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Corporate Social Responsibility of Tata Motors
Corporate Social Responsibility of Tata Motors
Report on
Submitted By
VINESH PAI
Roll No. 46
Place : Mumbai
Date :
Roll No. : 46
Certificate
This is to certify that the dissertation submitted in partial fulfilment for the award of Master of
Management Studies under University of Mumbai from H.K Institute of Management Studies and
Research is a result of the bonafide research work carried out by Mr Gauri Patadeunder my
supervision and guidance. No part of this report has been submitted for award of any other degree,
diploma, fellowship or other similar titles or prizes. The work has also not been published in any
Journals/Magazines.
Date:
Place: Mumbai
Director
HKIMSR HKIMSR
ACKNOWLEDGEMENTS
Above all, I thank god for the innumerable and unaccountable blessing she
has showered upon me the through this endeavour.
Vinesh Pai
Introduction
Corporate Social Responsibility (CSR) defined as "the principled behavior of
a company towards the general public," evident itself in the form of such
noble programs initiated by for-profit organizations.
Additional motive for this rapid acceptance of CSR is the state of the Indian
society. Though India is one of the fastest growing economies, socio-economic
issues like poverty, illiteracy, lack of healthcare etc. are still universally
present and the government has limited resources to embark upon these
challenges. This state of affairs has opened up several areas for businesses to
contribute towards social development
Corporate Social Responsibility in now accepted as a means to achieve
sustainable development of an organization. CSR is about integrating
economic, environmental and social objective with a company’s
operations and growth. CSR impacts governance and ethics, employee
welfare, society welfare, environment protection etc. and many more.
The Companies Bill, 2012 intends to inculcate the philosophy of CSR
among Indian companies. There are different types of CSR like
Environmental CSR, Community based CSR, HR based CSR and
Philanthropy.
The functions of CSR are Ethical, Legal, Societal and Ecological
functions. The ethical functions of CSR help to present conflicts of
interest between earning corporate profits and maintaining the integrity
of the company. The legal function of CSR helps to encourage
transparency in a company’s business practices and financial reporting.
The societal functions of CSR helps to respect and invest in the
communities in which the company operation. The ecological functions of
CSR helps not only to respect the immediate environment in which the
company operates but also to respect the company’s effect on the global
environment.
This study on CSR at Tata Steel has sufficient reasons to be established.
Many such studies have been done at Tata Steel on CSR initiatives in the
past. But, the recent study will throw lights on the perseverance and
continuous efforts of Tata Company for CSR activation. Here few
quotations of the great leaders are justified to be given.
Literature Review
The concept of CSR originated in the 1950‘s in the USA but it became
prevalent in early 1970s . At that time US had lots 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. 1 According
to Bowen, ―CSR refers to the obligations of businessmen to pursue those
policies to make those decisions or to follow those lines of relations which
are desirable in terms of the objectives and values of our society. ― 2
Frederick (1960) stated ‗Social responsibility means that businessmen
should oversee the operation of an economic system that fulfills the
expectations of the people.‘ . 3 Davis (1960) argued that social
responsibility is a nebulous idea but should be seen in a managerial
context. He asserted that some socially responsible business decisions can
be justified by a long, complicated process of reasoning as having a good
chance of bringing long-run economic gain to the firm, thus paying it back
for its socially responsible outlook (p. 70). 4 An ideal CSR has both ethical
and philosophical dimensions, particularly in India where there exists a
wide gap between sections of people in terms of income and standards as
well as socio-economic status (Bajpai, 2001) 5 . Goyder(2003)
argues: ―Industry in the 20th century can no longer be regarded as a
private arrangement for enriching shareholders. It has become a joint
enterprise in which workers, management, consumers, the locality, govt.
and trade union officials all play a part. If the system which we know by the
name private enterprise is to continue, some way must be found to
embrace many interests whom we go to make up industry in a common
purpose.‖ ). 6 CSR implies some sort of commitment, through corporate
policies and action. This operational view of CSR is reflected in a firm‘s
social performance, which can be assessed by how a firm manages its
societal relationships, its social impact and the outcomes of its CSR policies
and actions
Mumbai is the most populous city in the country and 62% of the city’s
population is living in slums. Municipal schools are last resort for the students
from underprivileged background and these schools face myriad of problems,
like non-availability of teachers which adversely affect academic performance of
students. To bridge this gap, we partnered with Global Education Trust (CSR
arm of Mahesh Tutorials) to provide special coaching to 23000 students enrolled
in 146 municipal schools in Mumbai.
