SOCIAL RELEVANCE PROJECT

ON
CORPORATE SOCIAL RESPONSIBILITY OF
TATA CAPITAL
 EXECUTIVE SUMMARY

Corporate Social Responsibility (CSR) is the commitment of business to contribute to

sustainable economic development, working with employees, their families, the local community
and society at large to improve quality of life, in ways that are both good for business and good
for development.

Although the contemporary CSR agenda is maturing, the term “CSR” has not yet taken hold
within many public-sector agencies, either in industrial or developing countries. Few government
initiatives have been undertaken explicitly as “pro-CSR initiatives” but nonetheless many have
contributed effectively to the promotion of greater social responsibility

There is a significant opportunity for public sector bodies in developing countries to harness
current enthusiasm for “CSR” alongside key public policy goals and priorities to encourage
delivery of results in both respects.

Through an in-depth exploration of the dilemmas, challenges, and complexities inherent to

current models of corporate social responsibility, the program will push the frontiers of the field
and bring into focus the next generation of issues facing practitioners

It will have a great study on CSR activities done by Tata Capital in past in various Fields such
as: -

 Livelihood & Employability

 Health
 Education
 Environment
 OBJECTIVES

The main objective of this project is

 To understand the concept of Corporate Social Responsibility

 To Study activities carried out by TATA Capital in various areas

 To analyse impact of CSR on society & its employees.

TABLE OF CONTENT
CHAPTER 1.
 INTRODUCTION

What is CSR?

CSR is abbreviation for Corporate Social Responsibility. It is an idea which has become very
popular in business reporting. Every corporates has a policy concern about CSR and producing a
report and annually detail its CSR activity. And each of us claims to be able to recognize
corporate activity which is socially responsible and activity which is not socially responsible.
CSR mainly concerns mainly two things: firstly, we do not necessarily agree with each other
about what is socially responsible; and although we claim to recognize what it is or is not when
we are asked to define it then we find this impossibly difficult.

Corporate Social Responsibility is a management concept whereby Corporation integrate its

social and environmental concerns in their business operations and interactions with their
stakeholders. CSR is generally understand as being the way through which a corporates achieves
a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”),
while at the same time addressing the expectations of shareholders and stakeholders. Which can
be a strategic business management concept, and charity, sponsorships or philanthropy. Even the
latter can make a valuable contribution towards poverty reduction, will directly enhance the
reputation of a company and strengthen its brand, the concept of CSR clearly goes beyond that.

economic
social
environmental
 Figure 1 Triple-Bottom-Line

Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective needs
and capacities of these businesses, and do not adversely affect their economic viability. UNIDO
(United Nations Industrial Development Organization) based its CSR program on the Triple
Bottom Line Approach, which has proven to be a successful tool for SMEs in the developing
countries to assist them in meeting social and environmental standards without compromising
their competitiveness. The TBL approach is used as a framework for measuring and reporting
corporate performance against economic, social and environmental performance. It is an attempt
to align private enterprises to the goal of sustainable global development by providing them with
a more comprehensive set of working objectives than just profit alone. The perspective taken is
that for an organization to be sustainable, it must be financially secure, minimize (or ideally
eliminate) its negative environmental impacts and act in conformity with societal expectations.

Key CSR issues: environmental management, eco-efficiency, responsible sourcing, stakeholder

engagement, labour standards and working conditions, employee and community relations,
social equity, gender balance, human rights, good governance, and anti-corruption measures.

A properly implemented CSR concept can bring along a variety of competitive advantages, such
as enhanced access to capital and markets, increased sales and profits, operational cost savings,
improved productivity and quality, efficient human resource base, improved brand image and
reputation, enhanced customer loyalty, better decision making and risk management processes.

PRINCIPLES OF CSR

Because of the uncertainty surrounding the nature of CSR activity it is difficult to define CSR
and to be certain about any such activity. It is therefore imperative to be able to identify such
activity and we take the view that there are three basic principles which together comprise all
CSR activity.

These are: -

 Sustainability
  Transparency
 Accountability

1. Sustainability

This is concerned with the effect which action taken in the present has upon the options available
in the future. If resources are utilized in the present then they are no longer available for use in
the future, and this is of concern if the resources are finite in quantity.

Thus, raw materials of an extractive nature, such as coal, iron or oil, are finite in quantity and
once used are not available for future use. At some point in the future therefore alternatives will
be needed to fulfil the functions currently provided by these resources. This may be at some
point in the relatively distant future but of more immediate concern is the fact that as resources
become depleted then the cost of acquiring the remaining resources tends to increase, and hence
the operational costs of organizations tend to increase.

Sustainability therefore implies that society must use no more of a resource than can be
regenerated. This can be defined in terms of the carrying capacity of the ecosystem and described
with input – output models of resource consumption. Thus, the paper industry for example has a
policy of replanting trees to replace those harvested and this has the effect of retaining costs in
the present rather than temporally externalizing them.

Viewing an organization as part of a wider social and economic system implies that these effects
must be taken into account, not just for the measurement of costs and value created in the present
but also for the future of the business itself. Measures of sustainability would consider the rate at
which resources are consumed by the organization in relation to the rate at which resources can
be regenerated. Unsustainable operations can be accommodated for either by developing
sustainable operations or by planning for a future lacking in resources currently required. In
practice organizations mostly tend to aim towards less unsustainability by increasing efficiency
in the way in which resources are utilized. An example would be an energy efficiency program.

2. Transparency
Transparency, as a principle, means that the external impact of the actions of the organization
can be ascertained from that organization’s reporting and pertinent facts are not disguised within
that reporting. Thus, all the effects of the actions of the organization, including external impacts,
should be apparent to all from using the information provided by the organization’s reporting
mechanisms. Transparency is of particular importance to external users of such information as
these users lack the background details and knowledge available to internal users of such
information. Transparency therefore can be seen to follow from the other two principles and
equally can be seen to be a part of the process of recognition of responsibility on the part of the
organization for the external effects of its actions and equally part of the process of transferring
power to external stakeholders.

This is concerned with an organization recognizing that its actions affect the external
environment, and therefore assuming responsibility for the effects of its actions. This concept
therefore implies a quantification of the effects of actions taken, both internal to the organization
and externally. More specifically the concept implies a reporting of those quantifications to all
parties affected by those actions. This implies a reporting to external stakeholders of the effects
of actions taken by the organization and how they are affecting those stakeholders.

This concept therefore implies a recognition that the organization is part of a wider societal
network and has responsibilities to all of that network rather than just to the owners of the
organization. Alongside this acceptance of responsibility therefore must be a recognition that
those external stakeholders have the power to affect the way in which those actions of the
organization are taken and a role in deciding whether or not such actions can be justified, and if
so at what cost to the organization and to other stakeholders.

3. Accountability

Accountability therefore necessitates the development of appropriate measures of environmental

performance and the reporting of the actions of the firm. This necessitates costs on the part of the
organization in developing, recording and reporting such performance and to be of value the
benefits must exceed the costs. Benefits must be determined by the usefulness of the measures
selected to the decision-making process and by the way in which they facilitate resource
allocation, both within the organization and between it and other stakeholders. Such reporting
needs to be based upon the following characteristics:

 Understandability to all parties concerned;

 Relevance to the users of the information provided;
 Reliability in terms of accuracy of measurement, representation of impact and freedom
from bias;
 Comparability, which implies consistency, both over time and between different
organizations.

Applicability of Corporate Social Responsibility to Companies

Corporate Social Responsibility is required for all companies viz. private limited company,
limited company. The following companies are necessary to constitute a CSR committee:

In India under Companies Act, 2013,

 Companies with a net worth of Rs. 500 crores or greater, or

 Companies with a turnover of Rs. 1000 crores or greater, or
 Companies with a net profit of Rs. 5 crores or greater.
 Annual T/o
Rs.1000 Cr.
or More
(Sec 2(91))

Companies Act
2013 -CSR
Provisions

Net Profit of NetWorth of

Rs. 5 Cr. or Rs.500 Cr.
More (Sec or More
2(1)(f)) (Sec 2(57))

Figure 2 Criteria for implementation of CSR

If any of the above financial strength criteria are met, the Corporate Social Responsibility (CSR)
provisions and related rules will be applicable to the company. These companies are required to
form a CSR committee consisting of its directors. This committee oversees the entire CSR
activities of the Company.
 Key Dimensions of CSR (Classification of Social Responsibility)

R esp on sibility tow

Responsibility ard s itself
towards

R esp on sibility tow

Responsibility ard s employees
towards em ploy ees

R esp on sibility towards

Responsibility tow ard s sh areho lders
shareholders

R esp o n sib ility to

Responsibility w ards co
towards n su m ers
consumers

R esp on sibility towards

Responsibility tow ard s state

R esp on sibility tow

Responsibility ard s environment
towards en viron m en t

R esp on sibility tow

Responsibility ard s ggovernment
towards overnm en t

CLASSIFICATION OF SOCIAL RESPONSIBILITY

1. Responsibility towards itself

It is the responsibility of each corporate entity run business and to work towards growth,
expansion and stability and thus earn profits. If the corporation is to achieve social and economic
ends, organizational efficiency should be boosted up

2. Responsibility towards Employees

Employees are the most important part of an organization. Following are some of the
responsibilities which a business entity has towards its employees

 Timely payment
  Hygienic environment
 Good and impartial behavior
 Health care through yoga
 Recreational activities
 Encouraging them to take part in managerial decisions

3. Responsibility towards shareholders

It is the responsibility of corporate entity to safeguard the shareholders ‘investment and make
efforts to provide a reasonable return on their investment.

4. Responsibility towards state

Out of the profit available, the state is entitled to a certain share as per the income tax laws.
Utmost transparency has to be exerted regarding the profit &loss account and the balance sheet.

5. Responsibility towards consumers

The Company should maintain high quality standards at reasonable prices. It should not resort to
malpractices such as hoarding and black-marketing.

6. Responsibility towards environment

It is the responsibility of the organization to contribute to the protection of environment. It

should produce eco -friendly products. Moreover, industrial waste management must be taken
care of.
ROLE OF BOARD OF DIRECTORS IN CSR
The board of directors of a company plays a significant role in CSR activities of the company.
The role of Board is as follows:

 Approval of the CSR policy.

 Ensuring its implementation.
 Disclosure of the contents of CSR policies related to its report.
 Placing the same on Company’s website.
 Ensuring that statutory specified amount is spend by the company with reference to CSR
activities.
 It’s significant to note that there is no penalty if the particular amount is not spent on
CSR activities. In such case, the board’s report must identify the reason for such short
spending

CSR COMMITTEE AND POLICY

All qualifying company required to have a CSR committee are required to spend at least 2% of
its average net profit for the directly preceding 3 financial years on CSR activities. Additionally,
the qualifying company shall be necessitated to comprise a committee (CSR Committee) of the
Board of Directors (Board) comprising of 3 or more directors. The CSR Committee will prepare
and recommend to the Board, a policy which will specify the activities to be undertaken (CSR
Policy); advocate the amount of expenditure to be incurred on the activities referred and monitor
the CSR Policy related to the company. The Board will take into account the recommendations
made by the CSR Committee and support the CSR Policy of the company.

