CORPORATE SOCIAL

RESPONSIBILITY
SUBMITTED TO
[Vaishali Bhatt]

SUBMITTED BY

Desai Soha 11
Dobariya Bhavisha 13
Sojitra Jimita 43
Champaneriya Tulsi 5

Master of Business Economics

[M.B.E]
Semester – III

DEPARTMENT OF ECONOMICS
VEER NARMAD SOUTH GUJARAT UNIVERSITY
SURAT – 395 007
[JULY 2009]

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 Definition of CSR
The World Business Council for Sustainable Development in its publication
"Making Good Business Sense" by Lord Holme and Richard Watts, used the
following definition. "Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their
families as well as of the local community and society at large"

Traditionally in the United States, CSR has been defined much more in
terms of a philanphropic model. Companies make profits, unhindered except
by fulfilling their duty to pay taxes. Then they donate a certain share of the
profits to charitable causes. It is seen as tainting the act for the company to
receive any benefit from the giving.

The European model is much more focused on operating the core business in
a socially responsible way, complemented by investment in communities for
solid business case reasons. Personally, I believe this model is more
sustainable because:

1. Social responsibility becomes an integral part of the wealth creation

process - which if managed properly should enhance the
competitiveness of business and maximise the value of wealth
creation to society.
2. When times get hard, there is the incentive to practice CSR more and
better - if it is a philanphropic exercise which is peripheral to the main
business, it will always be the first thing to go when push comes to
shove.

But as with any process based on the collective activities of communities of

human beings (as companies are) there is no "one size fits all". In different
countries, there will be different priorities, and values that will shape how
business act. And even the observations above are changing over time. The
US has growing numbers of people looking towards core business issues.

For instance, the CSR definition used by Business for Social Responsibility
is: "Operating a business in a manner that meets or exceeds the ethical,
legal, commercial and public expectations that society has of business?Ĺ.

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Different organisations have framed different definitions - although there is
considerable common ground between them. My own definition is that CSR
is about how companies manage the business processes to produce an
overall positive impact on society.

Take the following illustration:

Companies need to answer to two aspects of their operations. 1. The quality

of their management - both in terms of people and processes (the inner
circle). 2. The nature of, and quantity of their impact on society in the
various areas.

Outside stakeholders are taking an increasing interest in the activity of the

company. Most look to the outer circle - what the company has actually
done, good or bad, in terms of its products and services, in terms of its
impact on the environment and on local communities, or in how it treats and
develops its workforce. Out of the various stakeholders, it is financial
analysts who are predominantly focused - as well as past financial
performance - on quality of management as an indicator of likely future
performance.

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Corporate Social Responsibility
of TATA Company

Tata Steel is a pioneer in the concept of CSR. It believes that the loyalty and
commitment of its employees depend upon the quality of life they are
provided with at work and at home. The company has constantly
endeavoured in improving the quality of life of its employees and also of the
citizens residing in and around the Steel Works in Jamshedpur and the
various out locations scattered in different States in the country as well as
abroad. Consistent with the Group Purpose, Tata Steel has declared in its
vision statement that it will constantly strive to improve the quality of life of
the communities it serves through excellence in all facets of its activities.

Tata Steel has always being proactive in its responsibility towards the well-
being of the society and its focus has been to make its Corporate Social
Responsibility efforts more effective. Year after year the company makes
available health care services to employees and non employees. Through
mobile medical units and community based programme, it reaches out with
preventive and curative care to semi urban and rural areas. Through the
implementation of various health related awareness programmes Tata Steel
has ably kept carrying the message of good health and hygiene to all within
and beyond its operational areas. The company has not only successfully
changed notions of thousands of villages on water and sanitation , two of the
basic needs for healthy life, but it has also been also successful in the battle
against problems like maternal and child mortality, AIDS ,Tuberculosis and
many more.

CULTURE
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Tata Steel has set up the Tribal Culture Centre (TCC) at a cost of Rs
35,00,000. This Centre showcases the tribal legacy of four major and five
minor tribes of Jharkhand and Orissa and evokes a lot of interest amidst
scholars, researchers and even laypersons. TCC not only documents
relevant research but also enables the continuation of the tradition by
sharing it with the youth and non-tribals.
Additionally, a Santhali Language Laboratory has also been initiated in the
Centre since 2002-03.

The centre was instrumental in reviving the now almost forgotten 'Kati' - a
game played between two teams that attempt to score points by hitting the
opponent's Kati - a semicircular piece of wood by a long wooden stick using
their feet. Known to be a game that used to be played by youths in non
agricultural season, it tests the team spirit, physical strength and
concentration levels of the players.

