Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.

BMS-A (Group-5)

TATA

THE TATA GROUP:

The Tata group comprises over 90 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. The Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group was founded by Jamsetji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. Consequently, Jamsetji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the Group's ethos to this day. The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the country's GDP, and a market capitalization of $46.9 billion. Tata companies together employ some 202,712 people. The

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Group's 28 publicly listed enterprisesamong them stand out names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Teahave a combined market capitalization that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million. The Tata Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity, and responsibility. These values, which have been part of the Group's beliefs and convictions from its earliest days, continue to guide and drive the business decisions of Tata companies. The Group and its enterprises have been steadfast and distinctive in their adherence to business ethics and their commitment to corporate social responsibility. This legacy has earned the Group the trust of many millions of stakeholders in a measure few business houses anywhere in the world can match. The blue colored log of Tata speaks for fluidity as well as fountain of knowledge. It can also be seen as a tree under which all are welcome to take refuge.

CSR OVERVIEW:
Tata group is one of the Indias oldest largest and most respected business conglomerates is a leader in the CSR scene. The Tata group has been recognized by its Endeavour to institutionalize CSR in its 96 companies and integrate CSR with its business processes. With a strong commitment from its top management it has developed tools such as the Tata Index for sustainable human development, a model for measuring the social work that the group enterprises undertake. With investments as high as rs.380 crore, the Tata Group is a benchmark for Indian companies.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Vision/Mission and the Philosophy Regarding CSR:  VISION:

To be the most admired Integrated Power and Energy Company delivering sustainable value to all stakeholders.

 MISSION:
At the Tata group, we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business values.

 CORE VALUES:
The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance group synergy and becoming globally competitive is our chosen route to sustained growth and long-term success. Tata companys values are:
y

Integrity: We will conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding: We will be caring, show respect, compassion, and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve. Excellence: We will constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services, we provide.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Unity: We will work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Responsibility: We will continue to be responsible, sensitive to the countries, communities, and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Corporate social responsibility is represented by the contributions undertaken by companies to society through its business activities and its social investment. This is also to connect the Concept of sustainable development to the companys level. Over the last years, an increasing number of companies worldwide started promoting their Corporate Social Responsibility strategies because the customers, the public, and the investors expect them to act sustainable as well as responsible. In most cases, CSR is a result of a variety of social, environmental and economic pressures. The Term Corporate Social Responsibility is imprecise and its application differs. CSR can not only refer to the compliance of human right standards, labor and social security arrangements, but also to the fight against climate change, sustainable management of natural resources and consumer protection.

 TATA: Tata is a window into the rise of India. While that rise is often traced to freemarket reforms that began in the early 90s, Tata executives emphasize that even now, the company grows despite obstacles thrown up by red tape and special interests.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

With the purpose of inculcating a sense of responsible citizenship in the young generation of the country, Tata has incorporated a range of programmes in its comprehensive CSR curriculum that are specially designed for the purpose. The initiatives encompass JRD Tatas vision for the country and the values that he upheld. Youth Leadership projects include activities related to civic education, leadership development, and community service. Along the way, participants develop associations with each other and cultivate a sense of team spirit and collective responsibility.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

MEANING:
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.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

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.

Is CSR the same as business ethics?

y y y

There is clearly an overlap between CSR and business ethics. Both concepts concern values, objectives, and decision based on something than the pursuit of profits. And socially responsible firms must act ethically

The difference is that ethics concern individual actions, which can be assessed as right or wrong by reference to moral principles. There are four dimensions of corporate responsibility:
y y y y y

Economic - responsibility to earn profit for owners. Legal - responsibility to comply with the law (societys codification of right and wrong). Ethical - not acting just for profit but doing what is right, just and fair. Voluntary and philanthropic - promoting human welfare and goodwill. Being a good corporate citizen contributing to the community and the quality of life.

The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holmes 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.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

The five identified key elements found in most definitions of CSR: y Corporations have responsibilities that go beyond the production of goods and services at a profit. y These responsibilities involve helping to solve important social problems, especially those they have helped create. y Corporations have a broader constituency than stockholders alone. y Corporations have impacts that go beyond simple marketplace transactions. y Corporations serve wider range of human values than can be captured by a sole focus on economic values.

