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THE TATA GESTURE
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“We do not claim to be more unselfish, more generous and more philanthropic than other
people. But we think we started on sound and straightforward business principles,
considering the interests of the shareholder, our own, and the health and welfare of the
employees, the sure foundation of our prosperity.”
Jamsetji Nusserwanji Tata
Founder, Tata Group
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1. Executive Summary:
CSR in India is in a very nascent stage. It is still one of the least understood initiatives in
the Indian development sector. It is followed by a handful of public companies as
dictated by the very basis of their existence, and by a few private companies, with
international shareholding as this is the practice followed by them in their respective
foreign country. Thus the situation is far from perfect as the emphasis is not on social
good but rather on a policy that needs to be implemented. But the situation is changing,
CSR is coming out of the purview of ‘doing social good’ and is fast becoming a ‘business
necessity’. The ‘business case’ for CSR is gaining ground and corporate houses are
realizing that ‘what is good for workers - their community, health, and environment is
also good for the businesses.
Need:
To understand the concept of corporate social responsibility and getting an insight on
CSR practices in the light of the case study of the TATA Group.
Objectives of the study:
To know how the Tata group has fulfilled its responsibility towards all stakeholders what
specific activities, programs and strategies it has set, devised and implemented for the
same.
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2. Research Methodology:
Exhaustive literature survey regarding the topic and related concepts has been done.
Secondary data inclusive of quantitative and qualitative data, as well collected from
various sources including research papers, newspapers, magazines, and websites is used
for the purpose of study.
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3. Introduction
The concept of Corporate Social Responsibility (CSR) originated in the 1950‘s in the
USA but it became prevalent in early 1970s. At that time US had lot of social problems
like poverty, unemployment and pollution. Consequently a huge fall in the prices of
Dollar was witnessed. Corporate Social Responsibility became a matter of utmost
importance for diverse groups demanding change in the business. During the 1980’s to
2000, corporations recognized and started accepting a responsibility towards society.
Corporate social responsibility (CSR) focuses on the wealth creation for the optimal
benefit of all stakeholders including shareholders, employees, customers, environment
and society. The term stakeholder means all those on whom an organization's
performance and activities have some impact either directly or indirectly.
This term was used to describe corporate owners beyond shareholders as a result of a
book titled; “Strategic management: A stakeholder approach” by R. Edward Freeman in
the year 1984.
According to Lawrence and Weber, "Corporate social responsibility (CSR) means that a
corporation should act in a way that enhances society and its inhabitants and be held
accountable for any of its actions that affect people, their communities, and their
environment. This concept is based in the root of the term responsibility, meaning “to
pledge back,” creating a commitment to give back to society and the organization’s
stakeholders."
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Corporate social responsibility according to Mr. Ratan Tata
According to the chairman of the Tata Group, Mr. Ratan Tata, “We do not do it for
propaganda. We do not do it for publicity. We do it for the satisfaction of having really
achieved something worthwhile.” The Tata Business Excellence Model integrates social
responsibility into the framework of corporate management wherein social responsibility
is encapsulated as Key Business Process.
TATA is considered as pioneers in the area of CSR, the Tata group has played an active
role in nation building and socio-economic development since the early 1900s. From its
inception, the Tata group has taken up a number of initiatives for the development of
society. A unique feature of the group is that 63 percent of the equity capital of the parent
firm - Tata Sons Limited - is held by Tata trusts, which are philanthropic in nature. All
social service departments in Tata companies have annual programmes and budgets
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4. About the Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in
Mumbai, Maharashtra, India. It encompasses seven business sectors: communications
and information technology, engineering, materials, services, energy, consumer products
and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company.
It has operations in more than 80 countries across six continents. Tata Group has over
100 operating companies each of them operates independently. Out of them 32 are
publicly listed. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy
Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices,
Titan Industries, Tata Communications and Taj Hotels.
Approximately two third of the equity of the parent firm, Tata Sons Ltd., is held by
philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji
Tata, the founder of today’s Tata empire in the 1860s.
Mr. Ratan Tata, the former chairman of Tata Group.
Tata is accredited to initiate various labor welfare laws. For example the establishment of
Welfare Department was introduced in 1917 and enforced by law in 1948; Maternity
Benefit was introduced in 1928 and enforced by law in 1946. A pioneer in several areas,
the Tata group has got the credit of pioneering India's steel industry, civil aviation and
starting the country's first power plant. It had the world's largest integrated tea operation.
It is world's sixth largest manufacturer of watches (Titan).
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It has around 200,000 employees across India and thus has the pride to be nation‘s largest
private employer. Mr.Ratan Tata has led the eminent Tata Group successfully. He was
trained as an architect at New York's Cornell University but he chose to enter the family
business .He assumed the Chairmanship of the Group in 1991.
Through these trusts, Tata Sons Ltd. utilizes on average between 8 to 14 percent of its net
profit every year for various social causes. Even when economic conditions were adverse,
as in the late 1990s, the financial commitment of the group towards social activities kept
on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in 1999-2000. In the
fiscal year 2004 Tata Steel alone spent Rs 45 crore on social services.
Named Business Man of the Year for Asia by Forbes in 2004, Mr. Ratan Tata serves on
the board of the Ford Foundation and the program board of the Bill & Melinda Gates
Foundation's India AIDS initiative.
The Tata Group and its companies & enterprises are perceived to be India's best-known
global brand within and outside the country as per an Associated Chambers of Commerce
and Industry of India (ASSOCHAM) survey. The 2009, annual survey by the Reputation
Institute ranked Tata Group as the 11th most reputable company in the world. The survey
included 600 global companies. The Tata Group has helped establish and finance
numerous quality researches, educational and cultural institutes in India. The group was
awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of
philanthropic activities.
In 2011 and 2012, Tata was ranked as India's second most trusted brand by The Brand
Trust Report. In a 2011 investor poll conducted by equity research firm Equity master,
TATA Group was voted as the most trustworthy among the Indian corporate houses.
Over 61% of the respondents "showed their confidence in the Tata Group". The Tata
Group retained its "Most Trustworthy" status in the 2012 edition of the poll.
The combined market capitalization of all the 32 listed Tata companies was $89.88
billion as of March 2012. Tata receives more than 58% of its revenue from outside India.
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Tata Group remains a family-owned business, as the descendants of the founder (from the
Tata family) own a majority stake in the company. The current chairman of the Tata
group is Cyrus Pallonji Mistry, who took over from Ratan Tata in 2012. Tata Sons is the
promoter of all key Tata companies and holds the bulk of shareholding in these
companies. The chairman of Tata Sons has traditionally been the chairman of the Tata
group. About 66% of the equity capital of Tata Sons is held by philanthropic trusts
endowed by members of the Tata family.
Cyrus Mistry current chairman of The Tata Group.
Tata Group chairman Ratan Tata had stepped down to pass on the entire responsibility to
Cyrus Mistry. Under Tata, the group went through major organisational phase
rationalisation, globalisation, and now innovation, as it attempts to reach a reported $500
billion in revenues by 2020-21, roughly the size of what Walmart is today.
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5. Organization structure
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6. The Tata Group’s History
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7. The Tata Culture
People and organisations with character have a strong sense of values. Having a sense of
values means being guided in your thinking and actions by an inner core of standards and
abstaining from what you consider wrong.
Individuals aren’t the only ones who have values, organisations also articulate what they
stand for and prescribe their values. It is ultimately these values which create a firm’s
work culture. To aspire to be a missionary and visionary manager, one must be
instrumental in creating and nurturing these values.
How was such passion created among Tata employees? How and why did they behave
the way they did? The organisation is clear that it is not training and development that
created such behavior. Rather, it has to do with the DNA of the company and the Tata
culture.
The organisation has always told its employees that customers and guests are their top
priority. They also emphasize to their employees, ‘To think and act first as a citizen’.
These values displayed themselves in the heroism of 26/11. Moreover, as a business,
Tata’s believe that family values hold them together. This can be traced to its beginnings.
The hotel business was started by Jamshetji Tata when he was insulted in one of the
British hotels and not allowed to stay there. He went on to create several institutions
which later became icons of progress, culture, and modernity, believing that ‘in a free
enterprise the community is not just another stakeholder in business but is the very
purpose of its existence’. Tata’s holds this statement very dear. It is these values that led
to the extremely generous provisions the company made after the attack. The
organization’s attitude was that if they were going to spend several hundred crores in
rebuilding the property, why not spend equally on the employees who gave their life for
the hotel?
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The Tata Leadership programme promotes the following values: integrity, understanding,
excellence, unity, and responsibility. It is included as part of the Tata Leadership
programme and Tata Business Excellence model and Tata organisations are constantly
evaluated using these values.
One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata
Chemicals) was developing a compact, in-home water-purification device. It was called Tata
swach which means "clean" in Hindi and would cost less than 1000 rupees (US $21). The idea of
Tata swach was thought of from the 2004 tsunami in the Indian Ocean,which left thousands of
people without clean drinking water. This device has filters that last about a yearlong for a family
of five. It is a low-cost product available for people who have no access to safe drinking water in
their homes. The advantage of this device is that it does not require the use of electricity.
TCS also designed and donated an innovative software package that teaches illiterate
adults how to read in 40 hours. “The children of the people who have been through our
literacy program are all in school,” says Pankaj Baliga, global head of corporate social
responsibility for TCS.
In 1912, Tata Group expanded their CEO's concept of community philanthropy to be
included in the workplace. They instituted an eight-hour workday, before nearly any
other company in the world. In 1917, they recommended a medical-services policy for
Tata employees. The company would be among the first worldwide to organise modern
pension systems, workers compensation, maternity benefits, and profit-sharing plans.
Trusts created by Tata Group control 65.8% of company shares, so it can be said that
about 66% of the profits of Tata Group go to charity. The charitable trusts of Tata Group
fund a variety of projects, for example the Tata Swach and the TCS project. They
founded and still support such cherished institutions as the Indian Institute of Science,
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Tata Institute of Fundamental Research, the National Centre for the Performing Arts and
the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of
its operating income to the trusts and every generation of Tata family members has left a
larger portion of its profit to them.
After the Mumbai attacks, Salaries of then heavily attacked Taj Hotel employees were
paid despite the hotel being closed for reconstruction. About 1600 employees were
provided food, water, sanitation and first aid through employee outreach centers. Ratan
Tata personally visited families of all the employees that were affected. The employee's
relatives were flown to Mumbai from outside areas and were all accommodated for 3
weeks. Tata also covered compensation for railway employees, police staff, and
pedestrians. The market vendors and shop owners were given care and assistance after
the attacks. A psychiatric institution was established with the Tata Group of Social
Science to counsel those who were affected from the attacks and needed help. Tata also
granted the education of 46 children of the victims of the terrorist attacks.
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8. Tata Group & Corporate Social Responsibility (CSR)
Corporate Social Responsibility has always been taken care of by the Tata group. The
founder Mr. Jamshetji Tata used to grant scholarships for further studies abroad in 1892.
He also supported Gandhiji‘s campaign for racial equality in South Africa. Tata group
has given India its first Science center and Atomic Research center. "The wealth gathered
by Jamsetji Tata and his sons in half a century of industrial pioneering formed but a
minute fraction of the amount by which they enriched the nation. Jamshed Irani, Director,
Tata Sons Ltd, says, "The Tata credo is that 'give back to the people what you have
earned from them'. So from the very inception, Jamshetji Tata and his family have been
following this principle.
In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO)
announced that in future TISCO would not deal with companies, which do not conform
to the company's Corporate Social Responsibility (CSR) standards. Speaking at the
annual general meeting of the Madras Chamber of Commerce and Industry, He stated,
"We will not either buy from or sell to companies that do not measure up to Tata Steel's
social responsibility standards."