SPORTS
Tata Steel has used its know-how and resources in the area of sports to help
tribals discover their untapped potential, enabling them to gain a foothold
in the social mainstream and the confidence to compete and excel.
Every year, Tata Steel identifies 12 potential tribal athletes and provides
them subsistence and accommodation along with training. It assists them to
participate in the state, regional and National meets. All this is done at an
approximate cost of Rs. 1,25,000 annually.
The Company also enables tribals to enter the Tata Archery Academy where
they are trained in a sport that they already have a flair for. The Tata
Football Academy and Tata Athletic Academy also nurtures and trains the
participants from Jharkhand and Orissa.

Environment Management

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Tata Steel believes that environment management is integral to sustainable
business. The company's commitment in this area can be further gauged
from the fact, that Tata Steel is the first company in the country to be
conferred ISO-14001 Certification for its main steel works and utility
services in Jamshedpur. All its mines and collieries are also ISO-14001
Certified for environmental management.

Tata Steel's collieries and mines which support the 'Save Forests' campaign
are a benchmark in environment management, Further augmenting its
commitment in this field, Tata Steel, has planted 1.5 million surviving trees
as a part of the “Green Millennium” campaign. It may be worth mentioning
that Jamshedpur has the best tree cover in the country.

Health and Hygiene

The tribal population is dispersed across a wide geographical area of
Jharkhand and Orissa, where most of Tata Steel's operating units are
located. To promote better health among them, Tata Steel operates 46
mobile clinics in areas within Jamshedpur, surrounding rural areas and the

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mines and collieries in Noamundi, West Bokaro, Sukinda, Bamnipal and
Jamadoba, among others. The clinics provide diagnostic treatment and free
medicines at a cost of Rs. 3,75,000 per annum.
Tata Steel also organizes eye camps, which provide free treatment to
cataract patients, 75 per cent of whom are tribals.
The Company also ensures safe drinking water for the tribals by not only
installing new tube wells but also repairing and maintaining existing ones at
a cost of Rs. 5,50,000 per annum.
Life Line Express, a unique hospital on rails, has been sponsored ten times
by Tata Steel with the intention of making available medical facilities to
people living in remote villages of Jharkhand and Orissa. The medical
specialists of the Life Line Express perform corrective surgery for cleft, lip
and palate and cataract cases and also conduct workshop for men, women
and children. For some of them, such workshops are altogether a new
experience

Civic Amenities

Jamshedpur was built on the ideology that it would comprise not merely the
Steel Works but embody a step towards building a new Nation. Within years
the area leased to the Company was transformed into a well-planned

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township, largely due to the vision of the Founder Jamsetji Tata, whose
name it bears today.

In the early days, the population of the steel city of Jamshedpur, home to
Tata Steel, comprised a very large proportion of employees. Over time,
however, the population has come to be dominated by non-employees. The
transformation from 18 widely scattered villages, with a direct or indirect
association with the steel plant, to a bustling and vibrant urban township
saw the emergence of several rural islands. These were unplanned
settlements, with a high density of population, acquired by non-employees
from the indigenous people of the area.

The Company’s commitment to society saw it take the initiative to assist in

eliminating the imbalance in civic amenities between Company leased areas
and other non lease areas. It, therefore, encouraged the people to partner it
in the formation of a Committee and work with it for the progress of their
areas. It has extended amenities such as electricity, water, roads, sanitation,
handpumps and borewells to these areas.

The responsibility for providing civic amenities to a city spread over an area
of 64 sq kms, has been taken by Jamshedpur Utilities and Services Company
Limited (JUSCO), formerly Tata Steel’s Town Division.

In addition to improving the quality of life through civic services, the

Company provides playgrounds, clubhouses and community halls, libraries,
classrooms and water harvesting structures.

Planned Social Change Through Civic Growth

The desire of Independent India’s first generation of skilled workers,

technologists and scientists was to work with the one Company which till
then was virtually the only representative of heavy industry in the country.
Along with them also came many thousands of rural folk who saw in its
hearth the hope of a new home. When Max Weber, the German Sociologist
was advocating the transformation of traditional society into a modern one

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through industrialisation, Tata Steel had already transformed the jungles of
a few remote villages into the thriving steel city of Jamshedpur, where the
community lived in idyllic conditions.

