you need the co-operation of
     managers and workers.
   • Tell the truth. The most important criteria in a leader is credibility.
   • Be enthusiastic in following through with your ideas. This will convince the
     team that you're leading.
   • Invest in technology.
   • Learn to delegate. A weak company is one in which the boss solves all the
     problems.




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