THE COMPANY I ADMIRE THE MOST FOR ITS CORPORATE SOCIAL RESPONSIBILITY
THE COMPANY I ADMIRE THE MOST FOR ITS CORPORATE SOCIAL RESPONSIBILITY SUBMITTED BY: NEETHU THRESA JACOB (F11096) SWARUPARANI SAHU (F11116) SECTION: B
THE COMPANY I ADMIRE THE MOST FOR ITS CORPORATE SOCIAL RESPONSIBILITY TITAN INDUSTRIESINTRODUCTION: Titan Industries is the worlds fifth largest wrist watch manufacturer and Indiasleading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia,Octane &Xylys brand names. It is a joint venture between the Tata Group, and the TamilNadu Industrial Development Corporation (TIDCO). Its product portfolio includes watches,accessories and jewellery, in both contemporary and traditional designs. It exports watches toabout 32 countries around the world with manufacturing facilitiesin Hosur, Dehradun, Goa and manufactures precious jewellery under the Tanishqbrand name,making it Indias only national jewellery brand. It is a subsidiary of the Tata Group. The company has a well-defined policy on social responsibility. Its corporate socialresponsibilitystrategy is a process of balancing the relationships with a variety of stakeholdersin thecommunity. They assist the community at three levels: (i) as a member of the TataGroup, (ii) as acorporate entity and (iii) fostering the spirit of volunteering at the individuallevel. The company alsocontribute to the initiatives taken by the Tata Group.Titan‟s CSR strategy includes elements related to good governance, human rights,environmental protection and sustainable development, as well as community, social,economic and cultural development. The company‟s business plan refers to providing microbusiness opportunities and support to poor village women and individual jewellery artisans(karigars); employing disabled persons; taking environmental protection initiatives;sponsoring educational institutions and programs and offering scholarships; supporting healthcare projects; and abiding by the Tata Code of Conduct which is the base fabric on whichthey operate. Among the CSR initiatives, twokey programs have helped Titan to learn about theprocess of embedding human rights concepts in business practice. The first programpromotes differently-abled employees and the second promotes empowerment todisadvantaged women employees. Corporate Social Responsibility (CSR) is a Titan Value and is embedded in theirGoverning Objective. It is a step further than legal or regulatory compliance, a conscious and
free pledge to improve the world around us. It has human, social and environmentaldimensions. As a building material producer, the company‟s products contribute to the multiplesocial values provided by concrete structures, such as safety, durability, economy, resourceefficiency and connecting people. At the same time, they realize that their operations impactthe environment and neighbouring communities. They commit to mitigate and reduce theseimpacts by “Doing Less Harm”. In their endeavour to Do less Harm, they recognize that there are win –winopportunities which they aim to pursue. Titan industries continue to pursue business goals ina socially responsible manner, contributing to the well-being of the employees, their families,neighbouring communities and society at large, in short “Doing More Good”. Their CSRcommitment is not only an ethical, values – driven endeavour, but also a value-creating goodbusiness practice, enhancing their reputation, strengthening the license to operate andimproving their competitiveness. Just as important, it is a source of pride and motivation fortheir people, adding to their ability to attract and retain good people. Titan considers their CSR engagement as a proactive and on-going self-improvementand continuous learning process, adapting to an ever changing complex business and socialenvironment. Essential to this endeavour is listening, engaging, communicating and buildingmutual trust with our stakeholders.CSR Vision of the company is:“To pursue at all times our business goals and create value, in an ethical and sociallyresponsible manner, doing less harm, and endeavouring to do more good”.They state that to achieve their Vision they implement the following practices: Our business practices are guided and based on our Titan Values and our code of conduct. Safety is our top business priority aiming to achieve an accident and incident free work environment. We are committed to sustainable growth, integrating human, environmental and social elements into our business decisions. We aim to continuously improve our environmental and social performance, measuring our impacts and contributions, and assessing our environmental and social footprint.
We aim to build trust with all our stakeholders by communicating openly and transparently, and seeking engagement to understand the impact of our operations and their concerns. We share our know-how, experience and best practices in areas relevant to our business to add value and contribute to the well-being of our neighboring communities. We value our employees and follow human resources practices that promote equal opportunity in recruitment, employment and development, regardless of gender, ethnic origin, religion etc., respect individuality and are consistent with national laws and international voluntary guidelines, such as the UN Universal Declaration of Human Rights We deal with our supply chain in accordance with our Group and Regional Procurement Code of Conducts. We voluntarily engage in and support partnerships and business networks that promote our business goals and CSR vision, such as the U.N. Global Compact, WBCSD/CSI, the E.U. Alliance for CSR, the U.S. Concrete Joint Sustainability Initiative etc. We aim to be active in civic efforts and the process to advance the use and benefits of our products and preserve the long term viability and economic prosperity of our industry. We encourage and recognize individual initiative and voluntarism in community and civic activities at all employee levels, both related and unrelated to our business. We are committed to periodically having our CSR practices and reports externally assured. The company thus believe that Corporate Social Responsibility is not an externalisedactivity nor is it only philanthropy. It is an internal process reflecting the soul of theCompany.