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9. Introducing Changes in the Company’s Article and Rules
for Sustaining CSR
Clause No. 10 of Tata Group:
A Tata Company shall be committed to be a good corporate citizen not only in
compliance with all relevant laws and regulations but also by actively assisting in the
improvement of the quality of life of the people in the communities in which it operates
with the objective of making them self-reliant. Such social responsibility would
comprise, to initiate and support community initiatives in the field of community health
and family welfare, water management, vocational training, education and literacy and
encourage application of modern scientific and managerial techniques and expertise. This
will be reviewed periodically in consonance with national and regional priorities. The
company would also not treat these activities as optional ones but would strive to
incorporate them as integral part of its business plan. The company would also encourage
volunteering amongst its employees and help them to work in the communities. Tata
companies are encouraged to develop social accounting systems and to carry out social
audit of their operations.
Amendments were made to the Articles of Association of the major Tata group
companies in the 1970s. Newly included was an article stating that the "company shall be
mindful of its social and moral responsibilities to consumers, employees, shareholders,
society and the local community. To institutionalize the CSR charter, a clause on this was
put into the group's 'Code of Conduct.' This clause states that group companies had to
actively assist in improving quality of life in the communities in which they operated. All
the group companies were signatories to this code. CSR was included as one of the key
business processes in TISCO. It was one of the eight key business processes identified by
TISCO's management and considered critical to the success of the company.
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10. CSR Activities of Tata Companies & Societies:
Through the following companies and societies Tata group keeps on heading towards the
fulfillment of corporate social responsibility
Tata Steel:
Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model
and the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its
profit after tax on several CSR initiatives.
Self-Help Groups (SHG’s)
Over 500 self-help groups are currently operating under various poverty alleviation
programs out of which over 200 are engaged in activities of income generation thorough
micro enterprises. Women empowerment programs through Self-Help Groups have been
extended to 700 villages. From the year 2003 to
2006, the maternal and infant survival project had a coverage area of 42 villages in
Gamharia block in Seraikela Kharsawa and a replication project was taken up in Rajnagar
block. For providing portable water to rural communities 2,600 tube wells have been
installed for the benefit of over Four Lakh people.
Supports Social Welfare Organization
Tata Steel supports various social welfare organizations. They include
 Tata Steel Rural Development Society
 Tribal Cultural Society
 Tata Steel Foundation for Family Initiatives
 National Association for the Blind
 Shishu Niketan School of Hope Centre for Hearing Impaired Children
 Indian Red Cross Society, East Singhbhum
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Healthcare Projects
In its 100th year, the Tata Steel Centenary Project has just been announced. The
healthcare projects of Tata Steel include facilitation of child education, immunization and
childcare, plantation activities, creation of awareness of AIDS and other healthcare
projects.
Economic Empowerment
A program aiming at economic empowerment through improvised agriculture has been
taken up in three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh. An
expenditure of Rs 100 crore has been estimated for the purpose and this program is
expected to benefit 40,000 tribal living in over 400 villages in these three States.
Assistance to government
Tata Steel has hosted 12 Lifeline Expresses in association with the Ministry of Railways,
Impact India Foundation and the Government of Jharkhand. It has served over 50,000
people. Five thousand people have got surgical facilities and over 1,000 people received
aids and appliances. Over seven lakh rural and another seven lakh urban population have
been benefited by the CSR activities of Tata Steel.
The National Horticulture Mission program that has been taken up in collaboration with
the Government of Jharkhand has benefited more than a thousand households. In
collaboration with the Ministry of Non-Conventional Energy and the Confederation of
Indian Industry, focus is laid on renewable energy aiming at enhancing rural livelihood.
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Tata Motors:
Pollution Control
Tata Motors is the first Indian Company to introduce vehicles with Euro norms.
Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a major
effort to introduce emission control technology in India. To make environment friendly
engines it has taken the help of world-renowned engine consultants like Ricardo and
AVL. It has manufactured CNG version of buses and also launched a CNG version of its
passenger car, the Indica.
Over the years, Tata Motors has also made investments in the establishment of advanced
emission-testing laboratory.
Restoring Ecological Balance
Tata Motors has planted 80,000 trees in the works and the township and more than 2.4
million trees have been planted in Jamshedpur region. Over half a million trees have been
planted in the Poona region. The company has directed all its suppliers to package their
products in alternate material instead of wood. In Pune, the treated water is conserved in
lakes attracting various species of birds from around the world.
Employment Generation
Relatives the employees at Pune have been encouraged to make various industrial co-
operatives engaged in productive activities like re-cycling of scrap wood into furniture,
welding, steel scrap baling, battery cable assembly etc. The Tata Motors Grihini Social
Welfare Society assists employees' women dependents; they make a variety of products,
ranging from pickles to electrical cable harnesses etc; thereby making them financially
secure.
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Economic Capital
In Lucknow, two Societies-Samaj Vikas Kendra & Jan Parivar Kalyan Santhan have been
formed for rural development & for providing healthcare to the rural areas. These
societies have made great efforts for health, education and women empowerment in rural
areas.
Human Capital
Tata Motors has introduced many scholarship programs for the higher education of the
children. Through a scholarship program Vidyadhanam, the company supports 211
students. Out of these students 132 students are from the marginalized sections of the
society. These students get books, copies and other study materials. They also undergo
different kinds of workshops, creative & outdoor sessions and residential camps as well.
The company has entered into Public-Private Partnership (PPP) for upgrading 10
Industrial Technical Institutes (ITI) across the country.
Natural Capital
On the World Environment Day, Tata Motors has launched a tree plantation drive across
India and countries in the SAARC region, Middle East Russia and Africa. As many as
25,000 trees were planted on the day. Apart from this more than 100,000 saplings were
planted throughout the monsoon.
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Tata Chemicals Ltd (TCL)
Tata Chemicals is making an effort for sustainability. Sustainability for the group means
honesty and transparency towards stakeholders, environmental protection, generating
economic value, promoting human rights and creating social capital. Tata Chemicals
supports the UN Global Compact and is committed to reporting its sustainability
performance in accordance with GRI (Global Reporting Initiatives) guidelines.
Its main operations for environment protection include optimal use of resource, finding
and/or generating alternative sources of fuel and raw materials, and maximizing reuse
and recycling. All in all they have the policy of ̳avoid, reduce and reuse. The company
runs a rural development program at Okhamandal and Babrala. Tata Chemicals Limited
was one of the first organizations to hold an Impact camp, which was held at Mithapur in
the year 1982, providing eye care to hundreds of patients at the Mithapur Hospital. Tata
Chemicals Limited was also the first organization to run world's first hospital on wheels -
the Life Line Express, through Jamnagar district for the first time between November 21,
2004 and December 21, 2004.
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Tata Tea
Tata Tea has been working hard since the 1980s to fulfill the needs of specially-abled
people. It has set up the Srishti Welfare Centre at Munnar, Kerala; its various programs
provide education, training and rehabilitation of children and young adults with special
needs. Tata Tea’s Jaago Re! Campaign exemplifies the Social-Cause Marketing
Initiatives.
Srishti has four projects:
a. The DARE School
b. The DARE strawberry preserve unit
c. Athulya
d. Aranya.
Tata Tea‘s welfare officers help identify and encourage relatives or children of
employees who are handicapped to join the Welfare Centre for special education and
rehabilitation.
a. The DARE School
It provides the students with training in basic academics, self-help skills and skills like
gardening, cooking, weaving etc. Children are taught to paint and some of the paintings
are printed and sold as greeting cards. The sales proceeds of which are used back into the
units.
b. The DARE strawberry
It trains youngsters to make natural strawberry preserve. The trainees are paid for the
work they receive social cover, free medical aid and other benefits.
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c. Athulya
It has two units
(i) A vocational training center that imparts training in stationery making
(ii) A handmade paper-making unit which trains physically challenged persons in the art
of making recycled paper.
d. Aranya
This project was started to nurture the lives of the disabled and also to revive the ancient
art of natural dye. Individuals are given training in various natural dyeing techniques
including block printing, tie and dye, batik work, etc.
Their products are sold in and outside the country.
Titan:
Corporate social responsibility is a basic element of TITAN Group’s governing objective
and one of its corporate values. In its corporate philosophy CSR is defined as doing less
harm and more good by adopting the following practices:
Respecting and supporting local communities
Caring for the employees
Being an active member of society
Committed to sustainable development
Putting safety (at work) first
Titan has employed 169 disabled people.
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Tata Iron & SteelCompany (TISCO):
TISCO was awarded The Energy Research Institute (TERI) award for Corporate Social
Responsibility (CSR) for the fiscal year 2002-03 in recognition of its corporate
citizenship and sustainability initiatives. As the only Indian company trying to put into
practice the Global Compact principles on human rights, labor and environment, TISCO
was also conferred the Global Business Coalition Award in 2003 for its efforts in
spreading awareness about HIV/AIDS.
Tata Engineering and Locomotive Company (TELCO):
TELCO, Pune has started community development activities for the benefit of TELCO
families and local residents in 1973 with the following objectives:
1. To create social awareness in all the employees and their families, to promote
congenial mutual relations amongst them, to improve personal and environmental
hygiene and health
2. To help the families of employees develop better living standards by organizing
extension education programs, training in various trades/skills and providing
opportunities to earn additional income.
TELCO is fighting against Leprosy at Jamshedpur.
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Tata Consultancy Services (TCS):
TCS aims at the Tata Group’s philosophy of building strong sustainable businesses
community .The elements that make for strong corporate sustainability at TCS include
the following: fair, transparent corporate governance, a strong strategy for long-term
growth, best-in-class HR processes, and initiatives for community betterment and
welfare.
In 2010-11, TCS supported and its local communities in the United States supported the
victims of the 2010 Chilean earthquake, conducted IT educational programs for high
school students in Cincinnati, raised support and awareness for diabetes prevention
through a series of marathon sponsorships Tata Consultancy Services runs an adult
literacy program.
Indian government launched Saakshar Bharat, an adult education program in 2009 and
the program now online via TCS partnership. The scheme, aimed at female literacy aims
to make literate 70 million people, of which at least 85 percent are women literate and the
program has already been rolled out in 167 districts across 19 states.
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Tata Archery Academy:
The Tata Archery Academy was established in Jamshedpur in 1996. The academy has all
the training facilities like highly efficient coaches, archery grounds, equipment from
India and abroad. It also provides hostel and multi gymnasium facilities for its cadets.
After a rigorous selection process being carried all over India, the Academy selects boys
and girls between the age group of 13 to 18 years for the four years course and it provides
the training during which the cadets are also imparted with formal education. Some of the
major championships where the of the Tata Archery Academy cadets have participated
and have won several medals are Junior World Archery Championship, Senior World
Archery Championship, Asian Archery Championship, Commonwealth Games and Asian
Games.
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Tata Quality ManagementServices (TQMS):
It has been entrusted with the task of institutionalizing the Tata Business Excellence
Model (TBEM). The TBEM provides each company with a wide outline to help it
improve business performance and attain higher levels of efficiency and productivity. It
aims to facilitate the understanding of business dynamics and organizational learning.
TBEM is a ̳customized to adaptation of the globally renowned Malcolm Baldrige model.
TBEM model focuses on seven core aspects of operations:
 Leadership
 Strategic planning,
 Customer and market focus
 Measurement
 Analysis
 Knowledge management
 Human resource focus
 Process management and business results.
Performance is measured in absolute points companies have to achieve a minimum of
500 points (out of 1,000) within four years of signing the BEBP agreement. TQMS helps
Tata companies use the model to gain insights on their business strengths and
opportunities for improvement. This is managed through an annual process of assessment
and assurance. The model, through its regular and calibrated updates, is used by Tata
companies to stay in step with the ever-changing business environment.
Basically TBEM Criteria is designed to help organizations use an integrated approach to
performance management that results in delivery of ever improving value to customers
and stakeholders, contributing to organizational sustainability improvement of overall
organizational effectiveness organizational and personal learning.
