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Near Kudi Haud, NH-65, Pali Road, Jodhpur, (RAJ).

Seminar Report

On

Corporate Social Responsibility

(Affiliated to Rajasthan Technical


University, Kota)

Session
2008 – 2010

Submitted To:
Submitted By:
Mrs Neelam Kalla
Chetan Daiya
(Professor VIM)
MBA 2nd Sem.

Seminar Report on
Corporate Social
Responsibility
Submitted to: Submitted by:
Dr.G.N.Purohit Chetan Daiya
MBA 2nd Sem.

Acknowledgement

With deep sense of gratitude, I wish to express our appreciation to


'VYAS INSTITUTE OF MANAGEMENT' and coordinator of M.B.A
Mrs.Neelam.Kalla and also our project instructor Mr.Shivdutt Joshi.
Although hardly suffice, I am deeply indebted for them for providing such a
wonderful opportunity to research on such a prestigious project.

I have no words to express my appreciation for all the research hints and
other necessaries provided by them without with this project would hardly
be possible.

I wish to express my gratitude and indebtness to Dr.G.N.Purohit, our


director, for his encouragement, valuable suggestion, helpful comments and
constructive criticism made by him while finalizing this report.

I also thank our faculty members for providing much needed support and
encouragement at various stages and also our classmates for co-operating
with me.
In Gratitude
Chetan Daiya

Meaning of Corporate Social Responsibility

“Corporate social responsibility as the continuing commitment


by business to behave ethically and contribute to economic development while improving
the quality of life of the work force ,their families and the local community and society at
large.”
“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"
"Operating a business in a manner that meets or exceeds the
ethical, legal, commercial and public expectations that society has of business?
"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".

Corporate Social Responsibility (CSR), also known as


corporate responsibility, corporate citizenship, responsible business, sustainable
responsible business (SRB), or corporate social performance,[1] is a form of corporate
self-regulation integrated into a business model. Ideally, CSR policy would function as a
built-in, self-regulating mechanism whereby business would monitor and ensure their
adherence to law, ethical standards, and international norms. Business would embrace
responsibility for the impact of their activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public sphere.
Furthermore, business would proactively promote the public interest by encouraging
community growth and development, and voluntarily eliminating practices that harm the
public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public
interest into corporate decision-making, and the honoring of a triple bottom line: People,
Planet, Profit.

Carroll’s Four Part Definition


Understanding the Four Components
Responsibility Societal Examples
Expectation

Economic Required Be profitable. Maximize sales,


minimize costs, etc.
Legal Required Obey laws and regulations.

Ethical Expected Do what is right, fair and just.

Discretionary Desired/ Be a good corporate citizen.


(Philanthropic) Expected

CSR in Equation Form Is the Sum of:


• Economic Responsibilities (Make a profit)
• Legal Responsibilities (Obey the law)
• Ethical Responsibilities (Be ethical)
• Philanthropic Responsibilities (Good corporate citizen)

Economic Responsibilities

“Economic Responsibilities refers to the fundamental


responsibility of business to produce goods and services that society wants, and which it
sells at a profit.”
As a listed company Outokumpu is committed to making a profit
for the benefit of its shareholders. The company delivers on this commitment by
developing and maintaining competitive and profitable operations based on ethical
business practices.

Legal Responsibilities
“Legal Responsibilities refers to obligation of business to fulfill
it’s economic mission within the confines of the law.”

Ethical Responsibilities
This refers to the ethical responsibilities of companies that go
beyond legal compliance.

Philanthropic Responsibilities
This refers to voluntary responsibilities such as philanthropy,
which a company can assume even if there are no clear cut societal expectations.

Business Responsibilities in the 21st Century


• Demonstrate a commitment to society’s values and contribute to society’s social,
environmental, and economic goals through action.
• Insulate society from the negative impacts of company operations, products and
services.
• Share benefits of company activities with key stakeholders as well as with
shareholders.
• Demonstrate that the company can make more money by doing the right thing.

As 2009 wound down, ‘financial meltdown’ and ‘economic


recession’ became amongst the most frequently used words in business journals and
business
meetings. A businessman in Kolkata said he had attended no less than 10 seminars on
these subjects in December!

At the same time, other words which had been banished from the US (though not in
Kolkata) began to reappear in that country. They were ‘socialism’ and even, God
forbid, Karl Marx! In fact, booksellers in the US reported renewed demand for Das
Kapital, Marx’s critique of capitalism.

