Professional Documents
Culture Documents
Corporate Social Responsibility
Corporate Social Responsibility
Seminar Report
On
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
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 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
Economic Responsibilities
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.
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.
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
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.
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
“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
* 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.
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
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
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.”
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: 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.
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