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Tata Chemicals Limited (TCL):
Set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote
its social objectives for the communities in and around Mithapur, where its facility is
located. This service was further extended to the communities in and around its Babrala
and Haldia facilities.
Through Tata Chemicals Society for Rural Development (TCSRD) Tata Chemicals
works to improve the quality of life of the people and communities. It also aims at
supporting sustainable development, which is the central theme of the company's
corporate philosophy. It works to protect and nurture the rural populations in and around
TCL's facilities, and assists people in attaining self-sufficiency in natural resource
management. It also aims at the building of health and education infrastructure i.e.
schools and hospitals, maternity centers etc.
The initiatives that TCSRD is involved in include:
a) Agricultural development
b) Animal husbandry
c) Watershed development
d) Education
e) Rural energy
f) Women's programs
g) Relief work
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Tata Relief Committee (TRC):
It works to provide relief at disaster affected areas. During natural calamities there are
two phases of assistance:
(a) Relief measures and
(b) Rehabilitation program.
After the Gujarat earthquake the group built 200 schools in two years and they rendered
help during the Orissa floods when people lost cattle’s. Even after the Tsunami disaster
members of TRC immediately reached the places and supplied the things required.
The Tata group, through the Tata Relief Committee and the Himmotthan Society (the
working unit of the Sir Ratan Tata Trust / Navajbai Ratan Tata Trust in Dehradun for
programmes located in the Himalayan region), in collaboration with the Government of
Uttarakhand, have been working on a war footing towards providing relief to impacted
local communities in three districts of the state. The Tata Relief Committee have come
together and have held meetings with key personnel in the government machinery,
including the Commissioner, Forests and Rural Development; Secretary, Rural
Development; and the Secretary, Disaster Management; to discuss, operationalise and
coordinate relief efforts of the Tata group.
A number of people belonging to the Tata group are on the ground in Uttarakhand to
assess the situation, and assist the relief work. A core Tata team has been set up to
address the relief measures at Uttarakhand. Dr Mukund Rajan, Chief Ethics Officer, Tata
Sons, and Chairman, Tata Council for Community Initiatives, also met government
officials in Dehradun to ease the efforts being put in by Tata company representatives
towards relief activities.
The companies are extending support not only through manpower, but also by providing
relief materials to the affected.
THE TATA GESTURE
Page | 31
Tata Council for Community Initiatives (TCCI):
TCCI was established in 1994. TCCI's mission states: "We will work together to be and
to be seen as, a group which strives to serve our communities and the society at large".
TCCI is also involved in assisting Tata companies maintain sustainability reporting the
guidelines of Global Reporting Initiative (GRI). It is the focal point for the UN Global
Compact in India, which has 42 Tata companies as signatories, the highest in the world
from a single business group. In collaboration with the United Nations Development
Programme (India), TCCI has crafted the
Tata Index for Sustainable Human Development, aiming at directing, measuring and
enhancing the community work that Tata enterprise is undertaking for the upliftment and
welfare of the people.
THE TATA GESTURE
Page | 32
11. Tata Corporate Sustainability Policy
“No success or achievement in material terms is worthwhile unless it serves the needs or
interests of the country and its people.”
-J R D Tata
The corporate policy of the group encompasses the sustainable development of all the
stakeholders. The major points included in the corporate policy are following:
 Demonstrate responsibility and sensitivity to biodiversity and the environment
 Comply with rules and regulations relating to environment
 Constantly upgrade technology and apply state of the art processes and practices
with institutional arrangements that will combat larger issues like climate change
and global warming
 Create sustainable livelihoods and build community through social program
pertaining to health, education, empowerment of women and youth, employee
volunteering,
 Find ways to enhance economic human, social and natural capital for bringing
and maintaining a balance among business, society and environment.
Dedications to the Nation
Tata Health Infrastructure
 Tata main hospital at Jamshedpur
 ICU in Joda and Balangpur
 Community Health Care Centres in Bari and Kuhika
 Hospitals in Gobarghati, Sukinda, Joda, Belpahar, Belipada and Bamnipal
 Lifeline Express-the hospital on wheels
 Mobile health clinics
 Centre for hearing impaired children
THE TATA GESTURE
Page | 33
Tata EducationalInfrastructure
 Institute of mathematics Sukinda college
 Joda college centenary Learning center
 J N Tata Technical Education center
 School of hope
 Shishu Niketan
 Balwadi schools assisted by Tata Steel
Tata Sports Infrastructure
 Tata athletics academy
 Tata archery academy
 Tata Football academy
 Tata steel adventure foundation
 Sports feeder center’s
 Stadium at Keonjhar
Preservationof culture & Heritage
 Contribution to setting up national Center for performing arts Mumbai
 Tribal cultural centers showcases legacy of nine tribes Jharkhand and
 Orissa
 Gramshree mela activities
THE TATA GESTURE
Page | 34
12. Relief for Uttakrahand
The relief activities taken up by Tata companies are:
Tata Chemicals:
Tata Chemicals provided 5,000 Tata Swach water filters to the affected. About six
people, including a doctor, from Tata Chemicals' Babrala plant are assisting the
government in relief activities and have set up set up the base at Rudraprayag.
Besides ensuring safe drinking water, Tata Chemicals has also started planning an
afforestation process to restore the flora and fauna that was destroyed in the flood. The
company has offered to send in its agriculture and horticulture experts to assess the
damage with reference to land and has put together a list of volunteers who are on
standby. The company has also suggested ways to resume agriculture activities in the
affected areas.
Accordingly, groups of three volunteers will visit the affected areas where they will
distribute small packs of seeds and help with the logistics.
Tata Projects:
To avoid a breakout of any kind of water-borne epidemic, Tata Projects is installing RO
plants in the affected areas to supply purified safe drinking water. Tata Motors is
assisting Tata Projects in transporting the RO plants.
THE TATA GESTURE
Page | 35
Tata Power:
Floods and landslides have completely destroyed the infrastructure in the area, and
affected villagers have spent their nights in darkness. To remedy this, Tata Power has
supplied 5,000 solar power lamps. Also engineers and technicians have helped the
Uttarakhand Power Corporation (UPCL) restore electricity in several regions.
Tata Motors:
The company is supplying vehicles, as per requirement, to transport RO plants and for
transporting people landing at airports / Dehradun / anywhere else in Delhi, as required.
Tata Motors also arranged for a godown for storage of relief materials. Besides this, the
company has also requested each of its employees to donate one day's salary towards
rehabilitation efforts.
Tata Consulting Engineers and Tata Housing Development Company:
They are working together towards a low cost housing solution to provide shelters to
those who lost their homes in the floods. In the long-term, Tata Housing will be working
with the Uttarakhand government to find a low cost and long term housing solution for
the people who have lost their homes.
THE TATA GESTURE
Page | 36
Tata Global Beverages:
The organization has procured bottles of Tata Water Plus from Hyderabad to be
distributed. Besides Tata Tea supplying tea in the area, a rural tea marketing initiative is
already in operation at several Himmotthan clusters and can be expanded to the current
areas over the longer term to improve livelihoods.
Tata Communications:
Tata Communications has handed over 25 satellite terminals to the Indo-Tibetan Border
Police to facilitate faster communication among relief teams.
Tata Teleservices:
The organization has offered to provide mobile base stations in Dehradun or locations
affected that do not have connectivity to enhance communication between relief teams.
Tata Business Support Services:
The Company has offered to create a dashboard monitoring system to keep track of the
progress being made by the on-site teams.
THE TATA GESTURE
Page | 37
Tata Institute of SocialSciences:
The faculty of disaster management from TISS is carrying out assessments of all three
major impact areas in Uttarkashi, Rudraprayag and Pithoragarh to make the relief efforts
as effective as possible.
Tata Steel:
Teams from Tata Steel were the first to trek through non-existent paths to reach villages
that had become inaccessible due to the landslides. The teams were quick to assess the
situation and speed up relief efforts. Moreover, the company will be providing pre-
fabricated homes to the people who lost their homes in the floods.
Titan Industries:
Titan Industries is managing the warehouse in which relief materials have been stored,
besides sending food and other items to around 400 families in the affected areas in
Pindar Valley. The company has offered the manpower required for accounting and also
for repacking at the go-down. Blood donation camps have been organised by the watches
and jewelry divisions in Dehradun. Employees have volunteered a day's salary and
offered their services for the relief effort.
THE TATA GESTURE
Page | 38
Indian Hotels:
Taj Hotels has expressed its readiness to set up its kitchens at key points in the affected
areas. Hotel staff will prepare fresh food which can be transported wherever required.
The hotel will run these mobile kitchens for a period of 1-2 months.
The hotel will also offer hospitality-based skill training to the affected. Individuals will
be taken in batches to the company's skill training centers in Jaipur, Delhi, Mumbai, Goa,
Chennai, Bengaluru and Kolkata to attend three-month residential courses. About 200
people who have lost their livelihoods can receive such training.
Tata PowerDelhi Distribution:
UPCL has requested Tata Power Delhi Distribution to depute its engineers and workers
for taking up restoration work of 33KV and 11KV lines at locations in Uttarkashi and
Ukhimath in Rudraprayag district, and Joshimath and Narain Bagar in the district of
Chamoli. UPCL has put in a request for teams of five people (including one engineer and
four workers) at each location to carry out conductor stringing work, pole erection, etc.
for the restoration of these lines.
Tata SteelProcessing and Distribution:
Employees of Tata Steel Processing and Distribution, Pantnagar, have expressed their
willingness to work as volunteers at affected areas. Employees at the company's plant at
Pantnagar, Uttarakhand, made a collection and bought items like puffed rice, grams, tetra
packs of juice, towels, dhotis, etc. with the proceeds. These items were given to those
affected in Rishikesh.
THE TATA GESTURE
Page | 39
Voltas:
Voltas has donated a sum of Rs10 lakh towards the Chief Minister's Relief Fund,
Uttarakhand. Moreover, the employees have donated Rs 4 lakh to Himmothan towards
relief efforts. The company has also distributed relief packets among families in the
Pithoragarh region. The company has also organised blood donation camps to help those
affected.
Trent:
Retail businesses such as Croma, Westside and others have established a system to
collect food, money and clothing from their customers.
Several other Tata companies are also working together to distribute relief packages that
include food for the affected. Employees from several companies who aren't at the
disaster zone are also doing their bit by donating a day's salary to aid the relief efforts.
THE TATA GESTURE
Page | 40
13. The terrorist attacks on 26th November 2008
The 2008 Mumbai attacks were twelve coordinated shooting and bombing attacks across
Mumbai, India's largest city by members of Lashkar-e-Taiba, the Pakistan-based militant
organisation. The attackers allegedly received reconnaissance assistance before the
attacks. Ajmal Kasab, the only attacker who was captured alive, later confessed upon
interrogation that the attacks were conducted with the support of Pakistan's ISI. The
attacks, which drew widespread global condemnation, began on Wednesday, 26
November and lasted until Saturday, 29 November 2008, killing 164 people and
wounding at least 308.
Two hotels, the Taj Mahal Palace & Tower and the Oberoi Trident, were among the four
locations targeted. Six explosions were reported at the Taj hotel – one in the lobby, two in
the elevators, three in the restaurant – and one at the Oberoi Trident. At the Taj Mahal,
firefighters rescued 200 hostages from windows using ladders during the first night.
The Media initially reported on the morning of 27th November 2008 that the hostage
situation at the Taj had been resolved and quoted the police chief of Maharashtra stating
that all hostages were freed however, it was learned later that day that there were still two
attackers holding hostages, including foreigners, in the Taj Mahal hotel. The Wasabi
restaurant on the first floor of the Taj Hotel was completely gutted.
