Seminar Report on Corporate Social Responsibility: A Case Study of TATA Group

SUBMITTED BY
SHODHAN S AMIN
23315

Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY,
BELAGAVI

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE

Dr. MALINI TN
Department of Management Studies
NMIT, Bengaluru

NITTE MEENAKSHI INSTITUTE OF TECHNOLOGY

Department of Management Studies
BENGALURU-560064
2019-2021
 CONTENTS:
TITLE:
1. ABSTRACT
2. LITERATURE REVIEW
3. PURPOSE
4. OBJECTIVES OF THE STUDY
5. RESEARCH METHODOLOGY
6. TATA GROUP & CSR
6.1. Introduction
6.2. Recognition of CSR
6.3. Introducing Changes in the Company’s Article and Rules for
Sustaining CSR Clause No. 10 of Tata Group
6.4. CSR Activities of Tata Companies & Societies
6.5. Dedications to the Nation at a Glance
6.6. Conclusion
7. FINDINGS
8. LIMITATIONS
9. REFERENCE
Corporate Social Responsibility: A Case Study of TATA Group

1. Abstract:
Starting from the times of barter system to today’s modern era of plastic money, the mankind has
trodden a remarkably long path. Undoubtedly “profitability” has always been the driving force
and an undercurrent behind all this development; but as every coin has two facets; growing cut
throat competition and business rivalries started taking heavy toll on the quality, transparency,
environment and the society in general endangering the peaceful coexistence of business and
society. The businesses houses started realizing that they would have to rise over and above the
profitability and take care of all those associated with their survival in the society directly or
indirectly. This realization resulted into the concept of Corporate Social Responsibility (CSR).
This research paper moves around developing an understanding about the corporate social
responsibility (CSR), delving into its concept and finding out its scope taking the case study of
the TATA Group under Mr. Ratan Tata who has exemplified the sense of responsibility towards
the upliftment of common masses and protection of the environment and development of the
nation.
Keywords: Corporate citizenship, corporate social responsibility, Employee, Productivity,
Profitability, Society, Stakeholders.

2. Literature Review:
The concept of CSR originated in the 1950‘s in the USA but it became prevalent in early 1970s.
At that time US had lots of social problems like poverty, unemployment and pollution.
Consequently a huge fall in the prices of Dollar was witnessed. Corporate Social Responsibility
became a matter of utmost importance for diverse groups demanding change in the business.
During the 1980‘s to 2000, corporations recognized and started accepting a responsibility
towards society. Corporate social responsibility (CSR) focuses on the wealth creation for the
optimal benefit of all stakeholders – including shareholders, employees, customers, environment
and society. The term stakeholder, means all those on whom an organization's performance and
activities have some impact either directly or indirectly. This term was used to describe corporate
owners beyond shareholders as a result of a book titled Strategic management: a stakeholder
approach by R. Edward Freeman in the year 1984.

3. Purpose:
To understand the concept and scope of corporate social responsibility and getting an insight in
CSR practices in the light of the case study of the TATA Group.

4. Objectives of the study:

 To understand the concept of CSR
 To find out the scope of CSR
  To know how the Tata group has fulfilled its responsibility towards all
stakeholders; what specific activities, programs and strategies it has set, devised
and implemented for the same.
5. Research Methodology:
Exhaustive literature survey regarding the topic and related concepts has been done. Secondary
data inclusive of quantitative and qualitative data as well collected from various sources
including books, research papers, newspapers, magazines, and websites is used for the purpose
of study.