In India, the US and elsewhere, business leaders who until 2009 had tried to get
government out of business are now urging governments to vigorously save
businesses. They want governments to intervene in the markets but, at the same time
to keep markets free.

This raises questions in the common man’s mind about what these beneficiaries of
free markets want markets to be free from. Freedom only from barriers to trade? Or
also freedom from government regulations? Or even freedom from responsibility for
their own actions? Meanwhile, US voters going into the elections in November were
no longer prepared to grant business all these freedoms because trust in business
institutions and their leaders had broken down.

Like Arjun on the battlefield at Kurukshetra who asked Krishna a moral question, not
advice on how to fight the battle, business leaders fighting the recession must also ask
what they must change in their approach to business to regain society’s trust if they
want freedoms in future. To begin with, they must dump the notion that radical
capitalists in the US and UK have propagated, that the business of business must be
only business.

In that view, the only responsibility of business leaders is to maximise returns to


investors — without doing anything illegal, of course, or at least not being punished
for it. In fact, five years ago, The Economist declared that CSR (corporate social
responsibility) was the most dangerous fad in management circles then. In this view,
benefits of profitable businesses automatically trickle down and business leaders
should not be distracted by trying to address these societal side-effects.

Now CSR is back in fashion. It can be a dangerous fad, though not for the reasons
The Economist feared. It is dangerous because it can lull business leaders into
believing that CSR is the way to discharge their responsibilities to society.
CSR is expenditure of some portion of a company’s profits on social causes. And
philanthropy, its close cousin, is funded from accumulations into trusts of profits from
business. CSR is an inadequate concept because it is limited to what companies do
with a portion of the profits they make.

Objectives
 To study the reasons why companies engage themselves in social issues.
 To find out whether the companies which are more socially responsible
are able to create positive brand image in the minds of consumers.
 To find out which companies can be considered more socially responsible
in the Indian context.
 To have an overview about which countries are more socially responsible
than others in the global perspective.

Motives
 Improve long-term corporate profitability
 Distract the public from ethical questions posed by their core
operations
 Commercial benefit by raising their reputation with the public or with
government
 To be committed to Sustainable Development whilst simultaneously
engaging in harmful business practices

CSR initiatives of Some Indian Companies


Name Of the CSR
company CSR Principle Rating Initiatives
Help build model
Aditya Birla villages that can Healthcare, education,
Group stand on their own rural
feet. 3/5 development
Belief in green
environment leads
Godrej
to enhancement of Environment and
Industries
productivity agriculture,
and quality 3/5 infrastructure
To help enrich the
quality of life of
the community and Community
preserve development
Indian Oil
ecological balance programmes, medical
Corporation
and heritage services,
through a strong education, art and
environment culture, social
conscience. 2/5 objective schemes
Child welfare, Aids
awareness,
Women Upliftment,
HLL Social welfare rural
initiatives both development, disaster
through charity and relief
social investment 3/5 activities, environment
To build the
capacities of the Poor health and
ICICI bank Poorest of the poor nutrition, child
to participate in education, micro
the large economy 3/5 financial services,
Healthcare, social
rehabilitation
Support the and rural upliftment,
Infosys
unprivileged in learning and
Society and enrich education, art and
their lives 4/5 culture

Procter & Commitment to 2/5 Child education,


Gamble sustainable women education,
development as health and environment
"ensuring a better
quality of life for
everyone, now and for
generations to come.”
Reliance Principle of symbiotic 2/5 Scholarship schemes,
Industries relationship with the healthcare initiaves,
local communities, cancer and AIDS
recognizing that prevention, health,
business ultimately safety, environment,
has a purpose - to social responsibility and
serve community
Human needs development, rural
development, women
and youth
empowerment, skill
upgradation
Tata Steel Sharing Wealth to 4/5 Education, Tribal
diminished disparities welfare, healthcare,
Health and AIDS
awareness, environment
Wipro To contribute in the 3/5 Learning enhancement,
areas of education, infrastructure facilities,
community and social disaster relief activities
development
Responsibility Towards Different Groups
 Responsibility to Customer

Responsibility to Investors

 Responsibility to Employees

 Responsibility to Society

 Responsibility to Government

Responsibility to Customer
KBC group sets great store by customer-friendliness. It attaches a good deal of
importance to expertise and professionalism, and aims to provide the best solutions for its
customers. However, the group also strives to be a responsible bancassurer through, for
example, paying a good deal of attention to the privacy of its customers and providing
information that is as clear and accurate as possible.

