Social Report Analysis: Ethics Project

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Social Report Analysis

Ethics project

Comparison between Tata and Infosys


Group 1
TYBMS B
Introduction

TATA MOTORS

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.
92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fourth largest truck
manufacturer, and the world's second largest bus manufacturer.

The company's 24,000 employees are guided by the vision to be "best in the manner in which
we operate, best in the products we deliver, and best in our value system and ethics."

Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain.

The foundation of the company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D.

Tata Motors is equally focused on environment-friendly technologies in emissions and


alternative fuels. . It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation

INFOSYS

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$
250. Today, we are a global leader in the "next generation" of IT and consulting with revenues of
over US$ 4.8 billion
Infosys began its journey in India's business environment in the 1980s, in an era when endless
red tape was imposed on the private sector. In this environment, building a company whose long-
term objectives included operational longevity, high ethical standards and global respect
demanded commitment to a core set of values. For Infosys, these values focus on instilling trust
in our relationships with all stakeholders, including employees, investors, clients, society and the
communities in which Infosys operates.
With employees from over 70 nationalities, Infosys has built an enduring value system based on
openness, honesty, fairness and transparency, which has earned us the confidence and trust of
our clients
Vision
"To be a globally respected corporation that provides best-of-breed business solutions,
leveraging technology, delivered by best-in-class people."
Mission
"To achieve our objectives in an environment of fairness, honesty, and courtesy towards our
clients, employees, vendors and society at large."
Values
We believe that the softest pillow is a clear conscience. The values that drive us underscore our
commitment to:
 Customer Delight: To surpass customer expectations consistently
 Leadership by Example: To set standards in our business and transactions and be an
exemplar for the industry and ourselves
 Integrity and Transparency: To be ethical, sincere and open in all our transactions
 Fairness: To be objective and transaction-oriented, and thereby earn trust and respect
Pursuit of Excellence: To strive relentlessly, constantly improve ourselves, our teams, our
services and products to become the best.

Main CSR activities

Infosys
1. Schools for the visually challenged in various cities - Mitr, our local CSR team,
visited the Rakum School for the visually challenged. Mobility, an exercise in which
team members walked blindfolded using canes, helped them empathize with the
children. The team organized games and distributed chocolates and stationery.

2. Distributing books and stationery to underprivileged children across the country


3. Infosys Affirmative Action Program (IAAP) prepares students for a career in the
Business Process Outsourcing industry
4. Personal Computer donation drive
5. Day of Change: Every Wednesday, drop boxes are placed at the campus entrance
and exit points, food courts and parking area to collect coins from Infoscions for
social welfare activities
6. Language and computer education: Basic computer education was imparted to the
security and housekeeping staff of the DC. Our team also helped 10 guards improve
their English language skills.
7. Summer camp: a child rehabilitation center. 30 children were taught art and craft,
dance, Math, English, environment awareness, traffic rules, health and fitness, and
social etiquette. Quiz contests helped the children assess their general knowledge.
8. Blood donation
9. School for dropouts
10. Educare : Sneham, the local CSR team, manages a dedicated intranet portal to help
employees support education of the children of the company’s housekeeping and
security staff.
11. Facilities for rural schools: Volunteers constructed a water tank to supply drinking
water to 1,000 students of the Avanippoor Government Higher Secondary School.
We have been donating notebooks to the Anoor School since 2005. In 2009, we
donated a water tank to the school
12. Eye donation camp- More than 330 Infoscions pledged to donate their eyes in a
special camp organized with the Ruby Hall Clinic and Eye Bank Association of India.
13. Behavior and social skills development: Prayaas, the local CSR team, organized a
program where 60 children from the Panchkula slum showcased their creativity in
group activities. The children were imparted training in social etiquette
14. Healthcare - A healing touch for the underprivileged
15. Rural Development and Social Rehabilitation: The Foundation has organized unique
annual melas in different parts of the country, including Bangalore and Sedam in
Karnataka, and Chennai in Tamil Nadu, to distribute sewing machines to destitute
women and help them earn a livelihood. Prior to the mela, the Foundation even
holds tailoring classes and provides materials for the same at some centers.

