INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

TATA MOTORS: A HISTORY OF SERVICE IN A NEW ERA OF

CORPORATE SOCIAL RESPONSIBILITY
GROUP 08
Strategy and Business Policy (BMN 533)

Submitted to
Prof. Vinay Sharma
Department of Management Studies(DoMS)
Indian Institute of Technology, Roorkee
 Team Members

Akhilesh Das Lavish Gulati Aman Priyedarshe Ashutosh Chillarge Samuel Rufus
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Sai Ram Prabhat Ranjan Maurya Rahul Lakshmi Narayana

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 Tata Motors' Historical Background
Tata Motors is part of the larger Tata Group, founded in 1868 by Jamsetji Tata,
with a vision of self-sufficiency and social responsibility.

From the first locomotives to the introduction of India's first indigenous

passenger car, Tata Motors has a history of pioneering in the automotive
industry.

Jamsetji Tata's philosophy emphasized education over charity, laying the

groundwork for future social initiatives.

The Tata Group's commitment to community welfare dates back to its inception,
prioritizing worker welfare, education, and healthcare.

The Tata family's bequeathment of their fortune to charitable trusts ensured a

sustained commitment to social development.

Contributions to education, healthcare, and infrastructure underscore Tata's

integral role in India's nation-building efforts.

Tata Motors' ethos of giving back to society reflects a commitment to ethical

business practices and social progress.

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Tata Motors' CSR Initiatives
Tata Motors' longstanding commitment to social responsibility aligns with India's CSR
legislation, requiring corporations to allocate a portion of profits to social welfare.

SHED Afterschool Program: Funding from Tata Motors supports educational

initiatives like afterschool programs, aiding disadvantaged youth in Dharavi
slum.

Tata Motors' CSR extends beyond financial contributions, actively engaging with
communities through outreach programs and support services.

Initiatives focus on providing skills training to address India's workforce

challenges, aligning with national priorities for economic growth and youth
empowerment.

Scholarships and educational support programs exemplify Tata Motors'

commitment to breaking the cycle of poverty through access to quality
education.

Tata Motors' CSR includes family counseling and support services, recognizing
the interconnectedness of social issues and the need for holistic interventions.

In 2023, Tata Motors allocated $20 million, equivalent to 2.5% of its profits, to
CSR initiatives, reflecting the company's commitment to social development.

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 Tata Motors' Environmental Sustainability Efforts

Tata Motors prioritizes sustainability in its operations, striving to minimize

environmental impact across its supply chain and manufacturing processes.

Innovation drives Tata Motors' development of eco-friendly vehicles,

including electric and hybrid models, contributing to global efforts to
combat climate change.

From efficient manufacturing practices to recycling initiatives, Tata Motors

emphasizes resource conservation and waste reduction.
Scrap to Steel
Investments in cleaner technologies and emission control measures
demonstrate Tata Motors' commitment to reducing air pollution and
promoting public health.

Tata Motors embraces renewable energy sources to power its facilities,

reducing reliance on fossil fuels and mitigating carbon emissions.

Tata Motors collaborates with stakeholders, government agencies, and

NGOs to drive collective action on environmental conservation and
sustainability.

In 2023, Tata Motors achieved a 15% reduction in carbon emissions,

demonstrating its commitment to environmental sustainability and
corporate leadership.

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 The Companies Act of 2013 – Features Related to
CSR

• These rules came into force from 1st April 2014.

• The government of India made it mandatory for companies to undertake CSR activities
under the Companies Act,2013
• The CSR activities will have to be within India, and the new rules will also apply to
foreign companies registered here.
• Funds given to political parties and the money spent for the benefit of the company’s own
employees (and their families) will not count as CSR.
• The concept of CSR is defined in clause 135 of the ACT and it is applicable to companies
which have :- An annual turnover of Rs 1000 crore or more or a Net worth of Rs 500
crore or more, or a Net Proft of Rs 5 crore.
• An average of the Previous three financial years PAT will be considered for calculating
the 2 % for CSR.
• CSR policy of a company should ensure that surplus arising out of a CSR activity will
not become part of business profits.

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 The Companies Act of 2013 – Impact on Tata Motors

Tata Motors‘s spending on CSR had increased from 185 million Rupees in 2014 to 258 million
Rupees in 2015.
Tata Motors increased there spending on the following CSR programs :-

Aarogya is a community health
initiative aimed at combating
malnutrition in children aged zero to
six years. This programme provides
supplementary diets and supplements
to address the issue.
Kaushalya, skill development programme, targets
unemployed youth, offering training in auto
trades, non-auto trades, agriculture and allied
activities. With the ‘Learn and Earn’ model,
students, particularly those with an ITI/12th pass
background, undergo specialized training for the
automotive industry. After completing their
diplomas, they secure employment with auto
dealers, retail networks, vendors and channel
partners.
To minimize the impact on the
environment through a range of green
initiatives like promotion of renewable
resources, creation of carbon sinks
through large-scale sapling plantation,
construction of water conservation
structures and building awareness among
the communities.