CSR TOWARDS EMPLOYEES:

Social responsibility boosts employee engagement. Investing in small businesses to stimulate economic growth across the globe; allowing employees to take paid time off to volunteer in their communities; providing scholarships to students who are the first in their families to go to college; setting corporate goals to reduce carbon emissions; these are just a few examples of how one multibillion dollar company is demonstrating its commitment to corporate social responsibility. However, in tough economic times, ensuring a companys survival seems difficult enough, without adding corporate citizenship priorities into the mix. With everything going on, beginning or maintaining strong corporate social responsibility (CSR) initiatives may not be at the top of a companys priority list. Lets face it, not every company has money and resources to spare, especially now while the economy is not strong. What are the benefits of investing in CSR? Does CSR impact employee attitudes? Might CSR actually help the corporate bottom line? Research suggests that companies may receive external benefits from implementing CSR policies. Field based and laboratory studies have found that CSR is linked to more favorable corporate evaluations, increased purchase behaviour, higher customer satisfaction and market value of a firm all of which is believed to translate into increased profitability for the corporation.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

There is also some evidence that CSR is beneficial because as with customers CSR improves employees perceptions of the company. When a company has CSR initiatives, employees are more proud of and committed to the organization. This is because our personal identities are partly tied up in the companies that we work for. If my company is saving the world, I am too, so my association with the company reflects positively on me and makes me feel good about the work I do for the company. Data from CCLs World Leadership Study also support this finding: employees perceptions of their organizations concern for community and environment is linked to their level of organizational commitment. Even after controlling for a whole host of relevant variables, perceptions of CSR make a unique and positive contribution to overall commitment. That is, the higher an employee rates their organizations corporate citizenship, the more committed they are to the organization. Figure 1 shows one sample item from the CSR scale, my organization behaves as a good corporate citizen and its relationship to organizational commitment. It is likely the case that the relationship works both ways commitment enhances employees ratings of corporate image and positive image increases employees commitment. It make sense that knowing about the good deeds of an organization might make an employee more eager to discuss their company with outsiders, as well as feeling more committed to their organization which is doing these good things. Organizational commitment has been linked to favorable outcomes for companies including increased job satisfaction, reduced intentions to turnover, and increased job involvement.

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

CSR TOWARDS GOVERNMENT:

Good Corporate Governance includes socially responsible business practices. A socially responsible approach to business would involve attention to social and environmental concerns in addition to economic goals and encourage companies to balance financial profits, economic value addition, and social good. Social responsibility is the responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviors that is consistent with sustainable development and the welfare of society and takes into account the expectations of stakeholders. Corporate Social Responsibility (CSR) is one such niche area of corporate behaviour and governance that needs to be addressed and effectively implemented in the organization. CSR is one of the effective tools that synergizes the efforts of corporate and the social sector agencies towards sustainable growth and development of social objectives at large. CSR is at heart a process of managing the costs and benefits of business activity to both internal (employees, shareholders, investors) and external (institution of public governance, community members, civil society groups, other enterprises) stakeholders. Keeping in view the importance of PSUs in discharging social obligation, a limited review on the initiatives taken by the PSUs in selected sectors viz. Oil and Natural Gas Sector, Coal and Power Sector towards CSR was conducted. The main focus of the review was on the following aspects:      CSR Policy. System of planning for CSR activities. System of fixation of targets for CSR activities. Budget allocation and budget utilization for CSR activities . Monitoring mechanism for implementation of CSR activities.

10

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

CSR TOWARDS CUSTOMERS:

Corporate social responsibility (CSR) activities have the potential to create several distinct forms of value for customers. It is the customer perception of this value that mediates the relationship between CSR activities and subsequent financial performance. By categorizing major CSR activities and the different types of value each can create, this report offers a number of practical recommendations to business leaders embarking in CSR programs for their companies. CSR Activities and Customer Value: Corporate social responsibility has been defined as a business organizations configuration of principles of social responsibility, processes of social responsiveness, and policies, programs, and observable outcomes as they relate to the firms social relationships. It consists of specific firm investments called activities. Collectively, over time, these activities can lead to a reputation for social responsibility a valuable business asset of its own. The multi-faceted customer value of CSR: Clearly, stakeholders must perceive value in a certain CSR activity to support the firms engagement in it. This is particularly true for the customer, a key stakeholder for any business enterprise. An effective model to examine the potential customer value creation of CSR activities defines value as an interactive, relativistic preference experience. Value is interactive because it can be created only when a firm and its customer come together. Value is based on preference because each customer responds to a product, service, or corporate initiative based on her personal, subjective taste. Finally, value is relativistic because each customers perception is influenced by external factors relative to the environment in which the customer lives (e.g., sensitivity to certain social issues depends on the level of education and the intellectual or experiential exposure of the customer to the issue).

11

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

CSR TOWARDS COMPETITORS:

Like the iceberg, most CSR activity is invisible...It is often an active attempt to increase corporate domination rather than simply a defensive 'image management' operation. CSR is supposed to be win-win. The companies make profits and society benefits. But who really wins? If there is a benefit to society, which in many cases is doubtful, is this outweighed by losses to society in other areas of the company's operation and by gains the corporation is able to make as a result? CSR has ulterior motives. One study showed that over 80% of corporate CSR decision-makers were very confident in the ability of good CSR practice to deliver branding and employee benefits. To take the example of simple corporate philanthropy, when corporations make donations to charity they are giving away their shareholders money, which they can only do if they see potential profit in it. This may be because they want to improve their image by associating themselves with a cause, to exploit a cheap vehicle for advertising, or to counter the claims of pressure groups, but there is always an underlying financial motive, so the company benefits more than the charity.