Activities permitted under Corporate Social Responsibility (CSR)

 Eradicating extreme hunger and poverty

 Promotion of education
 Promoting gender equality and empowering women
 Reducing child mortality
  Improving maternal health
 Combating human immunodeficiency virus, acquired, immune deficiency syndrome,
malaria and other diseases
 Ensuring environmental sustainability,
 Employment enhancing vocational skills, social business projects
 Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the
Central Government or the State Governments for socio-economic development, and
 Relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women and such other matters as may be prescribed

BUDGET OF CSR
 The Company Board of Directors shall ensure that in each financial year the Company
spends at least 2% of the average Net Profit made during the three-immediate preceding
financial years. ―Net profit‖ means the net profit as per the financial statement of the
company prepared in accordance with the applicable provisions of the Act, but shall not
include the following: (i) Any profit arising from any overseas branch or branches of the
company, whether operated as a separate company or otherwise, and (ii) Any dividend
received from other companies in India which are covered under and complying with the
provisions of section 135 of the Act.
 As per section 135 of the Companies Act, the Company will report reasons for under
spending of the allocated CSR budget of the current financial year in the template
provided by the Ministry of Corporate Affairs. This reporting will be done Annual
Report and signed off by the Board of Directors.
 In case of any surplus arising out of CSR projects the same shall not form part of
business profits of the Company Page 12 of 12 IV. The Company may collaborate or
pool resources with other companies to undertake CSR activities, through any non-profit
organization, if required
CSR Benefited to Company, Stakeholders, General Public
and Environmental
Company Benefits

 Improved financial performance

 Lower operating costs
 Enhanced brand image and reputation
 Increased sales and customer loyalty
 Greater productivity and quality
 More ability to attract and retain employees
 Reduced regulatory oversight
 Access to capital
 Workforce diversity
 Product safety and decreased liability

Benefit To General Public And Community

 Charitable contributions
 Employee volunteer programs
 Corporate involvement in community education, employment and homelessness
programs
 Product safety and quality

Environmental Benefits

 Greater material recyclability

 Better product durability and functionality
 Greater use of renewable resources
CHAPTER 2.
 INTRODUCTION OF TATA CAPITAL

Tata Capital, the flagship financial services company of the Tata group, is a subsidiary of Tata
Sons and is registered with the Reserve Bank of India as a systemically important non-deposit
accepting core investment company, Tata Capital is primarily a holding company, holding
investments in its subsidiaries and other group companies employing over 1000-2500 employees
and has over 1,000 customer touch-points. Tata Capital and its subsidiaries are engaged in a wide
array of services and have many products in the financial services sector, and these products /
services are offered under the Tata Capital brand.

Tata Capital Limited provides financial and investment services. The Company offers consumer
loans, commercial finance, investment banking, private equity, credit cards, and treasury
advisory, and travel services. Tata Capital serves retail, corporate, and institutional customers in
India.

Trusted and customer-centric, one-stop financial solutions partner. Caters to the diverse needs of
retail, corporate and institutional customers directly or through its subsidiaries.

Headquartered in Mumbai, it has registered offices of its subsidiaries in Singapore and London.

The company is focused on providing fund and fee-based financial services through an extensive
network of over 1,000 customer touch-points covering tier I, tier II and tier III cities.
Area of Business

Tata Capital's range of offerings caters to the diverse financial requirements of its retail,
corporate and institutional customers, directly or indirectly, through its subsidiaries:

 Distribution and broking: -Services such as broking, investment banking services,

depository participant services and distribution of mutual fund units and third-party
investment products for retail and institutional customers.
 Consumer finance: New and used car loans, two-wheeler loans, personal loans, home
loans, business loans, credit cards, consumer durable loans, loans against property, loans
against securities, commercial vehicle loans for retail customers and insurance
distribution as corporate agents of Tata AIA and Tata AIG.
 Commercial finance: Financial products for large, medium, small, emerging corporate
and value-based solutions for their ecosystems as well as to government and public-sector
enterprises. Product offerings include channel finance, purchase invoice discounting,
SME loans, flexi loans, term loans, working capital demand loans, lease rental
discounting, loans against shares, loans against property, asset finance (including rentals)
for construction equipment & other equipment, syndications and structured finance.
 Leasing solutions: Tata Capital, in partnership with Century Tokyo Leasing Corporation
(TC-Lease), offers comprehensive, innovative and solution-oriented asset financing
solutions. The solutions cover diverse asset classes including general and customized
plant and machinery, computers and telecommunication equipment, infrastructure assets,
railways, ATMs, commercial vehicles and passenger cars for employees of corporate and
office equipment and other miscellaneous equipment such as rooftop solar, LED lighting,
etc.
 Investment banking: Advisory services on mergers and acquisitions, equity and debt
and equity syndication and project advisory for corporate and small and medium
enterprises.
 Private equity: Investments in India and other countries through five funds: Tata
Opportunities Fund, Tata Capital Growth Fund, Tata Capital Healthcare Fund, Tata
Capital Innovations Fund and Tata Capital Special Situations Fund-Trust.
  Wealth products distribution: Suite of investment offerings for high net worth
individuals ranging from corporate fixed deposits, mutual funds, portfolio management
services (PMS), private equity funds and structured products, real estate services and life
insurance.
 Investment advisory services: Services such as portfolio advisory services, financial
planning services, retirement planning services, estate planning and trusteeship services
and tax planning and advisory services.
 Rural finance: Relevant financial products for rural customers, including financing of
farm equipment and agri and allied business loans.
 Clean tech & infrastructure finance: Financing and advisory services for companies
that promote clean technology. The key areas include energy efficiency, renewable
energy generation projects such as wind power, small hydro power, solar power, bio-
mass and waste treatment, water management projects and projects that aid carbon
footprint reduction

Joint Ventures, Subsidiaries, Associates

 Tata Capital Financial Services (TCFSL): A wholly-owned subsidiary of Tata Capital,

registered with RBI as a systematically important non-depositing accepting non-banking
financial company. TCFSL has three main areas of business – corporate finance, consumer
finance and advisory, and rural finance.
 Tata Capital Housing Finance (TCHFL): TCHFL is a wholly-owned subsidiary of
Tata Capital and is registered with NHB to carry on housing finance activities.
 Tata Clean tech Capital (TCCL): A joint venture between Tata Capital and IFC,
Washington DC, US, It is a systematically important non depositing accepting non-banking
financial company registered with the RBI and engaged in the business of providing finance
and advisory services for projects in renewable energy, energy efficiency, waste management
and water management. In due course, post receipt of the infrastructure finance company
license recently, TCCL will offer other relevant products in this segment as well.
 Tata Securities (TSL): A wholly owned subsidiary of Tata Capital engaged in retail and
institutional distribution and broking. TSL distributes third-party mutual fund investment
products and offers stock broking services of buying, selling or dealing in securities,
including futures and options, in its capacity as a member of the BSE and the National Stock
Exchange of India. TSL is also a depository participant. TSL is also registered with
Securities and Exchange Board of India (SEBI) as Category 1 merchant banker and portfolio
manager. TSL also registered itself as research analyst under SEBI (Research Analysts)
Regulations, 2014.
 International Asset Reconstruction Company Private Limited (IARC): IARC is
registered as a securitization and reconstruction company with RBI and was promoted in
2002 by professionals from the banking and financial services sector, for reconstruction of
financial assets. TCFSL holds a 25.37% equity stake in IARC.
 Tata Capital also owns a 24% equity stake in Tata Auto comp Systems (TACO), which
provides products and services in the automotive industry.
 Nectar Loyalty Management (Nectar): Tata Capital Limited holds 49% in the joint
venture and 51% is held by AIMIA (formerly known as Groupe Aeroplane Inc.)
 Tata Capital Financial Services also owns around four percent of equity capital
of Development Credit Bank, a growing private sector bank.
 CORPORATE STRUCTURE OF TATA CAPITAL
LIMITED

Tata Sons
Limited

Tata Capital
Limited

Tata Capital Tata Capital Tata Capital

Tata Securities Tata Cleabtech
Private Equity Financial Housing PteLimited
Limited Capital Limited
Services Ltd. Finance Ltd. (Singapure)

Tata Capital Corporate Investment Providing

Home Loans Finance &
Gwoth Fund Finance Banking Advisory services

Tata Capital
Consumer Construsction Depository
Healthcare
Finance Finance Participant
Fund

Tata Capital
Affordable
Innovations Rural Finance
Finance
Fund

Tata capital Marketing of

Special Situations While label Home Equity
Fund-Trust Tata Card

Figure 3 Corporate structure of Tata Capital Limited

Vision Of Tata Capital

The Most admired financial solutions partner.

Mission Of Tata Capital

We will only do what’s right (Karein wahi Jo aap ke liye sahi) – for all our stakeholder,
including our employees, customer and society at large.

Seek to build strong relationships with our customers and deliver superior and consistent
customer experience across all products and touch-points

Offering

Tata Capital’s range of offerings caters to the diverse financial requirements of its retail,
corporate and institutional customers.

B2B Offerings B2C Offerings

Commercial Finance Consumer finance
Infrastructure Finance Home Loans
Leasing Solutions Loan Against Property
Clean Tech Finance Wealth Management
Private Equity Investment Advisory
Investment Banking Travel, Forex & Cards

International Business

 International Head Quarters in Singapore and offices in London.

 Representative offices in Tokyo and Johannesburg.
 Tata Capital Pte. Limited (TCPL), Singapore offers Corporate Advisory, Debt and Equity
Capital Markets, Offshore Desk for Securities & Wealth Management
 Tata Capital Markets Pte. Limited and Tata Capital Advisors Pte. Limited are in the areas
of capital markets and private equity respectively.
CHAPTER 3.
 AN INSIGHT INTO CSR ACTIVITIES OF TATA
CAPITAL

Tata Capital CSR

True to the spirit of the Tata companies, Tata Capital believes that Corporate Sustainability is the
cornerstone for business operations. At the conceptual level, Tata Capital's fundamental views on
CSR are oriented towards the stakeholder-participation approach where the target group are seen
as stakeholder in the community whose well-being is integral to the long term success of the
company and not merely a charity-oriented approach

Vision

We will ensure sustainability by doing what is right, through the adoption of sustainable business
practices, employee policies and technologies.

Mission

We will only do what’s right – for all our stakeholder, including our employees, customer and
society at large.

Seek to build strong relationships with our customers and deliver superior and consistent
customer experience across all products and touch-points
TATA CAPITAL CSR POLICY

Purpose

To protect the interests of all our stakeholders and contribute to society at large, by making a
measurable and positive difference, through the four causes we support viz.:

i. Livelihood & Employability

ii. Health
iii. Education
iv. Environment

Resources

We will utilize 2% of the average net profits of the Company made during three immediate
preceding Financial Years. Any surplus arising out of Corporate Social Responsibility projects,
programs or activities shall not form part of the business profit of the Company and would be
ploughed back for CSR activities.

Corporate Sustainability

 Corporate Sustainability is a cornerstone for business operations.