6. Tata Group & CSR

6.1. Introduction:
Ranging from steel, automobiles and software to consumer goods and telecommunications the
Tata Group operates more than 80 companies. It has around 200,000 employees across India and
thus has the pride to be nation‘s largest private employer. Mr. Ratan N. Tata has led the eminent
Tata Group successfully. He was trained as an architect at New York's Cornell University but he
chose to enter the family business .He assumed the Chairmanship of the Group in 1991. Named
Business Man of the Year for Asia by Forbes in 2004, Mr. Ratan Tata serves on the board of the
Ford Foundation and the program board of the Bill & Melinda Gates Foundation's India AIDS
initiative. Tata Group chairman Ratan Naval Tata has stepped down to pass on the entire
responsibility to Cyrus Mistry. Under Tata, the group went through major organizational phases
— rationalization, globalization, and now innovation, as it attempts to reach a reported $500
billion in revenues by 2020-21, roughly the size of what Walmart is today.
Approximately two third of the equity of the parent firm, Tata Sons Ltd., is held by philanthropic
trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata, the founder of
today’s Tata empire in the 1860s. Through these trusts, Tata Sons Ltd. utilizes on average
between 8 to 14 percent of its net profit every year for various social causes. Even when
economic conditions were adverse, as in the late 1990s, the financial commitment of the group
towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in
1999-2000. In the fiscal year 2004 Tata Steel alone spent Rs 45 crore on social services.
Tata is accredited to initiate various labor welfare laws. For example- the establishment of
Welfare Department was introduced in 1917 and enforced by law in 1948; Maternity Benefit was
introduced in 1928 and enforced by law in 1946. A pioneer in several areas, the Tata group has
got the credit of pioneering India's steel industry, civil aviation and starting the country's first
power plant. It had the world's largest integrated tea operation. It is world's sixth largest
manufacturer of watches (Titan).

6.2. Recognition of CSR:

“In a free enterprise, the community is not just another stakeholder in business but is in fact the
very purpose of its existence." - Jamsetji Nusserwanji, Tata Founder, Tata Group.
Corporate Social Responsibility has always been taken care of by the Tata group. The founder
Mr. Jamshedji Tata used to grant scholarships for further studies abroad in 1892. He also
supported Gandhiji‘s campaign for racial equality in South Africa. Tata group has given country
its first science center and atomic research center. "The wealth gathered by Jamsetji Tata and his
sons in half a century of industrial pioneering formed but a minute fraction of the amount by
which they enriched the nation. Jamshed 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." (A statement on the Tata
group's website www.tata.com).
In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that
in future TISCO would not deal with companies, which do not conform to the company's
Corporate Social Responsibility (CSR) standards. Speaking at the annual general meeting of the
Madras Chamber of Commerce and Industry, He stated, "We will not either buy from or sell to
companies that do not measure up to Tata Steel's social responsibility standards."

6.3. Introducing Changes in the Company’s Article and Rules for Sustaining
CSR Clause No. 10 of Tata Group:
“A Tata Company shall be committed to be a good corporate citizen not only in
compliance with all relevant laws and regulations but also by actively assisting in the
improvement of the quality of life of the people in the communities in which it operates with the
objective of making them self-reliant. Such social responsibility would comprise, to initiate and
support community initiatives in the field of community health and family welfare, water
management, vocational training, education and literacy and encourage application of modern
scientific and managerial techniques and expertise. This will be reviewed periodically in
consonance with national and regional priorities. The company would also not treat these
activities as optional ones but would strive to incorporate them as integral part of its business
plan. The company would also encourage volunteering amongst its employees and help them to
work in the communities. Tata companies are encouraged to develop social accounting systems
and to carry out social audit of their operations.”

6.4. CSR Activities of Tata Companies & Societies:

Through the following companies and societies Tata group keeps on heading towards the
fulfillment of corporate social responsibility –

1. Tata Steel:
Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model and
the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its profit after tax
on several CSR initiatives

(a) Self-Help Groups (SHG’s):