Responsibility to Investors
According to Michael Harpster, a 30-year veteran of film finance and distribution, the
producer has two responsibilities to his investors. The first one is to get the film made
and the second is to make money for the people who helped get it made. Period.
According to Mr. Harpster, “Many films can be made with a relatively small amount of
capital if leveraged properly but a lot of attention must be paid to making money for the
participants and that always involves distribution.”

Responsibility to Employees
Social responsibility in a company primarily means responsibility for employees. They
are our most important resource and crucial to the company's success. Comprehensive
programs on personnel development and equal opportunities, profit-sharing and pensions
encourage qualified, contented employees.

Responsibility to Society
The mantle of service, earlier the prerogative of few, has been extended to a larger part of
society, the business community. There has been a call for corporate entities to put in
resources and services for the betterment of society. Service to the community through
the establishment of facilities, infrastructure and uplift plans for those in need is also an
agenda with the corporate of the 21st century. In the course of doing business,
corporations are also taking keen interest in implementing their social responsibility.
Whether at international, national, regional or local levels their activities and operations
are carried out keeping their social responsibility objectives in mind.
Responsibility to Government
Governments all over the world must enact laws to safeguard the interest of consumers
and to protect the environment from greedy and unethical corporations. These laws must
be tough and strict and more importantly lay down tough measures for violations and
prosecution. Consumers as well as the environment must be protected; however, this
must be built into the social responsibility role of organizations. The purpose of this
paper is to evaluate and analyze how Corporate Social Responsibility (CSR) policies
assist consumers and or organizations in the global markets; and more importantly to
evaluate whether government regulatory polices differ throughout the world.

Evolution of CSR in India


JRD Tata was instrumental in conducting the first social audit in India. Since its
inception, the Tata and Steel Company has been a shining example of social
responsibility.
History of Tata Motors
 Started in 1945 in Mumbai, India.
 Original production was on locomotives.
 1954
 First car rolled off of the assembly line.
 Tata’s are a family The family founded:
 Ironworks
 Steelworks
 cotton mills
 hydroelectric-power plants
 Are of their endeavors have been proved to be crucial to India's industrial
development. of Indian industrialists and philanthropists.
 Tata Motors is India’s owns the largest independent company in India.
 Mercedes and Tata teamed up to create a truck line.
 First major business deal with another firm.
 Together both companies started their commercial vehicle operations in 1960.
 in 1986 the company created and sold the first LCV
 LCV = light commercial vehicle
 Was the Tata 407

 Tata Motors decided to pursue joint ventures.


 Cummins Engine Co., Inc., was the first company to jointly venture with
Tata in 1993.
 Manufactured a diesel engine that had high horsepower and emitted less
harmful chemicals.

 Began creating new lines in the late 1990’s and earl• :


 Compressed natural gas buses y 2000’s
 1109 vehicle, used for commercial purposes.
 Ex-series
 Newly designed LCV called the 207 DI
Tata Group

• 100 companies throughout 7 business sectors


• Engineering, materials, energy, chemicals, services, consumer products,
information systems and communications
• Tata AutoComp Systems - Automotive
• Tata Steel - Materials
• Tata Power - Energy
• Rallis India - Chemicals
• Tata Realty and Infrastructure - Service
• Tata Tea - Consumer Products
• Tata Technologies - Information Systems and Communications

Corporate Social Responsibility of TATA


• “A Company that cares about the future”
• Committed to corporate social responsibility
• Signed the United Nations Global Compact
• Plays role in community development
• Environmentally-friendly products and technology
• Two main concerns:
• Reduction of pollution
• Restoration of ecological balance
• Implemented soil and water conservation programs
• Cleaner Engines
• Advanced emission-testing labs
• Developing alternate fuel engines
• Sewage treatment facilities
• Encourages tree planting
Community Development:
The Company's Community Service Division works through various societies to improve
the conditions of neighbouring villages - encouraging economic independence through
self-initiated cottage industries and contributing to community and social forestry, road
construction, rural health, education, water supply and family planning.
Tata Motors has been making numerous well-planned efforts in the area of rural
development, with specific focus on the following:

Health & Sanitation:


Mobile health service staff provide preventive and curative health services under the
"Health For All" programme. They train village health workers in conducting the same.
Safe drinking water facilities are provided to ensure health of the villagers.