 Tata Capital is a socially responsible and committed organization. We have always made
sincere efforts to protect the interests of all our stakeholders and contribute to society.
 With a view to make a meaningful and positive contribution, we have defined four key
areas of work. These are: Livelihood & Employment, Health, Education and
Environment
Tata Capital Focus Area On CSR

Entrepreneurship –To provide necessary skills and handhold budding entrepreneurs in BFSI
and other sectors

Education – To ensure holistic education & development through supplementary education,

child development, scholarships for higher education and upskilling of youth for sustainable
livelihood

Sports & music – To provide necessary skills and handhold budding entrepreneurs in BFSI and
other sectors

Health – To provide financial, counselling, care & treatment support for cancer patients, hearing
impaired and visually impaired individuals

Climate action – To support communities in building resilience against climate change through
projects focusing on water security, renewable energy, affordable housing and other mitigation
and adaptation initiatives.
Latest Activities Conducted By Tata Capital

1. Tata Capital’s ‘ProAspire’ encourages skill development in India

20th July 2017, Mumbai: Tata Capital through its skill development initiative 'ProAspire' - has
successfully trained and placed over 3,000 underprivileged students across the country.
ProAspire, one of Tata Capital's flagship CSR initiatives around education and employability,
aims to contribute to the Government's Skill India initiative by training the underserved yet
potential candidates of society.

With ProAspire, Tata Capital aims to address issues related to a deficiency in skilled labour, poor
quality of basic education, limited access to opportunities and qualified manpower, which
amongst others are currently plaguing the nation. To answer this, Tata Capital has outlined
training modules and identified opportunities in the Banking, Financial services & Insurance
(BFSI) sector and other Vocational Sectors to contribute towards enhancing the lives and the
economic status of the nation's underprivileged youth. ProAspire comprises various courses that
address a variety of interests, aspirations and encourage local job opportunities in rural, semi-
urban and urban areas.

To reach out to the youth and bring in efficiency in execution, the program follows a structured
approach which includes: Mobilization, Selection, Training, Assessment, Placement, and
Tracking of youth. This is devised to provide the candidates with the necessary skills and thereby
enable a better livelihood for them.

Speaking about the initiative, Chief Human Resources Officer, Tata Capital, said, "Quality
education and skill development are a prerequisite to a nation's growth. In India, it is estimated
that around a million jobs will be available under the BFSI sector by 2022, which can ably be
supported by our country's equally rich source of human capital. Tata Capital's objective under
this initiative is to prepare the current & future generations of the marginalized societies on
various skills in current & upcoming sectors, thereby making them employable and
consequently, improving their economic status. ProAspire articulates a vision for India to take
advantage of the demographic dividend and aims to hone the skills of over 10,000 individuals,
with 40% being women, by the year 2020."

Upon completion of the BFSI trainings, successful candidates are placed in various roles
including Business Development Executives, Front Line Sales Executives, Back Office
Executives with reputed Banks, Non-Banking Financial Companies (NBFCs) and Microfinance
Companies across India. Candidates that complete the vocational courses gain opportunities as
qualified electricians, mechanics and welders in the manufacturing sector and allied services.
The initiative has seen a placement rate of over 65%, with most of the candidates receiving job
opportunities in the BFSI, Hospitality and other allied sectors.

ProAspire, the skill development initiative under Tata Capital CSR, was conceptualized to skill,
place and thereby improve the economic conditions of the underprivileged youth. ProAspire
builds on the professional aspirations of such individuals to enable a better livelihood for them.

Under ProAspire, Tata Capital has outlined opportunities under BFSI and other Vocational
trainings to address the aspirations and encourage opportunities in rural, semi-urban and urban
areas.

Why the need to establish such a program - India was is reaching the peak of its demographic
dividend by 2020. But at the same time, various socio-economic issues are stymieing the
development of a large number of communities, especially the lower strata of the population.

NSDC predicts that about 1.01 million jobs will be available under the BFSI sector by 2022, of
which about 40% jobs will be in roles related to sales and marketing.

This was the base for us to establish the ProAspire skill development program and prepare the
current & future generations of such marginalized societies on various skills in the current &
upcoming sectors, thereby making them employable. The initiative has not only helped improve
their economic status but has also contributed to India’s progress.
How is Tata Capital contributing towards skill development-Tata Capital works closely with all
the implementation and training partners. Apart from funding the skilling and placement of the
candidates, there is active participation in terms of volunteering too.

For e.g. with Tata STRIVE, our largest BFSI skilling partner, we have been on the curriculum
development panel as industry experts to develop the BFSI Business Development Executive
course. Our employees are invited as guest lecturers to address the candidates on various topics
like Sales, lead generation, career trajectory, etc.

Tata Capital has identified two main sectoral streams under ProAspire program – BFSI and
Vocational skills. For each skill, we have selected training institutes that specialize in the domain
knowledge and have a strong connection in the industry for placements.

ProAspire-BFSI aims to be aligned strategically to benefit the BFSI sector by identifying

unemployed youth from underprivileged backgrounds and providing them with free training
under the Business Development Executive (BDE) course. Successful candidates are placed
under various roles like BDE, Front Line Sales Executives, Back office Executives with
Banks/NBFCs/Microfinance Companies, etc.

Within the vocational skill spectrum, 5 skills have been identified namely, Motor Mechanic,
Hospitality, Welder, RAC and Electrician for youth, mainly, from Affirmative Action and other
marginalized communities with some formal education. In total, we have trained more than 3000
candidates and have placed over 65% of the individuals in the process.

Can you briefly elaborate on the process and the roll-out program-ProAspire follows a
series of stages– the process for which is customized for each partner, course and location.

Mobilization – Within the chosen location, youth are mobilized through gatherings, by reaching
out to local communities, colleges, advertisements, referrals, etc. The mobilization drive focuses
on creating awareness & providing information on the training & career opportunities. Interested
candidates sign up for the training modules at this stage.

Selection – For BFSI, the interested candidates undergo a pre-assessment test to understand their
aptitude and interests. Based on the results and aspirations, candidates are shortlisted for the
specific course. The shortlisted candidates are then enrolled for the course. For vocational
courses, the candidates fill out an admission form to enroll for the specific course.

Trainings – The training duration, curriculum and facilities are dependent upon specific
domains. BFSI BDE course could range from a 21 days’ full time residential course to a 45 days’
part time course. While vocational skill trainings are full time courses between 3 months to 1
year. The curriculum for each course follows the common norms and available standards which
comprises domain knowledge and personality development modules. Facilities like labs,
computers, mock drills, etc., are made available by the trainings institutes.

Assessment & certification – Assessments are a combination of ongoing assignments and a

written theory test that takes place at the end of the course. Successful candidates are issued
certificates.

Placement – Upon successful completion of the course and assessment, they are counselled on
preparing their CVs and go through mock interviews. The institutes have sector tie-ups and
organize campus interviews or send the candidates for interviews to potential employers.

Tracking – Once the candidates are placed, their progress is tracked for a period of 3 months to
1 year to ensure handholding and continuity of employment.

Has this program impacted the lives of people? Has the company started placing? -Through
the efforts of our implementation partners, Tata Capital has impacted more than 3000
underprivileged youths in the past two years and has been able to place more than 65%
candidates in the BFSI, Hospitality and other allied sectors.

Overall initiatives and future plans of Tata Capital in the CSR belt-

Besides being a part of the philanthropic Tata Group, at Tata Capital, we always strive to do
what is right for all our stakeholders, which includes our society at large.

In today’s world, while philanthropy is important, creating and sustaining the impact through
various initiatives is essential. Tata Capital has defined 5 thrust areas to make a measureable
difference, namely, Education & Skill Development, Health, Sports & Music, Entrepreneurship
and Climate Action. Each of these areas have distinct focus and long-term projects.
Under ProAspire, Tata Capital aims to skill a minimum of 2000 candidate each year and place a
minimum of 70% of the candidates in the sector of training. Under BFSI, we also aim to enroll a
minimum of 40% women candidates in the training modules.

2. Tata Capital commits to fund the construction of 50 additional homes in

Dahanu.

Tata Capital, the financial services arm of the Tata group, in partnership with Habitat for
Humanity India has built 40 new homes aimed at enhancing the lives of 200 people from the low
income group adivasi community living in Dahanu, Maharashtra. The handover of 40 homes was
carried out today at Dahanu by R. Vaithianathan, Managing Director – Tata Capital Housing
Finance Limited and Mr. Mukul Dixit, Senior Director – Programs and Operations, Habitat for
Humanity India.

Access to safe and affordable housing has always been a key focus area for Tata Capital. Most
tribals in the Dahanu block live in kuchha houses which are in a dilapidated condition and on the
verge of collapse. These families do not have the resources to build, repair or improve their
houses. Tata Capital and Habitat for Humanity India are committed to improving community life
by providing shelter and support to this tribal group. The pucca houses built to support this
community will help improve the health status and self-esteem of these families by giving them
ownership of an asset. The children of these 40 families will also benefit from a healthier
environment to play, learn and grow up in and will be motivated to attend school regularly.

The newly built pucca homes are constructed using bricks as the foundation, have one living
room, a kitchen and a bathroom. This initiative by Tata Capital and Habitat for Humanity India is
aligned with the Government of India’s ‘Housing for All’ and ‘Swachh Bharat Abhiyan’
schemes launched by the honorable Prime Minister Shri Narendra Modi, to build adequate
shelter for all and to make India free of open defecation.

Speaking about the initiative, Rajan Samuel, Managing Director, Habitat for Humanity India
said, “A large part of India lives in extreme poverty. A decent home opens the door to improved
health, better performance in school, greater economic opportunities and increased community
cohesion. Habitat for Humanity India has been a catalyst for such transformations. We aim to re-
build the lives of these Adivasi families in Dahanu by giving them access to improved shelter
and sanitation. We are thankful to Tata Capital for partnering with us.”

Tata Capital Housing Finance Limited said, “The government’s ‘Housing for All’ scheme under
the Pradhan Mantri Awas Yojna aims to provide affordable housing to the poor by 2022. We are
determined to help achieve this goal and are pleased to be involved in this project with Habitat
for Humanity, which endeavors to empower these tribal families with permanent homes. We
recognize the need for building new homes for needy individuals in these areas. After witnessing
the positive impact, we are pleased to announce that we have made a commitment to support the
construction of additional 50 houses for the tribal families in Dahanu.”

Retail Business & Housing Finance said, “Tata Capital has a wide portfolio of retail finance
offerings catering to the varied needs of our diverse set of customers. The housing project in
Dahanu is a unique initiative we have undertaken, in line with our endeavour to ‘do right’ and
give back to society while supporting the Government’s vision of ‘Housing for All by 2022’. We
are pleased to have lent a helping hand and look forward to provide more opportunities of home
ownership.”

Avijit Bhattacharya, Chief Human Resources Officer, Tata Capital said, “Creating enriching &
sustainable livelihoods has been the bedrock principle of Tata Capital’s CS policy and is in line
with the Company’s brand promise to ‘Do Right’ by giving back to the society. The Dahanu
housing project, initiated in October 2016, has helped improve the lives of the tribal families in
the region by providing them with adequate shelter and a sanitation unit. We are pleased to
support the Habitat for Humanity team in this project and will continue to improve the lives of
similar communities across the country through various CS initiatives.”