Titans Community Development Policy - Experiencing the joy of sharing Titans initiatives improve the quality of life of the communities in which it operates.Titan builds partnerships for the social development of the communities in which it operates.Titan alsofocuses on initiatives, which can be sustained by the communities in which itoperates.Titan has holistically integrated the CSR process and has programs covering the following: Employing the physically challenged. Womens empowerment: Partnering with self-help groups amongst rural women for outsourcing components, bracelets - the Meadow Project with Myrada. The Titan school and the Titan Foundation for Education -:a primary school currently enrolling 300 students. The Titan Scholarship meant for students in Dharmapuri and Krishnagiri based on the criteria of academic performance and socio-economic background. The Titan Township -building a sustainable community in Hosur providing a home to 1300 residents. Community Development Forums - Eye care camps, Eye donation initiatives - Aids Awareness- Programs for the differently abled - No tobacco drive, Childrens programs. Volunteering in Hosur, Corporate Office as wells as Regions. Partnering with NGOs like CRY, Concern India and Ashraya. Improving the quality of life for children - the TATA -TCCI -TITAN BalBhavan Childrens park project at Cubbon Park , Bangalore .Awards and recognitionsThe community appreciated and recognized Titan industries by awarding them: The Government of Tamil Nadus award for being the "Largest Employer of the handicapped". This award was conferred on us in the years 1993 and 1996. The Mother Teresa award for the best Corporate Citizen in 1998. The Helen Keller Award in 1999. FICCI-SEDF award in 2001-02 for Social Responsibility. The Rotary Club of Bangalore Award for the Corporate Citizenship. The PHDCII Award for Good Corporate Citizenship.
TITAN AND THE ENVIRONMENT - ISO 14001 but going beyond Compliance Titans products and services have very little or marginal impact on the environment.Titan adheres to all related legal and statutory requirements. The Company is also extremelyconscious of environmental issues and has been recognized in this regard by the HosurIndustries Association. The Companys environment control results are continuouslymonitored with respect to both TNPCB and International Finance Corporation (World Bank)norms. The Company has been certified under ISO 14001 EMS standards. The Company isproactive in its approach towards the Environment and is compliant with statutory andregulatory requirements. The Watch, Jewellery as well as the Precision EngineeringDivisions are certified under ISO 14000:2004 Environment Management System Standardsand under ISO 9001:2000, Quality Management Systems Standards.Initiatives taken: Minimizing the use of cyanides in plating by adopting non-toxic PVD technology. Eliminating the use of ozone-depleting substances ahead of the Montreal Protocol deadline. Minimizing the use of plastic packaging with eco-friendly materials. Adopting Vermi-composting for the conversion of garden / vegetable waste in to useful manure. Piloting the study of conversion of industrial waste into useful civil materials. Promotion of rainwater harvesting at manufacturing locations. Waste water treatment with efficient effluent treatment and use for industrial cleaning and gardening. Recycling brass scraps. Rainwater harvesting in 3 manufacturing locations.Results: Energy consumption per watch reduced by 41%. Cumulative Energy savings - 26 Lac kwh. Water consumption per watch down by 47%. Daily plant water consumption reduced by 28%. Brass scrap recycling back to process - saving during 2002 - 03 Rs.62 Lacs
Titan Industries is a signatory to the Global Compact and is committed to theimplementation of the 10 principles of the Global Compact. Titan Industries is also guided bythe principles of the Global Reporting Initiative. There is a process of continuous dialogue and feedback with employees, respectivedepartments and business partners, to ensure adherence. E.g. Labour standards are compliedwith as per the laws of the land and there is no evidence of any employment of child labour.CORPORATE SUSTAINABILITY Titan Industries has a clearly defined policy on Corporate Sustainability. Theapproach of its policy continues to be at three levels, the first one being at the Group levelwhere it works closely with the Tata Council for Community Initiatives, the nodal apex bodyfor facilitating Tata Group initiatives.At the Company level, key initiatives have been: Engaged 330 rural women through self-help group and provided them opportunities for various outsourced activities in manufacturing/assembling of Watches, Jewellery and Precision Engineered products. Over 600 needy students in the disciplines of Vocational, Medicine & Engineering have benefited from Titan Scholarship program. The Jewellery Division started the concept of Karigar Park by providing equipment, material and training to Karigars so that they can work directly under the supervision of the Division and earn money on job-work without any exploitation. At present there are more than 400 Karigars working on six Parks. The Company has established a Basic Training Centre to impart technical skills to youth from lower economic background to make them employable. Currently 96 students are studying in the centre. At the individual level, Titan volunteers comprising the Community Development Forumhave taken up comprehensive vision care program in and around Hosur with aleading Super Specialty Eye Hospital in Bangalore. Eye camps are being conducted and aneye care clinic has been opened in Hosur to cater to the needy and poor.Other programsinclude programs for skill development for rural women, infrastructure improvement invillages and creating awareness on hygiene and clean environment.