The Foundation has conducted relief work after natural disasters. Apart from
monetary contributions, it believes in assessing the real needs of those affected and
contributing accordingly. It has worked in the tsunami-affected areas of Tamil Nadu
and the Andaman Islands, earthquake-affected areas of Kutch, cyclone-devastated
areas of Orissa, tribal areas of Kalahandi in Orissa and drought-hit areas of Andhra
Pradesh
The Foundation made a donation towards the mid-day meal program of the
Akshaya Patra Foundation, Bangalore, for poor children in North Karnataka.
It established counseling centers to rehabilitate marginalized devadasis in North
Karnataka
The Foundation worked with the Red Cross Society to supply aid equipment to the
physically challenged in rural areas and economically weaker sections of Karnataka
The Foundation offers monetary aid to the Divine Life Society, which is based in the
Himalayas. The Society helps senior citizens and destitute, often picking them up
from the street and looking after them with the help of volunteers, some of whom
are foreign tourists in the region
The Foundation improved a rehabilitation center in Chennai for mentally retarded
women
The Foundation has improved the lives of children with leprosy and those living on
the streets, and in slums
16. Arts
Preserving our rich heritage and honoring our artisans are some of the ways the Infosys
Foundation contributes to this space
17. Learning and Education

TATA
1. SILVER LININGS:
2. The Company has streamlined its CSR activities into four focus areas of Health,
Employability, Education and Environment.
3. Tata Motors has touched the lives of those who do not directly impact or get impacted
by the Company but are nevertheless an integral part of the vision of the founders of
being the “central purpose of our business”.

EDUCATION :

 Tata Motors has contributed towards improving education through infrastructural


development for promoting schooling among the villagers and through upgradation
of educational facilities (building computer laboratories, sports ground, etc.) and
organizing teacher’s training programs to better the quality of education.
 Infrastructure was improved at 13 schools, promoting higher education for 2,000
children from over 25 villages.
 Shiksha Prasar Kendra, a Tata Motors society at Jamshedpur, supported 18,000
students (of which 7,500 are girls) from across 33 schools
 Quality of education improved through learning experiences
 Teacher's training program conducted in 4 schools
 Extra-curricular activities organized in 31 schools with participation from over 4,300
students
 Computer laboratory built in Beraberi High School at Singur in West Bengal
 Scholarships for higher studies awarded to 375 students

EMPLOYMENT:

 Enhance employability of youth by organizing Apprenticeship programs that are run within
the premises of the manufacturing units, as per the Apprenticeship Act 1961.
 The Company has built public-private partnership with government authorities to upgrade
the quality of Industrial Training Institutes (ITIs)
 These ITIs have been equipped with latest machines and tools, students have been taken on
exposure visits to understand manufacturing processes and ‘Train the Trainer’ programs
have been organized for their faculty.
 Several technical and vocational programs are run for rural youth from the project areas,
including Motor Mechanic Vehicle Trade Course, electrical, welding, a/c refrigeration,
computer skills, bee-keeping, etc.
 Special programs are also run for women including sewing training, beautician courses,
manufacturing food products and utility items and cable harnessing and assembly work. So
far, more than 9,000 youth and women have benefited from these programs across our
locations.
 Promote gender equality and empower women
 To make the women economically independent:
 1,058 women have been trained in manufacturing food products and utility items, sewing
and beautician courses

ENVIRONMENT:

i) Tata Motors’ beliefs on sustainability have led to a corporate policy that emphasizes
environment preservation. The Company works on projects that include reducing
effluents and emissions, maintaining local ecologies, repairing green cover and
improving long term corporate sustainability.
ii) Tree plantation drives- Over 175,242 saplings have been planted with a 80% survival
rate
iii) Smokeless chullahs constructed to promote use of environment-friendly practices.
iv) Agricultural training imparted to minimize the use of environmentally hazardous
materials and methods.
v) Awareness camps on environment related issues.
vi) Community irrigation wells and check dams have been constructed at villages near
Pune, augmenting incomes of families through improved irrigation. In Jamshedpur,
85 acres of land has been brought under irrigation and tree plantation has
extensively been carried out in over 152 acres
vii) donation of vehicles to support the NGOs
viii)Rs 12.8 million were disbursed for use of organizations as ambulances, school buses
for the underprivileged and for community development purposes, plying in remote
and inaccessible parts of the country.

HEALTH:

a) Combat HIV/AIDS, Malaria and other diseases


• Curative & Preventive health services were provided to over 92,390 persons through the
Company's community health programs, including immunization drives for polio, measles.
• Special country-wide programs were conducted for drivers during service camps. 46,548
drivers availed of the free general health and eye check-up camps and AIDS awareness
programs
• AIDS awareness campaigns camps in Ghana
Q1) Main differences in the social practices of companies
What TATA’s do but Infosys doesn’t?