3. Tata Capital Housing Finance and WWF-India Launch Partnership To

Conserve Critically Endangered Species

Tata Capital Housing Finance Limited, a subsidiary of Tata Capital Limited, the financial
services arm of the Tata Group, has partnered with WWF-India to lend their support to
conservation programs for three critically endangered species – the great Indian bustard, greater
one horned rhinoceros and red panda.
These would include raising awareness, conducting biological surveys, and working with local
communities to reduce their dependency on forest resources. Additionally, the projects would
augment the resources of forest departments to be better equipped to deal with issues of poaching
and improve their relationships with the local communities. Alternative livelihoods options for
local communities and climate change adaptation are also being looked at as two new and critical
pillars of intervention under this partnership, in the geographical areas identified.

This alliance will strengthen new and existing independent conservation projects currently
underway, aimed at conservation of these species. The objectives of these projects have been laid
down keeping in mind an overarching strategy of concentrating efforts in specific target areas in
order to maximize the impact of the efforts undertaken. The target areas include the Desert
National Park in Jaisalmer and Barmer for the great Indian bustard, Laokhowa-Borachapori
Wildlife Sanctuary for the greater one-horned rhinoceros and Shergaon, West Kameng,
Arunachal for the red panda.

The great Indian bustard is a critically endangered species, of which only 200 are remaining in
the world. The bustard stands at great risk of being the first mega species to become extinct in
India in recent times. The initiatives aimed at preservation of this species are among its last
hopes for long term survival. Less than 4,000 greater one-horned rhinoceroses remain in the wild
and this program is aimed at translocation of the species to help improve its range in Assam. Red
pandas number less than 10,000, and are at direct risk from several predators and loss of habitat.

The intended goal of these projects is to activate a combination of initiatives including raising
awareness of the plight of these endangered species, researching on their population and
dynamics to optimize conservation efforts, working with local communities to reduce their
dependency on forest resources, thereby protecting the habitat. It also aims at augmenting the
resources of the respective forest departments in the target areas so that they are better equipped
to deal with issues of poaching, and foster better relationships with local communities.

Additionally, other direct threats to these species such as management of feral dog populations,
and curbing of illegal agricultural activities through a combination of policy reform and
enforcement, are among the other initiatives to be undertaken in these conservation projects.
Tata Capital Housing Finance Limited said “Our support of WWF-India will help drive both
awareness and action towards the protection of these species, which are on the brink of
extinction. Protecting these species will also help maintain the ecological balance and in turn
help the preservation of our natural resources, ultimately benefiting mankind. Tata Capital
Housing Finance has always been committed to inclusive and sustainable growth, and our efforts
in these projects help align this ethos with that of WWF, working together towards maintaining
the ecological balance of the planet”

Sharing the objectives of the partnership, Ravi Singh, SG & CEO – WWF-India said, “The great
Indian bustard, the one-horned rhino and the red panda are unique species, each representing
three distinctive bio-habitats of India — the open grasslands, the flood plains and the lower
Himalayan montane forests, respectively. To conserve these species is to conserve their
ecosystems as a whole. WWF-India understands the fine thread that connects the diverse habitats
of our ecologically-rich country, and strives to preserve it. We welcome this alliance with Tata
Capital, as it will enable us to strengthen our ongoing conservation programs and implement
initiatives that will help humans live in harmony with nature.”
CSR ACTIVITY DONE BY TATA CAPITAL

Education –

Vatsalya Ashramshala at Vikramgad

Vatsalya Ashramshala, pilot project of Tata Capital, Tata Capital is intend creating a cluster
development model that will assist in holistic development of tribal students. Company
intervention is planned to be a holistic one spanning education to employment which will
include: providing infrastructure, soft skills and all round development of the students.

The cluster development model encompasses Education, Employability and Employment/

Entrepreneurship. Our intervention envisions including providing Education Loans for students
who want to pursue higher education as well as Business Loans for those who wish to start their
own enterprises.

The cluster development model reaches out to empower students through various specialized
NGOs, which we have identified and partnered with:

 Magic Bus
 Pratham Education Foundation (Assessment of learning levels, introducing English
through the local language and financial literacy)
 Pragati Pratishthan

Upon completion of X standard, the students will be given opportunities for further studies or
enrolment in vocational training and the Armed Forces, leading to employability/ employment.
We regularly conduct career guidance sessions with the students of Vatsalya Ashramshala.
Magic Bus

This program aims at holistic development of the children from the underprivileged community
by motivating and mentoring them to evolve a positive attitude and behavior in three values
(Education, Health and Gender Equality) and for Socio-Emotional Development. This is to help
the children to evolve into confident and competent youth thus empowering them to get a better
livelihood of their choice.

Magic Bus conducts indoor and outdoor activities for children on Sports for development with
focus areas like education, health and hygiene, gender equality, Right to play and socio-
emotional skill.

There are three programs running by Magic Bus foundation at Vatsalya

 Holistic Development: This program aims at the holistic development of children from
underprivileged communities by motivating and mentoring them to evolve positive
attitude and to develop socio economic skills. This is to help empower the children and
transform them into a competent and confident youth, thereby helping them achieve a
livelihood of their choice.
 Sports for Development: Helps the best athletes in Vatsalya to build their skills in
Kabaddi and Kho Kho. It provides a structured training and development route across a
number of sports for talented young athletes who have a real chance of excelling in their
sport. (Younger means aged 10-12 years)
 Work Readiness Program: Magic Bus has initiated an intervention at the Ashram
School with the students of 9th and 10th grade with an objective of providing them inputs
on financial literacy, IT, Career guidance and Basic employability skills which will help
them to make a transition from school to work place seamlessly.

PRATHAM EDUCATION FOUNDATION

Pratham Education Foundation aims at improving the children's learning levels at the
Ashramshala through an English Language intervention. Pratham aims to take the students'
learning levels from basic reading fluency acquisition to higher competency levels.
English Language intervention: Introduction of the English Language (through Marathi) for
students from standard I to X.

PRAGATI PRATISHTHAN

Pragati Pratishthan is an NGO that works with speech and hearing impaired tribal. They provide
breakfast to the children at Vatsalya. With the help of Pragati Prathisthan, we have developed a
weekly timetable for the children, keeping in mind the nutrition elements needed for school
children.

PANKH SCHOLARSHIP

Tata Capital is a firm advocate of Affirmative Action and education. In order to promote
technical and professional education among underprivileged students, the company has initiated
a scholarship program under the brand name 'Pankh' which means 'Wings'. The objective of the
Pankh Scholarship program is to mentor and fund higher education of academic achievers from
economically underprivileged and Affirmative Action families. The uniqueness of this program
is that this is entirely driven through the employees of the company and the beneficiaries are
from the employees support circle viz. children of their drivers, house helps and deserving
children from their villages.

As a part of Tata Capital Affirmative Action Program "Pankh" we seek to sponsor students from
AA Communities for professional courses like Architecture, Engineering and Medicine.

The employees nominate deserving candidates they know of and who require a sponsorship to
complete their higher studies. Shortlisted candidates go through an interview process before the
final cases are selected. A pre requisite of the program is that the employee has to be the mentor
of the candidate whom they are recommending. This also helps in tracking the students on their
performance and final placements as well, once they successfully complete their course.

Till date, 66 Pankh Scholarships have been awarded of which 26 have gone to SC/ST children.
21 of the students did/ are doing engineering courses, 4 students are doing Medical courses, with
the rest dispersed among medical, BSc and other courses. Students studying in colleges in
Maharashtra (9) and Karnataka (8) dominate but assistance is also extended to students studying
in Andhra Pradesh, Tamil Nadu, West Bengal, Karnataka, Mumbai and Madhya Pradesh. Rs
38.72 lakh has been spent to date on the scheme.

EMPLOYABILITY –

Employability programs are aimed at skilling and placing youth from underprivileged
backgrounds including SC/ST. Skill training is provided in:

 BFSI like business correspondent, mutual fund agents, etc.

 Vocational skills

The aim of the project is to skill the youth and provide them employment in the same trade.

BFSI SKILLS (Banking, Financial services and Insurance)

The project aims to identify needy graduate youth across India and provide them free training
and placement in job roles in the BFSI sector. With the beginning of the Tata STRIVE initiative
at the group level, Tata Capital has partnered with Tata Strive to develop Business Development
Executives (BDE), a course which has been approved by NSDC and the BFSI Sector Skill
Council (SSC). Tata STRIVE has also developed a Youth Development Module (YDM) which is
a personality development module in addition to the sectoral skills.

Tata Capital has initiated the process to standardize the trainings, specifically, the YDM with
current training institutes like NIBF and TMI. The plan is to move all the trainings under Tata
STRIVE in order to ensure quality delivery and management of programs as per the group
guidelines.
VOCATIONAL SKILLS

Within the spectrum of vocational skills, 6 skills have been identified and supported through the
CSR and AA budget. These are imparted in partnership with Don Bosco, Pune and Pratham,
Aurangabad and Raipur:

 Mechanical
 Hospitality
 Electrician
 Automotive Engineer
 BPO
 RAC
 Welder

ENTREPRENEURSHIP –

The entrepreneurship initiative aims at provide the necessary skills and support to the
beneficiaries in order to set-up an establishment or practice. The trainings imparted focus on two
sectors i.e. BFSI and Dairy farming.

Udyogwardhini, Nashik

Looking at the tremendous scope for Entrepreneurship in financial sector, Udyogwardhini in

consultation & approval from TATA Capital Housing Finance Limited designed a unique model
of Entrepreneurship Development Program (EDP) based on financial products & services. This
set-up at Nashik aims to mobilize candidates, provide a 45-day training with classroom and
practical sessions. The team at Udyogwardhini also provides post set-up support for the
shortlisted candidates for the BFSI sector.

Nirmal Foundation, Shrirampur

The main objective of the project is to provide training to youth for employability and also
change their mindset towards Dairy Farming as a lucrative opportunity to earn their livelihood.
CHAPTER 4.
 KEY CHALLENGES FACE BY TATA CAPITAL

Since the Companies bill has become an act, around 8,000 companies in India including private
and public companies need to focus on planning, designing and implementing CSR initiatives
pertain to areas, such as, care for all stakeholders, ethical functioning, respect for workers’ rights
and welfare, respect for human rights, environment and social and inclusive development etc.
The practical implementation of CSR is faced with a lot of issues and challenges. As a result,
there are several key challenges, which are anticipated. The survey conducted by Times of India
group on CSR used a sample size of 250 companies involved in CSR activities through a method
of online administration of questionnaire. The questionnaire was evolved after due diligence
including focus group meetings, consultations with key stakeholders and a pilot in four metros.
Finally 82 organizations responded to the questionnaire. These comprised 11 public sector
undertakings (PSUs), 39 private national agencies and 32 private multinational organizations.
The respondent organizations form a satisfactory percentage of 33 per cent of the sample size,
given the fact that only those companies that had direct or indirect involvement in CSR activities
were chosen to be approached for the survey. The survey elicited responses from participating
organizations about various challenges facing CSR initiatives in different parts of the country.
Responses obtained from the participating organizations have been collated and broadly
categorized by the research team.
KEY CHALLENGES

 Lack of community participation in CSR activities

There is a lack of interest of the general public in participating and contributing to CSR activities
of companies. CSR is largely misunderstood by Indian businesses and their stakeholders. There
is a view that businesses are already socially responsible, when they are clearly not. The situation
is further aggravated by a lack of communication between the companies involved in CSR and
the general public at the grassroots.