THE TATA GESTURE
Page | 41
During the attacks, both hotels were surrounded by Rapid Action Force personnel and
Marine Commandos (MARCOS) and National Security Guards (NSG) commandos.
When reports emerged that attackers were receiving television broadcasts, feeds to the
hotels were blocked. Security forces stormed both hotels, and all nine attackers were
killed by the morning of 29 November. 32 hostages were killed at the Oberoi Trident.
A number of European Parliament Committee on International Trade delegates were
staying in the Taj Mahal hotel when it was attacked, but none of them were injured.
British Conservative Member of the European Parliament (MEP) Sajjad Karim (who was
in the lobby when attackers initially opened fire there) and German Social Democrat
MEP Erika Mann were hiding in different parts of the building. Also reported present
was Spanish MEP Ignasi Guardans, who was barricaded in a hotel room. Another British
Conservative MEP, Syed Kamall, reported that he along with several other MEPs left the
hotel and went to a nearby restaurant shortly before the attack. Kamall also reported that
Polish MEP Jan Masiel was thought to have been sleeping in his hotel room when the
attacks started, but eventually left the hotel safely. Kamall and Guardans reported that a
Hungarian MEP's assistant was shot. Also caught up in the shooting were the President of
Madrid, Esperanza Aguirre, while checking in at the Oberoi Trident, and Indian MP N.
N. Krishnadas of Kerala and Gulam Noon while having dinner at a restaurant in the Taj
hotel.
Twelve staff members of the Taj Mahal Palace & Tower Hotel were killed and seven
were injured. Their medical treatment and counseling needs were provided and fully paid
for by Taj Hotels.
Among the 31 dead at the Taj Hotel was Ralph Burkei, a German TV producer who died
on the way to hospital after fleeing armed attackers and falling from the facade of the
hotel
By the morning of 27th November, the NSG had secured the Jewish outreach center at
Nariman House as well as the Oberoi Trident hotel. They also incorrectly believed that
THE TATA GESTURE
Page | 42
the Taj Mahal Palace and Towers had been cleared of attackers, and soldiers were leading
hostages and holed-up guests to safety, and removing bodies of those killed in the attacks.
However, later news reports indicated that there were still two or three attackers in the
Taj, with explosions heard and gunfire exchanged. Fires were also reported at the ground
floor of the Taj with plumes of smoke arising from the first floor. The final operation at
the Taj Mahal Palace hotel was completed by the NSG commandos at 08:00 am on 29
November, killing three attackers and resulting in the conclusion of the attacks. The NSG
rescued 250 people from the Oberoi, 300 from the Taj and 60 people (members of 12
different families) from Nariman House. In addition, police seized a boat filled with arms
and explosives anchored at Mazgaon dock off Mumbai harbour.
The Conspiracy
The Mumbai 26/11 Attacks were directed by Pakistan. David Headley planned the
Mumbai Terror Attacks for more than two years. Headley worked with agents of
Pakistan’s, secret service, the ISI. Headley also joined the ISI sponsored terror group
Laskar-e-Taibai, (L-e-T). Headley’s "cover" was an "immigration service business" in
Chicago, owned by co-conspirator Tahawwura Hussain Rana. This business provided the
means to forge travel documents and smuggle other terrorists from country to country.
Headley frequently traveled to Mumbai to plan the attacks by paramilitary murderers. He
scouted the targets and was in Karachi during the attack. But David Headley also had
been an agent for the Drug Enforcement Agency. His ability to travel freely and train
with L-e-T has raised suspicion about Headley being a CIA agent. The Mumbai attacks
were certainly a False Flag operation, the blame initially going to another "Al Qaeda"
affiliate L-e-T. But the attackers were from Pakistan, assisted by the Pakistan military
and ISI. David Headley and his involvement in 26/11 are being concealed by Pakistan
and by the US Government.
THE TATA GESTURE
Page | 43
The cover-up:
The direct involvement of Pakistan was quickly discovered by Indian investigators. The
involvement of David Headley in terror attacks against India, apparently was discovered
by the FBI at least a month before 26/11. IBNLive TV reported Headley and Rana were
recorded by the FBI on Sept. 7, 2008, discussing other attacks against India. It was
further claimed that the CIA had been suspicious of Headley for a year before 26/11.
India was warned about an attack by sea against Mumbai about two months before 26/11.
No information about Headley was provided to Indian authorities, even after his arrest.
Headley was not arrested until his involvement in planning another terror attack was
discovered, possibly due to British Intelligence. He pleaded Guilty to US criminal
charges.
Strangely enough, the Visa records of Headley and Rana were missing from the Indian
Consulate in Chicago. No recent photos of Headley have been released. The extreme
secrecy suggests that Headley is being protected because he may be a US agent for the
Central Intelligence Agency (CIA). It is known Headley was planning other mass murder
missions.
THE TATA GESTURE
Page | 44
14. The Tata gesture
Few people are aware of all the work that has been done to rehabilitate the victims and
dependents of the attack on Bombay by ten armed terrorists from across the border from
November 26, 2008. The following heart-warming account of some of the initiatives
taken by Mr. Ratan Tata, the head of the Tata Group of Industries and Honorary Rotarian
of the Rotary Club of Bombay, appeared in the December, 2009, edition of Fed
Newsletter published by the Federation of Parsi Zoroastrian Anjumans of India. It has
been sent for publication in The Gateway by Burjor Poonawala.
In November 26, 2008, the world saw one of the most inhuman terror attacks on the Taj,
Mumbai.
Some of the provisions the Tata group made were as follows:
 All category of employees including those who had completed even one day as
casuals were treated as on duty during the time the hotel was closed.
 Relief and assistance was given to all those who were injured and to the kin of
those killed.
 Relief was extended to all those who died at Chhatrapati Shivaji railway station
and its surroundings, including the pav-bhaji vendor and the paan shop owners.
 During the time the hotel was closed, salaries were sent by money order.
 A psychiatric cell was established in collaboration with the Tata Institute of Social
Sciences to counsel those who needed such help.
 Employee outreach centers were opened where all help — food, water, sanitation,
first aid, and counseling — was provided. Sixteen hundred employees were
covered by this facility.
 Every employee was assigned to one mentor and it was that person’s
responsibility to act as a ‘single-window’ clearance for any help that the person
required.
THE TATA GESTURE
Page | 45
 Mr. Ratan Tata personally visited the families of all the eighty employees who in
some manner either through injury or getting killed were affected.
 The dependents of the employees who lived outside Mumbai were flown to the
city and were all accommodated in Hotel President for three weeks.
 Ratan Tata himself asked the families and dependents what they wanted him to
do.
 In a record time of twenty days, a new trust was created by the Tatas for funding
the victims of 26/11. Even non-Tata employees were covered in it.
 Each one of them was provided a subsistence allowance of Rs 10,000 per month
for six months.
 Several lakhs were paid for the treatment of a four-year-old granddaughter of a
vendor who had taken four bullets.
 New handcarts were provided to several vendors who lost theirs.
 Tata took responsibility for the life education of forty-six children of the
terrorists’ victims.
 The settlement for every deceased member ranged from Rs 36 to 85 lakhs in
addition to the following benefits:
 Full last salary for life for the family and dependents; complete responsibility for
education of children and dependents, anywhere in the world; full medical facility
for the whole family and dependents for the rest of their life; all loans and
THE TATA GESTURE
Page | 46
advances were waived, irrespective of the amount, counselor for life for each
person.
 A new trust was created by the Tata’s in a record time of 20 days for the relief of
employees. But not only his employees, even others, such as railways and police
employees and pedestrians who had nothing to do with the Tata’s, were offered
compensation. Each one of them was provided a subsistence allowance of Rs.
10,000 per month for six months.
 The four-year-old granddaughter of a vendor had four bullets lodged in her body
but only one could be removed in the government hospital. She was shifted to
Bombay hospital and the Tata’s spent lakhs of rupees on her full recovery.
 Relief and assistance was extended to all those who died at the CST railway
station surroundings, including the “pav-bhaji” vendor and the pan-shop owners.
 During the time the hotel was closed, the salaries were sent by money order.
 Mr. Tata himself asked the families and dependents whether there was anything
further that he could do for them
 This was the most trying periods in the life of the organization. Senior managers,
including Mr. Ratan Tata, went from one funeral to another over the worst three
days of the city’s life.
 All loans and advances waived of – irrespective of the amount involved;
 Complete responsibility for the education of children and dependents anywhere in
the world.
Mr. Tata’s approach was simply this: The organisation would spend several hundred
crores of rupees on rebuilding the property – why not spend equally on the employees
who gave their lives and suffered?
THE TATA GESTURE
Page | 47
Heroism displayed by the staff
26/11 was the biggest crisis the Tata group has ever faced. The behavior of their
employees at the Taj Hotel and the subsequent actions of the group were an excellent
display of the values the company holds.
During the actual event, all levels of staff — from janitors, waiters, directors, artisans,
and captains — at the Taj Hotel displayed extraordinary courage. There were 500 emails
from various guests narrating heroics of the staff and thanking them for saving their lives.
The sense of duty and service among them was unprecedented. Consider some of these
points:
 There was a Unilever event at the hotel on the day of the attacks. The young lady
who protected and looked after the HLL guests was a management trainee. She
had no instructions from any supervisor but took just three minutes to evacuate
the entire team through the kitchen. Cars were organized outside the hotel
according to seniority of the members. In the peak of the crisis, she stepped out
into the firing and even got the right wine glass for a guest.
 Thomas George, a captain, escorted fifty-four guests from a backdoor staircase.
He was the last to go out and was shot by the terrorists while trying to leave. His
widow would later say that she did not know that the man she lived with for
twenty-five years was so courageous.
 In a subsequent function, Ratan Tata broke down in public and sobbed saying —
‘the company belongs to these people’.
 When the hotel was reopened on 21 December, all employees of the hotel were
paraded in front of the guests.
THE TATA GESTURE
Page | 48
15. Findings
Business which is resourceful has a special responsibility to the society.
Social involvement of business would enhance a harmonious and healthy relationship
between the society and business seeking mutual benefit for the both.
Social involvement may create a better public image and goodwill for the company
which further becomes instrumental in attracting customers, efficient personnel and
investors.
CSR in India is in a very nascent stage. It is still one of the least understood initiatives in
the Indian development sector. It is followed by a handful of public companies as
dictated by the very basis of their existence, and by a few private companies, with
international shareholding as this is the practice followed by them in their respective
foreign country. Thus the situation is far from perfect as the emphasis is not on social
good but rather on a policy that needs to be implemented. But the situation is changing,
CSR is coming out of the purview of ‘doing social good’ and is fast becoming a ‘business
necessity’. The ‘business case’ for CSR is gaining ground and corporate houses are
realizing that ‘what is good for workers - their community, health, and environment is
also good for the businesses.
THE TATA GESTURE
Page | 49
16. Limitations
While preparing this research project there was a lack of information as it was
confidential and employees were not open to the topic as it was very traumatic for them.
Legal aspect like corporate governance, labor and employee welfare related laws have
not been undertaken.
THE TATA GESTURE
Page | 50
17. Recommendations
To the Policy Makers
 This study encourages Private Public Partnership (PPP) for CSR promotion
encompassing infrastructure,
 Pollution, child labor, labor productivity & morale.
 It may become helpful to make the policy makers at political and corporate level
as well consider CSR an investment and not an expense as it can become
instrumental in increasing goodwill and corporate image.
To the Society
 Development of infrastructure i.e. parks, water purification, education etc.
 Environment protection
 Uplifting of the rural populace
 Bringing the tribes into the mainstream of the country
To the Economy as a whole
 Increase in the growth rate
 Strategic CSR at political and corporate level can make the country a better
investment destination.