Scholarships and financial aid
Jointly instituted by Tata Motors and Tata Communications, the Tata Samarth
scholarship is a mentor-based rolling scholarship programme supporting bright
young engineers belonging to the economically weaker sections of society. Thus
far, we have awarded scholarships to 50 students from five engineering colleges
affiliated with the College of Engineering, Pune. These students are also being
mentored by senior leaders of the two companies. We have also partnered with
the IIT Bombay Alumni Association to extend financial aid to IIT-B students in
need. About 40 students have been supported till now under this programme.
Special coaching classes
In order to tackle the issue of high dropout rates, low percentages of students
passing exams and weak academic performances in the secondary school system,
Tata Motors has partnered with reputed non-profits to provide quality
education to students studying in municipal schools. In partnership with the
Global Education Trust (the CSR arm of leading coaching class institute Mahesh
Tutorials), we are providing special coaching to around 23,000 students of grades
9 and 10 enrolled in over 140 municipal schools of Mumbai. Based on the
encouraging outcome of this project, we have deployed similar projects in
communities around our other manufacturing locations. At some places, we have
also set up e-learning technology to promote digital learning.
Special coaching for IIT-JEE and competitive exams
Tata Motors has partnered with Avanti Fellows, an NGO, to support bright
students of Jawahar Navodaya Vidyalaya (JNV) schools preparing for IIT-JEE
and other competitive entrance exams. As part of the programme, we provide
special coaching to students at JNV Mangalore and JNV Puducherry. We have
also deployed innovative peer-to-peer learning pedagogy at these places. As a
result of the intervention, the overall entrance exam performance of students
from these schools has significantly improved.
KAUSHALYA- Employment of Skilling
We partner with the communities and NGOs around our manufacturing plants
and office locations for deployment of Vasundhara projects. This approach
meets the needs of the local community, and also inculcates in them a sense of
responsibility. This, we believe, is essential for ensuring long-term sustainability
of our collective interventions.
Environment awareness
We believe that values pertaining to environment protection are better
inculcated at a young age. We are making this possible by organising sessions for
school students which are conducted by reputed environmental non-profit
agencies and experts, encouraging green actions and striving for behaviour
change in children towards responsible consumption of natural resources
During the sessions, students are made aware of environmental issues and
educated on solid waste management, sustainable development, judicious use of
water and electricity and kitchen gardening techniques. Many interactive
booklets in regional languages have been developed to drive the message in a
visually appealing manner. Students are also taken out on nature trails so that
they can better connect the environment conservation concepts in their everyday
life.
Tree plantation
Increasing the green cover through tree plantation is a major project under
Vasundhara. We are striving to achieve this primarily through partnerships with
NGOs and community participation (for instance, with the community gifting
land and volunteering labour for the project) and also taking into consideration
the local biodiversity
We try to ensure at least three years of survival of the plantation with minimum
reasonable mortality. Wherever feasible, the plantations are harnessed for
livelihood opportunities for the beneficiaries. This makes the community a big
stakeholder, which helps in long-term maintenance of the green cover.
AMRUTDHARA
Tata Motors, under the Amruthdhara programme, has been working towards
providing safe drinking water across India.
Water scarcity and water inequality is one of the major concerns affecting
India’s overall development. To address the issue of drinking water needs of
disadvantaged communities, Tata Motors has initiated Amrutdhara. The
programme not only addresses the concerns relating to safe drinking water, but
also helps in improving health, fostering gender equality and promoting social
equality.
In regard to our operations at Tata Motors, we aspire to become water-neutral
and eventually water positive (especially in green water). We have taken several
initiatives in this context, such rain water harvesting and storage, water pooling,
water recycling, etc.
Amrutdhara has been conceived and deployed under the aegis of Sumant
Moolgaonkar Development Foundation (SMDF), a social arm of Tata Motors. It
is powered through voluntary contribution of Rs. 20/month/employee and a
matching contribution by the company. To support the programme’s core team,
comprising professionals from the construction division, community members
contribute their land, locally available raw materials, labour, etc. The
government renders support to complete the project related processes and
formalities. Community mobilisation and sustainability of the projects is ensured
by voluntary organisations
The vendors develop cost-efficient water solutions and deploy the work following
all ethical standards. Volunteers help in identifying, deploying and monitoring
the project. The diversity in the geographical landscape gives SMDF an
opportunity to innovate on water solutions. Depending upon the terrain, the
water solution could be installing RO plant, developing percolation wells or
rebuilding water reservoirs.