12

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

MAJOR CSR THEMES:

Tata groups CSR initiatives include all major themes such as education, health, environment, rural development, sports, arts & employee relations.

PROCESS:
CSR STRATEGY: Community initiatives: Each Tata company has its own priorities in social development. The main companies in the group, such as Tata Steel, Tata Tea and Tata Chemicals, have inhouse organizations dedicated to Community Initiatives. There are several projects, in different areas such as education, health, women-children welfare, rural development, income generation, sports, arts and others.

ENVIRONMENT: The groups contribution fall into two categories: y Efforts of Tata companies to preserve and enrich the environment y Philanthropic endeavour of the Tata Trusts, which support nongovernmental organizations. These two categories accommodate and nurture a variety of initiatives in a range that extends from watershed programs and land regeneration to forestry projects and protection of endangered species. The Tata approach to environmental management operates makes it mandatory for Group companies to: y Have a vision and mission statement that explicitly states its policy on environmental management y Define a corporate environment policy and communicate it to all employees.

13

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

y Set up environmental management systems and programs at the organizational level and annually budget for environmental improvement. y Train its workforce on environmental issues and assign management representatives and facilitators to the task of monitoring environmental systems. y Regularly scrutinize resource consumption and the quality of air, water and land. y Set quantitative objectives and targets for continuous improvement (preferably beyond legal compliance) y Review environmental performance at different levels in the management hierarchy. y Establishing a convention for conducting impact assessment surveys and periodic audits. y Publish annual environment performance in annual reports. y Encourage applications and attainment of eco-labels such as ISO 14000/01 This is to be followed by life cycle assessments and eco-labelling for product stewardship throughout the supply chain.

EMPLOYEE RELATIONS: The Tata Group has more than 245,000 employees. Tata were the pioneers in employee benefits that that were later mandated through legislation in Indai and elsewhere in the world. The eight hour working day, free medical aid, welfare departments, grievance cells, leave with pay, provident fund, accident compensation, training institutes, maternity benefits, bonus and gratuity were introduced by the group before any legal rules were framed on them.

14

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

CSR PROGRAMS:
Community initiatives: Temple of Knowledge Under the groups program to develop centers of learning and research, knowledge and intellectual capital, Tata funds five Indian Temples of Knowledge: y y y y y The Indian institute of science The Tata Institute of Fundamental Research The Tata Institute of Social Sciences The Tata Memorial Centre The JRD Tata Ecotechnology Centre

SPORTS: The Tata group has been supporting sports by creating academics in different disciplines and by backing talented sports people. Some initiatives of the gropu are: y The Tata Football Academy, set up in Jamshedpur in 1987, selects boys (14 years and below) and trains them for a four-year period in world class facilities, taking care of all their needs. y The Tata Archery Academy, established in Jamshedpur 1996, has produced a long list of archers who have won national and international honours. y The Tata Adventure Foundation, headed by Bachendri Pal, the first Indian women to climb Mount Everest, has rock climbing, river rafting, and parasailing sports agenda.

15

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

ARTS: Tatas initiative towards arts is best reflected by Tata Steel. It first sponsored scholarships for art in 1943, at the annual exhibition at the JJ School of Art, Bombay. The companys Art In Industry series has since then featured renounced Indian and international artists the Jamshedpur School of Arts has groomed local talent. Besides promoting contemporary Indian art, the Tatas had the vision of preserving the countrys performing arts. Indian folk and classical dance forms, music, and theatre, traditionally handed down through the gurukul system received a fillip when JJ Bhabha, along with others established and preserved for long year to establish the national centre for the performing arts (NCPA) in the year 1966. The Tata Group has also supported the cause of folk, tribal, and rural crafts. The Tribal Culture Centre (TCC), founded by Tata Steel in 1990 at cost of Rs. 35 Lakhs, is the showcase for the artistic talent for the tribal communities of Jharkhand.

Tata Chemicals Society for Rural Development:

Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala, where its facilities are located. Some of the initiatives of TCSRD are: y y y y y y y y y Agricultural development Education Women's programs Animal husbandry Rural energy Training Watershed development Relief work Infrastructure

16

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Tata Steel Rural Development Society:

Established in 1979, the Tata Steel Rural Development Society (TSRDS) is involved in social development programs aimed at helping the rural communities living around Tata Steel's units. TSRDS covered 32 villages around Jamshedpur in its first year of operation. Today the Society has seven units, six of them in Tata Steel's operational areas, and covers 600 villages in the states of Jharkhand and Orissa. TSRDS is most actively involved in the spheres of livelihood generation, health and hygiene, and people empowerment. Recently, TSRDS has expanded its agenda and identified the advancement of education, sports, and self-reliance as tools to ensure a better quality of life for the people it works with.

