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8/3/2019 Project on CSR Final
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Introduction
The term "corporate social responsibility" came in to common use in the late 1960s and
early 1970s, after many multinational corporations formed. The term stakeholder, meaning
those on whom an organization's activities have an impact, was used to describe corporate
owners beyond shareholders as a result of an influential book by R. Edward
Freeman,Strategic management: a stakeholder approach in 1984.[2]Proponents argue that
corporations make more long term profits by operating with a perspective, while critics
argue that CSR distracts from the economic role of businesses. Others argue CSR is
merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog
over powerful multinational corporations.
CSR is titled to aid an organization's mission as well as a guide to what the company stands
for and will uphold to its consumers. Developmentbusiness ethics is one of the forms
ofapplied ethics that examines ethical principles and moral or ethical problems that can
arise in a business environment. ISO 26000 is the recognized international standard for
CSR (currently a Draft International Standard). Public sector organizations (the United
Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR
adheres to similar principles but with no formal act of legislation. The UN has developed
the Principles for Responsible Investmentas guidelines for investing entities.
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Corporate social responsibility
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship, social performance, or sustainable responsible business)[1]is a form
ofcorporate self-regulation integrated into a business model. CSR policy functions as a
built-in, self-regulating mechanism whereby business monitors and ensures its active
compliance with the spirit of the law, ethical standards, and international norms. The goal
of CSR is to embrace responsibility for the company's actions and encourage a positive
impact through its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public sphere. Furthermore, CSR-
focused businesses would proactively promote the public interest(PI) by encouraging
community growth and development, and voluntarily eliminating practices that harm the
public sphere, regardless of legality. CSR is the deliberate inclusion ofPI into corporate
decision, that is the core business of the company or firm, and the honoring of a triple
bottom line: people, planet, profit.
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Approaches
An approach for CSR that is becoming more widely accepted is a community-based
development approach. In this approach, corporations work with local communities to
better themselves. For example, the Shell Foundation's involvement in the Flower Valley,
South Africa. In Flower Valley they set up an Early Learning Centre to help educate the
community's children as well as develop new skills for the adults. Marks are also active in
this community through the building of a trade network with the community -
guaranteeing regular fair trade purchases. Often activities companies participate in are
establishing education facilities for adults and HIV/AIDS education programmes. The
majority of these CSR projects are established in Africa. JIDF For You, is an attempt to
promote these activities in India.
A more common approach of CSR is philanthropy. This includes monetary donations and
aid given to local organizations and impoverished communities in developing countries.
Some organizationsdo not like this approach as it does not help build on the skills of the
local people, whereas community-based development generally leads to more sustainable
development. Another approach to CSR is to incorporate the CSR strategy directly into the
business strategy of an organization. For instance, procurement ofFair Trade tea and coffee
has been adopted by various businesses including KPMG. Its CSR manager commented,
"Fairtrade fits very strongly into our commitment to our communities."[5]
Another approach is garnering increasing corporate responsibility interest. This is
called Creating Shared Value, or CSV. The shared value model is based on the idea that
corporate success and social welfare are interdependent. A business needs a healthy,
educated workforce, sustainable resources and adept government to compete effectively.
For society to thrive, profitable and competitive businesses must be developed and
supported to create income, wealth, tax revenues, and opportunities for philanthropy. CSV
received global attention in the Harvard Business Review article Strategy & Society: The
Link between Competitive Advantage and Corporate Social Responsibility[1] by Michael E.
Porter, a leading authority on competitive strategy and head of the Institute for Strategy
and Competitiveness at Harvard Business School; and Mark R. Kramer, Senior Fellow at the
http://en.wikipedia.org/wiki/Shell_Foundationhttp://www.flowervalley.org.za/http://en.wikipedia.org/wiki/Fair_tradehttp://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-4http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-4http://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-4http://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/Fair_tradehttp://www.flowervalley.org.za/http://en.wikipedia.org/wiki/Shell_Foundation8/3/2019 Project on CSR Final
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Kennedy School at Harvard University and co-founder of FSG Social Impact Advisors. The
article provides insights and relevant examples of companies that have developed deep
linkages between their business strategies and corporate social responsibility. Many
approaches to CSR pit businesses against society, emphasizing the costs and limitations of
compliance with externally imposed social and environmental standards. CSV
acknowledges trade-offs between short-term profitability and social or environmental
goals, but focuses more on the opportunities for competitive advantage from building a
social value proposition into corporate strategy.