 Need for capacity building of the local non-governmental organizations

There is a need for capacity building of the local non -governmental organizations as there is
serious dearth of trained and efficient organizations that can effectively contribute to the ongoing
CSR activities initiated by companies. This seriously compromises scaling up of CSR initiatives
and subsequently limits the scope of such activities.

 Issues of transparency
Lack of transparency is one of the key issues brought forth by the survey. There is an expression
by the companies that there exists lack of transparency on the part of the local implementing
agencies as they do not make adequate efforts to disclose information on their programs, audit
issues, impact assessment and utilization of funds. This reported lack of transparency negatively
impacts the process of trust building between companies and local communities, which is a key
to the success of any CSR initiative at the local level.

 Non-Availability of Well Organized Non-Governmental Organizations

It is also reported that there is non-availability of well-organized nongovernmental organizations
in remote and rural areas that can assess and identify real needs of the community and work
along with companies to ensure successful implementation of CSR activities. This also builds the
case for investing in local communities by way of building their capacities to undertake
development projects at local levels.
  Visibility Factor
The role of media in highlighting good cases of successful CSR initiatives is welcomed as it
spreads good stories and sensitizes the local population about various ongoing CSR initiatives of
companies. This apparent influence of gaining visibility and branding exercise often leads many
nongovernmental organizations to involve themselves in event-based programs; in the process,
they often miss out on meaningful grassroots interventions.

 Narrow Perception towards CSR Initiatives

Non-governmental organizations and Government agencies usually possess a narrow outlook
towards the CSR initiatives of companies, often defining CSR initiatives more donor-driven than
local in approach. As a result, they find it hard to decide whether they should participate in such
activities at all in medium and long run.

 Non-availability of Clear CSR Guidelines

There are no clear cut statutory guidelines or policy directives to give a definitive direction to
CSR initiatives of companies. It is found that the scale of CSR initiatives of companies should
depend upon their business size and profile. In other words, the bigger the company, the bigger is
its CSR program.

 Lack of Consensus on Implementing CSR Issues

There is a lack of consensus amongst local agencies regarding CSR projects. This lack of
consensus often results in duplication of activities by corporate houses in areas of their
intervention. This results in a competitive spirit between local implementing agencies rather than
building collaborative approaches on issues. This factor limits company’s abilities to undertake
impact assessment of their initiatives from time to time.
CHAPTER 5.
 IMPACT ON C.S.R ACTIVITIES ON SOCIETY & ITS
EMPLOYEES

Towards Society –

 An obligation, beyond that required by the law and economics, for a firm to pursue long
term goals that are good for society
 The continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as
well as that of the local community and society at large
 About how a company manages its business process to produce an overall positive
impact on society
 Every ‘green action’ is supposed to save the planet, and all the living beings on it.
Reducing CO2 emission and waste, diminishing use of non-renewable resources are only
few ways companies can lower their environmental impact and improve the relations
with society.
 Natural
environme
nt
Technolog protection
y and
infrastruct Improved
ure quality

Higher
Education standard
of living
Impact or
Benifit on CSR
for the society

Economic
Social
developm
activation
ent

Better
employme
Increased
nt
health
opportunit
ies

Figure 4 Impact on CSR activity towards Society

Towards Its Employees –

 Employees consider firms’ level of corporate social responsibility while searching for
new jobs. Moreover employees also consider firm’s environmental and social
relationship, treatment of employees and transparency and fairness. The service sector of
any country responds to new socioeconomic needs of any modern economies.
 If employees think their employer is “doing the right thing,” it seems they are more likely
to “do the right thing” themselves. When organizations implement best practices in CSR,
employees are more likely to engage in cooperative behaviors towards their coworkers
and the organization, like going out of their way to help their teammate. Similarly, CSR
 promotes higher-quality and closer relationships between employees .Enhanced
Employee Identification with the Organization
 Feeling positively about their organization’s CSR initiative has been shown to increase
employee’s intentions to stay with their current employer, and their overall commitment
to the organization. Commitment includes a huge range of positive attitudes, including
how much employees like their organization, make personal sacrifices for the
organization, and see their own future and success tied to the organization’s success.
 When employees feel that their organization is socially responsible, they experience a
greater sense of identity with the business they work for. In fact social responsibility can
be more important  than financial success in determining how much employees identify
with their.
 Along with increasing current employee’s commitment, CSR can also make
organizations look more attractive to applicants and prospective employees. In the age
when millennials look to work for “high impact” organizations, engaging in CSR may
help companies to attract top talent over other organizations. For example, a survey by
the non-profit Net Impact found that 72 percent of students about to enter the workforce
stated that a job where they can “make an impact” was important for their happiness.
 Employees have also been shown to be more engaged and to perform better when they
feel good about their company’s CSR involvement. By making employees aware of the
company’s efforts to give back and celebrating these efforts, you can help employees
become more actively engaged with their work, and do better work overall.
 Finally, CSR can increase employees’ creative involvement, including generating new
but practical ideas, originality, and creative problem-solving. When organizations express
their values and passions through CSR, employees may be inspired to develop new and
better ways to do their work.
CHAPTER 6.
 CONCLUSION

Corporate social responsibility is an admirable notion that should be followed by modern

businesses. CSR is good both for companies and societies around them and brings many benefits
to both sides. The corporations can gain financial benefits through working for the good of the
people, and at the same time, create a positive reputation and respect, securing their position on
the market. The society in which such companies function can observe an increase of quality of
education, technology and infrastructure, as well as better health and security of people. Overall,
following the rules of CSR may lead to higher standard of living of people surrounding the
socially responsible business. Therefore the good of the business and the well-being of the
society should not be put against one another. As presented in this paper, they might be, and
often are the something.
 BIBLIOGRAPHY

(n.d.). Retrieved from www.iosrjournals.org (IOSRJBM)

(n.d.). Retrieved from https://csr.tatacapital.com
(n.d.). Retrieved from https://www.tatacapital.com/corporate-sustainability/affirmative-
action/education.htm
Aras, D. C. (n.d.). Corporate Social Responsibility.
International Journal of Research in Management and Business . (n.d.).
Journal of Business and Management. (n.d.).
K.Aswathappa. (n.d.). Human Resource Development.
Schindle, D. R. (n.d.). Corporate social responsibility.
Tata Capital_Corporate Presentation . (2017).
1. INTRODUCTION ABOUT THE CORPORATE SOCIAL RESPONSIBILITY

While there may be no single universally accepted definition of CSR, each definition that currently exists
underpins the impact that businesses have on society at large and the societal expectations of them.
Although the roots of CSR lie in philanthropic activities (such as donations, charity, relief work, etc.) of
corporations, globally, the concept of CSR has evolved and now encompasses all related concepts such
as triple bottom line, corporate citizenship, philanthropy, strategic philanthropy, shared value, corporate
sustainability and business responsibility. This is evident in some of the definitions presented below:

• The EC defines CSR as, “the responsibility of enterprises for their impacts on society”. To
completely meet their social responsibility, enterprises “should have in place a process to integrate
social, environmental, ethical human rights and consumer concerns into their business operations and
core strategy in close collaboration with their stakeholders”

• The WBCSD defines CSR as “the continuing commitment by business to contribute to economic
development while improving the quality of life of the workforce and their families as well as of the
community and society at large.”

• According to the UNIDO3 “Corporate social responsibility is a management concept whereby

companies integrate social and environmental concerns in their business operations and interactions
with their stakeholders. CSR is generally understood as being the way through which a company
achieves a balance of economic, environmental and social imperatives (Triple-Bottom-Line Approach),
while at the same time addressing the expectations of shareholders and stakeholders. In this sense it is
important to draw a distinction between CSR, which can be a strategic business management concept,
and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution
to poverty reduction, will directly enhance the reputation of a company and strengthen its brand, the
concept of CSR clearly goes beyond that.”

From the above definitions, it is clear that:

• The CSR approach is holistic and integrated with the core business strategy for addressing social
and environmental impacts of businesses.

• CSR needs to address the well-being of all stakeholders and not just the company’s
shareholders.

• Philanthropic activities are only a part of CSR, which otherwise constitutes a much larger set of
activities entailing strategic business benefits.

CSR in India
CSR in India has traditionally been seen as a philanthropic activity. And in keeping with the Indian
tradition, it was an activity that was performed but not deliberated. As a result, there is limited
documentation on specific activities related to this concept. However, what was clearly evident that
much of this had a national character encapsulated within it, whether it was endowing institutions to
actively participating in India’s freedom movement, and embedded in the idea of trusteeship. As some
observers have pointed out, the practice of CSR in India still remains within the philanthropic space, but
has moved from institutional building (educational, research and cultural) to community development
through various projects. Also, with global influences and with communities becoming more active and
demanding, there appears to be a discernible trend, that while CSR remains largely restricted to
community development, it is getting more strategic in nature (that is, getting linked with business) than
philanthropic, and a large number of companies are reporting the activities they are undertaking in this
space in their official websites, annual reports, sustainability reports and even publishing CSR reports.
The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its disclose-or-
explain mandate, is promoting greater transparency and disclosure. Schedule VII of the Act, which lists
out the CSR activities, suggests communities to be the focal point. On the other hand, by discussing a
company’s relationship to its stakeholders and integrating CSR into its core operations, the draft rules
suggest that CSR needs to go beyond communities and beyond the concept of philanthropy. It will be
interesting to observe the ways in which this will translate into action at the ground level, and how the
understanding of CSR is set to undergo a change.

CSR and sustainability

Sustainability (corporate sustainability) is derived from the concept of sustainable development which is
defined by the Brundtland Commission as “development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.” Corporate sustainability
essentially refers to the role that companies can play in meeting the agenda of sustainable development
and entails a balanced approach to economic progress, social progress and environmental stewardship.
CSR in India tends to focus on what is done with profits after they are made. On the other hand,
sustainability is about factoring the social and environmental impacts of conducting business, that is,
how profits are made. Hence, much of the Indian practice of CSR is an important component of
sustainability or responsible business, which is a larger idea, a fact that is evident from various
sustainability frameworks. An interesting case in point is the NVGs for social, environmental and
economic responsibilities of business issued by the Ministry of Corporate Affairs in June 2011.

Principle eight relating to inclusive development encompasses most of the aspects covered by the CSR
clause of the Companies Act, 2013. However, the remaining eight principles relate to other aspects of
the business. The UN Global Compact, a widely used sustainability framework has 10 principles covering
social, environmental, human rights and governance issues, and what is described as CSR is implicit
rather than explicit in these principles.

Globally, the notion of CSR and sustainability seems to be converging, as is evident from the various
definitions of CSR put forth by global organisations. The genesis of this convergence can be observed
from the preamble to the recently released draft rules relating to the CSR clause within the Companies
Act, 2013 which talks about stakeholders and integrating it with the social, environmental and economic
objectives, all of which constitute the idea of a triple bottom line approach.
2. CLAUSE 135, COMPANIES ACT, 2013

In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which was passed by
both Houses of the Parliament, and had received the assent of the President of India on 29 August 2013.
The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crore INR
and more, or a net worth of 500 crore INR and more, or a net profit of five crore INR and more. The new
rules, which will be applicable from the fiscal year 2014-15 onwards, also require companies to set-up a
CSR committee consisting of their board members, including at least one independent director.