Rallilove ACTS:
Rallilove ACTS (Assisting Communities through Service), an organization set up by Rallis, seeks to improve the quality of life of the poor, especially women and children, through sustainable community development programs. Through ACTS, Rallis has been involved in the following community development initiatives: y Contribution to the Akanksha Foundation, Mumbai y Girl Child Project of Rallis Committed Community Development Trust (CCDT), Mumbai y Educational support for 285 underprivileged students in Lote, Maharashtra y Tree plantations in and around its factories and at RRC, Bangalore y Dental and eye check-up camps at various factories y Health awareness programs for Adivasis and other communities in Turbhe, Maharashtra y Rallis CCDT Ankur Girl Child Project aims to create opportunities for a healthy and safe environment for girls living on the streets near Kamapthipura, the largest red-light area in Mumbai.

17

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Voltas for Women:

Voltas for Women (VOW) was founded in 1965 and registered in 1975. The organization, whose membership is restricted to female employees of Voltas and the wives of male employees, helps the needy with assistance in health and education, and offers career and vocational guidance. VOW has supported a number of deserving organizations. Its contributions include: y Setting up a ward for female leprosy patients at the Vimala Dermatological Centre in Mumbai. y Establishing fully-equipped speech and physiotherapy units at SPJ Sadhana School for the handicapped, Sophia College, Mumbai. y Setting up a medical care unit at Asha Sadan, a home for destitute women and children run by the Maharashtra State Council of Women. y Providing audio-visual equipment to assist the mentally challenged at the Dilkush School at Juhu in suburban Mumbai.

2. Environment:
Waste Management: Tata Steel has laid great emphasis, over the years, on creating a green environment in and around its plants and on utilizing the waste generated in the process of manufacturing steel. The company generates roughly 700 kg of various wastes (excluding fly ash) in the process of producing one ton of crude steel. Of this, 83.16% is utilized either through recycling and reuse in the company's own processes or is sold as raw material to other industries. The rest is sent for safe land filling. A number of companies today look to Tata Steel for guidelines on efficient waste management, and the company is confident that its 'war on waste' will have far-reaching effects.

18

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Tatas Mini Jungle: Tata Motors created a mini-jungle in the surroundings areas of the Telco complex in Pune. The last previous biodiversity survey recorded the existence of more than 150,000 trees including 78 exotic species and 110 indigenous species, in the 800 acres complex. 3. Employee Relations: Learning: The Tata Groups programs include Tata Management Training Centre (TMTC), which provides training to high performers within the Group and the Tata Administrative Service (TAS), which recruits fresh graduates and postgraduates from leading business schools to put them on the business leadership path. The Group encourages cross-functional exposure and cross-company mobility as an aspect of leadership development. The Tata Group has also created high-value leadership development programs in partnership with some of the best universities in the world. Tata Townships: Tata has created cities and towns Jamshedpur, Mithapur, Babrala, and Mathigiri around industrial facilities. Tata Steel maintains Jamshedpur's public utilities such as the local municipality and takes care of road maintenance, water and electricity supply, streetlights, healthcare and sanitation. Considering the good standard of the maintenance facilities, Tata Steel has floated Jusco as a separate entity, to share its knowledge and expertise, which is unparalleled in the country.

19

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Financial Outlay:
Projects Social Welfare Environmental Others Total 2005 - 06 (Rs crore) 212 141 27 380

Tata Group investment on CSR in 2005-06 corresponded to 4% of Profit After Tax (PAT). Organizational Support: Tata Council for Community Initiatives: The Tata Council for Community Initiatives (TCCI) is a centrally administered agency that helps Tata companies through specific processes. TCCI's charter embraces social development, environmental management, biodiversity restoration, and employee volunteering. Kishor Chaukar, a member of the Tata Group Corporate Centre, heads the organization and 43 chief executive officers of Tata companies are its other members. It coordinates the varied and widespread community development activities of Tata companies. Personnel Support Anant G. Nadkarni is the Vice President Group, Corporate Social Responsibility.

20

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

OUTCOMES:
Awards: Some of the Awards won by Tata companies: y Tata Steel was awarded with the Businessworld-FICCI-SEDF Corporate Social Responsibility award 2009 by Shri Anand Sharma, Honble Union Minister for Commerce and Industry, Government of India. y Tata Housing Development was honoured with the prestigious Best Developer Corporate Social Responsibility for Shubh Griha (Smart Value Homes) at the Cityscape Awards Real Estate Asia, 2010 for their commitment and positive contribution to the society. y In March 2007, Tata Steel was conferred the Award for Corporate Social Responsibility in Public Health by the USIndia Business Council (USIBC), Population Services International (PSI) and the Centre for Strategic and International Studies (CSIS). Tata Steel was selected for its contribution in the fight against HIV/AIDS. y In February 2007, Tata Consultancy Services won the Golden Peacock Global Award for Corporate Social Responsibility (Asia) 2007 in the 'Large Business' category. y In February 2007, Tata Motors was conferred with the Golden Peacock Global Award for Corporate Social Responsibility by the Institute of Directors. This award was based on assessment of the companys integration of CSR concerns with corporate functioning, responsiveness to the needs of different stakeholders, and development of innovative partnership models to fulfill social responsibilities. y The Tata Group was awarded the Civil Society Award 2006 by UNAIDS for its role in fighting HIV in India. Several Tata Group companies provide support for HIV prevention, treatment and care services across the country. y The governor of Tamil Nadu, Surjit Singh Barnala, presented The Mother Teresa Award for Corporate Citizen 2005 to Tata Steel. y Tata Steel was adjudged one of the top energy-efficient units in India and was awarded a shield and a certificate for being the 'Excellent Energy Efficient Unit - 2003' by the CII-Sohrabji Godrej Green Business Centre, Hyderabad. y Software and service consultancy firm Tata Consultancy Services received the 2003 Asian Corporate Social Responsibility Award for support and improvement in education category. The company had designed a