Many companies use the strategy of benchmarking to compete within their respective
industries in CSR policy, implementation, and effectiveness. Benchmarking involves
reviewing competitor CSR initiatives, as well as measuring and evaluating the impact that
those policies have on society and the environment, and how customers perceive
competitor CSR strategy. After a comprehensive study of competitor strategy and an
internal policy review performed, a comparison can be drawn and a strategy developed for
competition with CSR initiatives.
8/3/2019 Project on CSR Final
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Social Accounting, Reporting &
Auditing
For a business to take responsibility for its actions,
that business must be fully accountable. Social
accounting, a concept describing the communication
of social and environmental effects of a company's
economic actions to particular interest groups within society and to society at large, is thus
an important element of CSR.[6]
Social accounting emphasizes the notion of corporate accountability. D. Crowther defines
social accounting in this sense as "an approach to reporting a firms activities which
stresses the need for the identification of socially relevant behavior, the determination of
those to whom the company is accountable for its social performance and the development
of appropriate measures and reporting techniques."[7]An example of social accounting, to a
limited extent, is found in an annual Director's Report, under the requirements ofUK
company law.
A number of reporting guidelines or standards have been developed to serve as
frameworks for social accounting, auditing and reporting including:
Accountabilitys AA1000 standard, based on Ellingtons triple bottom line (3BL)reporting
The Prince's Accounting for Sustainability Project's Connected Reporting Framework The Fair Labor Association conducts audits based on its Workplace Code of Conduct
and posts audit results on the FLA website.
The Fair Wear Foundation takes a unique approach to verifying labour conditions incompanies' supply chains, using interdisciplinary auditing teams.
Global Reporting Initiative's Sustainability Reporting Guidelines Good Corporations Standard developed in association with the Institute of Business
Ethics
Earthcheckwww.earthcheck.org Certification / Standard
http://en.wikipedia.org/wiki/Social_accountinghttp://en.wikipedia.org/wiki/Social_accountinghttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-5http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-5http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-5http://en.wikipedia.org/wiki/Accountabilityhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-6http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-6http://en.wikipedia.org/wiki/Director%27s_Reporthttp://en.wikipedia.org/wiki/UK_company_lawhttp://en.wikipedia.org/wiki/UK_company_lawhttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)#AA1000_Series_of_Standardshttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://www.accountingforsustainability.org/home/http://www.accountingforsustainability.org/output/page171.asphttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://en.wikipedia.org/wiki/Fair_Wear_Foundationhttp://en.wikipedia.org/wiki/Global_Reporting_Initiativehttp://www.goodcorporation.com/PDF/standard_2007.pdfhttp://en.wikipedia.org/wiki/Earthcheckhttp://en.wikipedia.org/wiki/Earthcheckhttp://www.goodcorporation.com/PDF/standard_2007.pdfhttp://en.wikipedia.org/wiki/Global_Reporting_Initiativehttp://en.wikipedia.org/wiki/Fair_Wear_Foundationhttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://www.accountingforsustainability.org/output/page171.asphttp://www.accountingforsustainability.org/home/http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)#AA1000_Series_of_Standardshttp://en.wikipedia.org/wiki/UK_company_lawhttp://en.wikipedia.org/wiki/UK_company_lawhttp://en.wikipedia.org/wiki/Director%27s_Reporthttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-6http://en.wikipedia.org/wiki/Accountabilityhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-5http://en.wikipedia.org/wiki/Social_accountinghttp://en.wikipedia.org/wiki/Social_accounting8/3/2019 Project on CSR Final
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Potential business benefits
The scale and nature of the benefits of CSR for an organization can vary depending on the
nature of the enterprise, and are difficult to quantify, though there is a large body of
literature exhorting business to adopt measures beyond financial ones (e.g., Deming's
Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes found a correlation
between social/environmental performance and financial performance. However,
businesses may not be looking at short-run financial returns when developing their CSR
strategy.
The definition of CSR used within an organization can vary from the strict "stakeholder
impacts" definition used by many CSR advocates and will often include charitable
efforts and volunteering. CSR may be based within the human resources, business
developmentor public relations departments of an organization, or may be given a
separate unit reporting to the CEO or in some cases directly to the board. Some companies
may implement CSR-type values without a clearly defined team or programme.
