A Tata CSR presentation to CoRE-BCSD India

at Bangalore on 6th August 2003

Building Community

always a way of doing business

J. N. Tata
The example and the inspiration

In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence.
- Jamsetji Tata Founder, Tata Group

What does this mean to us?

Markets work for all when based on inclusion Creating a people-centered purpose for sustained development

So that, Institutions serve the good of all

Indias most respected Brand 100 years of tradition

Tatas building self-reliant communities

Group Social Responsibility ( TCCI ) Sports & Culture ( Sports Club & NCPA ) Relief & Rehabilitation ( TRCs ) Philanthropy / Social Investment ( Tata Trust )

Revisiting CSR & Learning from the Winds of Change

Globalisation Liberalisation Restructure

REFORMS
Economic Administrative Trade Legal

Social Reform is at the bottom of all Change process. Finding a role for business in development.

Social Reforms
through participatory development

Os NG

Go ve rn m

en

/ ie s enc . Ag ia Dev dem Aca

Community
Business / Industry

Med ia

Role for Tata businesses.

The developing world has two options. The first is to sit back and react only when the problems arise. The second is to act as conscious citizens and rise above our vested interests for the sake of future generations, so that history does not record that we deprived them of their livelihood. I think that the message we should leave with our CEOs is that there is an integrated approach that we want them to be profitoriented, we want them to be cost effective, we want them to be quality conscious, and we want them to be good corporate citizens.
- Mr. R. N. Tata

Our Collective Stand

Tata Council for Community Initiatives

We will evolve a common direction for community development programmes from diverse activities of all Tata business units through sharing and participatory networking. We will strive together constantly to strengthen our professional and organizational abilities to fulfill our commitments towards society at large.

B. G. Deshmukh
Chairman

PARTICIPATORY NETWORKING FOR STRATEGY DEVELOPMENT & DEPLOYMENT

Council (Strategy Development) B. G. Deshmukh-Chairman
R. Gopalakrishnan B. Muthuraman Prasad Menon Rajeev Dubey S.S.Ghosh C.D.Kamath S.Chakravorty S.Pradhan K. A. Chaukar S. Ramakrishnan Bhaskar Bhat A. N. Singh Y.Nath V.Deshpande Partha Sengupta M.A.Pathan J. J. Irani Ravi Kant Simone Tata H.S.Billimoria D.S.Gupta Ranaveer Sinha Ian Watts B.Martyris F. K. Kavarana S. K. Gupta H.R.Khusokhan S.Deoras K.A.Mahashur Harsh Jha Ajay Pandey J.Ardeshir S. Ramadorai F.A.Vandrevala Ashok Soni P.Siganporia B.L.Raina A.K.Vora T.R.Doongaji

Anant G. Nadkarni
TCCI Secretariat

Group HR & TQMS

Company Level (Strategy Deployment)

(Cross-Functional Teams) Corporate Head-Social Responsibility Community & Environment Facilitators Corporate Heads - HR, Quality & Ethics

Tata Volunteers

Tata Declarations on CSR

values we adhere to in the Tata Group and it is not just another stakeholder in business, but is in fact the very purpose of its existence

Serving the Community is the purpose of business - The Community is central to the core

Enhancing Human Excellence and Improving the Quality of Life - Tata Community programs
aim at building trust, improving the quality of life, enhance human excellence and build Community

proactive in addressing environmental, ecological and biodiversity concerns arising out of its operations and this is integrated with our social responsibilities evolve their programs out of their core competence and expertise in the development of communities

Integrating Environmental Management with Social Development - A Tata enterprise is

Sharing Core Competence and Technology with the underprivileged - Tata Companies Business as a Partner in Development - Tata Companies work together with other players engaged

Culture of Volunteering - In the Tata Group there is a culture of volunteering and Tata Companies enable committed employees to spare their skills and talents in the service of the needy and the underprivileged

Organizational and Personal Learning - Tata employees recognize the valuable opportunities

Community provides for individual and group learning. So programs are designed to foster learning, creativity, and experimentation in order to build knowledge to share it with others responsibility is explicit and visible in every Tata Company by way of management support and involvement; proactive methods in planning and deployment of resources; engagement of employees; and, sharing of knowledge.