Tata Steel sought to involve this growing body of people in helping

themselves improve their economic and social conditions. The Company
began implementing urban community development schemes, which
embraced employees and non-employees. It brought about planned social
change, with a view to making the community at large a beneficiary of its
enterprise. Tata Steel conducted its first socio-economic survey in 1958, on
the basis of which a Social Welfare Department was established.

Today, a Company with about 40,000 employees provides civic amenities

and community services to a population of over 7,00,000. Tata Steel’s wholly
owned subsidiary, Jamshedpur Utilities and Services Company Limited
(JUSCO), is the only ISO 14001 certified service-provider in the country.

Tata Steel has:

• Created 524 kilometres of roads
• Supplied 57.6 million m cube/ annum of clean water
• Provided comprehensive public health services and emergency fire
services
• Built markets, libraries and centres of education and higher learning

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 • Set up the 225 acre Jubilee Park with a Zoological Society; parks and
gardens dot the city

A catalyst for growth

Tata Steel is constantly augmenting town infrastructure to stimulate

economic growth. Jamshedpur is a hub of industrial activity in eastern
India, with a large number of medium and small industries located within
Jamshedpur as well as in very close proximity to it.

Tata Steel and network of associate and subsidiary companies provide

business opportunities to a large number of ancillary units and self
employed entrepreneurs.

Urban Engagements

The training and technical skills imparted by Tata Steel has created an
enormous resource pool of skilled personnel, which these industries tap for
further growth.

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A world-class Company, Tata Steel constantly encourages the industries
around it to draw from its knowledge, know-how and management learnings
to facilitate their own advancement. The Company has brought together 17
professional organisations, housed them at a facility provided by it, to create
the Society for the Promotion of Professional Excellence (SPPE). In
addition, it is a most generous supporter of local chapters of a large number
of professional organisations, with interests ranging from Cost Accountancy
and Chartered Accountancy, Management, Ceramics, Materials
Management, Engineering, Mining and Metallurgy as well as other
disciplines.

Rural Livelihood

Strong industrial progress augurs well for the urban community, but in a
country with 70% of its people dependent on agriculture for their livelihood,
progress can truly be achieved if tangible benefits reach the rural
community.

Tata Steel, therefore, devised the unique concept of taking its resources and
management tools to the grass roots while consciously aligning itself with
the poorest of the poor in this country. It works in conjunction with the
governments, district administrations and international organisations to
create a strong and resilient rural economy.

Twenty-five years ago with the creation of the Tata Steel Rural Development
Society (TSRDS), it leveraged its abilities for the growth and development of
the Nation. The income generation schemes promoted by it has allowed
villagers in over 700 villages to enjoy the fruits of their labour, without
having to tear themselves away from the land that provides them with their
very identity.

A mother NGO in rural areas

Tata Steel has since its inception authored a vital social role for itself. The
Company, as part of its Corporate Social Responsibility, initially undertook
social welfare functions through its Rural and Community Services Division.
However, the complexities involved, as well as the fundamental differences
between rural and urban drivers for development prompted Tata Steel to
separate them into individual units - Community Development and Social
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Welfare (CD & SW) and Social Services & Family Initiatives (SS&FI) for
rural & tribal areas and family initiative.

Years of involvement, first directly and then through the Tata Steel Rural
Development Society (TSRDS), for the uplift of the rural community has
enabled it to give food security, water and empowerment to idle hands,
barren lands and empty stomachs. In the process, it has become one of the
largest non-governmental agencies to be engaged in rural development in
the country.

TSRDS has, from the very onset sought to build capacity within the
community. The role that TSRDS has carved for itself is that of a pathfinder.
It has provided the impetus for growth to villagers by supplementing their
income and giving them direction. Over two and a half decades, it has
brought thousands of acres under multi-cropping, created and sustained
water resources and implemented scores of projects.

The roadmap for development created by TSRDS has been embraced with
gusto by the villagers. Once satisfied with food that would feed their families
for only half the year, they have journeyed to become self sufficient and
confident enough to operate bank accounts, explore urban markets and seek
access to development.

India’s foremost in Corporate Social Responsibility

Established:

Tata Steel Rural Development Society (TSRDS)

Community Development & Social Welfare Department (CD&SW)
Tribal Cultural Society (TCS)
Tata Steel Family Initiatives Foundation (TSFIF)

Supported and nurtured leadership among self help groups and village
advocacy groups

Encouraged multi cropping and irrigation across thousands of acres in over

700 villages

Earmarked dedicated resources for social welfare, rural and tribal development and
programmes for community empowerment

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