Human resources
A CSR programme can be an aid to recruitmentand retention,[12]particularly within the
competitive graduate student market. Potential recruits often ask about a firm's CSR policy
during an interview, and having a comprehensive policy can give an advantage. CSR can
also help improve the perception of a company among its staff, particularly when staff can
become involved through payroll giving, fundraising activities or community volunteering.
CSR has been found to encourage customer orientation among frontline employees.[13]See
also Corporate Social Entrepreneurship, whereby CSR can also be driven by employees'
personal values, in addition to the more obvious economic and governmental drivers.
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Risk management
Managing riskis a central part of many corpo rate
strategies. Reputations that take decades to build up can be
ruined in hours through incidents such as corruptionscandals or environmental accidents.[14]These can also
draw unwanted attention from regulators, courts,
governments and media. Building a genuine culture of 'doing the right thing' within a
corporation can offset these risks.[15]
Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition that can
separate them from the competition in the minds of consumers. CSR can play a role in
building customer loyalty based on distinctive ethical values.[16]Several major brands, such
as The Co-operative Group, The Body Shop and American Apparel[17]are built on ethical
values. Business service organizations can benefit too from building a reputation for
integrity and best practice.
License to operate
Corporations are keen to avoid interference in their businessthrough taxation or regulations. By taking substantive voluntary steps, they can persuade
governments and the wider public that they are taking issues such as health and safety,
diversity, or the environment seriously as good corporate citizens with respect to labour
standards and impacts on the environment.
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Nature of business
Milton Friedman and others have argued that a corporation's purpose is to maximize
returns to its shareholders, and that since only people can have social responsibilities,
corporations are only responsible to their shareholders and not to society as a whole.
Although they accept that corporations should obey the laws of the countries within which
they work, they assert that corporations have no other obligation to society. Some people
perceive CSR as in-congruent with the very nature and purpose of business, and indeed a
hindrance to free trade. Those who assert that CSR is contrasting with capitalism and are in
favor ofneoliberals argue that improvements in health, longevity and/orinfant
mortality have been created by economic growth attributed to free enterprise.[18]
Critics of this argument perceive neoliberals as opposed to the well-being of society and a
hindrance to human freedom. They claim that the type of capitalism practiced in many
developing countries is a form of economic and cultural imperialism, noting that these
countries usually have fewer labour protections, and thus their citizens are at a higher risk
of exploitation by multinational corporations.[19]
A wide variety of individuals and organizations operate in between these poles. For
example, the Leadership Alliance asserts that the business of leadership (be it corporate or
otherwise) is to change the world for the better.[20]Many religious and cultural traditions
hold that the economy exists to serve human beings, so all economic entities have an
obligation to society (see for example Economic Justice for All). Moreover, as discussed
above, many CSR proponents point out that CSR can significantly improve long-term
corporate profitability because it reduces risks and inefficiencies while offering a host of
potential benefits such as enhanced brand reputation and employee engagement.
Motives
Some critics believe that CSR programs are undertaken by companies such as British
American Tobacco (BAT),[21]the petroleum giantBP(well known for its high-profile
advertising campaigns on environmental aspects of its operations), and McDonald's (see
below) to distract the public from ethical questions posed by their core operations. They
argue that some corporations start CSR programs for the commercial benefit they enjoy
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through raising their reputation with the public or with government. They suggest that
corporations which exist solely to maximize profits are unable to advance the interests of
society as a whole.[22]
Another concern is that sometimes companies claim to promote CSR and be committedto sustainable developmentbut simultaneously engage in harmful business practices. For
example, since the 1970s, the McDonald's Corporation's association with House has been
viewed as CSR and relationship marketing. More recently, as CSR has become mainstream,
the company has beefed up its CSR programs related to its labor, environmental and other
practices[23]All the same, in McDonald's Restaurants v Morris & Steel, Lord Justices Pill,
May and Keane ruled that it was fair comment to say that McDonald's employees
worldwide 'do badly in terms of pay and conditions'[24]and true that 'if one eats enough
McDonald's food, one's diet may well become high in fat etc., with the very real risk ofheart
disease.'[25]
Royal Dutch Shell has a much-publicized CSR policy and was a pioneer in triple bottom
line reporting, but this did not prevent the 2004 scandal concerning its misreporting ofoil
reserves, which seriously damaged its reputation and led to charges of hypocrisy. Since
then, the Shell Foundation has become involved in many projects across the world,
including a partnership with Marks and Spencer (UK) in three flower and fruit growing
communities across Africa.
