“ Our existence depends on balanc Natural Environment so we should be caref
CORPORATE SOCIAL RESPONSIBILITY TATA GROUP
“Community is a very important part, That is the reason why Business exist” – Jamshedji Tata
PRESENTED
BY :- Rising Sun •
3 9 P R
WHAT IS CSR ? • Maximize company’s overall impact on the society and stakeholders In a developed country : Governance Business Ethics Human Rights and Environment
In a developing country (India) : Focus on nation building Socio- economic development Rural development Employment Education Health care Community support
Definition of CSR • • “EVERY COMPANY HARMS THE ENVIRONMENT” (Just as an individual does) • Corporate Social Responsibility is thus only about two aspects. 1)Reducing the Negative Effects : Steps taken by a company to neutralize, minimise or offset the harmful effects caused by its processes and product-usage 2)Increasing the Positive Contributions : Further steps taken using its resources, core competence, skills, location and funds for the benefit of people and the environment
Results of the Karmayog CSR Rating 2008 of the largest 1000 Indian companies Karmyog CSR Rating No. of Companies
% of Companies
Level 5 (Highest) 4
0
0%
10
1%
3
45
5%
2
221
22%
1
232
23%
(lowest) Total
0
CSR) 1000
492 (no 49% 100%
Inferences from the Karmayog CSR rating exercise
1) No CSR
2) Token Gestures
The results of the CSR Rating exercise are extremely disappointing since almost half of the companies are not doing any CSR Many are only making token gesture towards CSR in tangential ways such as donations to charitable trusts, NGOs, sponsorship of events, etc.
3)CSR as PR Most use CSR as a marketing tool 4) CSR Most seem reluctant to do CSR activities unless Commitment mandated by law.
Inferences from the Karmayog CSR rating exercise
5) CSR Most spread their CSR funds thinly across many Effectiveness activities, thus reducing the effectiveness and seriousness. 6) CSR Very have a clearly defined CSR philosophy Philosophy .Most implement CSR in a an ad -hoc manner, unconnected with their business process . 7) CSR Very few companies openly state the damage Transparency caused by their processes and the steps being taken to reduce this damage. 9)CSR Spend Virtually no company states how much it spends on CSR
Karmayog Recommendation • EVERY COMPANY MUST SPEND A MINIMUM OF 0.2% OF ITS SALES ON CSR ACTIVITIES (I.E. Rs 20 Company LAKHS PER Rs. 100 CRORES) Size by Sales Sales in Rs. Net Profit Rs. Minimum CSR
• 1st
(Cr.)
(Cr.)
Rs. (cr.) at 0.2% of Sales
226000
7,000
452
1800
370
3.6
200
India Oil Corporation Indian Hotels
400
Ahluwalia Contracts 880
51
1.8
600
Trent
500
30
1
800
Techno craft Industries
310
30
0.6
1000
Marathon Next Gen 100 Reality
60
0.2
Total sales of 1000 companies:Rs.25,00,000 crores recommended minimum CSR is spend @ 0.2%of sales , this=Rs.5000 cro
Companies with the highest ranking of level 4 No
Company
Sector
1
HDFC Ltd.
Finance
2
Infosys Technologies LTD
Software and ITES
3
Tata Steel Ltd
Steel
4
Titan industries Ltd.
Watches & Jewellery
MILESTONES • 1868:- The TATA Group was founded by JamsetjiTata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule
• 1902 :- The Indian Hotels Company is incorporated to set up the Taj Mahal Palace and Tower, India's first luxury hotel.
• 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
• 1911 : - The Indian Institute of Science is established in Bangalore to serve as a centre for advanced learning.
• 1912 :- Tata Steel introduces eight-hour working days, well before such a system was implemented by law in much of the West. • 1932 :- Tata Airlines, a division of Tata Sons, is established, opening up the aviation sector in India. • 1945 :- Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) is established to manufacture locomotive and engineering products. • 1970 :- Tata McGraw-Hill Publishing Company is created to publish educational and technical books.
• 1996 :-Tata Teleservices (TTSL) is established to spearhead the Group's foray into the telecom sector. • 2001 :- Tata AIG – a joint venture between the Tata Group and American International Group Inc (AIG) • 2006 :- Tata Sky satellite television service launched across the country. • 2009 :-Tata Motors unveils Tata Nano, the People’s Car, at the 9th Auto Expo in Delhi on January 10, 2008. Nano had a commercial launch on March 23, 2009
TATA STEEL (CSR ACTIVITIES) • Health care : - 850 Bed Hospital at Jamshedpur - Blood Bank • Environment : - ISO-14001 Certification - ‘ Save Forest capaign’ • Ongoing Programmes : - Project "WATSAN" for Water and Sanitation Free Health Checkups for Women at Surya Clinics - Operation Muskaan for cleft lips and palates - Specifically targeted programmes on HIV and AIDS.
TAJ HOTEL (CSR ACTIVITIES) • TATA Group has always held that what comes from the society must, in turn go back to the society • TAJ is proud to be a part of this legacy, and is deeply committed to serve the community. • It has partnership with NGO’s to train under privilege women
TATA MOTORS (CSR ACTIVITIES) • Community Development • Health & Sanitation – “HEALTH FOR ALL” • Employment Generation – “Grihini Social Welfare Society” • Community Centers
TATA CHEMICALS (CSR ACTIVITIES) • TATA Chemicals ltd. (TCL) had setup the TATA Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objective for the communities. • Karmayog Rating 2/5 • TATA Chemicals serves the community under the umbrella of Kisan Kendra and TATA Kisan
TATA CHEMICALS (CSR ACTIVITIES) • Some of the Initiatives that TCSRD is involved in are : • Agricultural Development • Women’s Program • Rural Energy • Training • Watershed development • Relief Work • Infrastructure Karmayog Comments :- The Company is not doing substantial work in community and environment.
• • • • •
TATA CONSULTANCY SERVICE (CSR ACTIVITIES)
Community Network Services Macomb Homeless Coalition Environmental Stewardship Road Safety in India Cyber Safety :-
CONCLUSION “ we believe that corporate social responsibility is not an externalized activity nor is it only philanthropy . It is an internal process reflecting the soul of the company.”
THANK YOU !!!