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Tata Steel: A Project Report On Corporate Social Responsibility
Tata Steel: A Project Report On Corporate Social Responsibility
With reference to
TATA STEEL
Submitted in partial fulfillment of the requirement for the award of
degree of Masters of Management Studies [MMS- Semester I] under
Mumbai University
Submitted by –
MR. JAYESH DILIP WALANJ
Roll No. 15
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DECLARATION
Signature of Student
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ACKNOWLEDGEMENT
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Abstract:
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INDEX
Chapter-8 Bibliography 45
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OBJECTIVE OF PROJECT:
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Executive Summary
Although the contemporary CSR agenda is maturing, the term “CSR” has not yet
taken hold within many public sector agencies, either in industrial or developing
countries. Few government initiatives have been undertaken explicitly as “pro-CSR
initiatives” but nonetheless many have contributed effectively to the promotion of greater
social responsibility.
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Chapter 2:
INTRODUCTION TO CSR
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INTRODUCTION TO CSR:-
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Is CSR the same as business ethics?
Both concepts concern values, objectives and decision based on something than
the pursuit of profits
designed to increase its profit so long as it stays will the rules of the game, which is
to say, engages in open and free competition, without deception or fraud.” [Milton The
difference is that ethics concern individual actions which can be assessed as right or
wrong by reference to moral principles. CSR is about the organisation’s obligations to all
stakeholders – and not just shareholders.
Legal - responsibility to comply with the law (society’s codification of right and
wrong)
Ethical - not acting just for profit but doing what is right, just and fair
Being a good corporate citizen contributing to the community and the quality of
life
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There are two schools of thought on this issue:
In the free market view, the job of business is to create wealth with the interests
of the shareholders as the guiding principle
“There is one and only one social responsibility of business- to use its resources
and engage in activities Friedman, American economist]
Managers who have been put in charge of a business have no right to give away
the money of the owners
Managers are employed to generate wealth for the shareholders - not give it
away
Free markets and capitalism have been at the centre of economic and social
development
To attract quality workers it is necessary to offer better pay and conditions and
this leads to a rise in standards of living and wealth creation
It is true that at times the market fails and therefore some regulation is necessary
to redress the balance
But the correcting of market failures is a matter for government - not business
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The free market case against corporate social responsibility
The only social responsibility of business is to create shareholder wealth
The efficient use of resources will be reduced if businesses are restricted in how
they can produce
Stakeholder theory
The basic premise is that business organisations have responsibility to various groups
in society (the internal and external stakeholders) and not just the owners/ shareholders
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Decisions should be taken in the wider interest and not just the narrow shareholder
interest
Enlightened self interest is summed up in this quotation from Anita Roddick (founder of
the Body Shop):“Being good is good for business”
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CSR behaviour can benefit the firm in several ways
It aids the attraction and retention of staff
It differentiates the firm from its competitor and can be a source of competitive
advantage
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Models of Corporate Social Responsibility
There are some models, which endeavor to describe the evolution and extent
of social orientation of companies.
Carroll’s Model:
He defines CSR as a range and obligations a business has towards the
society. There are four categories of the obligation.
Discretionary
Resp.
Ethical Resp.
Legal Resp.
Orgn Economic Resp.
Economic Responsibility:
Legal Responsibility:
A company performs this because it is bound to obey the law and the legal
system.
Ethical Responsibility:
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Discretionary Responsibility:
Ackerman’s Model:
Also described that CSR done by a company generally spreads over three
phases:
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CAHPTER: - 3
INTIODUCTION TO STEEL
INDUSTRY
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INTRODUCTION TO THE INDUSTRY –
The modern steel industry is inseparable from the second Industrial Revolution of the
nineteenth century. From simple, small-batch production, new technologies such as the
Bessemer process (developed in England in 1854) contributed to the mass production
of steel. The industry diffused throughout Europe and the United States. The depression
of the 1890s and subsequent mergers consolidated the American industry. In 1901 U.S.