Employment Generation:
Tata Motors encourages self-sufficiency with the aim to improving the confidence,
morale and lives of its

employees and their dependents. The Company has worked on some novel ideas around
its townships. Employees' relatives at Pune have been encouraged to form various
industrial co-operatives engaged in activities such as re-cycling of scrap wood into crates
and furniture, welding, steel scrap baling, battery cable assembly etc. The Tata Motors
Grihini Social Welfare Society caters to employees' women dependents'. The women folk
make a variety of products, ranging from pickles and uniforms to electrical cable
harnesses etc.

Community Centers:
These centres are situated in various parts of Jamshedpur, Pune and some of their
neighbouring towns. The centres regularly organise various programmes & neighbouring
populations are encouraged to participate in these activities.
Photo: Mr. Deepak M Deshpande, AGM, Corporate HR inaugurating the bus donated to ADHAR, an Association
of Parents of Mentally Differently Abled Children

“There is a strong business sense in investing in CSR, in so far as


corporations benefit in multiple ways by operating with a perspective broader than their
own immediate business results. These benefits can range from brand differentiation,
boost to recruitment and retention, risk management and licence to operate to more
individual goals of personal satisfaction.
Tata Motors’ CSR is carried on by CSR teams at all the manufacturing units. A structured
process has facilitated co-ordination among team members, continuous experience
sharing across locations, monitoring and evaluation of all CSR programmes and periodic
reporting, giving CSR activities at Tata Motors a Company wide synergy. CSR through
the lens of the CSR Team Leaders at these locations is presented in this section.”
Photo: Dr. Rohit Kumar, Divisional Manager, Medical services, Lucknow checking
a patient at the health camp organised for contract labourers from nearby villages

“From philanthropy to Corporate Social Responsibility, the


journey has been one that started with a vision of benevolence, the vision that wanted to
see India become not necessarily an economic superpower but a “happy nation”, which
visualised developing not just a company, establishing a factory, but the development and
growth of townships and communities around.
Terms like CSR may have recently become more widely used
than ever before but the purpose of improving lives of people has always been central to
our business. We have moved far beyond ad hoc stand alone programmes to
acknowledging interlinkages of social development with business sustainability. A
journey that the Tata Group began a century ago has only matured with passage of time
and we continue to fine tune our processes such that we have created a benchmark for
CSR.”
Photo: From the right, Dr D G Joglekar, DGM, Health Services with Dr. J U
Gokhale, AGM, HR and Mr. B G Ogale, AGM, Training & Safety at the laying
down of foundation stone of the vocational centre at Bhamchandra High School,
Pune

“CSR is a part of all business processes. It is about taking responsibility for the impact of
our business activities on customers, suppliers, employees, shareholders, communities
and other stakeholders, as well as the environment. This obligation is seen to extend
beyond statutory obligation to comply with legislation and sees the Company voluntarily
taking further steps to improve the quality of life for the local community and society at
large. That is what is being termed as Corporate Sustainability, the focus of companies on
the “triple bottom line” of “people, planet and profit”.
We constantly strive to improvise both our methods and outcomes and towards this
endeavour, have implemented the Tata Protocol in Pune last year. Tata Protocol is a
measuring tool for social performance, based on the line of the Tata Business Excellence
Model. Pune was ranked in the highest band (with total score of 663).”
Photo: Mr. Ashutosh Varman, Div. Manager, Admin. (right) with Mr. U J Salvi,
Div. Manager, Maintenance at Dhumakot . Inter College for recruiting students for
the 10+2 scheme. This scheme is two years technical training programme in
Uttarakhand plant in relevant automotive trades.