THE TATA GESTURE
Page | 51
18. Conclusion
For bringing back and maintaining the general balance in the economic and social arena it
is evident to think deeply and act wisely about CSR. Every business house owe some
responsibility towards the society, nation and world in general which provide it with all
human, material and natural resources. Considering the long run growth and sustainable
development following the norms of CSR, devising new policies and effective
implementation is inevitable to bring and sustain a balance between corporate world and
society, present generation and upcoming generation, man and nature.
As far as the Tata group is concerned, it has gone a long way in fulfilling its duty and
responsibility towards the society and the nation. It has reached the masses to elevate
their lives, to nurture their dreams and to improve their skills justifying the statement of
the founder ―We do not claim to be more unselfish, more generous and more
philanthropic than other people. But we think we started on sound and straightforward
business principles, considering the interests of the shareholder, our own, and the health
and welfare of the employees, the sure foundation of our prosperity.
THE TATA GESTURE
Page | 52
19. Bibliography:
 Strategic Management: A Stakeholder Approach (Freeman, R.E.)
 The growing concern over business responsibility (Frederick, W.C.)
 Annual report of Tata Steel 2012-2013
 Annual Report of The Indian Hotels Company limited 2008-09
Webliography:
 www.ficci.com
 www.cba.ua.edu
 www.financialexpress.com
 www.tata.com
 www.tatamotors.com
 www.tatachemicals.com
 www.pluggd.in/india
 www.wikipedia.org
 www.hindustantimes.com
 www.srtt.org
 www.timesofindia.indiatimes.com
 www.tajhotels.com

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The Tata gesture- CSR

  • 1. THE TATA GESTURE Page | 1 “We do not claim to be more unselfish, more generous and more philanthropic than other people. But we think we started on sound and straightforward business principles, considering the interests of the shareholder, our own, and the health and welfare of the employees, the sure foundation of our prosperity.” Jamsetji Nusserwanji Tata Founder, Tata Group
  • 2. THE TATA GESTURE Page | 2 1. Executive Summary: CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this is the practice followed by them in their respective foreign country. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented. But the situation is changing, CSR is coming out of the purview of ‘doing social good’ and is fast becoming a ‘business necessity’. The ‘business case’ for CSR is gaining ground and corporate houses are realizing that ‘what is good for workers - their community, health, and environment is also good for the businesses. Need: To understand the concept of corporate social responsibility and getting an insight on CSR practices in the light of the case study of the TATA Group. Objectives of the study: To know how the Tata group has fulfilled its responsibility towards all stakeholders what specific activities, programs and strategies it has set, devised and implemented for the same.
  • 3. THE TATA GESTURE Page | 3 2. Research Methodology: Exhaustive literature survey regarding the topic and related concepts has been done. Secondary data inclusive of quantitative and qualitative data, as well collected from various sources including research papers, newspapers, magazines, and websites is used for the purpose of study.
  • 4. THE TATA GESTURE Page | 4 3. Introduction The concept of Corporate Social Responsibility (CSR) originated in the 1950‘s in the USA but it became prevalent in early 1970s. At that time US had lot of social problems like poverty, unemployment and pollution. Consequently a huge fall in the prices of Dollar was witnessed. Corporate Social Responsibility became a matter of utmost importance for diverse groups demanding change in the business. During the 1980’s to 2000, corporations recognized and started accepting a responsibility towards society. Corporate social responsibility (CSR) focuses on the wealth creation for the optimal benefit of all stakeholders including shareholders, employees, customers, environment and society. The term stakeholder means all those on whom an organization's performance and activities have some impact either directly or indirectly. This term was used to describe corporate owners beyond shareholders as a result of a book titled; “Strategic management: A stakeholder approach” by R. Edward Freeman in the year 1984. According to Lawrence and Weber, "Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. This concept is based in the root of the term responsibility, meaning “to pledge back,” creating a commitment to give back to society and the organization’s stakeholders."
  • 5. THE TATA GESTURE Page | 5 Corporate social responsibility according to Mr. Ratan Tata According to the chairman of the Tata Group, Mr. Ratan Tata, “We do not do it for propaganda. We do not do it for publicity. We do it for the satisfaction of having really achieved something worthwhile.” The Tata Business Excellence Model integrates social responsibility into the framework of corporate management wherein social responsibility is encapsulated as Key Business Process. TATA is considered as pioneers in the area of CSR, the Tata group has played an active role in nation building and socio-economic development since the early 1900s. From its inception, the Tata group has taken up a number of initiatives for the development of society. A unique feature of the group is that 63 percent of the equity capital of the parent firm - Tata Sons Limited - is held by Tata trusts, which are philanthropic in nature. All social service departments in Tata companies have annual programmes and budgets
  • 6. THE TATA GESTURE Page | 6 4. About the Tata Group Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. It encompasses seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over 100 operating companies each of them operates independently. Out of them 32 are publicly listed. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. Approximately two third of the equity of the parent firm, Tata Sons Ltd., is held by philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata, the founder of today’s Tata empire in the 1860s. Mr. Ratan Tata, the former chairman of Tata Group. Tata is accredited to initiate various labor welfare laws. For example the establishment of Welfare Department was introduced in 1917 and enforced by law in 1948; Maternity Benefit was introduced in 1928 and enforced by law in 1946. A pioneer in several areas, the Tata group has got the credit of pioneering India's steel industry, civil aviation and starting the country's first power plant. It had the world's largest integrated tea operation. It is world's sixth largest manufacturer of watches (Titan).
  • 7. THE TATA GESTURE Page | 7 It has around 200,000 employees across India and thus has the pride to be nation‘s largest private employer. Mr.Ratan Tata has led the eminent Tata Group successfully. He was trained as an architect at New York's Cornell University but he chose to enter the family business .He assumed the Chairmanship of the Group in 1991. Through these trusts, Tata Sons Ltd. utilizes on average between 8 to 14 percent of its net profit every year for various social causes. Even when economic conditions were adverse, as in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in 1999-2000. In the fiscal year 2004 Tata Steel alone spent Rs 45 crore on social services. Named Business Man of the Year for Asia by Forbes in 2004, Mr. Ratan Tata serves on the board of the Ford Foundation and the program board of the Bill & Melinda Gates Foundation's India AIDS initiative. The Tata Group and its companies & enterprises are perceived to be India's best-known global brand within and outside the country as per an Associated Chambers of Commerce and Industry of India (ASSOCHAM) survey. The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality researches, educational and cultural institutes in India. The group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activities. In 2011 and 2012, Tata was ranked as India's second most trusted brand by The Brand Trust Report. In a 2011 investor poll conducted by equity research firm Equity master, TATA Group was voted as the most trustworthy among the Indian corporate houses. Over 61% of the respondents "showed their confidence in the Tata Group". The Tata Group retained its "Most Trustworthy" status in the 2012 edition of the poll. The combined market capitalization of all the 32 listed Tata companies was $89.88 billion as of March 2012. Tata receives more than 58% of its revenue from outside India.
  • 8. THE TATA GESTURE Page | 8 Tata Group remains a family-owned business, as the descendants of the founder (from the Tata family) own a majority stake in the company. The current chairman of the Tata group is Cyrus Pallonji Mistry, who took over from Ratan Tata in 2012. Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. Cyrus Mistry current chairman of The Tata Group. Tata Group chairman Ratan Tata had stepped down to pass on the entire responsibility to Cyrus Mistry. Under Tata, the group went through major organisational phase rationalisation, globalisation, and now innovation, as it attempts to reach a reported $500 billion in revenues by 2020-21, roughly the size of what Walmart is today.
  • 9. THE TATA GESTURE Page | 9 5. Organization structure
  • 10. THE TATA GESTURE Page | 10 6. The Tata Group’s History
  • 13. THE TATA GESTURE Page | 13 7. The Tata Culture People and organisations with character have a strong sense of values. Having a sense of values means being guided in your thinking and actions by an inner core of standards and abstaining from what you consider wrong. Individuals aren’t the only ones who have values, organisations also articulate what they stand for and prescribe their values. It is ultimately these values which create a firm’s work culture. To aspire to be a missionary and visionary manager, one must be instrumental in creating and nurturing these values. How was such passion created among Tata employees? How and why did they behave the way they did? The organisation is clear that it is not training and development that created such behavior. Rather, it has to do with the DNA of the company and the Tata culture. The organisation has always told its employees that customers and guests are their top priority. They also emphasize to their employees, ‘To think and act first as a citizen’. These values displayed themselves in the heroism of 26/11. Moreover, as a business, Tata’s believe that family values hold them together. This can be traced to its beginnings. The hotel business was started by Jamshetji Tata when he was insulted in one of the British hotels and not allowed to stay there. He went on to create several institutions which later became icons of progress, culture, and modernity, believing that ‘in a free enterprise the community is not just another stakeholder in business but is the very purpose of its existence’. Tata’s holds this statement very dear. It is these values that led to the extremely generous provisions the company made after the attack. The organization’s attitude was that if they were going to spend several hundred crores in rebuilding the property, why not spend equally on the employees who gave their life for the hotel?
  • 14. THE TATA GESTURE Page | 14 The Tata Leadership programme promotes the following values: integrity, understanding, excellence, unity, and responsibility. It is included as part of the Tata Leadership programme and Tata Business Excellence model and Tata organisations are constantly evaluated using these values. One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home water-purification device. It was called Tata swach which means "clean" in Hindi and would cost less than 1000 rupees (US $21). The idea of Tata swach was thought of from the 2004 tsunami in the Indian Ocean,which left thousands of people without clean drinking water. This device has filters that last about a yearlong for a family of five. It is a low-cost product available for people who have no access to safe drinking water in their homes. The advantage of this device is that it does not require the use of electricity. TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. “The children of the people who have been through our literacy program are all in school,” says Pankaj Baliga, global head of corporate social responsibility for TCS. In 1912, Tata Group expanded their CEO's concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before nearly any other company in the world. In 1917, they recommended a medical-services policy for Tata employees. The company would be among the first worldwide to organise modern pension systems, workers compensation, maternity benefits, and profit-sharing plans. Trusts created by Tata Group control 65.8% of company shares, so it can be said that about 66% of the profits of Tata Group go to charity. The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science,
  • 15. THE TATA GESTURE Page | 15 Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them. After the Mumbai attacks, Salaries of then heavily attacked Taj Hotel employees were paid despite the hotel being closed for reconstruction. About 1600 employees were provided food, water, sanitation and first aid through employee outreach centers. Ratan Tata personally visited families of all the employees that were affected. The employee's relatives were flown to Mumbai from outside areas and were all accommodated for 3 weeks. Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks. A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help. Tata also granted the education of 46 children of the victims of the terrorist attacks.
  • 16. THE TATA GESTURE Page | 16 8. Tata Group & Corporate Social Responsibility (CSR) Corporate Social Responsibility has always been taken care of by the Tata group. The founder Mr. Jamshetji Tata used to grant scholarships for further studies abroad in 1892. He also supported Gandhiji‘s campaign for racial equality in South Africa. Tata group has given India its first Science center and Atomic Research center. "The wealth gathered by Jamsetji Tata and his sons in half a century of industrial pioneering formed but a minute fraction of the amount by which they enriched the nation. Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is that 'give back to the people what you have earned from them'. So from the very inception, Jamshetji Tata and his family have been following this principle. In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that in future TISCO would not deal with companies, which do not conform to the company's Corporate Social Responsibility (CSR) standards. Speaking at the annual general meeting of the Madras Chamber of Commerce and Industry, He stated, "We will not either buy from or sell to companies that do not measure up to Tata Steel's social responsibility standards."