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 The Companies Act of 2013 – Impact on Tata motors

Tata Motors’ Amrtudhara, a national programme,

focuses on ensuring water security in rural areas .
They have successfully given every family access to
drinking water within a 200-metre radius of their
homes. As a result, there has been a remarkable
reduction in seasonal diseases like scabies and
dysentery, along with improved water, health and
sanitation practices. The project has also lightened the
burden for women, who previously had to travel long
distances to fetch water, resulting in increased girls’
enrolment in rural schools.

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 Strategic Response to Financial Challenges and
CSR Mandate
• Tata Motors spending on CSR had grown steadily from 185 million rupees in 2014 to 258
million rupees in next budget - 2015

• Tata Motors had seen a slowdown in profits for several years and in 2015 their domestic
unit recorded a net loss of $712 million

• Sluggish sale of Tata Nano, not meeting expectations - these domestic losses had been
offset by profits of Its international Jaguar Land Rover unit

• The company had averaged a loss domestically over the last three years that hasn’t
exempted it from CSR work

• Internation revenues did not count in determining whether Tata Motors needed to comply
with Companies act CSR provisions

• Despite these challenges Tata Motors hasn’t stopped moving forward with CSR activities
in the areas of Health, Education, Environment, and Employability, and with the
continuation of CSR work, it has again given 258 million rupees to the community.

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Strategic Response to Financial Challenges and
CSR Mandate

Top 20 CSR spenders based on CSR expenditures for 2024-15

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 Tata Motors CSR Implications for Business Policy
and Strategy

• Tata Motors is largely owned by a charitable organization, and the majority of its profits
are directed towards charity.

• Despite not being required by law, Tata Motors invested 258 million rupees back into
the community as part of its CSR efforts.

• The company's commitment to the community is not proportionate to its profits,

according to Vinod Kulkarni, head of CSR for Tata Motors.

• Tata Motors' CSR efforts are considerably greater than those of many profitable Indian
companies.

• The company's international revenues, particularly from its Jaguar Land Rover unit, did
not count in determining its compliance with the Companies Act CSR provisions.

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 Tata Motors CSR Implications for Business Policy
and Strategy

• Tata Motors had averaged a loss domestically over the last three years, which exempted it
from complying with the CSR provisions.

• The company's CSR efforts were not slowed down despite the losses, indicating a strong
commitment to the community.

• Tata Motors' founder, Jamsetji Tata, believed that the community is not just another
stakeholder in business but is the very purpose of its existence.

• The company has a long history of civic contributions and taking care of its workers.

• The Tata Group owns 66% of Tata Motors, with other shareholders including various
family members and close associates.

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 CSR Controversies

• Forced philanthropy: Many companies feel

CSR spending is an extra tax burden.
• Inefficient government: Some companies
are skeptical about the government's ability to
manage social programs effectively.
• Lack of quality NGOs: There are concerns
that there aren't enough qualified NGOs to
partner with all the companies required to
fulfill their CSR obligations.

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 Benefits of the law(CSR Act 2013)

Greater transparency and efficiency: New

Increased CSR reporting requirements
Improved NGOcould make CSR Greater transparency
efforts more accountable and efficient.
spending: More capacity: The and efficiency: New
companies are now increased demand for reporting
legally required to CSR partnerships could requirements could
dedicate resources to lead to the make CSR efforts more
social good. development of accountable and
stronger NGOs. efficient.

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 Tata Motors' Scholarship Program

• The program specifically targets talented students who

gain admission to the prestigious Indian Institute of
Technology (IIT) Bombay.
• The scholarship program breaks down financial barriers,
enabling talented students from rural backgrounds to
access elite technical education at IIT Bombay.
• By nurturing future engineers from rural areas, the
program contributes to India's development by
strengthening its technical workforce with diverse talent.
• The program addresses India's need for skilled
professionals in STEM fields, promotes rural
development through entrepreneurship, and serves as a
model for increased corporate social responsibility in
education.
• By bridging the gap in educational resources and
empowering talented students from rural areas, the
program unlocks their potential and contributes to
India's social and economic mobility.

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Thanks…

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