“We have begun to incorporate the local communities in the growth process that
industrialisation in Uttarakhand has brought about. Initially, various techniques were
employed to identify the needs of the communities by deploying participatory methods of
engaging the community members. Better health facilities and employment-focused skill
base enhancement were the top requirements of the communities. Towards this end,
health check-up camps have been held in villages and we have also started a technical
training programme in collaboration with an ITI in order to upgrade the skill base of the
youth and enhance their employability. The process for identifying other opportunities for
engaging women and more youth members from the villages is underway.
We are moving towards a more structured CSR programme and are in the process of
establishing a dedicated team. The support of top management has played a key role in
giving a boost to the CSR activities in the region.”
Mr. Ashutosh Varman
Silver Linings
The Company has streamlined its CSR activities into four focus areas of Health,
Employability, Education and Environment. The programmes under these thrust areas
vary across locations, depending on local contexts and needs. The method of
implementation of these programmes also varies across locations. At Pune and Singur,
the departments themselves implement the programmes, while at Lucknow and
Jamshedpur, Tata Motors’ supported and managed societies run the day-to-day
programmes, with the active involvement of the CSR teams. All initiatives feed into the
larger goal of improving the quality of life of people.
Over the years, these initiatives have had a transformational impact in several facets in
the adopted villages around the manufacturing units. Cases demonstrating this
transformation are highlighted in this section. This section also gives an overview of the
current scenario in areas that are defined as our thrust and the impact our CSR initiatives
have had in 2007-08. Tables have been used to give an overview of alignment of the CSR
programmes with national and international goals - the Bharat Nirman Programme (BN),
a four year business plan for rural infrastructure outlined by the Prime Minister of India
and the United Nation’s Millennium Development Goals (MDGs), which are a blueprint
of targets agreed to by all countries, to be achieved by 2015.
Case studies would also be used to demonstrate how Tata Motors touches the lives of
those who do not directly impact or get impacted by the Company but are nevertheless an
integral part of the vision of the founders of being the “central purpose of our business”.

Health
World Health Organization defines health as a state of complete physical, mental and
social well-being and not merely the absence of disease or infirmity. The health status is
usually measured in terms of life expectancy at birth, infant mortality rate, fertility rate,
crude birth rate and crude death rate. These indicators of health are determined by
numerous factors such as per capita income, nutrition, housing, sanitation, safe drinking
water, social infrastructure, health and medical care services provided by government,
geographical climate, employment status, incidence of poverty and the like (Reddy and
Selvaraju 1994; Dadibhavi and Bagalkoti 1994).
According to the Country Health System Profile, World Health Organization, public
health infrastructure in rural India consists of a three-tier system, a sub centre for every
5,000 population with a male and female worker; a Primary Health Centre (PHC) for
every 30,000 population with a medical doctor and other paramedical staff, and a
Community Health Centre (CHC) for every 100,000 population with 30 beds and basic
specialists. In urban areas, it is two 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-availability of
drugs and consumables and essential equipment. As a result 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 despite 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).

Silver Linings
Health
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 improved health through better sanitation facilities is also included in the CSR
programme of the Company.
Facts on Health
• Expenditure in health sector is low - ranging from 1 to 3 percent in any given year
• Total population: 1,151,751,00
• Gross national income per capita (PPP international $): 3,800
• Life expectancy at birth male/female (years): 62/64
• Healthy life expectancy at birth male/female (years, 2003): 53/54
• Probability of dying under five (per 1000 live births): 76
• Antenatal care coverage: 51%
• Births attended by skilled health personnel: 47%
• Total expenditure on health per capita (2005): $100
• Total expenditure on health as % of GDP (2005): 5.0
• Access to improved sanitation: 28%
- Source: World Health Statistics 2008
All figures for 2006 except where mentioned
Alignment to Impact in 2008-09
Millennium
Development Goals

Millennium • Antenatal cate and anaemua detection and treatment for 590
Development Goals women
5:
Improve Maternal • Institution of Village Health Workers established - Community
Health members identified and trained for providing basic health care to
village communities

Millennium • Curative & Preventive health services were provided to over


Development Goals 92,390 persons through the Company's community health
6: programmes, including immunization drives for polio, measles.
Combat HIV/AIDS,
Malaria and other • Special country-wide programmes were conducted for drivers
diseases during service camps. 46,548 drivers availed of the free general
health and eye check-up camps and AIDS awareness programmes
Employability

* Unemployment rates (number of persons {or person days} unemployed per 1000
persons {or person days})
Source: National Sample Survey Organization’s 60th Round Survey on
Employment and Unemployment conducted in January-June 2004

The table clearly indicates that unemployment rates on the basis of current daily status
are much higher than those on the basis of usual status (unemployed on an average in the
reference year) implying a high degree of intermittent unemployment. This is mainly
because of the absence of regular employment for many workers.