21

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

computer-based functional literacy model, a multimedia-based teaching method, and has set up an adult literacy program to help the government eradicate illiteracy. y Tata Steel received the GBC HIV/AIDS award 2003 for its commendable awareness work on HIV/AIDS in the community. y Tata Engineering has bagged the Corporate Social Responsibility Award for 2001-2002 instituted by the Tata Energy Research Institute (TERI). Tata Engineering won the award for creating health and rural upliftment opportunities in and around its Pune plant and for its leprosy project in Jamshedpur. y In April 2001, Tata Engineering s Pune plant won the Dr. R. J. Rathi Award 2001 for Environmental Pollution Control in Industries in Maharashtra.

Metrics and its Evaluation:

Environmental Management, Occupational Health and Safety Assessment System: Most of Tatas companies have been awarded the ISO 14001 for their Environmental Management System and OHSAS 18001 for Occupational Health and Safety Assessment System. y Tata Index for Sustainable Human Development: TCCI, in collaboration with the United Nations Development Program (India), created the Tata Index for Sustainable Human Development. This was aimed at directing, measuring and enhancing the community work that group enterprises undertake. TCCI is also involved in assisting Tata companies address the sustainability subject through the Global Reporting Initiative, a United Nations initiative that has guidelines for companies on social responsibility. The Tata Index for Sustainable Human Development is a set of guidelines for Tata companies looking to fulfil their social responsibilities. It has been built around the Tata Business Excellence Model (TBEM), an open-ended framework that drives business excellence in Tata companies.

22

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

CSR ACTIVITIES OF TATA:

Corporate Social Responsibility is a way of life in the Tata Group, and is also deeply rooted in our core values, principles and permeates through all decisions and actions of Tata employees. This approach evolved out of experience, by the force of habit and the rich traditions driven by the vision of the Tata Groups founder Shri Jamsetji Tata that was carried forward by Sir Dorabji Tata and later by Mr. J. R. D. Tata spanning over a hundred years. In the recent years, under the guidance of the present Chairman of the Tata Group Mr. Ratan N. Tata, the overall approach and several areas of business have been revisited to become more relevant and contemporary wherein it also became necessary to more consciously put down the basic beliefs and perspectives that drive Tatas social responsibility.

SHARING WEALTH TO DIMINISH DISPARITIES: For Jamsetji Tata, the progress of enterprise, welfare of people and the health of the enterprise were inextricably linked. Wealth and the generation of wealth have never "been ends in themselves, but a means to an end, for the increased prosperity of India," The Times of India said in 1912 of the Tatas. Successive generations of Tata Group leaders have always held the belief that no success in material terms is worthwhile unless it serves the interest of the nation and is achieved by fair and honest means. Conscious that the task of social progress, especially in a Country as diverse as India, cannot be undertaken by the Government alone, J R D Tata the Chairman of the Tata Group from 1938 to 1991, believed that, "to create good working conditions, to pay the best wages to its employees and provide decent housing to its employees are not enough for the industry, the aim of an industry should be to discharge its overall social responsibilities to the community and the society at large, where industry is located." At the vanguard of social commitment Guided by this mandate, Tata Steel has for decades used its skills and resources, to the extent it can reasonably afford, to give back to the community a fair share of the product of its efforts. It was the first to establish labour welfare practices, even before these were made statutory laws across the world. In 1912, it invited Sidney and Beatrice Webb, the

23

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Founders of the London School of Economics, to prepare a Memorandum of Health for the Steel City. The Company also instituted an eight-hour workday in 1912, free medical aid in 1915, a Welfare Department in 1917, leave with pay, Workers Provident Fund, and Workmens Compensation in 1920, and Maternity Benefit for women in 1928. With the understanding that the hunger for employment can never be satisfied despite its best efforts, the Company took an enlightened decision to address the needs of those who migrated to its vicinity in search for employment. It first stimulated entrepreneurship and economic development in the Steel City and then reached out to the rural poor, empowering them with the means to create better livelihoods within their own villages. At the same time, Tata Steel also fulfilled their basic need for health care, food security, education, and income generation through the development of rural infrastructure, empowerment, and community outreach programmes. By virtue of the extent of its demonstrated commitment for decades, through the beliefs and values it has acted upon, the resources it has deployed, the wealth it has shared as well as the many "firsts" it has achieved through socio-economic programmes, Tata Steel is Indias acknowledged Corporate Social Responsibility leader and is recognized as a most humane organization. Every lesson learned, every piece of knowledge gathered, the Company offers to all those who wish to work alongside it to "improve the quality of life of the communities it serves."