Corporate Social Responsibility (CSR) poses an integral part of the TITAN Group‟sphilosophy and to a great extent directs and drives the way they operate and exercise businessactivity since our beginning. A short definition to define the company‟s approach is given by them asfollowing:‘We understand the term Corporate Social Responsibility to refer to the wholerange of activities, programs and services to our stakeholders (internal and external) whichwe have organized voluntarily and are implementing above and beyond those activitiesrequired of us by legislation‟. TITAN has endorsed many initiatives in the CSR front; it has joined Jacques Delors‟Group „against Social Exclusion‟, founded the Greek Network for Corporate Responsibility,signed the UN Global Compact in 2002 and participates in the World Business Council forSustainable Development (WBCSD). USJE‟s CSR Policy is implemented in those areas where the TITAN Group hasparticular knowledge and experience – the necessary condition for the added value we intendto generate. Therefore, the three areas on which concentrate our efforts are:1.Education2. The environment3.The health and Safety in the workplaceCSR RELATED PROJECTS Corporate Social Responsibility and sustainable development play a pivotal role in theoperations of TITAN Group and Cementarnica USJE AD and they have been part of ourculture for decades.They have embedded them into their corporate strategy and value system not only out of asense of responsibility, but primarily because they are convinced that they benefit both thesocieties in which they operate as well as their stakeholders.In 2008, Cementarnica USJEimplemented many CSR related projects and activities for its own employees: • Donations in kind • Additional severance payments (retirement or disability) • Money aid to employees • Monetary “reimbursement” to next of kin (natural death) • Career counselling for employees children • Christmas children‟s parties • Scholarships for employees and their children
• Program of vocational guidance for staff children • Additional vacation bonus • Christmas gift vouchers • Woman Day • Doctor for ladies • Bonus • Jubilee prizes (Continuous service in the Company)In addition, Usje provided its CSR support to the community and society at large:1. Annual Scholarship Program Two scholarships are provided annually to top university students for MBA studies atthe ALBA University in Athens, Greece. CementarnicaUSJE AD covers the full cost oftuition plus a monthly allowance for living expenses. In 2009/2010 Usje extend itsscholarship program on providing scholarships for graduated prospectus students at thepostgraduate studies on Faculty for Economy at the Unevirsety St. Kirilus and Metodius.2. Horticultural arrangement of the yards of the elementary schools in the Municipalityof KiselaVodaPlanting trees and flowers as well as horticultural arrangement of schoolyards in theelementary schools in the Municipality of KiselaVoda.3.Vocational Training Program for Young unemployed from Neighboring CommunitiesYoung unemployed participants have been acquainted with practical and theoreticalknowledge for mechanical maintenance, cement producing, Health & Safety andenvironmental issues to enhance and support their professional prospects.