Sector Facts on Employability


• India's labour force is growing at a rate of 2.5 per cent annually, but employment is
growing
at only 2.3 per cent
• Sixty per cent of India's workforce is self-employed, many of whom remain very poor
• Nearly 30 per cent are casual workers (i.e. they work only when they are able to get
jobs and
remain unpaid for the rest of the days)
• More than 90 per cent of the labour force is employed in the "unorganized sector", i.e.
sectors which don't provide with the social security and other benefits of employment in
the "organized."

United Nations Industrial Development Organization’s


`Industrial Development Report 2002-03', highlights that the country's skill base is weak
and deteriorating and in this regard has warned that India may face skill constraints when
it tries to upgrade technologies in a large range of activities to compete in liberalized
markets. It is very important therefore that India improves its productivity if it is to
compete successfully in an era of rapid technological and economic change. This requires
not only heavy capital investment, but also the acquisition by the workforce of new skills
for emerging jobs. It is also necessary for employers, if they are to be successful, to play
a more active role in enhancing employability. The trend towards market-oriented
training systems gives an increasingly prominent role to the private sector. Enterprises, in
particular, are expected to undertake a proactive role in training. Conversely, the
traditional role of the State is evolving from government-led and government-owned
training systems towards creating an enabling environment for enterprises and
individuals, employers and employees, to invest and actively participate in a collective
training effort. (Source: India: Enterprise participation in training, a document released
by International Labour Organization, 1997)
The Company has initiated several efforts to enhance employability of youth in addition
to the Apprenticeship programmes 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’
programmes have been organized for their faculty.
In addition, several technical and vocational programmes 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 programmes 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 programmes across our locations.

Photo: Dr. J U Gokhale (Standing in centre in blue) and Rohit Saroj, Manager, CSR
(in white shirt) with women from the project area of CSR, Pune who received
training in tailoring and were donated sewing machines under the Women
Empowerment initiative, called Bahujan Hitay in Pune
Alignment to Impact in 2008-09
Millennium
Development Goals

Millennium • As a part of its skill development programme, the Company has


Development Goals identified 10 ITIs across the country to upgrade their facilities and
1: enhance the relevance of their programmes to industry needs. Of
these, four ITIs have been covered in 2007-08
Eradicate extreme
poverty and hunger • 1,085 youth from areas adjacent to the Company's plants, were
trained in various technical and vocational trades. At the new plant
location of Singur alone, over 350 local youth have been trained in
partnership with the government and the social sector, making them
employable

• All 18 students of the Company-supported Mechanic Motor


Vehicle Trade Course, 2007-08, in association with the
Ramakrishna Mission at Sakwar, Thane district, Maharashtra, have
been successfully placed at the Company's dealerships. Two
students from the previous batch have been facilitated to become
entrepreneurs and have opened their own workshop on the
Mumbai-Ahemedabad Highway

Millennium To make the women economically independent:


Development Goals
3: Promote gender • 1,058 women have been trained in manufacturing food products
equality and and utility items, sewing and beautician courses
empower women

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.”
Education encompasses both the teaching and learning of knowledge,
proper conduct, and competency. It thus focuses on the cultivation of skills as well as
mental, moral and aesthetic development. The right to education is a fundamental human
right and is guaranteed under the Indian Constitution (Article 16, Part III or the
Constitution of India). Yet, the statistics of education in India portray a dismal picture.
The literacy ratio of India is 65.38% with male literacy at 75.85% and
female literacy at 54.16%. Moreover, there is tremendous discrepancy in terms of
availability of educational facilities in rural and urban areas and even from one region to
the other. Therefore, while some areas have no educational facilities; others are fraught
with low enrollment, high drop out rates and poor quality of education.
Tata Motors has contributed towards improving education through infrastructural
development for promoting schooling among the villagers and through upgradation of
educational facilities (building computer laboratories, sports ground, etc.) and organizing
teacher’s training programmes to better the quality of education.