Seva-Voluntering programme
Health care is a growing industry. Ideal nurse -patient ratio stands at 1 nurse for
every 500 people. India faces a shortage of 2.5 million nurses and our
programme aims to fill this gap. Majority of the requests for bedside attendants
come from families who want a full time caretaker for geriatrics. We acted on
this insight and TML in partnership with Wockhardt Health developed a course
for General Duty Assistant. Through this course, the participants can offer their
services at hospitals, nursing homes and at private homes. The infrastructural
support for the training in form of laboratory, classroom furniture and
scholarships for students was sponsored by Tata
VIDYADHANAM
IIT FAP PROGRAMME
Financial Aid Programme has an unique sustainable structure at Indian
Institute of Technology (IIT). Students donate back to the program the support
received when they graduate and get a job thus keeping the program
self-perpetuating. The support of Tata has been critical in expanding both the
scope and the scale of the program.
The students are personally mentored by senior leaders at TML and other
organisations according to their area of interest. The objective is to improve
their confidence employability skills and make FAP an aspirational program for
students rather than only a means for financial aid
KAUSHALYA
Auto Tech Fest
Autotech fest was conducted for students undergoing the LEAP programme.
Five events, Automobile Quiz, Project Expo, Junkyard Wards, Auto Expo, Battle
of Trainers, were held and the students participated enthusiastically in these. In
the event Project Expo,the trainee were given an opportunity to combine their
creativity andtechnical skills and design a project. The instructors also
participated in the battle of trainers where they were evaluated on their subject
knowledge and teaching skills.
For the junkyard war, trainees were divided in teams and the task was to
develop a gokart vehicle with the automobile scrap & raw materials within the
prescribed time. The fest very a chance for the trainees to meet their fellow
students from different institutes and put their theoretical knowledge in to
practise. Most of them went back to their institutes and started developing
prototypes of automobiles.It also gave them a chance to network and hone their
skills.
EARN WHILE YOU LEARN
Earn and Progress for Mechanic Motor Vehicle Training (LEAP) is a one-year
program for training youth to be motor vehicle mechanics. Tata Motors, its
dealers and implementation partners (ITIs), are the three major stakeholders in
this program and they all bring complementary values to it. Tata Motors, acting
as knowledge partner creates standard course content that can be used by its
partner implementing agencies across India to train their students. Along with
the content, TML also regularly holds train their trainer sessions and has
developed online portal for monitoring of the program
After completion of 3 months classroom training, the students undergo
on-the-job training (OJT) for 9 months at Tata Motors’ Service Center / Dealer
Workshop. During OJT, they are paid nominal stipend, which helps students to
cover their training fee. This extended engagement during OJT has ensured 80%
job placement immediately after completion of the training program.
VIDYADHANAM
KAUSHALYA
VASUNDHARA
Tata Housing Big Enviornment
During the year 2012-13, the Company has conserved 54616774 liters of water
through various water conservation initiatives. 5933 trees have also been planted
during the year same year. Through various carbon abatement initiatives 1593
tCO2e have been abated during the year 2012-13, which is equivalent to 20.7 %
of the CO2 emission of the preceding year. The carbon abatement figures of
2012-13 have been externally validated by M/S LSquare Solutions (p) ltd.
Energy Management
We have implemented various energy efficiency initiatives at all sites. The energy
efficiency initiatives include use of renewable energy, efficient lighting &
equipment, BEE star rated appliances, etc.
Water Management
We have implemented rainwater harvesting and ground water recharging
across sites. The water fixtures and faucets used are low flow fixtures. The
lawns in landscapes are maintained with minimum areas and draught tolerant
plants are grown to minimize the irrigation water requirement. In our Gurgaon
based site, the waste water from municipal STP for construction activity. All
the projects are designed with Sewage treatment plants to treat 100 % of
domestic waste water to use in irrigation and for flushing purpose.
Tata Housing has been providing people with employability skill development
training and entrepreneurship development training in partnership with various
non-government organizations (NGOs), government institutions and professional
bodies. We understand that training is just a means to create sustainable
livelihood, and in this regard we just not train, but monitor, motivate and
handhold to ensure that people get actual employment-self-employed or wage
employed.
Some of our partners, under this initiative, include Entrepreneurship
Development Institute of India, Don Bosco Tech Society, NIIT Foundation,
Human Development Foundation and Udyogwardhini etc. Our training in
construction related trades include masonry, carpentry, bar bending,
construction supervisor, RCC etc.
SRIJAN
Tata Housing Educational Development Initiatives
While access to public/government funded schools has grown over the years, the
quality of teaching in many schools needs further improvement. Many schools
today whether run by the public bodies or private,also lack proper
infrastructure and teaching aids. Our endeavor has been to support and
supplement the already existing avenues of learning/schools in our key
communities. In this regard, we help impart remedial coaching, provide
supplementary tutorials, enhance educational infrastructures, up-grade school
buildings, create recreational facilities in schools and provide necessary reading
& writing materials to needy students. We also provide scholarships to students
in need. We have been working with a few NGOs in this regard including
Pratham.