EDUCATION: Tata Steel has influenced the integration of tribals in the economy in a less obvious and immediate way by propping up the education of tribal children and youth of various ages and at various stages of their academic career. Infants and toddlers are prepared for formal schooling in the informally run balwadis (crches/nurseries). The dropout rate of tribal students in schools and colleges has been checked with financial assistance and sponsorships. The TCS bears the entire expense of two tribal students who secure admissions for management education at the Tata Institute of Social Sciences. It also coaches students for entrance into administrative, technical and the public services. An unusual project called Sahyog, implemented in five schools, helps tribal students to develop self-esteem and plan their future.

24

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

The Xavier Institute for Tribal Education near Jamshedpur has also been supported by Tata Steel to produce professionally trained personnel. "Thank you Tata Steel and Tribal Cultural Society..." Had it not been for this fellowship from Tribal Cultural Society, I was bound to be like many others, recycled into the family's earning process at an age when I needed to be at school, says Sunita Murmu. And then came the announcement of Jyoti Fellowships. Sunita won the award not just for the year, but for the next seven consecutive years as well. The fellowship saw her through matriculation and Intermediate. Relieved of the pressure, Sunita was able to concentrate and secure first division all through. At an award ceremony, when asked what she had to say about this assistance, Thank you, Tata Steel and Tribal Cultural Society were the words she uttered with extreme gratitude.

TRIBALS CULTURE: Efforts to support tribals may well leave them at the doorstep of development without a sense of belongings and their cultural heritage. With a view to helping the tribal population preserve its rich inheritance, 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. "Hundreds of people joined..." Adim Dastoor, a three-day programme, was organized at Bari Maidan, Jamshedpur. This cultural extravaganza showcased the heritage and lifestyle of the indigenous people in Jharkhand. Lecture demonstration sessions on tribal heritage, exhibitions on historical advent of tribal movements, various forms of tribal dance and music, their relevance and specifics were dwelled upon at great length followed by actual performance by the experts. The event also showcased a day-night Kati tournament between 25 teams from all over Jharkhand and tribal Orissa.

25

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Tribal belief has it that within the 'Akhara' (common meeting place for men within the village), no one is an audience. Every step taken is dance; every word that is uttered is a song. The climax of the three-day event resounded this belief as hundreds of people in the ground joined in the performance accompanied by 25 drumbeaters who lent a sparkling end to the festival.

INCOME GENERATION FOR TRIBALS: In order to help tribals address their basic needs in a self- reliant and sustainable way, Tata Steel has long been involved with increasing the agricultural productivity for them in the rural areas through assured irrigation. Tata Steel, holding the belief that the tribals know best for themselves, has assisted in the formation of many Self Help Groups (SHGs). These SHGs enable the tribals to arrange for credit and engage in micro-enterprises like making Dokra items, carpet weaving, terracotta, paper bag making, mat making, food processing, poultry, mushroom farming, piggery, pisciculture and floriculture. Tata Steel provides these groups with training, networking, and assistance in marketing. For making a long term impact on the prospects of the tribals, the Company has given them vocational training in areas like basic computer operation, software management shorthand, typing, motor driving and handling pregnancies as birth attendants. "There was will and that was what saw us through..."Opportunity from TCS came like a ray of hope. Not knowing what to expect from the workshop, I still dragged myself to participate in it. Simple techniques on packaging the candles we made helped improve the presentation of the product... Deepawali, Christmas, and Gram Shree Mela provided us with huge business prospects, which we were able to encash upon. Next, we received an order from Tata Steel to supply 5000 candles in a week's time. But there was will and that was what saw us through. My plans are to improve our business extensively and also to enter the metropolitan market. And with TCS behind us, we will make it. If I have found meaning in my life, it is because of TCS. Without them, my desire to do something substantial would have remained intangible forever.