Critics concerned with corporate hypocrisy and insincerity generally suggest that better
governmental and international regulation and enforcement, rather than voluntary
measures, are necessary to ensure that companies behave in a socially responsible manner.
A major area of necessary international regulation is the reduction of the capacity of
corporations to sue states under settlement provisions in trade or investment treaties if
otherwise necessary public health or environment protection legislation has impeded
corporate investments.[26]Others, such as Patricia Werhane, argue that CSR should be
considered more as a corporate moral responsibility, and limit the reach of CSR by focusing
more on direct impacts of the organization as viewed through a systems perspective to
identify stakeholders.
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Ethical consumerism
The rise in popularity ofethical consumerism over the last two decades can be linked to the
rise of CSR. As global population increases, so does the pressure on limited natural
resources required to meet rising consumer demand (Grace and Cohen 2005, 147).Industrialization, in many developing countries, is booming as a result of both technology
and globalization. Consumers are becoming more aware of the environmental and social
implications of their day-to-day consumer decisions and are therefore beginning to make
purchasing decisions related to their environmental and ethical concerns.[27]However, this
practice is far from consistent or universal.
Globalization and market forces
As corporations pursue growth through globalization, they have encountered new
challenges that impose limits to their growth and potential profits. Government
regulations, tariffs, environmental restrictions and varying standards of what constitutes
"labor exploitation" are problems that can cost organizations millions of dollars. Some view
ethical issues as simply a costly hindrance, while some companies use CSR methodologies
as a strategic tactic to gain public support for their presence in global markets, helping
them sustain a competitive advantage by using their social contributions to provide a
subconscious level of advertising. (Fry, Keim, Meiners 1986, 105) Global competition places
a particular pressure on multinational corporations to examine not only their own labor
practices, but those of their entire supply chain, from a CSR perspective.
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Social awareness and education
The role among corporate stakeholders is to work collectively to pressure corporations
that are changing. Shareholders and investors themselves, through socially responsible
investing are exerting pressure on corporations to behave responsibly. Non-governmental
organizations are also taking an increasing role, leveraging the power of the media and the
Internet to increase their scrutiny and collective activism around corporate behavior.
Through education and dialogue, the development of community awareness in holding
businesses responsible for their actions is growing.[28]In recent years, the traditional
conception of CSR is being challenged by the more community-conscious Creating Shared
Value concept (CSV), and several companies are refining their collaboration with
stakeholders accordingly.
Ethics training
The rise of ethics training inside corporations, some of it required by government
regulation, is another driver credited with changing the behavior and culture of
corporations. The aim of such training is to help employees make ethical decisions when
the answers are unclear. Tullberg believes that humans are built with the capacity to cheat
and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning
normative values and rules in human behavior.[29]The most direct benefit is reducing the
likelihood of "dirty hands" (Grace and Cohen 2005), fines and damaged reputations for
breaching laws or moral norms. Organizations also see secondary benefit in increasing
employee loyalty and pride in the
organization. Caterpillar and Best Buy are examples of
organizations that have taken such steps.[30]
Increasingly, companies are becoming interested in
processes that can add visibility to their CSR policies and
activities. One method that is gaining increasing popularity is
the use of well-grounded training programs, where CSR is a
major issue, and business simulations can play a part in
this.[citation needed]
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One relevant documentary isThe Corporation, the history of organizations and their
growth in power is discussed. Corporate social responsibility, what a company does to in
trying to benefit society, versus corporate moral responsibility (CMR), what a company
should morally do, are both important topics to consider when looking at ethics in CSR. For
example, Ray Anderson, in The Corporation, takes a CMR perspective in order to do what is
moral and he begins to shift his company's focus towards the biosphere by utilizing carpets
in sections so that they will sustain for longer periods. This is Anderson thinking in terms
of Garret Hardin's "The Tragedy of the Commons," where if people do not pay attention to
the private ways in which we use public resources, people will eventually lose those public
resources.
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Laws and regulation
Another driver of CSR is the role of independent
mediators, particularly the government, in ensuring that
corporations are prevented from harming the broader
social good, including people and the environment. CSR
critics such as Robert Reich argue that governments
should set the agenda for social responsibility by the way
of laws and regulation that will allow a business to
conduct them responsibly.