  • 17. THE TATA GESTURE Page | 17 9. Introducing Changes in the Company’s Article and Rules for Sustaining CSR Clause No. 10 of Tata Group: A Tata Company shall be committed to be a good corporate citizen not only in compliance with all relevant laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self-reliant. Such social responsibility would comprise, to initiate and support community initiatives in the field of community health and family welfare, water management, vocational training, education and literacy and encourage application of modern scientific and managerial techniques and expertise. This will be reviewed periodically in consonance with national and regional priorities. The company would also not treat these activities as optional ones but would strive to incorporate them as integral part of its business plan. The company would also encourage volunteering amongst its employees and help them to work in the communities. Tata companies are encouraged to develop social accounting systems and to carry out social audit of their operations. Amendments were made to the Articles of Association of the major Tata group companies in the 1970s. Newly included was an article stating that the "company shall be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community. To institutionalize the CSR charter, a clause on this was put into the group's 'Code of Conduct.' This clause states that group companies had to actively assist in improving quality of life in the communities in which they operated. All the group companies were signatories to this code. CSR was included as one of the key business processes in TISCO. It was one of the eight key business processes identified by TISCO's management and considered critical to the success of the company.
  • 18. THE TATA GESTURE Page | 18 10. CSR Activities of Tata Companies & Societies: Through the following companies and societies Tata group keeps on heading towards the fulfillment of corporate social responsibility Tata Steel: Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model and the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its profit after tax on several CSR initiatives. Self-Help Groups (SHG’s) Over 500 self-help groups are currently operating under various poverty alleviation programs out of which over 200 are engaged in activities of income generation thorough micro enterprises. Women empowerment programs through Self-Help Groups have been extended to 700 villages. From the year 2003 to 2006, the maternal and infant survival project had a coverage area of 42 villages in Gamharia block in Seraikela Kharsawa and a replication project was taken up in Rajnagar block. For providing portable water to rural communities 2,600 tube wells have been installed for the benefit of over Four Lakh people. Supports Social Welfare Organization Tata Steel supports various social welfare organizations. They include  Tata Steel Rural Development Society  Tribal Cultural Society  Tata Steel Foundation for Family Initiatives  National Association for the Blind  Shishu Niketan School of Hope Centre for Hearing Impaired Children  Indian Red Cross Society, East Singhbhum
  • 19. THE TATA GESTURE Page | 19 Healthcare Projects In its 100th year, the Tata Steel Centenary Project has just been announced. The healthcare projects of Tata Steel include facilitation of child education, immunization and childcare, plantation activities, creation of awareness of AIDS and other healthcare projects. Economic Empowerment A program aiming at economic empowerment through improvised agriculture has been taken up in three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh. An expenditure of Rs 100 crore has been estimated for the purpose and this program is expected to benefit 40,000 tribal living in over 400 villages in these three States. Assistance to government Tata Steel has hosted 12 Lifeline Expresses in association with the Ministry of Railways, Impact India Foundation and the Government of Jharkhand. It has served over 50,000 people. Five thousand people have got surgical facilities and over 1,000 people received aids and appliances. Over seven lakh rural and another seven lakh urban population have been benefited by the CSR activities of Tata Steel. The National Horticulture Mission program that has been taken up in collaboration with the Government of Jharkhand has benefited more than a thousand households. In collaboration with the Ministry of Non-Conventional Energy and the Confederation of Indian Industry, focus is laid on renewable energy aiming at enhancing rural livelihood.
  • 20. THE TATA GESTURE Page | 20 Tata Motors: Pollution Control Tata Motors is the first Indian Company to introduce vehicles with Euro norms. Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a major effort to introduce emission control technology in India. To make environment friendly engines it has taken the help of world-renowned engine consultants like Ricardo and AVL. It has manufactured CNG version of buses and also launched a CNG version of its passenger car, the Indica. Over the years, Tata Motors has also made investments in the establishment of advanced emission-testing laboratory. Restoring Ecological Balance Tata Motors has planted 80,000 trees in the works and the township and more than 2.4 million trees have been planted in Jamshedpur region. Over half a million trees have been planted in the Poona region. The company has directed all its suppliers to package their products in alternate material instead of wood. In Pune, the treated water is conserved in lakes attracting various species of birds from around the world. Employment Generation Relatives the employees at Pune have been encouraged to make various industrial co- operatives engaged in productive activities like re-cycling of scrap wood into furniture, welding, steel scrap baling, battery cable assembly etc. The Tata Motors Grihini Social Welfare Society assists employees' women dependents; they make a variety of products, ranging from pickles to electrical cable harnesses etc; thereby making them financially secure.
  • 21. THE TATA GESTURE Page | 21 Economic Capital In Lucknow, two Societies-Samaj Vikas Kendra & Jan Parivar Kalyan Santhan have been formed for rural development & for providing healthcare to the rural areas. These societies have made great efforts for health, education and women empowerment in rural areas. Human Capital Tata Motors has introduced many scholarship programs for the higher education of the children. Through a scholarship program Vidyadhanam, the company supports 211 students. Out of these students 132 students are from the marginalized sections of the society. These students get books, copies and other study materials. They also undergo different kinds of workshops, creative & outdoor sessions and residential camps as well. The company has entered into Public-Private Partnership (PPP) for upgrading 10 Industrial Technical Institutes (ITI) across the country. Natural Capital On the World Environment Day, Tata Motors has launched a tree plantation drive across India and countries in the SAARC region, Middle East Russia and Africa. As many as 25,000 trees were planted on the day. Apart from this more than 100,000 saplings were planted throughout the monsoon.
  • 22. THE TATA GESTURE Page | 22 Tata Chemicals Ltd (TCL) Tata Chemicals is making an effort for sustainability. Sustainability for the group means honesty and transparency towards stakeholders, environmental protection, generating economic value, promoting human rights and creating social capital. Tata Chemicals supports the UN Global Compact and is committed to reporting its sustainability performance in accordance with GRI (Global Reporting Initiatives) guidelines. Its main operations for environment protection include optimal use of resource, finding and/or generating alternative sources of fuel and raw materials, and maximizing reuse and recycling. All in all they have the policy of ̳avoid, reduce and reuse. The company runs a rural development program at Okhamandal and Babrala. Tata Chemicals Limited was one of the first organizations to hold an Impact camp, which was held at Mithapur in the year 1982, providing eye care to hundreds of patients at the Mithapur Hospital. Tata Chemicals Limited was also the first organization to run world's first hospital on wheels - the Life Line Express, through Jamnagar district for the first time between November 21, 2004 and December 21, 2004.
  • 23. THE TATA GESTURE Page | 23 Tata Tea Tata Tea has been working hard since the 1980s to fulfill the needs of specially-abled people. It has set up the Srishti Welfare Centre at Munnar, Kerala; its various programs provide education, training and rehabilitation of children and young adults with special needs. Tata Tea’s Jaago Re! Campaign exemplifies the Social-Cause Marketing Initiatives. Srishti has four projects: a. The DARE School b. The DARE strawberry preserve unit c. Athulya d. Aranya. Tata Tea‘s welfare officers help identify and encourage relatives or children of employees who are handicapped to join the Welfare Centre for special education and rehabilitation. a. The DARE School It provides the students with training in basic academics, self-help skills and skills like gardening, cooking, weaving etc. Children are taught to paint and some of the paintings are printed and sold as greeting cards. The sales proceeds of which are used back into the units. b. The DARE strawberry It trains youngsters to make natural strawberry preserve. The trainees are paid for the work they receive social cover, free medical aid and other benefits.
  • 24. THE TATA GESTURE Page | 24 c. Athulya It has two units (i) A vocational training center that imparts training in stationery making (ii) A handmade paper-making unit which trains physically challenged persons in the art of making recycled paper. d. Aranya This project was started to nurture the lives of the disabled and also to revive the ancient art of natural dye. Individuals are given training in various natural dyeing techniques including block printing, tie and dye, batik work, etc. Their products are sold in and outside the country. Titan: Corporate social responsibility is a basic element of TITAN Group’s governing objective and one of its corporate values. In its corporate philosophy CSR is defined as doing less harm and more good by adopting the following practices: Respecting and supporting local communities Caring for the employees Being an active member of society Committed to sustainable development Putting safety (at work) first Titan has employed 169 disabled people.
  • 25. THE TATA GESTURE Page | 25 Tata Iron & SteelCompany (TISCO): TISCO was awarded The Energy Research Institute (TERI) award for Corporate Social Responsibility (CSR) for the fiscal year 2002-03 in recognition of its corporate citizenship and sustainability initiatives. As the only Indian company trying to put into practice the Global Compact principles on human rights, labor and environment, TISCO was also conferred the Global Business Coalition Award in 2003 for its efforts in spreading awareness about HIV/AIDS. Tata Engineering and Locomotive Company (TELCO): TELCO, Pune has started community development activities for the benefit of TELCO families and local residents in 1973 with the following objectives: 1. To create social awareness in all the employees and their families, to promote congenial mutual relations amongst them, to improve personal and environmental hygiene and health 2. To help the families of employees develop better living standards by organizing extension education programs, training in various trades/skills and providing opportunities to earn additional income. TELCO is fighting against Leprosy at Jamshedpur.
  • 26. THE TATA GESTURE Page | 26 Tata Consultancy Services (TCS): TCS aims at the Tata Group’s philosophy of building strong sustainable businesses community .The elements that make for strong corporate sustainability at TCS include the following: fair, transparent corporate governance, a strong strategy for long-term growth, best-in-class HR processes, and initiatives for community betterment and welfare. In 2010-11, TCS supported and its local communities in the United States supported the victims of the 2010 Chilean earthquake, conducted IT educational programs for high school students in Cincinnati, raised support and awareness for diabetes prevention through a series of marathon sponsorships Tata Consultancy Services runs an adult literacy program. Indian government launched Saakshar Bharat, an adult education program in 2009 and the program now online via TCS partnership. The scheme, aimed at female literacy aims to make literate 70 million people, of which at least 85 percent are women literate and the program has already been rolled out in 167 districts across 19 states.
  • 27. THE TATA GESTURE Page | 27 Tata Archery Academy: The Tata Archery Academy was established in Jamshedpur in 1996. The academy has all the training facilities like highly efficient coaches, archery grounds, equipment from India and abroad. It also provides hostel and multi gymnasium facilities for its cadets. After a rigorous selection process being carried all over India, the Academy selects boys and girls between the age group of 13 to 18 years for the four years course and it provides the training during which the cadets are also imparted with formal education. Some of the major championships where the of the Tata Archery Academy cadets have participated and have won several medals are Junior World Archery Championship, Senior World Archery Championship, Asian Archery Championship, Commonwealth Games and Asian Games.
  • 28. THE TATA GESTURE Page | 28 Tata Quality ManagementServices (TQMS): It has been entrusted with the task of institutionalizing the Tata Business Excellence Model (TBEM). The TBEM provides each company with a wide outline to help it improve business performance and attain higher levels of efficiency and productivity. It aims to facilitate the understanding of business dynamics and organizational learning. TBEM is a ̳customized to adaptation of the globally renowned Malcolm Baldrige model. TBEM model focuses on seven core aspects of operations:  Leadership  Strategic planning,  Customer and market focus  Measurement  Analysis  Knowledge management  Human resource focus  Process management and business results. Performance is measured in absolute points companies have to achieve a minimum of 500 points (out of 1,000) within four years of signing the BEBP agreement. TQMS helps Tata companies use the model to gain insights on their business strengths and opportunities for improvement. This is managed through an annual process of assessment and assurance. The model, through its regular and calibrated updates, is used by Tata companies to stay in step with the ever-changing business environment. Basically TBEM Criteria is designed to help organizations use an integrated approach to performance management that results in delivery of ever improving value to customers and stakeholders, contributing to organizational sustainability improvement of overall organizational effectiveness organizational and personal learning.