 Health awareness campaign in various parts of the world to help eradicate diseases like
AIDS, malaria, dengue and others.
 country-wide programs conducted for drivers to get their checkups and health issues sorted
 Agricultural training imparted to minimize the use of environmentally hazardous materials
and methods – principle 9
 Smokeless chullas provided to villagers and making them aware of environmental pollution-
principle 9
 Tree plantation drives- Over 175,242 saplings have been planted with a 80% survival rate-
principle 8
 Promote gender equality and empower women
 To make the women economically independent

What Infosys does but the TATA doesn’t?

 Arts - Preserving the country’s rich heritage and honoring its artisans are some of the ways
the Infosys Foundation contributes to the nation
 The Infosys Foundation constructs hospital wards, donates advanced equipment, organizes
health camps and distributes medicines to the underprivileged sections of society as the
health of the underprivileged is a priority
 Rehabilitation center in Chennai for mentally retarded women
 Personal Computer donation drive
 Distributing books and stationery to the poor children
 Schools for the visually challenged in various cities
 School for dropouts
 Day of Change: Every Wednesday, drop boxes are placed at the campus entrance and exit
points, food courts and parking area to collect coins from Infoscions for social welfare
activities
 Educare : Sneham, our local CSR team, manages a dedicated intranet portal to help
employees support education of the children of our housekeeping and security staff
The Ten Principles of United Nations global compact  
The UN Global Compact's ten principles in the areas of human rights, labor, the environment
and anti-corruption enjoy universal consensus and are derived from:
1. The Universal Declaration of Human Rights
2. The International Labor Organization's Declaration on Fundamental Principles and Rights at
Work
3. The Rio Declaration on Environment and Development
4. The United Nations Convention Against Corruption
The UN Global Compact asks companies to embrace, support and enact, within their sphere of
influence, a set of core values in the areas of human rights, labor standards, the environment
and anti-corruption:

Human Rights
 Principle 1: Businesses should support and respect the protection of internationally
proclaimed human rights; and
 Principle 2: make sure that they are not complicit in human rights abuses.  
Labor
 Principle 3: Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
 Principle 4: the elimination of all forms of forced and compulsory labor;
 Principle 5: the effective abolition of child labor; and
 Principle 6: the elimination of discrimination in respect of employment and occupation.  
 
Environment
 Principle 7: Businesses should support a precautionary approach to environmental
challenges;
 Principle 8: undertake initiatives to promote greater environmental responsibility; and
 Principle 9: encourage the development and diffusion of environmentally friendly
technologies.   
Anti-Corruption
 Principle 10: Businesses should work against corruption in all its forms, including
extortion and bribery. 
Q2) Why are there these differences there:-

HEALTH ISSUES

I have a dream to devote major portions of my busy life to poor community.”


-Ratan Tata

The above statement made my Ratan Tata explains the cuture of the Tata Group and hence
they believe in focusing on health issues of the poor while infosys on the other side does not
focus on contribute health related matters.

The Company has launched several initiatives for improving the health status of community
members in the CSR project areas across locations. The initiatives include both preventive as
well as curative health care services. In addition, infrastructural development for ensuring a
perennial supply of clean drinking water and improved health through better sanitation
facilities is also included in the CSR programme of the Company.Company's community health
programs, including immunization drives for polio, measles. Special country-wide programs
were conducted for drivers during service camps. 46,548 drivers availed of the free general
health and eye check-up camps and AIDS awareness programs. AIDS awareness campaigns
camps in Ghana.

Infosys believes that India has a rich heritage of arts and culture and hence strives to keep that
the same.
This is clear cultural difference between the two industries which makes them follow different
activities

ARTS

India has a rich heritage of arts and culture. Infosys is committed to preserve the millennia-old
heritage of India by supporting art forms that are threatened with extinction. The following
activity is carried on only by Infosys and not the Tata group since their culture differs from one
another. Tata Steel is 103 years old and has been on much before infosis even in their health
improvement programmes.
The Infosys Foundation also organizes cultural programs to promote artists. The Infosys
Foundation honors artisans and provides financial assistance. In Andhra Pradesh, the
Foundation is sustaining the tradition of handloom weaving in Pochampalli village. Pochampalli
sarees are tied, dyed and woven by hand. Automation has rendered hundreds of weaver-
families unemployed. In Karnataka, the Gamaka is a classical art that combines music, poetry
and storytelling. The Foundation is reviving this traditional art by donating Gamaka sets -
comprising a Gamaka cassette and record player - to school children in Karnataka.
It has felicitated physically challenged musicians and exponents of Yakshagana, a classical folk
dance-theatre form of Karnataka. It has sponsored Kala Darshan, a musical program in rural
areas, and a folk festival to provide direct market opportunities for rural artisan communities, in
which about 100 craftsmen from 20 states participated.