The issues surrounding government regulation pose several problems. Regulation in itself
is unable to cover every aspect in detail of a corporation's operations. This leads to
burdensome legal processes bogged down in interpretations of the law and debatable grey
areas (Sacconi 2004). For example, General Electric failed to clean up the Hudson
River after contaminating it with organic ppollutants. The company continues to argue via
the legal process on assignment of liability, while the cleanup remains stagnant. (Sullivan &
Schiff 2005).
The second issue is the financial burden that regulation can place on a nation's economy.
This view shared by Blakeley, who cites the Australian federal government's actions to
avoid compliance with the Kyoto Protocol in 1997, on the concerns of economic loss and
national interest. The Australian government took the position that signing the Kyoto Pact
would have caused more significant economic losses for Australia than for any other OECD
nation (Blakeley 2001, pg 436). On the change of government following the election in
November 2007, Prime Minister Kevin Rudd signed the ratification immediately after
assuming office on 3 December 2007, just before the meeting of the UN Framework
Convention on Climate Change. Critics of CSR also point out those organizations pay taxesto government to ensure that society and the environment are not adversely affected by
business activities.
Denmarkhas a law on CSR. On 16 December 2008, the Danish parliament adopted a bill
making it mandatory for the 1100 largest Danish companies, investors and state-owned
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companies to include information on corporate social responsibility (CSR) in their annual
financial reports. The reporting requirements became effective on 1 January 2009.[31]The
required information includes:
information on the companies policies for CSR or socially responsibleinvestments (SRI)
information on how such policies are implemented in practice, and information on what results have been obtained so far and managements expectations
for the future with regard to CSR/SRI.
CSR/SRI is still voluntary in Denmark, but if a company has no policy on this it must state
its positioning on CSR in their annual financial report. More on the Danish law can be found
atCSRgov.dk
Crises and their consequences
Often it takes a crisis to precipitate attention to CSR. One of the most active stands against
environmental management is the CERES Principles that resulted after the Exxon
Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead
poisoning paint used by toy giantMattel, which required a recall of millions of toys globally
and caused the company to initiate new risk management and quality control processes. In
another example, Magellan Metals in the West Australian town of Esperance was
responsible for lead contamination killing thousands of birds in the area. The company had
to cease business immediately and work with independent regulatory bodies to execute a
cleanup. Odwalla also experienced a crisis with sales dropping 90%, and the company's
stock price dropping 34% due to several cases ofE. coli spread through
Odwalla apple juice. The company ordered a recall of all apple or carrotjuice products and
introduced a new process called "flash pasteurization" as well as maintaining lines of
communication constantly open with customers.
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Stakeholder priorities
Increasingly, corporations are motivated to become more socially responsible because
their most important stakeholders expect them to understand and address the social and
community issues that are relevant to them. Understanding what causes are important to
employees is usually the first priority because of the many interrelated business benefits
that can be derived from increased employee engagement (i.e. more loyalty, improved
recruitment, increased retention, higher productivity, and so on). Key external
stakeholders include customers, consumers, investors (particularly institutional investors),
and communities in the areas where the corporation operates its facilities, regulators,
academics, and the media.
Branco and Rodriguez (2007) describe the stakeholder perspective of CSR as the inclusion
of all groups or constituents (rather than just shareholders) in managerial decision making
related to the organizations portfolio of socially responsible activities.[32]This normative
model implies that the CSR collaborations are positively accepted when they are in the
interests of stakeholders and may have no effect or be detrimental to the organization if
they are not directly related to stakeholder interests. The stakeholder perspective suffers
from a wheel and spoke network metaphor that does not acknowledge the complexity of
network interactions that can occur in cross sector partnerships. It also relegatescommunication to a maintenance function, similar to the exchange perspective.[33]
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Tata Group Profile
The Tata Group of Companies has always believed strongly in the concept of collaborative
growth, and this vision has seen it emerge as one of India's and the world's most respected
and successful business conglomerates. The Tata Group has traced a route of growth that
spans through six continents and embraces diverse cultures. The total revenue of Tata
companies, taken together, was 67.4 billion USD (around Rs319, 534 crore) in 2009-10,
with 57 per cent of this coming from business outside India. In the face of trying economic
challenges in recent times, the Tata Group has steered Indias ascent in the global map
through its unwavering focus on sustainable development. Over 395,000 people worldwide
are currently employed in the seven business sectors in which the Tata Group Companies
operate. It is the largest employer in India in the Private Sector and continues to lead with
the same commitment towards social and community responsibilities that it has shown in
the past.
