BABASAHEB BHIMRAO

AMBEDKAR UNIVERSITY,
CENTRAL UNIVERSITY

COURSE- B.B.A. LL.B.(HONS.)

SEMESTER- 5th
SUBJECT- Business Ethics and Corporate Social
Responsibility(CSR)
TOPIC-Corporate Social Responsibility(CSR)
Practices at TATA Motors
SUBMITTED BY-Hershpreet Kaur
SUBMITTED TO-Dr. Ankita Srivastava
 INDEX
SERIAL TOPIC PAGE NO.
NO.
1. INTRODUCTION 1
2. MEANING 1
3. CSR PRACTICES AT TATA MOTORS 1-2
4. CSR PROGRAMMES 2-7
5. CONCLUSIONS 7
6. BIBLIOGRAPHY 7
 INTRODUCTION
The concept of CSR originated in the 1950‘s in the USA but it became prevalent in early 1970s . At
that time US had lots of social problems like poverty, unemployment and pollution. Consequently a
huge fall in the prices of Dollar was witnessed. Corporate Social Responsibility became a matter of
utmost importance for diverse groups demanding change in the business. During the 1980‘s to
2000, corporations recognized and started accepting a responsibility towards society. Corporate
social responsibility (CSR) focuses on the wealth creation for the optimal benefit of all stakeholders –
including shareholders, employees, customers, and society. The term stakeholder, means all those on
whom an organization's performance and activities have some impact either directly or indirectly.
This term was used to describe corporate owners beyond shareholders as a result of a book titled
Strategic management: a stakeholder approach by R. Edward Freeman in the year 1984.

MEANING
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 their society.

An ideal CSR has both ethical and philosophical dimensions, particularly in India where there exists a
wide gap between sections of people in terms of income and standards as well as socio-economic
status (Bajpai, 2001).

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).

Purpose of study :-
To understand the concept and scope of corporate social responsibility and getting an
insight in CSR practices in the light of the case study of the TATA Motors.

Objectives of the study :-

 To understand the concept of CSR

 To find out the scope of CSR

 To know how the Tata group has fulfilled its responsibility towards all stakeholders; what specific
activities, programs and strategies it has set, devised and implemented for the same.

CSR PRACTICES AT TATA MOTORS

Recognition of CSR:-
“In a free enterprise, the community is not just another stakeholder in business but is in fact the very
purpose of its existence."

- Jamshedji Nusserwanji Tata, Founder, Tata Group.

"Corporate Social Responsibility should be in the DNA of every organization. Their processes should
be aligned so as to benefit the society. If society prospers, so shall the organization..."

Tata Corporate Sustainability Policy :-

"No success or achievement in material terms is worthwhile unless it serves the needs or interests of
the country and its people.”

- J R D Tata

The corporate policy of the group encompasses the sustainable development of all the stakeholders.
The major points included in the corporate policy are following :

 Demonstrate responsibility and sensitivity to biodiversity and the environment

 Comply with rules and regulations relating to environment

 Constantly upgrade technology and apply state-of-the-art processes and practices with
institutional arrangements that will combat larger issues like climate change and global warming

 Create sustainable livelihoods and build community through social program pertaining to health,
education,empowerment of women and youth, employee volunteering,

 Find ways to enhance economic human, social and natural capital for bringing and maintaining a
balance among business, society and environment.

CSR PROGRAMMES
The CSR committee comprises of 2 Independent Directors, 1 Executive Director and 1 Managing
Director. This committee meets 3 to 4 times a year to approve policy and budget related to CSR
activities.

The selection of the community engagement activities is done on 5 key criteria:

1. Proximity of the local community;

2. Alignment with their ftheir focus areas;
3. Deprived section of the society (SC/ST) under their Affirmative Action;
4. Innovation in their value chain and
5. Measurable and clear outcome.