 Over 500 self-help groups are currently operating under various poverty alleviation
programs; out of which over 200 are engaged in activities of income generation
thorough micro enterprises. Women empowerment programs through Self-Help
Groups have been extended to 700 villages. From the year 2003 to 2006, the maternal
and infant survival project had a coverage area of 42 villages in Gamharia block in
Seraikela Kharsawa and a replication project was taken up in Rajnagar block. For
providing portable water to rural communities 2,600 tube wells have been installed
for the benefit of over four Lakh people.
(b) Supports Social Welfare Organizations:
Tata Steel supports various social welfare organizations. They include;
 Tata Steel Rural Development Society
 Tribal Cultural Society
 Tata Steel Foundation for Family Initiatives
 National Association for the Blind
 Shishu Niketan School of Hope
 Centre for Hearing Impaired Children
 Indian Red Cross Society, East Singhbhum
(c) Healthcare Projects:
In its 100th year, the Tata Steel Centenary Project has just been
announced. The healthcare projects of Tata Steel include facilitation of child
education, immunization and childcare, plantation activities, creation of awareness of
AIDS and other healthcare projects.
(d) Economic Empowerment:
A program aiming at economic empowerment through improvised
agriculture has been taken up in three backward tribal blocks in Jharkhand, Orissa and
Chhattisgarh. An expenditure of Rs 100 crore has been estimated for the purpose and
this program is expected to benefit 40,000 tribal living in over 400 villages in these
three States.
(e) Assistance to government:
Tata Steel has hosted 12 Lifeline Expresses in association with the Ministry
of Railways, Impact India Foundation and the Government of Jharkhand. It has
served over 50,000 people. Five thousand people have got surgical facilities and over
1,000 people received aids and appliances. Over seven lac rural and another seven
Lac urban population have been benefited by the CSR activities of Tata Steel.
2. Tata Motors:

(a) Pollution Control:

 Tata Motors is the first Indian Company to introduce vehicles with Euro norms.
Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a
major effort to introduce emission control technology in India. To make environment
friendly engines it has taken the help of world-renowned engine consultants like
Ricardo and AVL. It has manufactured CNG version of buses and also launched a
CNG version of its passenger car, the Indica. Over the years, Tata Motors has also
made investments in the establishment of an advanced emission-testing laboratory.

(b) Restoring Ecological Balance:

Tata Motors has planted 80,000 trees in the works and the township and more
than 2.4 million trees have been planted in Jamshedpur region. Over half a million
trees have been planted in the Poona region. The company has directed all its
suppliers to package their products in alternate material instead of wood. In Pune, the
treated water is conserved in lakes attracting various species of birds from around the
world.

(c) Employment Generation:

Relatives the employees at Pune have been encouraged to make various
industrial co-operatives engaged in productive activities like re-cycling of scrap wood
into furniture, welding, steel scrap baling, battery cable assembly etc. The Tata
Motors Grihini Social Welfare Society assists employees' women dependents; they
make a variety of products, ranging from pickles to electrical cable harnesses etc;
thereby making them financially secure.

(d) Economic Capital:

In Lucknow, two Societies - Samaj Vikas Kendra & Jan Parivar Kalyan Santhan
have been formed for rural development & for providing healthcare to the rural areas.
These societies have made great efforts for health, education and women
empowerment in rural areas.

(e) Human Capital:

Tata motors has introduced many scholarship programs for the higher education
of the children. Through a scholarship program Vidyadhanam, the company supports
211 students. Out of these students 132 students are from the marginalized sections of
the society. These students get books, copies and other study materials. They also
undergo different kinds of workshops, creative & outdoor sessions and residential
camps as well.
The company has entered into Public-Private Partnership (PPP) for upgrading 10
Industrial Technical Institutes (ITI) across the country.
 (f) Natural Capital:
On the World Environment Day, Tata Motors has launched a tree plantation
drive across India and countries in the SAARC region, Middle East Russia and
Africa. As many as 25,000 trees were planted on the day. Apart from this more than
100,000 saplings were planted throughout the monsoon.
3. Tata Chemicals Ltd (TCL):
Tata Chemicals Limited was one of the first organizations to hold an Impact
camp, which was held at Mithapur in the year 1982, providing eye care to hundreds of
patients at the Mithapur Hospital. Tata Chemicals Limited was also the first organization
to run world's first hospital on wheels - the Life Line Express, through Jamnagar district
for the first time between November 21, 2004 and December 21, 2004.
4. Tata Tea:
Tata Tea has been working hard since the 1980s to fulfill the needs of specially-
abled people. It has set up the Srishti Welfare Centre at Munnar, Kerala; its various
programs provide education, training and rehabilitation of children and young adults with
special needs.
5. Titan:
Corporate social responsibility is a basic element of TITAN Group‘s
governing objective and one of its corporate values. In its corporate philosophy CSR is
defined as doing less harm and more good by adopting the following practices.
 Respecting and supporting local communities
 Caring for the employees
 Being an active member of society
 Committed to sustainable development
 Putting safety(at work) first
Titan has employed 169 disabled people in blue collar workforce at Hosur
6. TISCO:
TISCO was awarded The Energy Research Institute (TERI) award for Corporate
Social Responsibility (CSR) for the fiscal year 2002-03 in recognition of its corporate
citizenship and sustainability initiatives. As the only Indian company trying to put into
practice the Global Compact principles on human rights, labor and environment, TISCO
was also conferred the Global Business Coalition Award in 2003 for its efforts in
spreading awareness about HIV/AIDS.
7. TELCO:
TELCO, Puna has started community development activities for the benefit of
TELCO families and local residents in 1973 with the following objectives:
 To create social awareness in all the employees and their families, to promote
congenial mutual relations amongst them, to improve personal and environmental
hygiene and health.
  To help the families of employees develop better living standards by organizing
extension education programs, training in various trades/skills and providing
opportunities to earn additional income.
TELCO is fighting against Leprosy at Jamshedpur.
8. Tata Consultancy Services (TCS):
TCS aims at the Tata group‘s philosophy of building strong sustainable businesses
community .The elements that make for strong corporate sustainability at TCS include
the following: A fair, transparent corporate governance, a strong strategy for long-term
growth, Best-in-class HR processes, initiatives for community betterment and welfare.
Tata Consultancy Services runs an adult literacy program. Indian government
launched Saakshar Bharat, an adult education programe in 2009 and the programe will
now go online via TCS‘partnership. The scheme, aimed at female literacy aims to make
literate 70 million people, of which at least 85 percent are women literate and the
program has already been rolled out in 167 districts across 19 states.
9. Tata Archery Academy:
The Tata Archery Academy was established in Jamshedpur in 1996. The academy
has all the training facilities like highly efficient coaches, archery grounds, equipment
from India and abroad. It also provides hostel and multi gymnasium facilities for its
cadets.
After a rigorous selection process being carried all over India, the Academy
selects boys and girls between the age group of 13 to 18 years for the four years course
and it provides the training during which the cadets are also imparted with formal
education. Some of the major championships where the Tata Archery Academy cadets
have participated and have won several medals in junior world Archery Championship,
Senior World Archery Championship, Asian Archery Championship, Commonwealth
Games and Asian Games.
10. TQMS:
Tata Quality Management Services (TQMS - a division of Tata Sons) had been
entrusted with the task of institutionalizing the Tata Business Excellence Model (TBEM).
The TBEM provides each company with a wide outline to help it improve business
performance and attain higher levels of efficiency and productivity. It aims to facilitate
the understanding of business dynamics and organizational learning. TBEM is a
‗customized to-Tata ‘adaptation of the globally renowned Malcolm Baldrige model.
TBEM model focuses on seven core aspects of operations: leadership, strategic planning,
customer and market focus, measurement, analysis and knowledge management, human
resource focus, process management and business results. Performance is measured in
absolute points; companies have to achieve a minimum of 500 points (out of 1,000)
within four years of signing the BEBP agreement… TQMS helps Tata companies use the
model to gain insights on their business strengths and opportunities for improvement.
This is managed through an annual process of assessment and assurance. The model,