Steel, then the world’s largest company, was formed. Scale of production increased
dramatically in the twentieth century with large-scale blast furnaces to melt iron ore, its
reduction in open hearth furnaces, followed by larger and more efficient basic oxygen
furnaces (developed in Austria in 1954), continuous casting of molten steel, and port-
based mills (in Japan and South Korea), which relied on massive ships capable of
transporting imported raw materials and exports of finished steel products
inexpensively. In the United States in the 1980s Kenneth Iverson adopted German
innovations in electric arc furnace (EAF) technology. These mini-mills relied on recycled
scrap or natural gas–based directly reduced iron (DRI) and thin slab casting. Mini-mills’
smaller scale added to its flexibility and competitiveness compared to blast furnace–
based integrated producers.
The geographical location of steel mills was dictated by the availability of coal and iron
ore. For the United States in the mid-1800s coal fields in eastern states such as
Pennsylvania, Ohio, New York, and New Jersey attracted major iron works. Similarly,
the availability of iron ore and coal around Birmingham, Alabama, and later in the late
nineteenth century in Minnesota and Michigan influenced the location of steel mills in
the Great Lakes region with Chicago as a major market. Such patterns have been found
in other countries such as Brazil and India where mills were located near mines.
However, in East Asian countries such as South Korea, Taiwan, and Japan, devoid of
raw materials, a new pattern of plant location emerged, targeting coastal locations to
source raw materials from and export finished steel to the world economy.
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accommodated high wages for steel workers. A major steel strike in 1959 paralyzed the
economy, which was soon followed by brief controls of steel prices during the Vietnam
War under the Kennedy administration (1961–1963) to stem inflationary pressures.
John F. Kennedy asked steel workers to restrain their wage demands on the condition
that steel corporations such as U.S. Steel would not raise prices. While workers kept
their part of the bargain the companies did not as prices increased by $6 a ton. An
infuriated Kennedy found such action as “wholly unjustifiable and irresponsible defiance
of the public interest” (Kennedy 1962). Such price controls have been maintained
worldwide through subsidies and public ownership because of the industry’s dense
intersect oral linkages. Not only are investments and employment encouraged in other
industries but also economy-wide inflation is restrained. Steel is also a strategic industry
with direct links to the defense sector.
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INTRODUCTION TO INDIAN STEEL INDUSTRIES -
1. Introduction
The iron and steel industry presents one of the most energy intensive
sectors within the Indian economy and is therefore of particular interest in
the context of both local and global environmental discussions. Increases
in productivity through the adoption of more efficient and cleaner
technologies in the manufacturing sector will be effective in merging
economic, environmental, and social development objectives. A historical
examination of productivity growth in India’s industries embedded into a
broader analysis o f structural composition and policy changes will help
identif y potential future development strategies that lead towards a more
sustainable development path.
Issues of productivity growth and patterns of substitution in the iron and
steel sector as well as in other energy intensive industries in India have
been discussed from various perspectives.
Historical estimates vary from indicating an improvement to a decline in
the sector’s productivity. The variation depends mainly on the time period
considered, the source of data, the type of indices and econometric
specifications used for reporting productivity growth. Regarding patterns
of substitution most analyses focus on interfuse substitution possibilities
in the context of rising energy demand. Not much res earch has been
conducted on patterns of substitution among the primary and secondary
input factors: Capital, labor, energy and materials. However, analyzing the
use and substitution possibilities of these factors as well as identif ying
the main drivers of Productivity growth among these and other factors is
of special importance for understanding technological and overall
development of an industry.
In this paper we contribute to the discussion on productivity growth and
the role of technological
Change within the context of global environmental change. W e will
introduce the iron and steel industry in more detail taking into account
industry specific aspects such as structural Composition, production,
technologies, energy consumption within processes, enviro nmental
impacts, sector specific policies etc. This following we derive both
statistical and econometric estimates of productivity growth for the iron
and steel sector over time. For the statistical analysis we calculate partial
and total productivity in a growth accounting framework while for the
Econometric analysis a translog cost function approach is employed to
estimate productivity growth, technical change biases and substitution
elasticity. The results will then be interpreted
W ithin a broader context of structural and policy changes in the sector as
well as other sector specific aspects.