  • 29. THE TATA GESTURE Page | 29 Tata Chemicals Limited (TCL): Set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur, where its facility is located. This service was further extended to the communities in and around its Babrala and Haldia facilities. Through Tata Chemicals Society for Rural Development (TCSRD) Tata Chemicals works to improve the quality of life of the people and communities. It also aims at supporting sustainable development, which is the central theme of the company's corporate philosophy. It works to protect and nurture the rural populations in and around TCL's facilities, and assists people in attaining self-sufficiency in natural resource management. It also aims at the building of health and education infrastructure i.e. schools and hospitals, maternity centers etc. The initiatives that TCSRD is involved in include: a) Agricultural development b) Animal husbandry c) Watershed development d) Education e) Rural energy f) Women's programs g) Relief work
  • 30. THE TATA GESTURE Page | 30 Tata Relief Committee (TRC): It works to provide relief at disaster affected areas. During natural calamities there are two phases of assistance: (a) Relief measures and (b) Rehabilitation program. After the Gujarat earthquake the group built 200 schools in two years and they rendered help during the Orissa floods when people lost cattle’s. Even after the Tsunami disaster members of TRC immediately reached the places and supplied the things required. The Tata group, through the Tata Relief Committee and the Himmotthan Society (the working unit of the Sir Ratan Tata Trust / Navajbai Ratan Tata Trust in Dehradun for programmes located in the Himalayan region), in collaboration with the Government of Uttarakhand, have been working on a war footing towards providing relief to impacted local communities in three districts of the state. The Tata Relief Committee have come together and have held meetings with key personnel in the government machinery, including the Commissioner, Forests and Rural Development; Secretary, Rural Development; and the Secretary, Disaster Management; to discuss, operationalise and coordinate relief efforts of the Tata group. A number of people belonging to the Tata group are on the ground in Uttarakhand to assess the situation, and assist the relief work. A core Tata team has been set up to address the relief measures at Uttarakhand. Dr Mukund Rajan, Chief Ethics Officer, Tata Sons, and Chairman, Tata Council for Community Initiatives, also met government officials in Dehradun to ease the efforts being put in by Tata company representatives towards relief activities. The companies are extending support not only through manpower, but also by providing relief materials to the affected.
  • 31. THE TATA GESTURE Page | 31 Tata Council for Community Initiatives (TCCI): TCCI was established in 1994. TCCI's mission states: "We will work together to be and to be seen as, a group which strives to serve our communities and the society at large". TCCI is also involved in assisting Tata companies maintain sustainability reporting the guidelines of Global Reporting Initiative (GRI). It is the focal point for the UN Global Compact in India, which has 42 Tata companies as signatories, the highest in the world from a single business group. In collaboration with the United Nations Development Programme (India), TCCI has crafted the Tata Index for Sustainable Human Development, aiming at directing, measuring and enhancing the community work that Tata enterprise is undertaking for the upliftment and welfare of the people.
  • 32. THE TATA GESTURE Page | 32 11. Tata Corporate Sustainability Policy “No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people.” -J R D Tata The corporate policy of the group encompasses the sustainable development of all the stakeholders. The major points included in the corporate policy are following:  Demonstrate responsibility and sensitivity to biodiversity and the environment  Comply with rules and regulations relating to environment  Constantly upgrade technology and apply state of the art processes and practices with institutional arrangements that will combat larger issues like climate change and global warming  Create sustainable livelihoods and build community through social program pertaining to health, education, empowerment of women and youth, employee volunteering,  Find ways to enhance economic human, social and natural capital for bringing and maintaining a balance among business, society and environment. Dedications to the Nation Tata Health Infrastructure  Tata main hospital at Jamshedpur  ICU in Joda and Balangpur  Community Health Care Centres in Bari and Kuhika  Hospitals in Gobarghati, Sukinda, Joda, Belpahar, Belipada and Bamnipal  Lifeline Express-the hospital on wheels  Mobile health clinics  Centre for hearing impaired children
  • 33. THE TATA GESTURE Page | 33 Tata EducationalInfrastructure  Institute of mathematics Sukinda college  Joda college centenary Learning center  J N Tata Technical Education center  School of hope  Shishu Niketan  Balwadi schools assisted by Tata Steel Tata Sports Infrastructure  Tata athletics academy  Tata archery academy  Tata Football academy  Tata steel adventure foundation  Sports feeder center’s  Stadium at Keonjhar Preservationof culture & Heritage  Contribution to setting up national Center for performing arts Mumbai  Tribal cultural centers showcases legacy of nine tribes Jharkhand and  Orissa  Gramshree mela activities
  • 34. THE TATA GESTURE Page | 34 12. Relief for Uttakrahand The relief activities taken up by Tata companies are: Tata Chemicals: Tata Chemicals provided 5,000 Tata Swach water filters to the affected. About six people, including a doctor, from Tata Chemicals' Babrala plant are assisting the government in relief activities and have set up set up the base at Rudraprayag. Besides ensuring safe drinking water, Tata Chemicals has also started planning an afforestation process to restore the flora and fauna that was destroyed in the flood. The company has offered to send in its agriculture and horticulture experts to assess the damage with reference to land and has put together a list of volunteers who are on standby. The company has also suggested ways to resume agriculture activities in the affected areas. Accordingly, groups of three volunteers will visit the affected areas where they will distribute small packs of seeds and help with the logistics. Tata Projects: To avoid a breakout of any kind of water-borne epidemic, Tata Projects is installing RO plants in the affected areas to supply purified safe drinking water. Tata Motors is assisting Tata Projects in transporting the RO plants.
  • 35. THE TATA GESTURE Page | 35 Tata Power: Floods and landslides have completely destroyed the infrastructure in the area, and affected villagers have spent their nights in darkness. To remedy this, Tata Power has supplied 5,000 solar power lamps. Also engineers and technicians have helped the Uttarakhand Power Corporation (UPCL) restore electricity in several regions. Tata Motors: The company is supplying vehicles, as per requirement, to transport RO plants and for transporting people landing at airports / Dehradun / anywhere else in Delhi, as required. Tata Motors also arranged for a godown for storage of relief materials. Besides this, the company has also requested each of its employees to donate one day's salary towards rehabilitation efforts. Tata Consulting Engineers and Tata Housing Development Company: They are working together towards a low cost housing solution to provide shelters to those who lost their homes in the floods. In the long-term, Tata Housing will be working with the Uttarakhand government to find a low cost and long term housing solution for the people who have lost their homes.
  • 36. THE TATA GESTURE Page | 36 Tata Global Beverages: The organization has procured bottles of Tata Water Plus from Hyderabad to be distributed. Besides Tata Tea supplying tea in the area, a rural tea marketing initiative is already in operation at several Himmotthan clusters and can be expanded to the current areas over the longer term to improve livelihoods. Tata Communications: Tata Communications has handed over 25 satellite terminals to the Indo-Tibetan Border Police to facilitate faster communication among relief teams. Tata Teleservices: The organization has offered to provide mobile base stations in Dehradun or locations affected that do not have connectivity to enhance communication between relief teams. Tata Business Support Services: The Company has offered to create a dashboard monitoring system to keep track of the progress being made by the on-site teams.
  • 37. THE TATA GESTURE Page | 37 Tata Institute of SocialSciences: The faculty of disaster management from TISS is carrying out assessments of all three major impact areas in Uttarkashi, Rudraprayag and Pithoragarh to make the relief efforts as effective as possible. Tata Steel: Teams from Tata Steel were the first to trek through non-existent paths to reach villages that had become inaccessible due to the landslides. The teams were quick to assess the situation and speed up relief efforts. Moreover, the company will be providing pre- fabricated homes to the people who lost their homes in the floods. Titan Industries: Titan Industries is managing the warehouse in which relief materials have been stored, besides sending food and other items to around 400 families in the affected areas in Pindar Valley. The company has offered the manpower required for accounting and also for repacking at the go-down. Blood donation camps have been organised by the watches and jewelry divisions in Dehradun. Employees have volunteered a day's salary and offered their services for the relief effort.
  • 38. THE TATA GESTURE Page | 38 Indian Hotels: Taj Hotels has expressed its readiness to set up its kitchens at key points in the affected areas. Hotel staff will prepare fresh food which can be transported wherever required. The hotel will run these mobile kitchens for a period of 1-2 months. The hotel will also offer hospitality-based skill training to the affected. Individuals will be taken in batches to the company's skill training centers in Jaipur, Delhi, Mumbai, Goa, Chennai, Bengaluru and Kolkata to attend three-month residential courses. About 200 people who have lost their livelihoods can receive such training. Tata PowerDelhi Distribution: UPCL has requested Tata Power Delhi Distribution to depute its engineers and workers for taking up restoration work of 33KV and 11KV lines at locations in Uttarkashi and Ukhimath in Rudraprayag district, and Joshimath and Narain Bagar in the district of Chamoli. UPCL has put in a request for teams of five people (including one engineer and four workers) at each location to carry out conductor stringing work, pole erection, etc. for the restoration of these lines. Tata SteelProcessing and Distribution: Employees of Tata Steel Processing and Distribution, Pantnagar, have expressed their willingness to work as volunteers at affected areas. Employees at the company's plant at Pantnagar, Uttarakhand, made a collection and bought items like puffed rice, grams, tetra packs of juice, towels, dhotis, etc. with the proceeds. These items were given to those affected in Rishikesh.
  • 39. THE TATA GESTURE Page | 39 Voltas: Voltas has donated a sum of Rs10 lakh towards the Chief Minister's Relief Fund, Uttarakhand. Moreover, the employees have donated Rs 4 lakh to Himmothan towards relief efforts. The company has also distributed relief packets among families in the Pithoragarh region. The company has also organised blood donation camps to help those affected. Trent: Retail businesses such as Croma, Westside and others have established a system to collect food, money and clothing from their customers. Several other Tata companies are also working together to distribute relief packages that include food for the affected. Employees from several companies who aren't at the disaster zone are also doing their bit by donating a day's salary to aid the relief efforts.
  • 40. THE TATA GESTURE Page | 40 13. The terrorist attacks on 26th November 2008 The 2008 Mumbai attacks were twelve coordinated shooting and bombing attacks across Mumbai, India's largest city by members of Lashkar-e-Taiba, the Pakistan-based militant organisation. The attackers allegedly received reconnaissance assistance before the attacks. Ajmal Kasab, the only attacker who was captured alive, later confessed upon interrogation that the attacks were conducted with the support of Pakistan's ISI. The attacks, which drew widespread global condemnation, began on Wednesday, 26 November and lasted until Saturday, 29 November 2008, killing 164 people and wounding at least 308. Two hotels, the Taj Mahal Palace & Tower and the Oberoi Trident, were among the four locations targeted. Six explosions were reported at the Taj hotel – one in the lobby, two in the elevators, three in the restaurant – and one at the Oberoi Trident. At the Taj Mahal, firefighters rescued 200 hostages from windows using ladders during the first night. The Media initially reported on the morning of 27th November 2008 that the hostage situation at the Taj had been resolved and quoted the police chief of Maharashtra stating that all hostages were freed however, it was learned later that day that there were still two attackers holding hostages, including foreigners, in the Taj Mahal hotel. The Wasabi restaurant on the first floor of the Taj Hotel was completely gutted.