TATA INTERACTIVE SYSTEMS: Creating Value for Children with LearningDisabilities Tata Interactive Systems (TIS) has, over the past few years, been using its projectmanagement and teaching skills tohelp children with learning disabilities in Mumbai andKolkata. It started with contributing funds to the LearningDisabilities Clinic at theLokmanyaTilak Municipal General (LTMG) Hospital in Mumbai and has now blossomedinto amuch broader and deeper engagement. TIS works on multiple levels and helps children with learning disabilities financially,clinically and with their curriculum.Development of software, creating special books andother educational literature etc are its key activities. Thecompany‟s employees also volunteerin the schools to teach and use a learning disabilities awareness kit.Additionally, the companyorganizes the annual Tata Interactive Learning Disability Forum, a knowledgesharingplatform. The resultant benefits have been the incorporation of learning disability inmedical and B Ed syllabi andchanges in government policies.TIS, has also created a databaseon children with learning disabilities to improve information management. More than1000children who face learning problems have been certified as learning disabled and 480 schoolshave registered fora learning disabilities certification and have begun spreading awarenessabout the condition.Sustainability Initiatives: Physically Challenged Employees One of the earliest CSR activities of Titan Industries Limitedhas been its policy ofproviding employment to theDisabled. It adopted a very people friendly approachinrecruitment, identification and training and subsequentplacement of these physicallychallenged brethren.Recruitment Titan‟s unique recruitment strategy meant combing thecountryside in search ofintelligent, capable, yet physicallychallenged candidates in the age group of 18 to25.Appropriate selection procedures were adopted,depending on the nature of the disability.The companyarranged counselling sessions with the families, to makethe transition into thefactory smooth.These employees are involved in polishing watch cases, strapping andpackingthe watches, assembling, sorting, buffing, making ornaments, etc. Titansubcontractors also hirelarge numbers of disabled workers. To make the initiative sustainable and to address the special needs of theseemployees, thefollowing ongoing steps are taken: training to enhance technical competence,
computer literacy,non-discrimination policies, creating a conducive work environment bycreating an ergonomicworking area, effective grievance handling, and counselling to tackleproblems such asexploitation, marital conflicts and emotional problems. As a result of theemployment opportunityand other initiatives, Titan believes that the quality of life of theseemployees has improved to a great extent.Workplace modifications Ergonomically designed workspaces were just asimportant. For example, theprovision of handrails makeswalking within the Titan factory effortless for physicallychallenged employees.Training - Skill and Career development Several steps were taken to address their special needs like training to enhancetechnical competence and Training in computerliteracy, especially to the hearing impaired.HR policies Additionally Titan also was far ahead of its times in terms of designing HR policiesrelating to the employment of the Disabled likenon-discrimination in all policies includingpromotions; creating a conducive work environment by effective grievance handling; andcounseling for problems like, exploitation, marital conflicts,(especially when the partner isnot disabled),emotional and otherbehavioural problems.Those with disabilities were housedwith regular employees, which contributed to their integration with the rest of the workforce.Even work areas were made common.EMPOWERING WOMEN – THE MEADOW Initiative Management of Enterprise and Development of Women (MEADOW) began as aprogram to helpcombat female infanticide in the Dharmapuri district, and to better thestandard of living ofwomen in these communities. Titan‟s involvement started by hiringwomen to make chappatis forthe factory workers. Later, they were asked to take care of thelaundry. In 1995, Titan joinedhands with Myrada, an NGO that works on social causes, andstarted a bracelet-making unit.Satisfied with the professionalism displayed by these women,Titan then decided to convert thebracelet unit into a privately held company, one owned andrun by the women themselves.MEADOW, a subsidiary that is solely dedicated to women‟sempowerment, was thus born.To make the initiative sustainable, Titan began providing thetechnical training and expertise ofrunning a business to MEADOW. Today, nearly 200
women of these villages own MEADOW.MEADOW has three women directors who haveseen the organization grow from its early days.Profits of the company are equally sharedamong the employees with a significant amount beingadded every year to the corpus fund,which takes care of the company‟s various needs and alsoraises the standard of living for theemployees‟ families.Titan‟s association with the MEADOW program has helped to empower200 women in theworkforce, who take pride in the fact that they have been involved everystep of the way inbuilding and running their company. They have reached levels of capabilitywhere they candirectly negotiate with Titan in the annual revision of piece rates, handle allpurchases, control themovement of their vehicles, draw up work schedules, calculatepayments, follow up onreceivables, do the base work for meeting all statutory requirementsetc. In many cases, thesewomen have become the most important wage earners in theirfamilies. Titan representativesmeet with MEADOW employees on a regular basis for weeklyand monthly production relatedmeetings and for periodic meetings on annual pricenegotiations, new opportunities and majorprocess modifications. In 1995 Titan in collaboration with MYRADA, a reputed NGO organized thesewomen into self-help groups and contractedlaundering of uniforms with them. It thengraduated into other modes of mutually beneficial relationship, culminating in thesewomenbeing contracted to assembling of metal watch straps (bracelets). It was envisaged as a win-win situation; Titan would getits bracelets and MYRADA would succeed in securinglivelihoods for poor women from the rural background. Titan provided themwith CapitalEquipment, besides training them in these skills. Presently about 400 women are engaged in highly skilled operations spread over 14units. The average annual earning is aroundRs. 1.50 lakhs. Most of the women have helpedtheir families pay off debts; have gone on to create assets like houses, purchase ofgoldornaments for themselves etc. In short, they have become financially self-dependent.