Future energy use and carbon emissions depend on the level of
production and the technologies employed. Furthermore, different
economic and policy settings affect st ructures and efficiencies within the
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sector. The final section therefore examines the ongoing changes in the
iron and steel industry structure. It will compare world best technologies
to Indian technologies and identif y potentials and barriers to the adopt ion
of such efficiency improvements. A scenario analysis will conclude the
report in highlighting the energy efficiency and productivity improvements
that could be achieved by employing more efficient technologies
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Others major steel producers in India are:-
1. TISCO ( Tata Iron and Steel Corporation ltd)
2. Essar Steel
3. Jindal Vijaynagar Steels Ltd
4. Jindal Strips Ltd
5. JISCO
6. Saw Pipes
7. Uttam Steels Ltd
8. Ispat Industries Ltd
9. Mukand Ltd
10. \Mahindra Ugine Steel Company Ltd
11. Tata SSL Ltd
12. Usha Ispat Ltd
13. Kalyani Steel Ltd
14. Electro Steel Castings Ltd
15. Sesa Goa Ltd
16. NMDC
17. Lloyds SteeI Industries Ltd
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Chapter: - 4
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History – Tata Steel
The origins and ascent of Tata Steel, which has culminated into the century long history of an
industrial empire, emerge from the illustrious efforts of India's original iron man and the
remarkable people who thereafter, have kept the fire burning.
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The story of Tata Steel is a century old. And so is the story of steel in India. Etched with
the visions and hardships of a single man, the story has flowed through ages to redefine
steel in every way. The saga, which started in 1907, completes a century of trust in
2007. Over the years this one company has exposed the various shapes and forms in
which steel can be applied for effective utilization. The story of Tata Steel: defines and
redefines conventional wisdom in myriad ways.
The great Iron Pillar, a thousand years older than the Qutab Minar stands as a living
testimony to the unmatched skills of ancient Indian metallurgists. They had so perfected
the craft of forging that Indian steel was highly sought after. In Marco Polo’s travels
there is a reference to andanique, a corruption of the Persian hundawaniy, i.e. Indian
steel. Tavernier, the 17th century French traveller, mentions the existence of a steel
industry in the “Kingdom of Golconda”. And the Arab Edrisi declared, “The Hindus excel
in the manufacture of iron”. For centuries, therefore, steel of remarkably superior quality
was being fashioned in India out of primitive furnaces, to be used, for instance, in the
preparation of medicine and in the manufacture of arms. It was only in the last century
with the advent of the Industrial Revolution that the time- honoured skills of Indian
ironsmiths began to die.
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second-most profitable private -sector company, with consolidated
revenues of 118,753 crore (US$24.08 billion) and net profit of over
8,983 crore (US$1.82 billion) in the year ended March 31, 2011. Tata
Steel is the eighth most -valuable Indian brand acco rding to an annual
survey conducted by Brand Finance and The Economic Times in 2010. It
is currently ranked 410th in the Fortune Global 500 .
Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with its
recent acquisitions; the company has become a multinational with
operations in various countries. The Jamshedpur plant contains the DCS
supplied by Honeywell. The registered office of Tata Steel is in Mumbai.
The
company was also recognized as the world's best steel producer by W orld
Steel Dynamics in 2005. The company is listed on Bombay Stock
Exchange and National Stock Exchange of India , and employs about
82,700 people (as of 2007). In August 2007 Tata Steel won the bid to
acquire the UK -based steel maker Corus i n what was, to date, the largest
international acquisition by an Indian company. It made the Tata Group
the world's fifth largest steel maker, and catapulted them to the global
league.