DONATIONS

Since Tata's main aim is welfare of the poor, there is also alot of donations collected. Tata
Group values its partnership with the social sector and through the Donation’s Committee,
endeavours to extend support through donation of vehicles to support the NGOs. In 2007-08,
Rs. 12.8 millions was disbursed for use of organisations as ambulances, school buses for the
underprivileged and for community development purposes, plying in remote and inaccessible
parts of the country.

Infosys does not cater to any such big donation drives. They have it on a small scale it is called
Day Of Change. Every Wednesday, drop boxes are placed at the campus entrance and exit
points, food courts and parking area to collect coins from Infoscions for social welfare
activities

TRAINING

Tata Group has contributed towards improving education through infrastructural development
for promoting schooling among the villagers and through upgradation of educational facilities
(building computer laboratories, sports ground, etc.) and organising teacher’s training
programmes to better the quality of education

Special programmes are also run for women including sewing training, beautician courses,
manufacturing food products and utility items and cable harnessing and assembly work. So far,
more than 9,000 youth and women have benefited from these programmes across our
locations.

Tata on one hand has helped for an over all training in various fields while Infosys on the other
hand has training programmes for its employees and students who are interested in business
processing outsourcing industry(BPO). Infosys provides training mainly in the interest of its own
industry.

ENVIRONMENT

In view of the threat to environment, the Tata Group places a special emphasis on
environmental and ecological issues. The Group's efforts lie in preservation and regeneration of
the environment. Tata Motors’ beliefs on sustainability have led to a corporate policy that
emphasises environment preservation. The Company works on projects that include reducing
effluents and emissions, maintaining local ecologies, repairing green cover and improving long
term corporate sustainability. Also smokeless chullas provided to villagers and making them
aware of environmental pollution.

Q3. How appropriate would it be for the two Companies to use a standardized approach?

Infosys and TATA Motors follow different approaches with regards to their CSR activities.

 Tata Motors has a more focused approach. Hence, the Company has streamlined its CSR
activities into four focus areas of Health, Employability, Education and Environment. All
initiatives feed into the larger goal of improving the quality of life of people. Tata aligns
its CSR programmes with national and international goals of the Bharat Nirman
Programme (BN), a four year business plan for rural infrastructure outlined by the Prime
Minister of India and the United Nation’s Millennium Development Goals (MDGs).
Infosys on the other hand, does not publish a CSR report but mentions them in their
annual report and their website. It focuses on 4 broad areas like healthcare, rural
development, learning and education and arts.
 Tata Motors uses information from surveys and research reports and quotes facts and
figures to give an overview of the current need of the country. It then lists the various
activities and initiatives undertaken by the company.
Infosys is very direct in stating its CSR activities. It lists its various activities in various
cities and villages without giving any background information about the need or
requirements of the region or local community.
 Tata Motors gives a broad outline for most of its CSR activities. Except a few, there is no
in depth coverage of the of development programs in each city or region.
Infosys on the other hand, lists down the programs and initiatives of the individual
Development Centers located in various cities and regions across the country.
 The Tata Motors CSR report consists of pictures and anecdotes of employees, CSR teams
and the local community who were part of the CSR activities and/or whose lives have
improved due to the efforts of the Company
Infosys is straightforward and gives information about its CSR activities without any
pictures of personal stories.

Even though Tata Motors and Infosys follow different approaches to its CSR activities, the work
done by the two Companies is similar. Hence, we feel that the two Companies can use a
standardized approach. The main areas in which Tata Motors and Infosys direct its CSR
activities are:-

HEALTH

EDUCATION
While Infosys is more focused on the Social and Rural Development, Tata Motors focuses on
Environment. Tata Motors should cover its in CSR activities in more depth, that is, CSR
activities in each region or location. On the other hand, Infosys should use pictures and personal
stories to highlight the success of its CSR efforts. Hence, by combining the two approaches of
Tata Motors and Infosys, we can design a standardized format which can be used by both:

STANDARDISED FORMAT

 Company’s mission with regards to corporate social responsibility activities

 Highlight the activities the company has done in the previous year, the activities they are
doing at present and the target activities they are planning to do in the future

 Broad Categories of the activities they carry out(giving details about the projects)
 Health
 Education
 Social
 Environment
 Rural Development
(Under each category the CSR activities can be listed on the basis of city/state/region )
 Reasons as to why the particular region/issue was taken for development
 Pictures, anecdotes and personal experiences of the community programs they have
carried out
 Adherence to any standards or framework.

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