Shubham jadhav

CSR
“CRITICALLY HIGHLIGHT CSR ACTIVITY INITIALLY CREATED BY TATA
GROUP IN INDIA AND ITS BENEFITS TO URBAN AND RURAL AREA.”

CHAPTER NO.1

1.1 INTRODUCTION
TATA Group is an Indian multinational conglomerate company headquartered in Mumbai,
Maharashtra, India. Tata Group operates more than 80 companies ranging from software and
automobiles to steel, consumer goods and telecommunications. With above 4, 24,365
employees across India, it is the nation’s largest private employer.
Tata Group has emerged as biggest CSR Spending group in the country. As per a media
report an Indian conglomerate, the TATA Group spent Rs 1,000 crore on corporate social
responsibility (CSR) According to Times of India, If one were to exclude the salt-to-software
enterprise’s philanthropic trusts, the Tata Group companies spent RS 660 crore on CSR in the
just ended fiscal.
The diversified Indian multinational’s CSR spend was well above 2% of its net profit, a
minimum requirement for an Indian company under the companies Act.

1.2 OBJECTIVE OF THE STUDY

 To understand the importance of CSR
 To understand the concepts and scope of corporate social responsibility of TATA
group and insight their CSR practices.

1.3 REVIEW OF LITERATURE:

 According to Bowen, CSR refers to the obligations of businessmen to pursue those

policies to make those decisions or to follow those lines of relations which are
desirable in terms of the objectives and values of our society.
 Frederick (1960) stated Social responsibility means that businessmen should oversee
the operation of an economic system that fulfils the expectations of the people’.
  Davis (1960) argued that social responsibility is a nebulous idea but should be seen in
a managerial context. He asserted that some socially responsible business decisions
can be justified by a long, complicated process of reasoning as having a good chance
of bringing long-run economic gain to the firm, thus paying it back for its socially
responsible outlook. AAn ideal CSR has both ethical and philosophical dimensions,
particularly in India where there exists a wide gap between sections of people in terms
of income and standards as well as socio-economic status (Bajpai, 2001).
 Goyder(2003) argues: Industry in the 20th century can no longer be regarded as a
private arrangement for enriching shareholders. It has become a joint enterprise in
which workers, management, consumers, the locality, govt. and trade union officials
all play a part. If the system which we know by the name private enterprise is to
continue, some way must be found to embrace many interests whom we go to make
up industry in a common purpose. CSR implies some sort of commitment, through
corporate policies and action. This operational view of CSR is reflected in a firm‘s
social performance, which can be assessed by how a firm manages its societal
relationships, its social impact and the outcomes of its CSR policies and actions
(Wood, 1991).

1.4. RESEARCH METHODOLOGY

A research methodology is the arrangement of condition for collection and analysis of data in
a manner that to, combine relevance to research purpose with economy in procedure.

1.4.1 Research Design

Research Design is conceptual structure within which research is conducted. It constitutes the
blue print of collection, measurement and analysis of data. Research design is needed because
it facilitates the smooth sailing of various research operations, thereby making research as
efficient as possible yielding maximum information with minimum time, effort and money.

1.4.2 Exploratory research

The idea gets deeper insight into competition in the market and to get buying behaviour of
consumers. In order to address above-mentioned objectives

(I) Study of secondary sources was carried out from internet, books, and Magazines

(II) Structured questionnaire was designed to seek consumer responses.

1.4.3 Descriptive research

The data is analysed, which was collected.

1.5 SCOPE

 The study helps use to understand the importance of CSR activities.

The study emphasis on how Tata group have fulfilled its responsibilities towards
stakeholders, employees, consumers and society

CHAPTER-2
 COMPANY PROFILE
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.

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

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 1 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.

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

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 up skilling 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.

CHAPTER-3
3.1 CONCEPTUAL BACKGROUND (DETAILED EXPLANATION
ABOUT THE TOPIC)
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 2 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:

 Understand ability 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 3 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 ard s itself

R esp on sibility tow ard s em ploy ees

R esp on sibility tow ard s sh areho lders

R esp o n sib ility to w ards co n su m ers

R esp on sibility tow ard s state

R esp on sibility tow ard s en viron m en t

R esp on sibility tow ard s g 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 behaviour
 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
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.

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.

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 behaviours towards their co-workers 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.

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
jewellery. 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 here under,
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.

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
4.1 Initial Data Analysis

An iterative approach to data collection and initial analysis was used which focused
on the phenomenon of IT-enabled organizational change within the TCS. To enable a
contextual evaluation of any organizational changes to be made, initial data collection and
analysis directed the research towards comparing the TCS’s experiences with the main issues
raised by ITIL Change Model.

4.2 Costs

Investment is often necessary. We have discovered that with limitations, ITIL can
deliver service improvements, but at what cost? The survey looked at costs incurred for
support tools, headcount, external consultants and external training providers, and in each
case how satisfied was the paymaster.

Question 1: Are you satisfied with the investment in tool i.e., IT Change Management?

Not applicable / no comment 24

Significant reservations 2

Fairly satisfied 10
Did what it was supposed to 3
Very satisfied 11
 Table 1.5 Investment Satisfaction

A deployment of new support tools often projects a major consideration of process, such as
that of an ITIL process –Change Management project. The average investment in software tools was
£123 per user or £1,818 per IT head. Around half of all adopters were satisfied to some extent with
the results of that investment, with the other half largely making no comment on the investment.