HEALTH CARE: Among the most active sponsors of the Lifeline Express a hospital on wheelsTata Steel has endeavored to take medical care far beyond those connected with its operations. This unique train travels at the behest of its sponsors to those parts of

26

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

rural India, left untouched by modern medicine. At Jamshedpur, the Company runs an 850-bed general hospital with a specialized Burn Centre, Dispensaries, and Super Dispensaries to reach out to its employees as well as a large number of citizens across the steel city. The network of specialized medical care units it has created also fulfills the need for low cost, high quality medical care for the economically less privileged. It established the Jamshedpur Blood Bank to provide safe blood to those in need and has very successfully promoted a culture of voluntary blood donations. At its out locations, the Company has set up hospitals, which cater to the healthcare needs of people from the surrounding rural areas. The doctors and Para medical staff of its hospitals as well as the dedicated staff of its social welfare arms have also taken health care awareness including eye care, tuberculosis treatment, general health awareness, HIV/AIDS Awareness and Mother and Child survival programmes to a large number of villages and communities. Through the efforts of the Tata Steel Rural Development Society (TSRDS) and the Tata Steel Family Initiatives Foundation (TSFIF), the Company covers the rural and peri- urban population through basic health care amenities. Both these social welfare arms of the Company have been building capacity through training programmes to create community based health care partners as well as grass-root volunteers. The Company has successfully changed notions of millions of villagers on water and sanitation, created a demand for better health facilities, ensured immunization for tens of thousands, and been instrumental in bringing down infant mortality rates.

ONGOING PROGRAMMES: Mother and Infant Survival Programme Population Stabilization Operation Muskaan for cleft lips and palates "YARS" - Youth and Adolescent Reproductive Services Specifically targeted programmes on HIV and AIDS. Project "WATSAN" for Water and Sanitation Free Health Checkups for Women at Surya Clinics Pioneer in Family Initiatives and HIV/AIDS Awareness Ringing the first alarm bell for Population Control. The first corporation in the country to launch a family welfare programme, Tata Group has been promoting controlled family planning since the 1950s. Through the innovative use of communication media, motivational programmes have extremely successfully broken the barriers of prejudice and myths to bring about the participation of communities, in even those which do not readily accept family planning.

27

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Jamshedpur today is a leader in demographic indices in the country. For the past 16 years, Tata Steel Family Initiatives Foundation (TSFIF) - formerly the Family Planning Department - has been reaching out to the Community in Jamshedpur with Family Planning and Reproductive Health Services. It covers a heterogeneous population of over 10, 00,000 including adolescents and youth, industrial workers, bustee dwellers and those from the indigenous tribes of the area. Now it is in the process of reauthoring its role, so as to extend both its capability and services into emerging sectors of need.

HEALTH AND AIDS AWARENESS: The health and safety of the employees and the community is critically interlocked with productivity and is enshrined in Tata Steels Vision. The Company has thus taken proactive steps in AIDS prevention by spreading awareness not only amongst its employees, but also the community at large so that the inhabitants of Jamshedpur and at other locations, remain safe. Tata Steel has evolved a corporate sector model to prevent the spread of STD/HIV/AIDS, globally and nationally. This model is being shared through forums like ILO, Global Business Coalition on HIV/AIDS, Global Compact Initiatives, WHO-SE Asia Regional Office, NACO (National AIDS Control Organisation) and JAPC (Jharkhand AIDS Prevention Consortium) and more recently through Global Reporting Initiatives. This programme extends to the rural and urban populace residing in and around Jamshedpur. The Global Business Coalition, which is an alliance of over a hundred major international companies who are expected to lead by example, is dedicated to combating this disease. Tata Steel is one of its founding members. The prestigious "Global Business Coalition Award (GBC) for 2003 for Business Excellence" was conferred on Tata Steel for its response to the epidemic and its outstanding HIV/AIDS Awareness work in Jamshedpur. The award is conferred on companies who have evolved best practices on HIV/AIDS prevention, especially to reduce the stigma and discrimination. This award places Tata Steels initiatives at par with the best in the world, to be showcased globally.

28

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

ENVIRONMENT: Tata 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 collieries and mines which support the 'Save Forests' campaign are a benchmark in environment management, Further augmenting its commitment in this field, Tata, 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.

CSR IN INDIA:
Corporate social Responsibility is not a new concept in India. However, what is new is the shift in focus from making profits to meeting societal challenges. Nowa-days, employees are actively participating in the social activities even on holidays. This is mainly because employees feel a sense of pride when they are involved in such activities. Moreover, companies are having dedicated departments for CSR. Giving a universal definition of Corporate Social Responsibility is bit difficult as there is no common definition as such. However, there are few common threads that connect all the perspectives of CSR with each other the dedication to serve the society being most important of them. Most ideal definition of Corporate Social Responsibility (CSR) has been given by World Business Council for Sustained Development which says, 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. Thus, the meaning of CSR is twofold. On one hand, it exhibits the ethical behavior that an organization exhibits towards its internal and external stakeholders