Institutionalizing Social Responsibility in the Business Process - Commitment to social

Where to make the difference Influencing Policy & Impacting Attitudes

Vocational Training / Education / Technology for the poor

Health / Woman & Child

Initiatives in biodiversity restoration & conserve wildlife

FRAMEWORK
Water Management, Integrated Rural & Urban Development Introduce EMS proactively & beyond compliance of regulation

What does it mean at the Company level ?

Making Social Responsibility happen at three levels

Company-level

TCCI Programme on institutionalizing support for CSR Leadership / Capacity Building / Performance Management System

Employee-level

Procedure on process documentation & learning Programme-level

Draft Guidelines capture common patterns 1996-1997 Case study approach forges a common framework - 1998 Focus on 7 Regional Groups 1998-99

Final Guidelines declare the Tata Way - 2000

Focus on 28 Tata Companies (Report on community initiatives) - 2001

Focus on 15 Tata Companies (Report on environmental initiatives) - 2002

First report on Corporate Sustainability by Tata Steel - 2002

Group Corporate Sustainability

Tata Companies commitment to community development
180 160 140 120 100 80 60 40 20 0 1996 1998 2000 2001

Rupees Crores

Expenditure on Community Development

Involvement of Group Companies

250 200
Numbers

150 100 50 0 1996 1998 2000 2001

Community Champions Cases Documented

Business Units Involved

How are we positioned

TCCI works closely with Tata Quality managers & HR heads in 33 BEBP Companies 12 major Tata Companies are certified under ISO14001 20 major Companies have embarked on Sustainability programme. Dr. J. J. Irani is the Tata representative on the Executive Board of the UN-Global Reporting Initiatives (GRI) All 33 major Tata Companies have signed in for the CII-UNDP Social Code and the UN-Global Compact. Mr. K. A. Chaukar is the Tata representative for the UN-Global Compact TCCI & UNDP have developed the first ever Corporate Index on Human Development.

 Key leaders assuming group level responsibilities on CSR Holding hands and growing together Emerging Group Resource on CSR

Partnerships for benchmarking with best practices and growing together

Tata Guidelines

(Process and Report at Company level) Corporate Sustainability

TCCI

Best Practices

TBEM

A p p l i c a t i o n

Business Excellence

Tradition Values

Others

TATA

1] Tata Values & Traditions 2] Tata Best Practices 3] Flexibility / Openness 4] A way of doing business

Building new perspectives on responsible behaviour.

Focus on Corporate Social Responsibility Integrate Environment, Biodiversity, Safety, Health with social initiatives Build a sustainable Business Model based on multiple bottom lines.

Transforming the Mindset

Managing identity
Society / Trusts Person centered Company centered Scarcity Participatory Networking Process / Brand driven To become a group Abundance

Changing work culture

Social Work (Activity based) Avoidable Expense Welfare (Creating dependence) Single Goal - Profit
From Management

Development centred (facilitate) Essential venture Cost Building Community (Self-reliance) Triple Bottom Line
To Governance

Are we really building sustainable enterprises?

Economic Value Added Leadership Strategic Planning Customer & Market Focus Measurement, Analysis & Knowledge Management Human Resource Focus Process Management Business Results

Environmental Factors

Social Impact

? ? ? ? ?

? ? ? ? ?

Tata Code of Conduct

Tata Group Purpose Statement Our Purpose in Tata is to improve the communities we serve.Our heritage of returning to society what we earn evokes Trust among consumers, employees, shareholders and the community. This heritage will be continuously enriched by formalizing the high standards of behaviour expected from employees and companies.
Clause 8: HEALTH, SAFETY AND ENVIRONMENT Clause 10: CORPORATE CITIZENSHIP

Over 2,25,000 employees abide by the Code personally committed to their

social responsibility at an individual level A process for Self evaluation ensures that over 200 Community & Environmental Facilitators conduct their self-appraisal for attunement .

Leading Beyond the Walls.

Corporate Governance with the relating genius Director with additional charge for CSR CEOs Balanced Scorecard Corporate Head-Social Responsibility at level II Cross-Functional Team Community and Environment Facilitators.

Strategy on CSR

Taking technology to the poor Rooted in Core Competence matrix driving the CSR Vision and Mission Factoring CSR in all functional / operational levels CSR permeating through all locations and supplier chain.

To make markets work for all, the underprivileged must participate

The very underprivileged segments that cannot access markets on their own and in a way are marginalized by imbalanced wealth creation.

C B A

Expanding markets accessible for the best and most competitive products and services highly sensitive to price elasticity.