Not applicable / no
comment
Significant reservations
Fairly satisfied
Did what it was supposed to
Very satisfied

Graph1.9 Investment satisfaction analysis

Question2: Are you satisfied with the Investment in Manpower in implementing the IT
companies?

Not applicable / no comment 31

NO - Consumed way too much manpower 1

NO - Some reservations about manpower 2

 YES - Hardly noticed manpower effects 1

YES - Manpower consumption tolerable 4

Table 1.6 Satisfaction with Manpower investment

Not applicable / no comment

NO - Consumed way too much
manpower
NO - Some reservations about
manpower
YES - Hardly noticed manpower
effects
YES - Manpower consumption
tolerable

Graph 2.0 Satisfaction with Manpower investment

Question 3: Are you satisfied with the external training Providers?

Actually added complications 1

Could have managed without it 1

Not applicable / no comment 28

Useful to the project 6
Crucial to project 14

Table 1.7 Satisfaction with the external trainers

 Chart Title

Actually added
complications
Could have managed
without it
Not applicable / no
comment
Useful to the project
Crucial to project

Graph 2.1 Satisfaction with the external trainers

Training is often crucial, as certification provided by training providers constitutes in effect a

record of the readiness of the corporation for ITIL implementation and adherence. 2% feel they could
have managed without it, and a further 2% believe it actually added complications. The 40% of
projects willing to comment found it useful or crucial. Training costs were on average £930 per IT
head.

ANALYSIS OF LIQUIDITY

Liquidity has been defined in three ways: The different between current assets and currents
liabilities (The net working capital approach). Second approach concerned with difference
between quick assets and liquid liabilities and last approach concerned with difference
between liquid assets and liquid liabilities. For the purpose of the present analysis the
liquidity management has been taken in to consideration.

The management of liquidity is one of the most important facets of financial management.
The objective of liquidity management is to manage current assets and current liabilities in
such a way that an acceptable level of networking is maintained so as to protect and preserve
liquidity and profitability of the firm.

1. The average current ratio of Hind Motors, Mahindra & Mahindra Motors,Tata Motors and
Force Motors was less than the norm of 2:1. It means the solvency position of these
companies was poor and unstable. While the average current ratio of Premier Motors was
more than the norm. It means the solvency position of this companies was good than the
other companies. The solvency position was bad and sort term creditors’ position regarding
their claims was not safe because companies had not sufficient funds in the form of current
assets to meet their claims. It is also found that the current

ratio of all the selected automobile companies marked in fluctuating trend. This situation
indicates the inconsistence performance as well as no fix policy regarding current assets.

2. From the ANOVA test, it is observed for company wise analysis; the null hypothesis of
current ratio is rejected. It can be concluded that there is significant difference in current ratio
between considered automobile companies. While from the year-wise analysis, the null
hypothesis is not rejected. It can be concluded that there is no significant difference in current
ratio between considered years.

3. Super Quick ratio was found lower than the normal 0.5:1 in all selected automobile
companies and also marked a fluctuating trend during the study period.
CHAPTER-5
a. findings

 Though the marketing department is at large, at TCS its not making use of its full
potential. People at remote areas do not know about TCS and they are well aware
of Infosys or Wipro. TCS are not into marketing may be they think about only
short term earnings. But for the long term sustainment and profitability, it will
good for TCS to make use of its Marketing and make it more clearly with the
public. Moreover, most its employees are clueless about the functioning of
Marketing department.
 TCS needs to focus more on delivering SaaS based IT solutions, since it’s going to
be the next big thing according IT Trend Analyst firm Gartner.
 It must increase breadth of its offerings, to serve new set of clients in different
industry segments.
 TCS must enter into new markets. Expanding its base in Europe, North America,
and Asia-Pacific region has to be done at the earliest.
 should focus more on growing its partner‘s network to strengthen its distribution
channel for Education ERP.
 The IT change management works on the principle that the infrastructure environment
should be stable every instant of time. Resulting in the continual functioning of the
business.
However, this also discourages innovations and their implementations. I recommend there
must be a clear brain about the encouragement on the innovation and a test environment
should be kept ready and it should be replica of the production environment
b. suggestions
This is overall general suggestions and it may very useful for the companies to
get better the financial position and for the better performance.
1. The company should try to increase the production so as to get economies
of Large-scale production. It will assist in raising the rate of return on capital
employed.
2. In order to increase the profitability of the companies, it is suggested to
control the cost of goods sold and operating expenses.
3. The management should try to adopt cost reduction techniques in their
companies to get over this critical situation. At the same way, to reduce power
and fuel Cost Company should find out other alternative for this.
4. The quantum of sales generated should be improved impressively in order
better to enjoy better per of the assets and capital employed.
5. The selected automobile companies should try to match the amount of
working with the sales trends. Where there is a deficit of working capital, they
should try to build on adequate amount of working capital. Where, there is an
excessive working capital, it should be invested either in trade securities or
should be used to repay borrowings.
6. The management should try to utilize their production capacity fully in order
to reduce factory overheads and to utilize their fixed assets properly.
7. The burden of interest has produced a deteriorating effect and reduced the
percentage of net profit. It is suggested that the companies should try to reduce
the interest burden gradually by increasing the owner’s fund.
c. conclusions
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.
d. 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