Mr. Perfect – An Initiative of Jewellery Division, Titan Industries Limited The Indian Jewellery market is huge, estimated at Rs. 90,000 Crores. Though themarket is huge, the approach hasbeen very traditional with over 3 lakh retailers. It is stillviewed as a cottage industry or in the unorganized sector withmore than 10 lakh goldsmithsworking in primitive, unsafe and unhygienic conditions. Jewellery is stillcompletelydependent on the human skills of the goldsmiths, called Karigars.The visibleimpact of such abysmal work conditions is the diminishing Karigar fraternity. Jewellerymaking is no longeran attractive career option, characterized as it is by abysmal work conditions and low wagesand in some areas itborders on bonded labour. All these lead to high burnouts. The averagework span of a traditional craftspersonworking in these conditions is about 25 to 30 years,with most of them starting as child labour and their work life comingto a halt by about 40years of age. Most of them end up with poor eyesight, dystrophy in the back and lower limbsandlungs. All these lead in turn to lower productivities and thus diminishing their earningpotential. In such a dismal scenario of Jewellery making, Jewellery Division entered with amission of “to continuously createwealth for all our stake holders, by transforming theJewellery business and by being the gold standard in design,shopping experience and ethicalpractice”.Mr. Perfect aims to improve further their work conditions etc in line with modernprocesses as existing in ourmanufacturing plants. Amongst its guidelines are a commitmentto provide a right layout / environment incorporatingright process of Jewellery making, rightequipment aimed at enhancing quality with an emphasis on safety, ergonomicsand hygienefor the Karigars. It aims at a multifold increase in the earnings of the Karigars andimprovement in theirwork-life span on account of improvements in productivity, therebybenefitting the Company by way of reducedinventory, thus ensuring a smile on the face of theKarigar.Through this initiative the division is trying to ensure that the traditional Indian skill
of gold making does not die down.The division is also attempting to collaborate with theNational Skill Development Council.Titan Scholarship Scheme The Titan Scholarship scheme was formally announced on 11.3.1992 byMr.A.L.Mudaliar, then Chairman of Titan IndustriesLimited. Starting with 35 students in1992, over 780 students of ITI, Diploma, Engineering, Medicine and Arts andScienceGraduates have till date benefited from this scheme.The objective of the scheme wasto identify and encouragemeritorious but economically underprivileged studentsofDharmapuri, a designated backward district of Tamil Nadu topursue higher education invarious fields by awardingscholarships for the entire period of their higher education. A process of continuous improvement has been instituted based on periodic impactstudies of the scholarship scheme. Newinitiatives like awareness programs on careerenhancement, motivation and career guidance have also been introduced.There is also a planto adopt an ITI in the area around our manufacturing plant in Hosur, either at Salem orNamakkal.PHILANTROPHY With a purpose to identify really good organizations and also causes with which Titancould associate as part of its Corporate SocialResponsibility, a totally new exercise wasattempted in the current year. A detailed questionnaire / template were createdandorganizations which were seeking support were asked to respond. The response wastremendous. A cross – functional team consisting of members from Business Excellence,Logistics, Commercial, Goldplus, Fastrack butinterested in community development wasconstituted define the process.The CSR team evaluated over 90 applications and identifiedthe following three NGOs with whom Titan could partner for the currentyear.The due-diligence team, after intense deliberations evolved „Education with noticeable impact withclear focus on employability ofdifferently abled and socially / economically underprivileged‟as the Evaluation Criterion.Corporate responsibility begins at home Titan Industries believes that corporate responsibility begins with the employees. Thecompany ensures that the harmony, peace and inclusive approach at work place are
maintained. Efforts are made to engage the employees in programs designed to fulfil ourecological and social responsibility. Various work-place initiatives are conducted to achievethis: War on Waste - an initiative that reduced the impact of manufacturing operations on theenvironment. At Titan Industries, Corporate Social Responsibility is more than philanthropy -it is an internal process that reflects the soul of the company.CONCLUSION Titan‟s engagement in CSR appears to be grounded in the company‟s vision and senseof its rolein Indian society. Human rights-related CSR seems to be fully integrated into itsbusiness modelso as to be a way of life for the corporation. As such, there do not appear to betensions betweenthe company‟s desire to do business and its desire to promote CSR.Titan‟sphilosophy wasencapsulated by Mr.Chakravarti, speaking in October 2004 at a conference inHong Kong:“Simply put, Business is no more than a trustee of society, environment and thecommunity. Whatcomes from the people must go back to the people. In short, we try andremember the very reason and basis of our existence as a Company - is for the society. Ifsociety is sustained, so will we be”