Through their affirmative action programme “Aadhar”,they reach out to groups (scheduled
castes and scheduled tribes) which have been marginalized, historically. Out of their CSR
budget, 40% is earmarked for programmes designed to uplift them through education, making
them employable and entrepreneurship. Guided by the motto of More from Less for More,
they collaborate with dealers, subsidiaries and vendors who are the main players of their
ecosystem. This is done with a view of taking their message of social good to a larger base.
Health, education, employability and environment are the ftheir pillars of their CSR
programme “Aarogya”.
Amrutdhara, thier flagship programme undertaken by the Sumant Moolgaonkar
Development Foundation, facilitates sustainable drinking water solutions.
Vidyadhanam, their education programme strives to improve the accessibility and quality of
secondary education and aims to counter this problem.
The objective of Kaushalya, the skill development programme is to enhance the
employability of youth by training them in automotive and non-automotive trades.
Vasundhara, their environment programme promotes environmental consciousness among
community members, school students and their employees by engaging them in plantation
and cleanliness drives.Their CSR teams encourage community members to use renewable
energy products by distributing solar lamps.They also promote innovative products like
smokeless chulhas that reduce the carbon footprint.

TATA MOTORS AADHAR

1. Tata Motors strives for inclusive development through its affirmative action
programmes under the umbrella of Aadhar.
2. Affirmative Action (A.A.) focuses specifically on dalit & tribal communities & as a
strategy it ensures 40% beneficiary coverage & budgetary allocation from its CSR
expenditure.
3. They have developed business-linked programs which are implemented across the
country in partnership with their dealers & NGOs/Technical training agencies, to
bridge this gap.
4. Every year they recruit around 5,000 youth under the Apprentice Training and NEEM
Program.
5. They helped them to complete their education. In FY 2017 -18, we have given
scholarships to 1092 A.A. students.
6. They have increased their outreach of special coaching classes & presently, 21511
A.A. students across locations are enrolled in it.
7. Efforts are then taken to build capacity of Tier-2 A.A. vendors to enable them to
become Tier 1 suppliers. Currently, Twenty AA Vendors are associated with their
Tier-1 supply chain & their share of business has progressively increased over the
years.
TATA MOTORS AAROGYA
1. World Bank data indicates that malnutrition is rampant among children in India.
2. They fare abysmally on the World Hunger Index and India ranks 100th out of 119
countries on the global hunger index (Global Hunger Index, 2017).
3. Their health programmes tackle malnutrition through a holistic approach that
involves children, adolescent girls, pregnant women and lactating mothers.
4. Their initiatives also focus on holding awareness sessions for adolescent girls to
address their queries on puberty, health and hygiene.

DAY CARE CENTRE AT SHIVPUR

1. The day care centre under the supervision of the ICDS serves 50 SAM/MAM
children, where they are monitored regularly and receive monthly medical
consultancy.
 2. To leverage the services in the rural pocket, mobile outreach health camp was
conducted in 5 cluster pockets of the district providing medical, nutrition and referral
services to the SAM/MAM children on monthly basis.
DROUGHT MITIGATION AT OSMANABAD
1. The team worked to cater to immediate requirements through building and repair of
existing infrastructure, introduction of better farming practises and inputs, long term
solutions through capacity building to ensure sustainability of the projects and
formation of monitoring and maintenance committees.
2. A total of 293 farmers were impacted by the project.

Village Name Kharif Season Rabi Season

No. of Farmers Benefited 249 389

Acre of land Irrigated 453 787

Total Production in Quintal 2247.95 7562

Previous Production in Quintal 805.55 1833

Per Acre Productivity in Qtl. Prv. Year in Qnt 20.16 57.74

Per Acre Productivity in Qtl. This Year in Qnt. 55.11 1221.61

 7.5 km nallas been dug and deepened with storage capacity of 25 crore litres of water
 Recharged 201 wells, 303 bore wells,
 20 hand pumps h Soil moisture improvement on 730 acres of land
 1.6 times (Rabi and Kharif crops) improvement in production
 Over 40 kms of farm bunding has facilitated in-situ water
 Conservation resulting in double/multi cropping h 5,000 lives positively impacted
 Has arrested out migration of youth to 40%

TATA MOTORS VIDHYADHANAM

TATA SAMARTH SCHOLARSHIP
Till date 100 scholars have been supported financially, imparted soft skills and intense mentoring
from the senior leadership of these companies. Of these, 54% are from SC/ST communities and 42%
are women. 3 Samarth scholars found employment at Tata Motors upon completion of their graduate
degree.

Features of Samarth Scholarship

1. Scholarship worth INR 25000/ year

2. Mentoring from Senior Leadership of Tata Motors, Tata Communications and Tata
Henderickson
3. Inputs on soft/life skills
4. Internships & projects at Tata Motors and Tata Communications
TATA MOTORS KAUSHALYA
 Ministry of Skill Development and Entrepreneurship reports that only 2.3 percent of the
workforce in India has undergone formal skill training.
 Lab their Bureau’s fifth employment-unemployment survey reported that 13.2% of people
between 18 - 32 years of age were unemployed.