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Tata steel
Industry Steel
Founded 1907
Employees 81,269
Website www.tatasteel.com
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Chapter:- 5
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CSR activities of TATA industry –
Employability
1085 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,
enhancing their employability
As a part of its skill development programme, the company has identified 10ITIs across
the country to upgrade their facilities and enhance the relevance of their programmes to
industry needs. Of these four it is have been covered in 2007-08. They have been
equipped with the latest machines and tools, the students have been taken on exposure
visits to understand manufacturing processes and Train the Trainer programmes have
been organised for their faculty
All the 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 dealership. Two students from the
previous batch have been facilitated to open their own workship on the Mumbai-
Ahmedabad Highway
Health
Curative and preventive health services were provided to over 92390 persons through
the company’s community health programmes. In Jameshedpur, 374 indivisuals
benefited from cataract operations conducted free of cost.
Special country-wide programmes were conducted for drivers during service camps
Towards the company’s drive for total sanitation in adopted viallages, 1940 low cost
toilets were constructed
12 hand pumps were installed and 3 wells were repaired , ensuring clean drinking water
supply for over 3500 villagers. Tanker facilities were deployed during summer months to
meet drinking water requirements of rain-parched rural areas in Pune district,
Maharashtra
Education:
Shiksha Prasar Kendra, a TATA Motors society at Jamshedupur supported 18000
students from across 33 schools . Scholarships for higher studies were awarded to 375
students. Extra curricular activities were organised in 31 schools in which over 4300
students participated
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Infrastructure was improved at 13 schools , promoting higher education for 2000
children from over 25 villages. This includes a computer lab at Beraberi High school at
Singur in West Bengal
Environment:
Over 175242 saplings have been planted with a 80% survival rate
Community irrigation wells and check dams have been constructed at villages near
Pune , augmenting incomes of families through improved irrigation. In Jamshedpur, 85
acres of land has been brought under irrigation and tree plantation has extensively been
carried out in over 152 acres
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Education -
Development of the communities in its areas of operation is facilitated by Tata Steel
through basic education, technical competency training and skills development apart
from other initiatives. The Company has been playing a leading role in Odisha in
sustainable growth of the rural and tribal population by integrating them in mainstream
economy through education.
Tata Steel has built or facilitated the construction of 200 educational institutions
in Jajpur district. To improve the educational infrastructure of schools in the
neighboring areas, the Company has taken proactive initiatives in repairing and
construction of buildings, construction of boundary walls, distribution of desks
and benches to schools, apart from distribution of essential items to students.
To popularize education and provide a healthy environment for the students to
pursue their studies, Tata Steel provides mattresses, pillows, blankets and trays
to various residential schools located in Kalinganagar area. Besides, medicated
mosquito nets, notebooks are also distributed to the school students by Tata
Steel.
Education in Tata Steel Parivar at present is being handled through 12 education
centres running at five locations, catering to children in the age group of 3 to 14
years.
Computer Based Functional Literacy (CBFL) programmes are conducted through
six adult literacy centre.
A thorough monitoring system tracks performance of children on a monthly basis.
Various extracurricular activities are conducted to foster both mental and physical
well being of the children. In the past years series of workshops were held on the
occasion of Sishu Mela. A children’s magazine called 'Ama Prathama Lekha' is
being published annually. Centres are also provided with monthly subscription of
other children’s magazines.
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Initiatives in Sports-
Tata Steel has helped to create an atmosphere conducive to sports promotion and also
created champions who have made the Country proud. In India, Tata Steel pays special
attention to the sporting activities for youth at the State and National levels. The
Company has begun work for opening Feeder Centers at out-locations and in
Greenfield project areas. Plans are in place for opening Excellence Centers in selected
sports at various schools, which have the infrastructure.
Tata Steel is in the process of extending its support in a formalised way to Hockey, the
traditional sport of Jharkhand and the National sport of India. In addition, training of the
Bhutan Archery Team is a part of the CSR activity of Taj Tashi, Bhutan.