The Act encourages companies to spend at least 2% of their average net profit in the previous three
years on CSR activities. The ministry’s draft rules that have been put up for public comment define net
profit as the profit before tax as per the books of accounts, excluding profits arising from branches
outside India The Act lists out a set of activities eligible under CSR. Companies may implement these
activities taking into account the local conditions after seeking board approval.

The indicative activities which can be undertaken by a company under CSR have been specified under
Schedule VII of the Act.

The draft rules (as of September 2013) provide a number of clarifications and while these are awaiting
public comment before notification, some the highlights are as follows:

1. Surplus arising out of CSR activities will have to be reinvested into CSR initiatives, and this will be
over and above the 2% figure

2. The company can implement its CSR activities through the following methods:

 Directly on its own

 Through its own non-profit foundation set- up so as to facilitate this initiative

 Through independently registered non-profit organisations that have a record of at least three
years in similar such related activities

 Collaborating or pooling their resources with other companies

3. Only CSR activities undertaken in India will be taken into consideration

4. Activities meant exclusively for employees and their families will not qualify

5. A format for the board report on CSR has been provided which includes amongst others,
activity-wise , reasons for spends under 2% of the average net profits of the previous three years and a
responsibility statement that the CSR policy, implementation and monitoring process is in compliance
with the CSR objectives, in letter and in spirit. This has to be signed by either the CEO, or the MD or a
director of the company
Clause 135 of the Act lays down the guidelines to be followed by companies while developing their CSR
programme. The CSR committee will be responsible for preparing a detailed plan on CSR activities,
including the expenditure, the type of activities, roles and responsibilities of various stakeholders and a
monitoring mechanism for such activities. The CSR committee can also ensure that all the kinds of
income accrued to the company by way of CSR activities should be credited back to the community or
CSR corpus.

The new Act requires that the board of the company shall, after taking into account the
recommendations made by the CSR committee, approve the CSR policy for the company and disclose its
contents in their report and also publish the details on the company’s official website, if any, in such
manner as may be prescribed. If the company fails to spend the prescribed amount, the board, in its
report, shall specify the reasons.

3. BENEFITS OF A ROBUST CSR PROGRAMME

As the business environment gets increasingly complex and stakeholders become vocal about their
expectations, good CSR practices can only bring in greater benefits, some of which are as follows:

• Communities provide the licence to operate: Apart from internal drivers such as values and
ethos, some of the key stakeholders that influence corporate behaviour include governments (through
laws and regulations), investors and customers. In India, a fourth and increasingly important stakeholder
is the community, and many companies have started realising that the ‘licence to operate’ is no longer
given by governments alone, but communities that are impacted by a company’s business operations.
Thus, a robust CSR programme that meets the aspirations of these communities not only provides them
with the licence to operate, but also to maintain the licence, thereby precluding the ‘trust deficit’.

• Attracting and retaining employees: Several human resource studies have linked a company’s
ability to attract, retain and motivate employees with their CSR commitments. Interventions that
encourage and enable employees to participate are shown to increase employee morale and a sense of
belonging to the company.

• Communities as suppliers: There are certain innovative CSR initiatives emerging, wherein
companies have invested in enhancing community livelihood by incorporating them into their supply
chain. This has benefitted communities and increased their income levels, while providing these
companies with an additional and secure supply chain.

• Enhancing corporate reputation: The traditional benefit of generating goodwill, creating a

positive image and branding benefits continue to exist for companies that operate effective CSR
programmes. This allows companies to position themselves as responsible corporate citizens.

• More business opportunities: A CSR program requires an open, outside oriented approach. The
business must be in a constant dialogue with customers, suppliers and other parties that affect the
organization. Because of continuous interaction with other parties, your business will be the first to
know about new business opportunities.

7 Steps to Effective Corporate Social Responsibility

1. Think about your stakeholders.

If achieving happiness is not tantalizing enough for you to become more socially responsible, consider
instead the stakeholders of your company: your investors, channel partners, customers, employees and
surrounding community. How you operate affects the lives of each of these groups. So, the goals you set
should take all of them into account.

2. Define your mission.

Most companies have a mission statement that provides the framework to build the business. Corporate
responsibility is no different. Some companies choose to integrate their social goals into their business
agenda, but your business might be wise to have a separate “corporate social responsibility”
mission/vision statement.

3. Find out what is important to you.

Profits are important; that’s a given. But, what else is important to you? Perhaps even more crucial is,
what is important to your customers? For General Mills, the future of education is what drives the
company -- a great mission choice, since many cereal and snack food decision-makers happen to be
parents. Whatever your mission, it needs to be something you are honestly passionate about, or it will
never stick.

4. Look for opportunities.

Once you’ve decided what important, figure out how to help is. Writing a check is often not the answer.
Take your stockholders into account -- they expect that profit we spoke of. Learn about the issue and
ask current influencers what will make a real difference. Even a small startup with no available cash flow
can get positively involved in community service. Some products are inherently socially responsible. For
example, Suncrest Diamonds takes imperfect, perhaps unwanted stones and processes them to create
high-grade colored diamonds for jewelry. Considering the ethical controversies over "blood diamonds"
(also called "conflict diamonds") from certain African nations, Suncrest's actions are both responsible
and good for the bottom line.

5. Consider a partnership.

Sometimes there is no need to start a CSR strategy from scratch. If your company and your passion
match up with another organization’s goals, don’t hesitate to cooperate with them to forward your
mission. If you can integrate your efforts with an established program, your time, money and social
capital will go that much further. The recent merger of the Elizabeth Smart Foundation with Operation
Underground Railroad to battle human trafficking illustrates a perfect such matchup. Just make sure you
vet collaborative opportunities. You don’t want to be involved with a group that isn’t transparent, or
someone who's hypocritical about what he or she supports.

6. Mean what you say.

Every person with a computer or smartphone is a potential public critic of your company. Online
reviewers, influencers, and commentators can smell an insincere campaign half a mile away, and your
reputation will suffer for it. Pilmer, the reputation management firm, likes to quote Mark Twain, who
said, "A lie can travel halfway around the world while the truth is still putting on its shoes." So, back up
your company’s corporate social responsibility mission with genuine passion, words, and actions. If you
don’t take yourself seriously, nobody else will, either.

7. First, do well. Then talk about it -- in that order.

If you are doing good things as a company, don’t be afraid to talk about it once your CSR ball gets rolling.
There’s no reason that you can’t earn goodwill for causes that you are contributing to as a company.
And talking about your part in philanthropy efforts is good PR for your chosen cause, which in turn helps
further your CSR plans. With social responsibility, you gain back what you put in. If you are carefully
considering your company’s impact on the world and evaluating your decisions accordingly, you’re
already doing something right.

4. CRITICISMS AND CONCERNS

CSR concerns include its relationship to the purpose of business and the motives for engaging in it.

• Nature of business

Milton Friedman and others argued that a corporation's purpose is to maximize returns to its
shareholders and that obeying the laws of the jurisdictions within which it operates constitutes socially
responsible behavior. While some CSR supporters claim that companies practicing CSR, especially in
developing countries, are less likely to exploit workers and communities, critics claim that CSR itself
imposes outside values on local communities with unpredictable outcomes.

Better governmental regulation and enforcement, rather than voluntary measures, are an alternative to
CSR that moves decision-making and resource allocation from public to private bodies. However, critic’s
claim that effective CSR must be voluntary as mandatory social responsibility programs regulated by the
government interferes with people’s own plans and preferences, distorts the allocation of resources,
and increases the likelihood of irresponsible decisions.

• Motives

Some critics believe that CSR programs are undertaken by companies to distract the public from ethical
questions posed by their core operations. They argue that the reputational benefits that CSR companies
receive (cited above as a benefit to the corporation) demonstrate the hypocrisy of the approach.
• Misdirection

Another concern is that sometimes companies use CSR to direct public attention away from other,
harmful business practices. For example, McDonald's Corporation positioned its association with Ronald
McDonald House as CSR while its meals have been accused of promoting poor eating habits.

• Controversial industries

Industries such as tobacco, alcohol or munitions firms make products that damage their consumers
and/or the environment. Such firms may engage in the same philanthropic activities as those in other
industries. This duality complicates assessments of such firms with respect to CSR.

• The Kizhakkambalam takeover

A textile company called Kitex has taken over the administration of an entire Indian village called
Kizhakkambalam near Cochin by winning the local body elections. Environmentalists and mainstream
politicians of India point out that this can lead to a dangerous precedent because the company got
actively involved in CSR only after they were caught red-handed in polluting the village.

SOCIAL RESPONSIBILITY MODELS

There are some models which describe the evolution and scope of social orientation of companies.
Notable ones include Carroll‘s model, Halal‘s model and Ackerman‘s model.

a) Carroll’s Model

Archie B. Carroll has defined CSR as the complete range of duties business has towards the society. He
has proposed a 3-d conceptual model of corporate performance. According to Carroll, a firm has the
following four categories of obligations of corporate performance.

• Economic: The firm being an economic entity, its primary responsibility is to satisfy economic
needs of the society and generation of surplus for rewarding the investors and further expansion and
diversification.

• Legal: The laws of the land and international laws of trade and commerce has to be followed
and complied with.

• Ethical: Ethical responsibilities are norms which the society expects the business to observe like
not resorting to hoarding and other malpractices.

• Discretionary: Discretionary responsibilities refer to the voluntary contribution of the business

to the social cause like involvement in community development or other social projects pertaining to
health and awareness of the masses.
b) Halal’s model

Halal‘s return on resource model of corporate performance recognizes the fact that the corporate social
responsiveness is a quite difficult task as no corporate posture is value free. A firm can only attempt to
form a workable coaliation among groups having diverse interests, engaged in creating value for
distribution among members of coalition. The social issues may become conflicting beyond a certain
level of economic activity. The coordination between economic and ethical decisions is necessary so that
the future of the firm and shareholders may be safeguarded.

c) Ackerman’s model

This model defines CSR in three different phases

First phase Top management recognizes social problem.

Second phase The Company appoints staff specialists to look into the issue and find measures to tackle
it.

Third phase Implementation of the strategy derived by the specialists.

5. CORPORATE SOCIAL RESPONSIBILITY: TATA MODEL

Brief History

Founded by Jamsetji Nusserwanji Tata (JN Tata) in 1868, the Tata group has developed into one of
India's largest business conglomerates. Tata Sons, which was established as a trading company by JN
Tata in 1868, is the promoter of the Tata group. Tata Industries, initially established in 1945 as a
managing agency for the businesses promoted by Tata Sons, propelled the group's entry into new and
high-tech industries during the early 1980s.

The group has 102 companies in diverse sectors and has been moving from product-driven businesses to
brand-driven businesses. The group listed its materials, chemicals, energy and engineering products as
product-driven while engineering services, automotive, communications and IT, services and consumer
goods have been identified as brand driven businesses.

TATA is a respected brand name throughout India and it cannot happen without delivering quality
product and services. The group is famous for practicing Y-Theory of management. The management is
not coercive in nature and believes in co-operative approach in management. People who join TATA, do
stay with company which has a name for their good HRD practices. Employees in turn, too, feel proud of
being part of TATA family. There are professionals who have no blood relations with TATAs but have
occupied higher positions in TATA group of companies due to their capabilities. So, management style of
TATA needs to be commended.