DRIVING THEIR WAY TO BREAK GENDER BARRIERS

1. As part of the driver training programme, Tata Motors trained an exclusive batch of 120
women as drivers of which 50% belong to the SC/ST communities.
2. Apart from augmenting their annual income by 1.2 lakhs they have rediscovered themselves.
With new found confidence they hope for a better tomorrow.
3. This programme focuses on grooming novice drivers on nuances of cab service with an
earning of over Rs. 15000 per month.
4. The flagship driver training programme is conducted across 75 locations in India with the
help of 38 partners.

BREAKING GENDER STEREOTYPES

1. Automobile is considered to be a male dominant industry and girls trained at Little Flower
institute in Kerala are trying to break this notion.
2. In the course of nine months of OJT (On-the-Job Training) these girls have proven their
mettle as they have already been offered placement with Popular Motors.

LAB TO LAND
1. The project is poised to scale up and reach 1000 farming households across 7 villages and
enhance their income level by INR 12,000 - INR 15,000 per month by the year 2019, is
ensured by ups-killing them.
2. The project with a coverage of 100% tribal farmers and more than 80% female beneficiaries
upholds the Affirmative Action policy and simultaneously meets the larger agenda of
inclusion and women empowerment.
3. Till date 254 tribal farmers (196 female and 49 male) have attended training sessions. 100%
farmers are engaged in fruit plantation activities whereas 30% of the farmers are engaged in
vocations like mushroom cultivation and pisciculture.
4. First harvest of mushroom cultivation yielded approximately 20 kg per farmer worth Rs.6,000
per month.

TATA MOTORS SEVA

The volunteering activities undertaken by employees fall under two formats – Tata Volunteering
Week (TVW) and Pro-Engage.

 Tata Volunteering Week refers to month long volunteering activities wherein employees and
their family members, retirees, channel partners, dealers and vendors participate.
  Pro-Engage is a pro bono volunteering assignment where employees invest their
professional/domain expertise to address social issues.

ENTERPRENEURSHIP
1. Tata Motors engages with SC/ST entrepreneurs with an objective to extend business both
within and outside its ecosystem.
2. The capabilities of these vendors are enhanced through training and mentoring.
3. Till date, 27 vendors have been developed. Cumulative business worth 42 crore has been
extended till date.
4. 10.8 crore business to 20 vendors in 2017-18.

PULSE POLIO DRIVE

1. As part of Tata Volunteering over 300 employees in Pune volunteered to further the
mission of eradicating polio from the country.
2. Through this drive the team was able to reach out to 30,000 citizens in Pune .

Significance of the study:- A. To the Policy Makers

 This study enctheirages Private Public Partnership (PPP) for CSR promotion encompassing
infrastructure, pollution, child labor, labor productivity & morale.

 It may become helpful to make the policy makers at political and corporate level as well consider
CSR an investment and not an expense as it can become instrumental in increasing goodwill and
corporate image.

B. To the Society

 Development of infrastructure i.e. parks, education etc.

 Uplifting of the rural populace

 Bringing the tribes into the mainstream of the country

C. To the Economy as a whole

 Increase in the growth rate

 Strategic CSR at political and corporate level can make the country a better investment destination .

 Cumulative results may improve Human Development Index (H.D.I.) of the country.

Recommendations :-
 The concept of private-public partnership (PPP) should be applied in the effective implementation
of CSR i.e. government and business houses should act in collaboration for the cause.

 Periodic review of the CSR activities should be conducted by every business entity so as to identify
the pitfalls and the areas left out.
 Innovation should essentially be a matter of concern ; be it searching the untouched areas and
scope of CSR or the formulation of CSR strategy or the implementation thereof.

 NGOs should be therein engaged to act in collaboration for the CSR activities under different
schemes and projects as they play a crucial role in the upliftment of the masses.

CONCLUSION
During Financial Year (F.Y.) 2017-18, the company has reinforced its initiatives on topics related
to Health, Education, Employability and the Environment with concrete achievements measured
through different KPIs. Tata Motors positively touched lives of 6,44,000 people across these
identified thrust areas.

BIBLIOGRAPHY
1. Tatamotors.com
2. www.tatamotors .com ,sustainability report,2017-18
3. Ngobox.org
4. India.csr.in