29

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

(customers as well as employees). On the other hand, it denotes the responsibility of an organization towards the environment and society in which it operates. Firms can no longer continue to exploit environmental resources and escape from their responsibility by acting as separate entities regardless of the interest of the society. Organizations, now, are realizing the need to shift their focus on the interest of society. The sense of being socially responsible has to come from within. CSR involves various voluntary efforts in which companies engage themselves in order to give something back to the society. It involves providing innovative solutions to societal and environmental challenges. Organizations generally believe that acting in a socially responsible manner will create value for them. The fact that an organization is committed to social causes, also gives employees a sense that the company would also be committed to the welfare of its employees as well. In India, CSR has evolved to encompass employees, customers, stakeholders and sustainable development or corporate citizenship. The spectrum of CSR includes a number of areas as human rights, safety at work, consumer protection, climate protection, and caring for the environment, and sustainable management of natural resources. From the perspective of employees, CSR activities include providing health and safety measures, preserving employee rights and discouraging discrimination at workplace. This helps in fostering a healthy environment within the company. For example, after 1945, TATA implemented social welfare provisions for its employees that have since become the legislative norm. From the perspectives of customers, CRS activities may include commitment to product quality, fair pricing policies, and so. CSR taken up by various genres of companies primarily focuses on poverty alleviation, environmental protection and sustained development. Companies are taking initiatives for developing infrastructure in rural areas, e.g., TATA Motors provides desks, benches, chairs, tables cupboards, electrical fittings and educational and sports material to various primary schools in Singur. The company has also planned similar programmes to upgrade school infrastructure and is also planning to set up a computer laboratory in one of the high schools. Similarly, TVS Electronics was involved in CSR during the Tsunami to provide relief measures to the victims. They have also participated with the government to improve sanitation in a village called Tiruvidenthai. Such initiatives will help in improving the conditions of rural people. Satyam Foundation of Satyam Computer Services Ltd.,

30

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Infosys Foundation of Infosys Technologies Ltd., and GE Foundation of the General Electric Company are exemplary instances of the philanthropic commitment of the corporate sector in India. Irrespective of the profits they make, these foundations are aiming at uplifting of the poor and enhancing the standard of life in the rural sector. Corporate social responsibility offers manifold benefits both internally and externally to the companies involved in various projects. Externally, it creates a positive image amongst the people for its company and earns a special respect amongst its peers. It creates short-term employment opportunities by taking various projects like construction of parks, schools, etc. Working with keeping in view the interests of local community bring a wide range of business benefits. For example, for many businesses, local customers are an important source of sales. By improving the reputation, one may find it easier to recruit employees and retain them. Businesses have a wider impact on the environment also. Plantation and cultivation activities taken up by Intel India are a step towards the same. Recycling used products also acts as a step towards minimizing wastes. Internally, it cultivates a sense of loyalty and trust amongst the employees in the organizational ethics. It improves operational efficiency of the company and is often accompanied by increases in quality and productivity. More importantly, it serves as a soothing diversion from the routine workplace practices and gives a feeling of satisfaction and a meaning to their lives. Employees feel more motivated and thus, are more productive. Apart from this, CSR helps ensure that the organization comply with regulatory requirements.

How "social responsible" are Companies in reality?

Due to the lack of international CSR guidelines, the practical application of CSR differs and CSR Strategies within most companies still show major deficiencies. There are still complaints about multinational companies wasting the environment and NGOs still denouncing human rights abuses in companies. Some critics believe that CSR programs are undertaken by especially multinational companies to distract the public from ethical questions posed by their core operations. That meanwhile even multinational companies such as Microsoft or Pepsi confess to their social responsibility, is discussed quite controversial. While companies increasingly recognize their social responsibility, many of them have yet to adopt

31

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

management practices that reflect it: company employees and managers need training in order to acquire the necessary skills and competence. Pioneering companies can help to implement socially responsible practices by guiding the processes. The Copenhagen Centre and CSR Europe have recently launched a program to bring the business and academic community together with the aim to identify and address the training needs of the business sector on Corporate Social Responsibility. While corporate social responsibility can only be taken on by the companies themselves, employees, consumers and investors can also play a decisive role in areas such as working conditions, environment or human rights, in the purchasing of products from companies which already adopted CSR or in prompting companies to adopt socially responsible practices. Critics suggest that better governmental and international regulation and enforcement, rather than voluntary measures are necessary to ensure that companies behave in a socially responsible manner. Corporate social responsibility should therefore not be seen as a substitute to regulation concerning social rights or environmental standards. In countries where such regulations do not exist, efforts should focus on putting the proper regulatory framework in place on the basis of which socially responsible practices can be developed.

Governance
Values and purpose: Tata's principal purpose is to improve the quality of life of the communities it serves. The values and ideals that define the way the group functions help it do that. Tata Code of Conduct: This comprehensive document serves as the ethical road map for Tata employees and companies, and provides the guidelines by which the group conducts its businesses.

32

Business Ethics & corporate Social Responsibility CSR activities conducted by TATA T.Y.BMS-A (Group-5)

Conclusion: Even though companies are taking serious efforts for the sustained development, some critics still are questioning the concept of CSR. There are people who claim that Corporate Social Responsibility underlies some ulterior motives while others consider it as a myth. Is CSR really a stalking horse for an anti-corporate agenda? The reality is that CSR is not a tactic for brand building; however, it creates an internal brand among its employees. Indulging into activities that help society in one way or the other only adds to the goodwill of a company.

33