through its regular and calibrated updates, is used by Tata companies to stay in step with
the ever-changing business environment.
 11. TCSRD:
Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural
Development (TCSRD) in 1980 to promote its social objectives for the communities in
and around Mithapur, where its facility is located. This service was further extended to
the communities in and around its Babrala and Haldia facilities.
Through Tata Chemicals Society for Rural Development (TCSRD) Tata
Chemicals works to improve the quality of life of the people and communities. It also
aims at supporting sustainable development, which is the central theme of the company's
corporate philosophy. It works to protect and nurture the rural populations in and around
TCL's facilities, and assists people in attaining self-sufficiency in natural resource
management, livelihood support. It also aims at the building of health and education
infrastructure i.e. schools and hospitals, maternity centers etc.
The initiatives that TCSRD is involved in include:
 Agricultural development
 Animal husbandry
 Watershed development
 Education
 Rural energy
 Women's programs
 Relief work
12. Tata Relief Committee:
Tata Relief Committee (TRC) works to provide relief at disaster affected areas.
During natural calamities there are two phases of assistance - (a) relief measures and (b)
rehabilitation program.
After the Gujarat earthquake the group built 200 schools in two years and they
rendered help during the Orissa floods when people lost cattles. Even after the Tsunami
disaster members of TRC immediately reached the places and supplied the things
required.
13. Tata Council for Community Initiatives (TCCI):
TCCI was established in 1994. TCCI's mission states: "We will work together
to be, and to be seen as, a group which strives to serve our communities and the society at
large". TCCI is also involved in assisting Tata companies maintain sustainability
reporting the guidelines of Global Reporting Initiative (GRI). It is the focal point for the
UN Global Compact in India, which has 42 Tata companies as signatories, the highest in
the world from a single business group.
In collaboration with the United Nations Development Programme (India),
TCCI has crafted the Tata Index for Sustainable Human Development, aiming at
directing, measuring and enhancing the community work that Tata enterprises is
undertaking for the upliftment and welfare of the people.
6.5. Dedications to the Nation at a Glance:
1. Tata Health Infrastructure:
  Tata main hospital at Jamshedpur
 ICU in Joda and Balangpur
 CHC in Bari and Kuhika
 Hospitals in Gobarghati,sukinda, joda, belpahar, belipada and bamnipal
 “Lifeline Express”‖- the hospital on wheels
 Mobile health clinics
 Centre for hearing impaired children
2. Tata Educational Infrastructure:
 Institute of mathematics
 Sukinda college
 Joda college centenary Learning centre at XIMB
 J N Tata Technical Education centre
 School of hope
 Shishu Niketan
 Balwadi schools assisted by Tata Steel
3. Tata Sports Infrastructure:
 Tata athletics academy
 Tata archery academy
 Tata Football academy
 Tata steel adventure foundation
 Sports feeder Centre’s
 Stadium at keonjhar
4. Preservation of culture & Heritage:
 Contribution to setting up national Center for performing arts Mumbai
 Tribal cultural centers showcases legacy of nine tribes Jharkhand and Orissa
 Gramshree mela activities
6.6. Conclusion:
For bringing back and maintaining the general balance in the economic and social
arena it is evident to think deeply and act wisely about CSR. Every business house owe some
responsibility towards the society, nation and world in general which provide it with all human,
material and natural resources. Considering the long run growth and sustainable development
following the norms of CSR , devising new policies and effective implementation is inevitable to
bring and sustain a balance between corporate world and society, present generation and
upcoming generation, man and nature.
As far as the Tata group is concerned, it has gone a long way in fulfilling its duty
and responsibility towards the society and the nation. It has reached the masses to elevate their
lives, to nurture their dreams and to hone their skills justifying the statement of the founder
―We do not claim to be more unselfish, more generous and more philanthropic than other
people. But we think we started on sound and straightforward business principles, considering
the interests of the shareholder, our own, and the health and welfare of the employees, the sure
foundation of our prosperity.

7. Findings:
 As business is an integral part of the social system it has to care for varied needs of the
society.
 Business which is resourceful has a special responsibility to the society.
 Social involvement of business would enhance a harmonious and healthy relationship
between the society and business seeking mutual benefit for the both.
 Social involvement may create a better public image and goodwill for the company
which further becomes instrumental in attracting customers, efficient personnel and
investors.
8. Limitations:
While preparing this research paper Legal aspects like corporate governance, labor and
employee welfare related laws have not been undertaken.

9. REFERENCE:
BOOKS:
Freeman, R.E. Strategic Management: A Stakeholder Approach (Pitman Publishing: Marshfield,
MA, 1984)
Wood, D.J., towards improving corporate social performance (Business Horizons, Vol. 34 No. 4,
World Business Council for Sustainable Development 1991)
Halal, W. E, Corporate community: A theory of the firm uniting profitability &responsibility,
strategy &leadership. (Vol 28. No 2. , 2000)
https://www.researchgate.net/publication/267246400