Tata Steel leads the effort by the Confederation of Indian Industry (CII) to create "golden
hopes" for India. It is the only Indian company to invest in world-class facilities, create
academies and to maintain and manage international level arenas. Apart from setting
up academies in various fields of sports, the initiatives include the following facilities:
collapse all
Tata Football Academy
Tata Archery Academy
Tata Athletics Academy
Tata Steel Adventure Foundation
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HEALTH-
Extending better healthcare facilities to the people in its areas of operation and in
upcoming project areas has always been a priority in Tata Steel's periphery
development and CSR plan. At the rehabilitation colonies of Odisha, healthcare is given
a broader perspective beyond its familiar territories of treatment and intervention. It is
approached at an individual level to bring about greater impact for the community.
Whereas earlier, people had extremely limited access to healthcare facilities, that too of
inferior quality, post-relocation they have seen a marked improvement in conditions. For
the most part this is due to sincere efforts by the R&R team to integrate well being and
healthcare with the key determinants of total rehabilitation.
A team of three doctors, six paramedics and six community health assistants are
supported by fifteen community health facilitators (referred to as ‘Swasthya Mitras') to
ensure quality health services to all the families in the Parivar Colonies.
Apart from Tata Steel Parivar families, the hospital would cater to around 10000 people
from the nearby villages. Various health services like rural health check-up
programmes, health camps during epidemics and awareness building activities for
people would also be planned through the hospital. Till the completion of the hospital,
the Company is running a dispensary at Gobarghati, which has seen overwhelming
response from the people.
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Tata Steel Healthcare Programme in Number of tribal children
Tribal Residential Schools attended
Several children in the rural and tribal areas
Bandhagaon residential school - 70
of the state are found malnourished due to a
Tamka High School - more than 300
number of factors. In the Kalinganagar area
Tamka residential school - 350
TSRDS has taken up five tribal residential
Phuljhar residential school - 260
schools under the school healthcare
Rampilo Kanya Ashram - around 450
programme with the objective of taking care
of children through regular health check-ups and free medicines distribution. Company
doctors along with trained para-medical staff visit each of the schools once a month for
this purpose. Besides, students in the tribal residential schools are also taught about
basic healthcare and hygiene.
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Women Empowerment
The successful functioning of Self Help Groups (SHGs) and various other women
empowerment activities undertaken by Tata Steel for the rehabilitated families of Tata
Steel Parivar has set an example for others. While the literacy level has increased
significantly for women of Tata Parivar families in last four years, all of them now have
round-the-clock access to the modern medical services provided by Tata Steel’s
Rehabilitation and Resettlement team. This has resulted in reducing the maternal
mortality rate to zero with much better level of antenatal care, zero adolescence
pregnancy and better understanding of family planning needs.
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Empowerment through SHGs
More than 60% of the women members of Tata Parivar have launched income
generation programmes with an objective of making their families economically
sustainable. At the moment there are 22 all-women Tata Parivar SHGs. In order to
achieve better levels of income, the rehabilitation and resettlement team of Tata Steel is
continuously imparting Capacity Building Training in the sectors Soura Painting,
Stitching, Poultry & Goat Rearing and Computer based literacy programmes. Even girls
are availing technical education through Tata Steel Parivar Scholarship programmes.
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Tejaswini Training Programme
As a first step in this direction, a training-cum-exposure visit was organised for 17 tribal
women, who belong to different SHGs, at Gandhi Labour Foundation, Puri. Tata Steel
makes it a point to educate the SHGs in terms of enhancing productivity, acquiring
loans, in market planning of products and utilisation of funds through workshops and
exposure visits. The participants were also taken on a trip to Pipili to get an idea of the
appliqué industry there and develop interest in different crafts for livelihood earning.