  • 41. THE TATA GESTURE Page | 41 During the attacks, both hotels were surrounded by Rapid Action Force personnel and Marine Commandos (MARCOS) and National Security Guards (NSG) commandos. When reports emerged that attackers were receiving television broadcasts, feeds to the hotels were blocked. Security forces stormed both hotels, and all nine attackers were killed by the morning of 29 November. 32 hostages were killed at the Oberoi Trident. A number of European Parliament Committee on International Trade delegates were staying in the Taj Mahal hotel when it was attacked, but none of them were injured. British Conservative Member of the European Parliament (MEP) Sajjad Karim (who was in the lobby when attackers initially opened fire there) and German Social Democrat MEP Erika Mann were hiding in different parts of the building. Also reported present was Spanish MEP Ignasi Guardans, who was barricaded in a hotel room. Another British Conservative MEP, Syed Kamall, reported that he along with several other MEPs left the hotel and went to a nearby restaurant shortly before the attack. Kamall also reported that Polish MEP Jan Masiel was thought to have been sleeping in his hotel room when the attacks started, but eventually left the hotel safely. Kamall and Guardans reported that a Hungarian MEP's assistant was shot. Also caught up in the shooting were the President of Madrid, Esperanza Aguirre, while checking in at the Oberoi Trident, and Indian MP N. N. Krishnadas of Kerala and Gulam Noon while having dinner at a restaurant in the Taj hotel. Twelve staff members of the Taj Mahal Palace & Tower Hotel were killed and seven were injured. Their medical treatment and counseling needs were provided and fully paid for by Taj Hotels. Among the 31 dead at the Taj Hotel was Ralph Burkei, a German TV producer who died on the way to hospital after fleeing armed attackers and falling from the facade of the hotel By the morning of 27th November, the NSG had secured the Jewish outreach center at Nariman House as well as the Oberoi Trident hotel. They also incorrectly believed that
  • 42. THE TATA GESTURE Page | 42 the Taj Mahal Palace and Towers had been cleared of attackers, and soldiers were leading hostages and holed-up guests to safety, and removing bodies of those killed in the attacks. However, later news reports indicated that there were still two or three attackers in the Taj, with explosions heard and gunfire exchanged. Fires were also reported at the ground floor of the Taj with plumes of smoke arising from the first floor. The final operation at the Taj Mahal Palace hotel was completed by the NSG commandos at 08:00 am on 29 November, killing three attackers and resulting in the conclusion of the attacks. The NSG rescued 250 people from the Oberoi, 300 from the Taj and 60 people (members of 12 different families) from Nariman House. In addition, police seized a boat filled with arms and explosives anchored at Mazgaon dock off Mumbai harbour. The Conspiracy The Mumbai 26/11 Attacks were directed by Pakistan. David Headley planned the Mumbai Terror Attacks for more than two years. Headley worked with agents of Pakistan’s, secret service, the ISI. Headley also joined the ISI sponsored terror group Laskar-e-Taibai, (L-e-T). Headley’s "cover" was an "immigration service business" in Chicago, owned by co-conspirator Tahawwura Hussain Rana. This business provided the means to forge travel documents and smuggle other terrorists from country to country. Headley frequently traveled to Mumbai to plan the attacks by paramilitary murderers. He scouted the targets and was in Karachi during the attack. But David Headley also had been an agent for the Drug Enforcement Agency. His ability to travel freely and train with L-e-T has raised suspicion about Headley being a CIA agent. The Mumbai attacks were certainly a False Flag operation, the blame initially going to another "Al Qaeda" affiliate L-e-T. But the attackers were from Pakistan, assisted by the Pakistan military and ISI. David Headley and his involvement in 26/11 are being concealed by Pakistan and by the US Government.
  • 43. THE TATA GESTURE Page | 43 The cover-up: The direct involvement of Pakistan was quickly discovered by Indian investigators. The involvement of David Headley in terror attacks against India, apparently was discovered by the FBI at least a month before 26/11. IBNLive TV reported Headley and Rana were recorded by the FBI on Sept. 7, 2008, discussing other attacks against India. It was further claimed that the CIA had been suspicious of Headley for a year before 26/11. India was warned about an attack by sea against Mumbai about two months before 26/11. No information about Headley was provided to Indian authorities, even after his arrest. Headley was not arrested until his involvement in planning another terror attack was discovered, possibly due to British Intelligence. He pleaded Guilty to US criminal charges. Strangely enough, the Visa records of Headley and Rana were missing from the Indian Consulate in Chicago. No recent photos of Headley have been released. The extreme secrecy suggests that Headley is being protected because he may be a US agent for the Central Intelligence Agency (CIA). It is known Headley was planning other mass murder missions.
  • 44. THE TATA GESTURE Page | 44 14. The Tata gesture Few people are aware of all the work that has been done to rehabilitate the victims and dependents of the attack on Bombay by ten armed terrorists from across the border from November 26, 2008. The following heart-warming account of some of the initiatives taken by Mr. Ratan Tata, the head of the Tata Group of Industries and Honorary Rotarian of the Rotary Club of Bombay, appeared in the December, 2009, edition of Fed Newsletter published by the Federation of Parsi Zoroastrian Anjumans of India. It has been sent for publication in The Gateway by Burjor Poonawala. In November 26, 2008, the world saw one of the most inhuman terror attacks on the Taj, Mumbai. Some of the provisions the Tata group made were as follows:  All category of employees including those who had completed even one day as casuals were treated as on duty during the time the hotel was closed.  Relief and assistance was given to all those who were injured and to the kin of those killed.  Relief was extended to all those who died at Chhatrapati Shivaji railway station and its surroundings, including the pav-bhaji vendor and the paan shop owners.  During the time the hotel was closed, salaries were sent by money order.  A psychiatric cell was established in collaboration with the Tata Institute of Social Sciences to counsel those who needed such help.  Employee outreach centers were opened where all help — food, water, sanitation, first aid, and counseling — was provided. Sixteen hundred employees were covered by this facility.  Every employee was assigned to one mentor and it was that person’s responsibility to act as a ‘single-window’ clearance for any help that the person required.
  • 45. THE TATA GESTURE Page | 45  Mr. Ratan Tata personally visited the families of all the eighty employees who in some manner either through injury or getting killed were affected.  The dependents of the employees who lived outside Mumbai were flown to the city and were all accommodated in Hotel President for three weeks.  Ratan Tata himself asked the families and dependents what they wanted him to do.  In a record time of twenty days, a new trust was created by the Tatas for funding the victims of 26/11. Even non-Tata employees were covered in it.  Each one of them was provided a subsistence allowance of Rs 10,000 per month for six months.  Several lakhs were paid for the treatment of a four-year-old granddaughter of a vendor who had taken four bullets.  New handcarts were provided to several vendors who lost theirs.  Tata took responsibility for the life education of forty-six children of the terrorists’ victims.  The settlement for every deceased member ranged from Rs 36 to 85 lakhs in addition to the following benefits:  Full last salary for life for the family and dependents; complete responsibility for education of children and dependents, anywhere in the world; full medical facility for the whole family and dependents for the rest of their life; all loans and
  • 46. THE TATA GESTURE Page | 46 advances were waived, irrespective of the amount, counselor for life for each person.  A new trust was created by the Tata’s in a record time of 20 days for the relief of employees. But not only his employees, even others, such as railways and police employees and pedestrians who had nothing to do with the Tata’s, were offered compensation. Each one of them was provided a subsistence allowance of Rs. 10,000 per month for six months.  The four-year-old granddaughter of a vendor had four bullets lodged in her body but only one could be removed in the government hospital. She was shifted to Bombay hospital and the Tata’s spent lakhs of rupees on her full recovery.  Relief and assistance was extended to all those who died at the CST railway station surroundings, including the “pav-bhaji” vendor and the pan-shop owners.  During the time the hotel was closed, the salaries were sent by money order.  Mr. Tata himself asked the families and dependents whether there was anything further that he could do for them  This was the most trying periods in the life of the organization. Senior managers, including Mr. Ratan Tata, went from one funeral to another over the worst three days of the city’s life.  All loans and advances waived of – irrespective of the amount involved;  Complete responsibility for the education of children and dependents anywhere in the world. Mr. Tata’s approach was simply this: The organisation would spend several hundred crores of rupees on rebuilding the property – why not spend equally on the employees who gave their lives and suffered?
  • 47. THE TATA GESTURE Page | 47 Heroism displayed by the staff 26/11 was the biggest crisis the Tata group has ever faced. The behavior of their employees at the Taj Hotel and the subsequent actions of the group were an excellent display of the values the company holds. During the actual event, all levels of staff — from janitors, waiters, directors, artisans, and captains — at the Taj Hotel displayed extraordinary courage. There were 500 emails from various guests narrating heroics of the staff and thanking them for saving their lives. The sense of duty and service among them was unprecedented. Consider some of these points:  There was a Unilever event at the hotel on the day of the attacks. The young lady who protected and looked after the HLL guests was a management trainee. She had no instructions from any supervisor but took just three minutes to evacuate the entire team through the kitchen. Cars were organized outside the hotel according to seniority of the members. In the peak of the crisis, she stepped out into the firing and even got the right wine glass for a guest.  Thomas George, a captain, escorted fifty-four guests from a backdoor staircase. He was the last to go out and was shot by the terrorists while trying to leave. His widow would later say that she did not know that the man she lived with for twenty-five years was so courageous.  In a subsequent function, Ratan Tata broke down in public and sobbed saying — ‘the company belongs to these people’.  When the hotel was reopened on 21 December, all employees of the hotel were paraded in front of the guests.
  • 48. THE TATA GESTURE Page | 48 15. Findings Business which is resourceful has a special responsibility to the society. Social involvement of business would enhance a harmonious and healthy relationship between the society and business seeking mutual benefit for the both. Social involvement may create a better public image and goodwill for the company which further becomes instrumental in attracting customers, efficient personnel and investors. CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this is the practice followed by them in their respective foreign country. Thus the situation is far from perfect as the emphasis is not on social good but rather on a policy that needs to be implemented. But the situation is changing, CSR is coming out of the purview of ‘doing social good’ and is fast becoming a ‘business necessity’. The ‘business case’ for CSR is gaining ground and corporate houses are realizing that ‘what is good for workers - their community, health, and environment is also good for the businesses.
  • 49. THE TATA GESTURE Page | 49 16. Limitations While preparing this research project there was a lack of information as it was confidential and employees were not open to the topic as it was very traumatic for them. Legal aspect like corporate governance, labor and employee welfare related laws have not been undertaken.
  • 50. THE TATA GESTURE Page | 50 17. Recommendations To the Policy Makers  This study encourages Private Public Partnership (PPP) for CSR promotion encompassing infrastructure,  Pollution, child labor, labor productivity & morale.  It may become helpful to make the policy makers at political and corporate level as well consider CSR an investment and not an expense as it can become instrumental in increasing goodwill and corporate image. To the Society  Development of infrastructure i.e. parks, water purification, education etc.  Environment protection  Uplifting of the rural populace  Bringing the tribes into the mainstream of the country To the Economy as a whole  Increase in the growth rate  Strategic CSR at political and corporate level can make the country a better investment destination.
  • 51. THE TATA GESTURE Page | 51 18. Conclusion For bringing back and maintaining the general balance in the economic and social arena it is evident to think deeply and act wisely about CSR. Every business house owe some responsibility towards the society, nation and world in general which provide it with all human, material and natural resources. Considering the long run growth and sustainable development following the norms of CSR, devising new policies and effective implementation is inevitable to bring and sustain a balance between corporate world and society, present generation and upcoming generation, man and nature. As far as the Tata group is concerned, it has gone a long way in fulfilling its duty and responsibility towards the society and the nation. It has reached the masses to elevate their lives, to nurture their dreams and to improve their skills justifying the statement of the founder ―We do not claim to be more unselfish, more generous and more philanthropic than other people. But we think we started on sound and straightforward business principles, considering the interests of the shareholder, our own, and the health and welfare of the employees, the sure foundation of our prosperity.
  • 52. THE TATA GESTURE Page | 52 19. Bibliography:  Strategic Management: A Stakeholder Approach (Freeman, R.E.)  The growing concern over business responsibility (Frederick, W.C.)  Annual report of Tata Steel 2012-2013  Annual Report of The Indian Hotels Company limited 2008-09 Webliography:  www.ficci.com  www.cba.ua.edu  www.financialexpress.com  www.tata.com  www.tatamotors.com  www.tatachemicals.com  www.pluggd.in/india  www.wikipedia.org  www.hindustantimes.com  www.srtt.org  www.timesofindia.indiatimes.com  www.tajhotels.com