Facts on Education
• Less than half of India's children between the age 6 and 14 go to school
• A little over one-third of all children who enroll in grade one reach grade eight
• At least 35 million children aged 6 - 14 years do not attend school
• 53% of girls in the age group of 5 to 9 years are illiterate
• In India, only 53% of habitation has a primary school
• In India, only 20% of habitation has a secondary school
• In nearly 60% of schools, there are less than two teachers to teach Classes I to V
• 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

Alignment to Impact in 2008-09


Millennium
Development Goals

Millennium • Infrastructure was improved at 13 schools, promoting higher


Development Goals education for 2,000 children from over 25 villages
1:
• Shiksha Prasar Kendra, a Tata Motors society at Jamshedpur,
Achieve universa supported 18,000 students (of which 7,500 are girls) from across 33
primary education schools

Quality of education improved throughL

• Teacher's training programme conducted in 4 schools


• Extra-curricular activities organised in 31 schools with
participation from over 4,300 students
• Computer labratory built in Beraberi High School at Singur in
West Bengal
• Scholarships for higher studies awarded to 375 students
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.
Average weather may include average temperature, precipitation and wind patterns. It
involves changes in the variability or average state of the atmosphere over durations
ranging from decades to millions of years. These changes can be caused by dynamic
processes on Earth, external forces including variations in sunlight intensity, and by
human activities.
The dominant factors to which recent climate change has been attributed all result from
human activity. They are:
• Increasing atmospheric concentrations of greenhouse gases
• Global changes to land surface, such as deforestation
• Increasing atmospheric concentrations of aerosols

Facts on Environment
Recent reports from the Intergovernmental Panel on Climate Change (IPCC) report have
concluded that:
• "Most of the observed increase in globally averaged temperatures since the mid-20th
century 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,
aerosols, and land surface changes, it is extremely likely that human activities have
exerted a substantial net warming influence on climate since 1750."
• "It is virtually certain that anthropogenic aerosols produce a net negative radiative
forcing (cooling influence) with a greater magnitude in the Northern Hemisphere than in
the Southern Hemisphere.
The IPCC, which represents consensus in the scientific community, defines "very likely,"
"extremely likely," and "virtually certain" as indicating probabilities greater than 90%,
95%, and 99%, respectively.

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 programmes 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 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
Impact in 2008-09
Development Goals
and Bharat Nirman

Millennium Over 175,242 saplings have been planted with a 80% survival rate
Development Goals Smokeless chullahs constructed to promote use of environment-
7: Ensure friendly practices
environment Agricultural training imparted to minimize the use of
sustainablity environmentally hazadous materials and methods
Awareness camps on environment related issues

Bharat Nirman Community irrigation wells and check dams have been constructed
Target: 10 million at villages near Pune, augmenting incomes of families through
hectares of improved irrigation. In Jamshedpur, 85 acres of land has been
additional irrigarion brought under irrigation and tree plantation has extensively been
capacity to be carried out in over 152 acres
created by 2009
Donation’s Committee
Tata Motors values its partnership with the social sector and through the Donation’s
Committee, which includes the Managing Director and the Executive Director as well,
endeavours to extend support through donation of vehicles to support the furtherance of
cause of the NGOs. In 2007-08, Rs. 12.8 millions was disbursed for use of organisations
as ambulances, school buses for the underprivileged and for community development
purposes, plying in remote and inaccessible parts of the country.

Photo: Mr. Dilip Sengupta, Head HR, Small Car and Mr. M B Paralkar, former Sr.
GM, donating a Tata Sumo to be used as an ambulance to Ramakrishna Mission in
Kolkata
Silver Linings

“Since 2006, your institution has adopted our Diwad village and since then considerable
progress has been made in the village. Some of the projects that have been completed
include:

1. Tree plantation on the land owned by the village (2000 trees have been planted since
the tree plantation drive began in 2006)
2. Construction of a 2kms road on the mountainous terrain
3. Distribution of toys and games to Angandwadi (2 pre-primary schools)
4. Seeting up of computer laboratory and repair work in the secondary school
5. Infrastructural development of primary school
6. Distribution of teaching aid to secondary school
7. Support for providing clean drinking water in the village
8. Ensuring hygiene and sanitation through construction of 200 individual toilets,
covering all families
9. Donation of Excavator machine for the development work of the village

We hope your institution would continue to support the village through the coming
years.”