The working class (mainly the workers working in various TATA companies and Factories such as TISCO)
is organized. They have access to various facilities such as PF, Gratuity, leave including medical leaves,
minimum working hours, over time facilities etc, as per the legal provisions. Apart from the above, they
enjoy other facilities, too, such as housing, education for their children, medical, scholarship to their
children etc. Strike by TATA employees/lock out is hardly heard of.

There appears to be good communication between management and workers. Matter/dispute if any is
sorted out to the mutual satisfaction of the concerned parties and there is industrial peace within TATA
group companies. So, there appears to be sense of belongingness among Employees and hence, TATA
group has steady and upward business growth even during hard times.

TATAs preferred to set up their Steel Plant in an undeveloped area (Sakchi) in Jamshedpur. It is a tribal
area with poor tribal population but rich in mineral resources. TATA set up the factory there as there
was availability of basic resources needed for manufacturing of steel in the area/nearby area but they
did not ignore the local community. They took care of, for alleviating the misery of local poor population
by providing various basic facilities such as road, schools (education), medical care, employment etc.

The TATA salt factory at Mithapur, too, has taken care of the population in its surrounding area by
carrying out various rural development activities.

All TATA Groups companies are known for commencing development activities in the surrounding
villages. TISCO is carrying out various welfare/development activities in Jharkhand. Similar is the case
with other TATA group companies, too.

The society has a lot of expectations from TATAs. TATAs have met the expectations of people/nation,
too, by establishing world class educational institutions, hospitals and other institutions of repute the
details of which will follow in the subsequent pages

Basic values/principles

As a global benchmark for CSR and a pioneer of the concept in India, the Tata group has adopted social
responsibility as one of its integral values and the group has made concerted efforts to link it with the
group's overall strategy for achieving business excellence. Besides undertaking CSR initiatives through its
various companies, the Tata group has been actively involved in facilitating the development of this
concept in India by setting standards and benchmarks.

Moreover, Tata Group has adopted participatory approach in the matter of CSR as depicted in the above
diagram. Also, Tata’s declarations on CSR are followed hereunder,

Approach
TATAs are the pioneer in the field of CSR in India. A unique feature of the group is that 65 percent of the
equity capital of the parent firm – Tata Sons Limited - is held by Tata Trusts, which are philanthropic in
nature. Over 75 per cent of Trust's funds come from dividends on the shares it owns in Tata Sons, the
group's holding company. The remaining comes from their own statutory investments. The trusts don't
handle corporate social responsibility; they are more of a funding agency, like the Ford Foundation.

The Sir Dorabji Tata Trust was established in 1932 by Sir Dorab Tata, the elder son of group founder
Jamsetji Tata, and is one of the oldest philanthropic organisations in India. The Trust's vision of
constructive philanthropy has been sensitive to the fast-growing needs of a developing nation, and the
projects and programmes it supports bear contemporary relevance.

The grant-making pattern of the Trust involves three broad areas: endowment grants (grants to
institutions), grants to non-governmental organisations (NGOs) and grants to individual (medical and
educational grants).

Reinforcing the implicit beliefs the group brings to its mission of sustainable development is an explicit
set of structures, embodied most notably by the Tata Council for Community Initiatives (TCCI). The
Council has, in collaboration with the United Nations Development Programme (India), crafted the Tata
Index for Sustainable Human Development, which measures and improves the community work that
Tata enterprises undertake.

The Tata Index for sustainable human development is a pioneering effort aimed at directing, measuring
and enhancing the community work that Tata group enterprises undertake. The index provides
guidelines for Tata companies looking to fulfill their social responsibilities, and is built around the Tata
Business Excellence Model, an open-ended framework that drives business excellence in Tata
companies.

Speaking about the Tata index, Anant G Nadkarni, VP, group corporate sustainability, says: "We have
adopted a business model to drive social responsibility efforts within the group because that way you
ensure a huge network. The index helps structure our efforts and quantify their effect on the
communities and people they are aimed at."

The index is actually a set of guidelines for Tata companies looking to fulfil their social responsibilities,
and it is the third set of such guidelines fashioned by TCCI. Mr Nadkarni sees the index as a work in
progress, not some edict set in stone. "What we have here is a framework; that's the spirit in which the
Index was drafted."

The Tata culture in this critical segment of the overall corporate sustainability matrix — inclusive of
working for the benefit of the communities in which they operate, of building India’s capabilities in
science and technology, of supporting art and sport — springs from an ingrained sense of giving back to
society. "This is a matter of principle for us, it is in our bloodstream," says Mr Irani, "and it isn't
something we like to shout about. Some people consider social responsibility as an additional cost; we
don't. We see it as part of an essential cost of business, as much as land, power, raw materials and
employees."

The Tata tradition in community development has, since the earliest days of the group's history, been
defined by its core values. It never was charity for its own sake or, as group founder Jamsetji Tata put it,
"patchwork philanthropy". Sustainability, says Kishor Chaukar, a member of the Tata Group Corporate
Centre, is of fundamental importance. "I don't believe charity makes a substantial impact on society," he
explains. "All you are doing, then, is satisfying the mendicant mentality. The real contribution comes
when communities are enabled in a manner that has a sustained developmental impact. That way you
empower people, educate them, give them instruments of income, a feeling of self-respect and dignity,
a reason to live."

The time was the early 1990s and the occasion was gathering of industrialists called by India’s Prime
Minister, PV Narasimha Rao. Representing the Tata group were Chairman Ratan Tata and JJ Irani, the
managing director of Tata Steel at that point. “The prime minister proposed that we business people set
aside 1 per cent of our net profit for community development projects totally unconnected to the
workers and industry any of us was involved with,” recalls Mr Irani. “Mr Tata and I looked at each other;
we didn't make any comment. Later, we drew up a chart that quantified Tata Steel’s contribution on Mr
Rao’s scale. We discovered that, over a 10-year period, the company had been dedicating between 3
and 20 per cent of its profits to social development causes. In the years since, depending on profit
margins, the figure has continued to vacillate within this band.” The Tata Steel example is not an
anomaly for a Tata company. If there is one attribute common to every Tata enterprise, it has to be the
time, effort and resources each of them devotes to the wide spectrum of initiatives that come under the
canopy of community development. The money numbers are staggering: by a rough estimate the Tata
group as a whole, through its Trusts and its companies, spends about 30 per cent of its profits after tax
(PAT) on social-uplift programmes. In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited
(TISCO), announced that in future TISCO would not deal with companies, which do not confirm to the
company's Corporate Social Responsibility (CSR) standards.Speaking at the annual general meeting of
the Madras Chamber of Commerce and Industry, Muthuraman stated, "We will not either buy from or
sell to companies that do not measure up to Tata Steel's social responsibility standards."

 Implementation of CSR

TATA Trusts

The Sir Dorabji Tata supports different kinds of NGOs — some do social work, some research, while
others are community based — usually for a period of three to five years. It also works with
international agencies such as the United Nations, mostly in times of natural disasters. From time to
time the Sir Dorabji Tata Trust also initiates the process for establishing institutes of national
importance.

CSR activities taken by Sir Dorabji Tata trust can be categorized in various groups and described as
under:

Endowment grants: TATA Trust has promoted, and continued to support, several institutions of learning,
research and culture in India. These include the Tata Institute of Social Sciences, Mumbai, the Tata
Memorial Centre for Cancer Research and Treatment, Mumbai, the Tata Institute of Fundamental
Research, Mumbai, the Tata Agricultural and Rural Training Centre for the Blind, Phansa, and the
National Centre for the Performing Arts, Mumbai.

The Trust has also helped in establishing the Sir Dorabji Tata Trust Centre for Research in Tropical
Diseases at the Indian Institute of Science, Bangalore, the JRD Tata Ecotechnology Centre, Chennai, and
the National Institute of Advanced Studies, Bangalore.
NGO grants: The Trust makes grants to NGOs in five social development sectors:

1. Management of natural resources: The Trust supports projects related to water and water
resources, land degradation and better methods of cultivating and harvesting crops.

2. Livelihoods: The Trust has backed several projects in this sector, covering unorganised labourers,
capacity building of grassroots groups, and business development of a variety of people-based
organisations.

3. Education: The Trust has supported initiatives in the field of education, focusing on children,
adolescents and adults (within and outside the formal education system).

4. Health: The Trust has made contributions in creating and upgrading medical infrastructure and
healthcare facilities across India, while focusing on training community health workers. The Trust also
supports research studies in alternative systems of medicine such as ayurveda.

5. Social development initiatives: These cover many areas, including community development,
human rights, family welfare, civil society, art and culture, and relief work.

Individual grants: The Trust gives merit and need-based educational and medical grants to individuals.

1. Medical: Financial help is extended to individuals for the treatment of diseases and to solve
other health problems.

2. Education: The Trust offers scholarships for higher education and travel grants for studying
abroad and for attending conferences, as well as for sports activities.

3. The Allied Trusts under Sir Dorabji Tata trust are, primarily, smaller trusts; while some have a
specific mandate, the rest are broad-based in their approach to grant-making. The Sir Dorabji Tata Trust
administers the Allied Trusts.

JN Tata Endowment: The first of the Tata trusts, it was established by group founder Jamsetji Tata, in
1892 to provide scholarship loans to individuals for the pursuit of higher studies abroad. Over 120
students are selected every year from across India as JN Tata scholars.

Lady Tata Memorial Trust: Established by Sir Dorabji Tata in 1932 in memory of his wife, Lady Meherbai,
who died of leukaemia in 1930, the Trust spends four-fifths of its income on international research in
leukaemia. The Trust also supports institutional research carried out by recognised Indian institutions,
with the emphasis on leukaemia research.

Lady Meherbai Tata Education Trust: Set up in 1932, the Trust grants scholarships to young Indian
women graduates of recognized Indian universities to pursue higher studies abroad in the fields of social
work and public health.

Additionally, and also coming under the umbrella of the Allied Trusts, are the Tata Social Welfare Trust,
the RD Tata Trust, the Tata Education Trust, the JRD Tata Trust, and the JRD Tata and Thelma Tata Trust,
all of which focus on women and children. The Jamsetji Tata Trust concentrates on overall
developmental issues.

Sir Ratan Tata Trust was established in 1919 in accordance with the will of Sir Ratan Tata, the younger
son of group founder Jamsetji Tata, the trust is a grant-bestowing public foundation. The trust seeks to
be a catalyst in development through giving grants to institutions in various areas. It focuses its grants
towards organisations that it can partner to undertake innovative and sustained initiatives with the
potential to make a visible difference. It also provides grants for endowments, has a separate
programme for small grants and gives grants to individuals for education and medical relief.

Rural livelihoods and communities: The trust focuses on the following key initiatives within the broad
areas of land and water development and microfinance:

1. Central India Initiative (CInI): CInI involves a series of livelihood projects across the central India
region, addressing core issues aimed at alleviating poverty among tribal communities in a sustainable
manner.

2. Himmothan Pariyojana: The initiative addresses some of the key rural development issues
confronting the inhabitants of the Himalayas, on a systematic basis.

3. Kharash Vistarotthan Yojana (KVY): This initiative tackles issues related to seawater ingress on
the Gujarat coastline through field projects and coordination with the state government.

4. Drought proofing in West Rajasthan: The objective is to develop replicable models for drought
proofing in the desert regions of Rajasthan.