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Tata Memorial Centre:-
Geography
Organization
History
Links
Website tatamemorialcentre.com
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The Tata Memorial Hospital is situated in Parel, Mumbai in India. It is a specialist cancer
treatment and research centre, closely associated with the Advanced Centre for
Treatment, Research and Education in Cancer (ACTREC). One of the fields of
specialization of this hospital is in the treatment of acute lymphoblastic leukemia (A.L.L).
The hospital claims to treat and cure 99% of the A.L.L patients. This hospital is also one
of the few in India to have a P.E.T. scanner. The Director of this hospital is Dr. Rajendra
A Badwe, who took over from for director Dr. K.A. Dinshaw (who superannuated after
13 years in the institution), while the head of the Bio-Imaging Unit is Dr. Venkatesh
Rangarajan.
The Tata Memorial Centre is the national comprehensive cancer
centre for the prevention, treatment, education and research in Cancer and is
recognized as one of the leading cancer centres in this part of the world. This
achievement has been possible due to the far-sighted and total support of the
Department of Atomic Energy, under Dr. Homi N Sethna responsible for managing this
Institution since 1962. The Tata Memorial Hospital was initially commissioned by the Sir
Dorabji Tata Trust on 28 February 1941 as a center with enduring value and a mission
for concern for the Indian people.
In 1952 the Indian Cancer Research Centre was established as a
pioneer research institute for basic research—later called the Cancer Research Institute
(CRI). In 1957 the Ministry of Health took over the Tata Memorial Hospital. The transfer
of the administrative control of the Tata Memorial Centre (Tata Memorial Hospital &
Cancer Research Institute) to the Department of Atomic Energy.
In 1962 was the next major milestone. The Tata Memorial Hospital and
Cancer Research Institute merged as the two arms of the Tata Memorial Centre (TMC)
in 1966 as a classic example of private philanthropy augmented by Government support
with a mandate for Service, Education & Research in Cancer.
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Analysis and Interpretation
The local population gains the most as a result of the TISCO operations. Apart
from benefits accruing from the primary function of the corporation, HMIL has been
extending full support in the overall development of the areas around its operations all
over the country. The execution of these programmes has been further streamlined.
Work-centre-wise allocations are made each year and programmes are being executed
under the comprehensive guidelines issued on the subject. Major emphasis has been
given for promotion of education, health and community development and in times of
natural calamities such as floods, cyclones, earthquakes, landslides, etc. The impact of
these concerted efforts is felt by the community. TISCO programs about health care,
helping the educational institutions are widely appreciated.
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Conclusion and Suggestions
The findings reveal that each of the leading operators has its own approach to
CSR and that there are substantial variations in the nature and the extent of reporting.
More specifically the paper focuses upon four sets of CSR issues namely those relating
to the marketplace; the workplace; the environment; and the community and then
provides some reflections on the commitment to these issues at both corporate and
individual public levels. Research implications/limitations – CSR in the pub sector of the
hospitality industry has received relatively little attention from academics but the case
study suggests a number of fertile grounds for future enquiry and research. That said
the current case is a preliminary exploration of CSR issues as reported on the
worldwide web and more in depth work will be needed before more definitive
conclusions can be drawn.
It has been argued that there are considerable evidence and significant
opportunities for TISCO to contribute in a sustainable manner to social value creation
through CSR related training initiatives in developing countries.
Through the present Project, and taking into account, we consider that we have
identified some working avenues that international organizations, state governments, or
both working together, could undertake with the goal of inspiring and orienting the
challenge of localizing CSR training initiatives.
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Localizing CSR training initiatives requires relevant national needs with the
business strategies and competences. Only then, can we consider the possibility of
arriving at a shared understanding and agreement on the way in which we can
contribute to social value creation through business development.
In this context, one option would be setting a CSR agency, which can support
and encourage the development of a CSR leading entity at national level: “localizing
CSR”, integrating government, private sector and civil society organizations. There is a
need to fill the gap for addressing initiatives to further and optimize the CSR
advantages. Among them:
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Bibliography –
1. www.google.com
2. www.tatasteel.com
4. www.tata.com
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