Present markets absorbing our products and services under existing market and price conditions.

Generating responsible profits: Assessing, Costing,

Accounting and Reporting for Development
Corporate giving out of surplus Profit

Responsible profit of Business

Other costs Other costs

Corporate giving built as a development cost of business

Traditional model (First generating profits not considering social cost)

Contemporary model (Generating responsible profits)

Responsible Profit
Market economy works well when prices tell the truth

Traditionally, we factored in costs of

Raw materials, Power, Consumables, Employees, Borrowings, etc.

We have learnt to include the cost of Quality - in absence of which the total costs are even higher. Why do we not factor Environmental and Social costs as part of normal business-expense?

Learning, Listening & Thinking CSR

Environmental Impact Assessment, Social Impact Surveys, Community Dialogue to periodically impact strategy, Process and Results CSR to become part of employee satisfaction feedback and Brand perception-surveys Periodic CSR presentations to the Board, Senior Management and strategy function.

People Focus
Building Community beyond developing Organizations within and outside CSR is performance driven by high performers

Volunteering Scheme an enabling culture for self-management.

It is not the mountain we conquer but ourselves

Tata Corps of Volunteers transforming lives
We recognize the learning it brings to us We are fired more by the spirit of service A large number of volunteers means a broader base for Brand assurance.

I think what we should try to do is to start off a movement that will consciously institutionalize what many of our companies have been doing for many years. And now what we are doing here, through the TCCI, is to institutionalize this strength into a common entity. And we should make sure that the CEOs of various companies feel that all this is part of the Tata ethos.
- Mr. R. N. Tata

2 Tata Companies have over 1000 registered volunteers. 6 major Tata Companies have 100 500 registered volunteers. 19 other Tata Companies have 50 100 registered volunteers.

10,417 TATA Volunteers

Improving Quality of Life (Process)

Facilitate development and a sense of belonging Enhance human achievement and development Encourage a sense of enterprise Improve attitudes / behaviour / procedure Enhance self and institutional learning.

A TATA program is a Journey towards Human Excellence

The way it is positioned / Scaled up

Human Excellence (876-1000)

Human Development (651-875)

Human Achievement (451-650)

Human Concern (251-450)

Human Consideration (0-250)

The distinctions / new perspectives built

Improving the Quality of Life

Synchronising Triple Bottom Line for Sustainable Development

Adding Adding Economic Value Economic Value

Harmonizing Harmonizing Environmental Environmental Factors Factors

Building Social Building Social Capital in the Capital in the Community Community

Reduce negative impact

Initiatives to become environment- friendly

Senior Management involvement in social programmes

Provide facility and support from the companies

Volunteers share skills and competencies

Strengthen & work along with Community Based Organizations

Networking to raise funds and resources

Tata Model for Corporate Sustainability

Tata Index for Environmental and Ecological Management

1. 2. 3. 4. 5. 6. 7. 8. Compliance to Regulation Reduce, Reuse, Recycle Green House Gases Green the supply chain Life Cycle Analysis Restore Biodiversity Conserve Wildlife Deployment Mechanism.

Tata Index for Sustainable Human Development

1. 2. 3. 4. 5. 6. 7. 8. Managing change & assessment of social impact Felt needs of the key community related to core competencies Volunteering Process in the Community Social concerns addressed through programs Improving attitudes / government processes Self-reliance & sustenance Learning & Innovation transfer Effective Management & Good Governance & Deployment Mechanism.

Triple Bottom-Line: Building the Brand Assurance process

Improving the Quality of Life

Triple Bottom Line under the UN Global Reporting Initiatives & Global Compact under implementation in Tata Companies

Building Economic Capital

Building Environmental Capital

Building Social Capital

Tata Index for Sustainable Human Development Tata Index for Sustainable Human Development

27 Tata Companies signed the UN Global Compact 20 Tata Companies engaged in the UN Global Reporting Initiatives All Tata Companies enrolled under the CII-UNDP Social Code for Business.

Networking and Strategy Deployment

Cross-Functional Teams

Tata Group CSR Resource (TCCI / TQMS / Group-HR/ TMTC)

CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment) CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment) CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment) CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment) CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment) CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment) CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)

Sharing Best Practices

20 Tata Companies have formed these teams.

GRI

UN

CII

WBCSD & others

More Achieves Everyone Together

Thank You!

For further information, contact:

tcci@tata.com