Signed, Sarpanch, Gram Panchayat, Diwad village, Pune

P.S. the above is a loose translation of the original letter


Toasting Togetherness

Photo: Mr. Ravi Kant, Managing Director, planting a tree at Uttarakhand plant

Photo: Mr. Vinod Sahay, Regional Manager (North) at Health Check-up camp held
for the employees at the Kolkata regional office. More than 35 colleagues both from
PCBU and CVBU participated in the same
Soul Curry
Empowerment is more than earning capability…Story of Geeta…

Photo: Geeta Devi


Ms. Geeta Devi, a resident of Murlipur village, Lucknow,
traversed a difficult path from a housewife to being the main bread winner of the family.
A tragic incident that forced her to leave the confines of her home and fend for her entire
family has changed her personality and the confidence that she exuberates today is
inspiring. The journey has not been an easy one and breaking away from tradition was
perhaps one of the greatest challenges she faced but her will and concern for family
helped her tide over hurdles.
She gives a part of the credit to Samaj Vikas Kendra, a
Tata Motors supported society in Lucknow, which had taken the initiative to support
eight underprivileged families from the villages in the project area by providing six
months training for sub-assembly work.
(“I am a daughter-in-law in Murlipur village. My household was running smoothly before
a tragic incident ruined that. My husband, who was a school teacher, lost his eyesight.
Since he became unemployed, we were facing great difficulty in running the family and
raising our children. It was at this juncture that I was informed by Samaj Vikas Kendra
that needy women from the village were being given a chance for employment. I applied
and got selected for the training. All this wasn’t so easy for me as even wearing salwar
suit and getting out of the house was opposed. But I managed to persuade them. Today I
stand on my own feet, my children go to school and for all this I am grateful to Samaj
Vikas Kendra”)
She gives a part of the credit to Samaj Vikas Kendra, a Tata Motors supported society in
Lucknow, which had taken the initiative to support eight underprivileged families from
the villages in the project area by providing six months training for sub-assembly work.

Lead Kindly Light


Volunteers: Selfless with their Time and Intellect

Photo: Mr. Ravi Kant along with Mr. Rajani Kant Gope (second from left) lauding
the plantation of a sandalwood sapling in Khakripara
Mr. Rajani Kant Gope’s co-operation and support to CSR activities at his village,
Khakripara and adjoining villages in Jamshedpur right from the time of its inception in
1966, has been invaluable for development of these villages. Fondly known as ‘Rajani
Babu’, he is an active Tata Motors’ employee volunteer and is regarded highly in the
area. Rajani Babu has a deep association with Gram Vikas Kendra in the capacity of
being President of Gram Vikas Samity.
Presently working in Quality Assurance Division of Tata Motors, he observes, “I have
been working in Tata Motors for the last 36 years. Ever since the company established a
Community Development Centre at Khakripara, I have been associated with its activities.
When Gram Vikas Kendra came into inception during 1978, I volunteered to associate
myself with the Gram Vikas Samity as a member and later on as its Secretary and now as
the President.
Adherence to International Standards
Global Reporting Initiative

It is widely accepted that organisations have the ability to exert positive change on the
state of the world’s economy and environmental and social conditions. Global Reporting
Initiative (GRI) is a sustainability reporting framework, which urges corporations to
voluntarily report on their economic, environmental and social performance in a given
year. Reporting on sustainability performance is an important way for organizations to
manage their impact on sustainable development.

Tata Motors put its GRI Report 2006-07 in the public domain - for the first time - and the
report is available on the website as well. It was commendable that within the first year of
it being made public, the Company’s GRI Report was short listed from amongst 800
reports for final selection for the GRI Reader’s Choice Awards.
Conclusion:-
 Corporations must communicate their CSR initiatives to promote a positive image
about the company in people’s mind.

 With increasing and widespread commitment of corporate resources to CSR,


attention is now shifting to the strategic formulation, implementation, and
measurement of the market returns to CSR initiatives.

 Emphasize the need for better measurement models of CSR that capture and
estimate clearly the effects of a company’s CSR actions on its stakeholders as
well as the nations in which they are operating

 “It is important for corporations to take stakeholder CSR priorities seriously,


bearing in mind the triple bottom-line of ‘People, Planet & Profit’. This will not
only help in the overall betterment of the country, but will also help corporations
gain valuable mind space in the stakeholder community”.
Bibliography:-
 http://economictimes.indiatimes.com
 https://www.kbc.com/
 http://www.wacker.com
 http://knol.google.com/k/osman-masahudu-gunu/the-impact-of-
government-regulations-on/1kietb77pgwru/18#
 http://www.tatamotors.com

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