We are careful that children at our construction sites get the right type of
opportunity and environment for studying. We believe that good Health and
Education plays a major role in empowering people. Our educational
development programmesat our construction sites or in the extended key
communities ensures holistic development of the students with focus on the
creation of a more evolved and nurturing environment. We achieve this by
providing support and concentrating on areas like hygiene, sanitation, medical
aid, and food, wherever required, so that learning becomes truly an enriching
experience
Our educational initiatives has been branded as SRIJAN for greater visibility
among the stakeholders. Under SRIJAN the Company has touched more than
6400 students (including 2620 SC/ST candidates) in 34 schools across India. The
activities undertaken include remedial coaching and school infrastructure
development
Running the open air Centre under the Flyover has not been an easy task. There
are many issues including the frequent raid by the municipal authorities. Very
often our blackboard, banner, chair, children’s notebooks and clothes are
thrown out in the open by the authorities. Rain and storm very often makes our
life miserable. But nothing prevents us from helping these children. Our social
worker and teacher never lose their patience; they again scramble together the
missing pieces, give children their moral support and start running the Centre
gain
SYNERGIZERS
SWACHH
Tata Housing Schools and neighbourhood Sanitation Initiatives
Many people in India still do not have access to toilets and good sanitation, as a
result outdoor defecation continues in communities. It leads to wide spread
diseases and health issues. We have been renovating and constructing toilets for
schools and needy communities for a while. However considering the gravity of
the problem, we are concentrating our focus on construction of toilets for the
poor and changing their sanitation habits and look forward for transformed,
*clean and green communities in coming years.
TATA INTERNATIONAL INITIATIVES
The CSR interventions of Tata Motors extend beyond the boundaries of India. In
partnership with reputed NGOs and our distributor partners in various
countries, we continue to work to support marginalised communities.
Aadhaar has been integrated with our CSR programme for improved efficiency
and better reach. In addition to deploying forty percent of the CSR budget for
the AA programme, we have developed synergetic inter-linkage among the AA
focus areas. In lined with our philosophy of ‘More from less for More’, we have
partnered with various state governments for skill development of SC/ST youth
in automotive trades. Our dealers have been strategically involved with the
LEAP programme which aims at training underprivileged youth as motor
mechanics. The dealers pay stipend to the trainees as well as employ them once
the training is successfully completed. Tata Motors has also tied up with project
implementation partners to mobilise government schemes specifically designed
to train youth in automotive trades.
TATA MOTORS
AADHAR
In line with our philosophy of ‘More from Less for More’, we have also
partnered with various State Governments, such as Bihar Mahadalit Vikas
Mission and West Bengal Scheduled Castes & Scheduled Tribes Development
and Finance Corporation for skill development of SC/ST youth in automotive
trades.
Enterprising SC/ST youth are also trained, mentored and encouraged to start
business enterprises. Our Strategic Sourcing Team has undertaken several
initiatives to include the SC/ST entrepreneurs in its vendor base. The team
identifies AA vendors who can supply auto components and on clearing the
initial verifications and quality checks they are registered in the TML database
TANDA
An Educated tommorow for Denotified Tribes
Almost all the students at the centre are first generational learners. The centre
also encourages a deeper engagement of parents in their childs’ education.
Regular parent teacher meetings are held where the parents are updated of their
child’s progress. This has also helped in improving interpersonal relationship
between parents and the children.
PRAYAS
Educational Support to Childrens on Margins
PRAYAS, a field project by Tata Institute of Social Sciences works for the
children of women in judicial custody.
These children are shunned in the society and find it difficult to overcome the
social stigma. We sponsor vocational training for children in conflict with the
law, who are completing their term at remand home. These children lack
support to continue education and employable skills when released and in
absence of meaningful engagement at workplace and education, there is high
risk that they fall back to their usual ways. In order to avoid this scenario, we
encourage these children to attend vocational training courses.
We also support the project by disbursing scholarships to deserving students to
complete education whose parents are in custodial justice. For holistic
personality development of students co-curricular activities such as – exposure
visits, children’s meet are also organised.
Conclusion
1Tata motors has help a lot of people by doing a Csr in various
field such as Education in which almost 2000 student per year
get helped by Tata motors
2)Almost 40%of the Tata motors revenue is put aside for farmers for
new crops and new machine and water irrigation facilities has
been done by Tata Motors
4)Tata motors has initiative with women power in rural sector and
also built sanitary booth for women