5. Reviving the Green Revolution: The initiative involves a series of interventions encouraging crop
diversification in Punjab and Tamil Nadu to tackle the negative impact of the rice-wheat cropping
system.

6. Sakh Se Vikas: The initiative consolidates and expands community-based micro-finance in

Rajasthan by strengthening livelihoods and reducing vulnerabilities. While strengthening linkages
between micro-finance and development, the trust is also supporting a large community-based
microfinance programme in South India.

7. Sukhi Baliraja Initiative: The initiative addresses the recurrent issue of farmers’ suicides in six
distress districts located in Vidharbha region of Maharashtra through promoting sustainable, improved
agricultural practices, microfinance, development of market linkages, soil and water conservation and
alternative livelihood options.

8. North East Initiative: The initiative addresses livelihood issues of the North-eastern states
comprising Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

Some of the Initiatives taken by the TATA Group

 Tata Chemicals Society for Rural Development

Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its
social uplift projects for communities in and around Mithapur (in the state of Gujarat in western India),
Babrala (in the state of Madhya Pradesh in northern India) and Haldia (in the state of West Bengal in
eastern India).

The Society works to protect and nurture the rural populations in these areas and helps people achieve
self-sufficiency in natural resource management, livelihood support and the building of health and
education infrastructure. Through TCSRD, Tata Chemicals works to improve the quality of life of the
people and communities around its operations, and to support sustainable development, a theme that
is central to the company's corporate philosophy. Tata Chemicals employees endorse this philosophy by
helping empower rural communities chart their own developmental course.

The initiatives that TCSRD is involved in include:

1. Agricultural development & Animal husbandry

2. Education

3. Women's programmes

4. Rural energy

5. Watershed development

6. Relief work

 Tata Steel for Rural Development Society

Established in 1979, the Tata Steel Rural Development Society (TSRDS) is involved in various social
development programmes aimed at helping the rural communities living around Tata Steel's operational
units.

Prior to the setting up of TSRDS, Tata Steel's community initiatives were conducted through its rural and
community services division. However, the fundamental differences between the imperatives of rural
and urban development prompted the company to reclassify its community initiatives programmes
under three units: Community Development and Social Welfare, TSRDS and Adivasi and Harijan Welfare
Cell, now known as the Tribal Cultural Society. TSRDS covered 32 villages around Jamshedpur (in the
state of Jharkhand in eastern India) in its first year of operation. Today, the Society has seven separate
units, six in Tata Steel's operational areas, and covers 600 villages in the states of Jharkhand and Orissa
(also in eastern India).

TSRDS is actively involved in the spheres of livelihood generation, health and hygiene, and people
empowerment. TSRDS has expanded its agenda and identified the advancement of education, sports
and self-reliance as tools to ensure a better quality of life for the people it works with.

 Tata’s steps towards Green future

Nurturing Nature: The Tata group's kinship with the environmental cause has resulted in a slew of
initiatives that place the good earth above bottom lines.

A big chunk of the responsibility for containing the plague driving our polluted and populous planet
towards peril rests with industry and business. Balancing the imperatives of creating jobs and selling
products and services with the absolute necessity of protecting and regenerating what remains of the
natural environment is an onerous challenge. That it can be done is beyond doubt, but this is a task
requiring a commitment to ideals more than bottom lines, to the good earth rather than profiteering.
The long history of the Tata group teems with examples of just such a commitment.
The Tata ethos places a special emphasis on environmental and ecological issues. "Environment is a
focus area within our overall corporate social responsibility matrix," says Kishor Chaukar, chairman, Tata
Council for Community Initiatives, a centrally administered nodal agency that coordinates, among other
activities, the environmental efforts of group companies. A host of Tata companies also adhere to
environmental procedures drawn up by the Global Reporting Initiative (GRI), which operates under the
aegis of the United Nations.

Important as it is, following directives and guidelines from within and without is just one facet of the
Tata approach to environmental issues. The greater portion of what the group does in this sphere is by
choice and conviction. From this flows its support for endeavours to conserve plant and animal species,
improve land and water use, and protect forest tracts and green sanctuaries. The central tenet of this
earthy philosophy is people and communities, often in rural regions and frequently facing inequitable
struggles to secure livelihoods. Understanding that no environment policy can operate in isolation
means an enhanced ability to link processes and people in a manner that benefits both nature and those
dependent on it.

The group's contribution to conservation falls into two categories: the efforts of different Tata
companies, big and small, to preserve and enrich the environment in and around their areas of
operation, and the philanthropic thrust of the Tata trusts, which support a diverse cluster of non-
governmental organisations working in areas such as the management of natural resources, community
development and livelihoods. This dual canopy accommodates and nurtures a variety of initiatives in a
range that extends from watershed programmes and land regeneration to forestry projects and the
protection of endangered species.

The flora and fauna stories and articles in this subsection attempt to encapsulate the Tata group's
allegiance to the environmental cause. "Ours is a deliberate effort to do more than what is required by
statute," says Mr Chaukar. "Our real contribution, on the environment front and on the entire corporate
responsibility issue, is being socially responsible, and that means doing much more than staying on the
right side of the law."

Mr Chaukar articulates the group's environmental philosophy as an obligation to society. "Some people
think that environmental matters are cause for concern. The Tatas, on the other hand, view them as an
inherent duty that is part and parcel of being in business. The general mindset, the discourse of our
times, tends to see the environment as something we have inherited from our ancestors. The reality, as I
see it, is that we have borrowed it from our children and the generations after them.

"Looked at from that perspective, it becomes obvious that I as an individual, I as a corporate entity, I as a
factory, have no God-given right to do what I please with what can never truly belong to me. Polluting
the environment in one place to supply a product to consumers in some other, far-removed place - how
can that ever be justified? There used to be a time when rivers were sources of clean drinking water;
today any child will tell you that rivers are giant garbage cans, carriers of filth and waste. There is no way
out of this messy situation other than affording the environment the highest priority, and that's what
the Tatas are doing." Only those living in denial can argue that environment and ecology are subjects too
esoteric for a society bred on consumerism and the pleasures of the present. Humankind is currently
engaged in the surprisingly easy job of driving into extinction more plant and animal species than at any
time since the dinosaurs disappeared 65 million years ago. Our forests are fading; our oceans are rising;
the snowcaps on our mountain peaks are shrinking; our climate is mutating. Meanwhile, our water, our
air and our bodies are becoming the unwitting recipients of all manners of toxic intruders. Business can
— and do, as the Tatas have proved — make a huge difference in turning this beastly tide.

Addressing climate change: The Tata group is facing up to the challenge of climate change and making it
integral to its processes. The broad idea is to develop a common approach to the critical questions
confronting the group's businesses on the environmental front, and formulate policies that can deal
effectively with issues that impact climate change.

Coordinating and directing the climate change efforts of the group's companies is Tata Quality
Management Services (TQMS), a centrally administered organisation that draws on the experience and
expertise of senior Tata leaders.

The Tata group considers climate change to be a serious issue and is taking the following steps to
increase carbon consciousness and institute mitigation strategies:

 A steering committee and working group have been assigned to address the climate change
issue and cascade it into a group-level movement.

 Tata companies from five business sectors — steel, automotive, power, chemicals and IT — will
participate in the first phase through the following strategies:

o Intensive awareness and training programmes will be conducted for senior leadership. Climate
change champions will be identified in each company.

o Policies on energy efficiencies, green buildings, green data centres and green protocols will be
developed. Awareness will be created amongst all stakeholders.

o Individual Tata companies will measure their current carbon footprint to assess where the group
stands. This will be extrapolated for future years.

o Cost abatement curves will be established and mitigation strategies identified for the major
companies. Other Tata companies will follow in the second phase.

o The climate change initiative will be integrated with the Tata group's internal business
excellence framework, the Tata Business Excellence Model, in order to further.

Climate change policy for Tata companies: Tata companies will play a leadership role in climate change
by being knowledgeable, responsive and trustworthy, and by adopting environment-friendly
technologies, business practices and innovation, while pursuing their own growth aspirations and the
enhancement of shareholder value.

Tata companies will measure their carbon footprint and will strive to:

• Be the benchmark in their segment of industry on the carbon footprint, for their plants and
operations.

• Engage actively in climate change advocacy and the shaping or regulations in different business
sectors.

• Incorporate ‘green’ perspective in all key organisational processes.

6. CONCLUSION

The panoply of community development endeavours undertaken by Tata companies — embracing

everything from health and education to art, sport and more — has touched, and changed, many lives.
No matter how elaborate, systems and processes cannot really capture the magnitude and dispersion of
all that the Tatas do in the field of community development. From health and education to livelihoods
and women-children welfare, from tribal hamlets in Jharkhand and the rural outback of Gujarat to the
high ranges of Kerala and disadvantaged villages in Andhra Pradesh — the community work being
undertaken by Tata companies touches a multitude of Indians across the land. Beyond purely social
work, this support extends to individuals and institutions pursuing artistic, sporting and academic
excellence. And now, as Tata enterprises spread their wings to reach global locations, the social uplift
efforts of the group are reaching communities in different parts of the world.

The big boys in the group, the likes of Tata Steel, Tata Tea and Tata Chemicals, have in-house
organisations dedicated to the community development task, but that does not mean smaller
companies lag behind. Each Tata company has its own priorities in social development. They take up
whatever is relevant to the communities and constituencies in which they function. Somebody is
working in water management, somebody is in education, someone is in Aids containment, someone in
income generation; the range is huge.

JRD Tata, Chairman (1938-1991) - Tata group, strongly believed that the CSR initiatives of the Tata group
should be institutionalized and it should not be left to individuals to carry them forward. Therefore,
suitable 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." In another
bid to institutionalize the CSR charter, a clause on this was put into the group's 'Code of Conduct.' This
clause stated that group companies had to actively assist in improving the quality of life in the
communities in which they operated. All the group companies were signatories to this code.

Since inception, the Tata group has placed equal importance on maximizing financial returns as on
fulfilling its social and environmental responsibilities - popularly known as the triple bottom line. After
decades of corporate philanthropy, the efforts of the group in recent years have been directed towards
synchronization of the Triple Bottom Line (TBL – Financial Return, Social Responsibility and Environment
Responsibility).

Through its TBL initiative, the Tata group aimed at harmonizing environmental factors by reducing the
negative impact of its commercial activities and initiating drives encouraging environment-friendly
practices. In order to build social capital in the community, the group has got its senior management
involved in social programs, and has encouraged employees to share their skills with others and work
with community-based organizations.

TATA model for CSR can be seen as a model which is worth applying by other industries.
7. BIBLIOGRAPHY

• Freeman, R.E. Strategic Management: A Stakeholder Approach ( Pitman Publishing: Marshfield,

MA ,1984)

• Bowen, H. R, Social responsibilities of the businessman ( New York : Harper & Row, 1953)

• Tata Motors : Corporate Social Responsibility Annual Report 2009-10

www.tatamotors.com/sustainability/CSR-10/content.php

• www.tatachemicals.com

• www.tata.com/0_our_commitment/community_initiatives/tcci.html

• Forerunners in corporate social responsibility , March 16, 2005 | The Indian Express,
www.tata.com

• http://www.tata.com/article/inside/Trustee-to-the-community

• https://en.wikipedia.org/wiki/Corporate_social_responsibility