The Tata Group of Companies has business operations (114 companies and subsidiaries) in
seven defined sectors Materials, Engineering, Information Technology and
Communications, Energy, Services, Consumer Products and Chemicals. Tata Steel with its
acquisition of Corus has secured a place among the top ten steel manufacturers in theworld and itis the Tata Groups flagship Company. Other Group Companies in the different
sectors are Tata Motors, Tata Consultancy Services (TCS), Tata Communications, Tata
Power, Indian Hotels, Tata Global Beverages and Tata Chemicals.
Tata Motors is Indias largest automobile company by revenue and is among the top five
commercial vehicle manufacturers in the world. Jaguar and Landover are now part of Tata
Motors portfolio.
Tata Consultancy Services (TCS) is an integrated software solutions provider with
delivery centers in more than 18 countries. It ranked fifth overall, and topped the list for IT
services, in Bloomberg Business weeks 12th annual 'Tech 100', a ranking of the world's
best performing tech companies.
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Tata Power has pioneered hydro-power generation in
India and is the largest power generator (production
capacity of 2300 MW) in India in the private sector.
Indian Hotels Company (Taj Hotels, resorts and palaces)
happens to be the leading chain of hotels in India and one of the largest hospitality groups
in Asia. It has a presence in 12 countries in 5 continents.
Tata Global Beverages (formerly Tata Tea), with its major acquisitions like Tetley and
Good Earth is at present the second largest global branded tea operation.
When Jamsetji Tata gave shape to his vision of nation building by forming what was to
become the Tata Group in 1868, he had envisaged India as an independent strength
politically, economically and socially. In order to become a force that the world has to
reckon with, the Tata Group has always ventured into path breaking territory and
pioneered developments in industries of national importance.
As a policy, the Tata Group Companies promote and encourage economic, social and
educational development in the community, returning wealth to the society they serve.
Two-thirds of the equity of Tata Sons is held in philanthropic trusts that take care of
endowments towards improvement programmes in these spheres.
Through the years, the Tata Group has been amongst the most prestigious corporate
presences in the world governed by its principles of business ethics. Its foray intointernational business has been recognized by various bodies and institutions. Brand
Finance, a UK based consultancy firm after a recent valuation of the Tata brand at $11.22
billion has ranked it 65th among the world's top 100 brands. In Business Weekmagazine's
list of the 25 most innovative companies the Tata name appears 13 th and The Reputation
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Institute, USA has evaluated the Tata Group as the 11th in a global study of the most
reputed companies.
In the road ahead, the Tata Group is focusing on integration of new technologies in its
operations and breaking new grounds in product development. The Eka supercomputer
had been ranked the worlds fourth fastest in 2008 and the launch of the Nano has been a
benchmark for the auto industry specifically and the economy in general.
With a holistic approach in all its business operations, a loyal and dedicated workforce and
its rooted belief in value creation and corporate citizenship, the Tata Group is always ready
to realise its vision and objectives. The challenges of the future will only help to enhance
the Groups performance and transform newer dreams to reality.
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TATA Steel
Established in 1907, Tata Steel is among the top ten global steel companies with an annual
crude steel capacity of over 28 million tons per annum (mtpa). It is now one of the world's
most geographically-diversified steel producers, with operations in 26 countries and a
commercial presence in over 50 countries. The Tata Steel Group, with a turnover of US$
22.8 billion in FY '10, has over 80,000 employees across five continents and is a Fortune
500 company.
Tata Steels vision is to be the worlds steel industry benchmark through the excellence of
its people, its innovative approach and overall conduct. Underpinning this vision is a
performance culture committed to aspiration targets, safety and social responsibility,continuous improvement, openness and transparency.
Tata Steels larger production facilities include those in India, the UK, the Netherlands,
Thailand, Singapore, China and Australia. Operating companies within the Group include
Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel, and Tata
Steel Thailand (formerly Millennium Steel).
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Board of Directors
Mr. Ratan TataChairman - Not Independent, Non-Executive Director
Mr. Ratan N. Tata is presently Chairman of Tata Sons, the holding
company of the Tata Group and also Chairman of the major Tata
companies including Tata Steel. It is under his leadership that the Company has scaled new
heights and established a presence as one of the leading steel conglomerates in the world.
Mr. Ratan Tata is a Bachelor of Science in the field of architecture.
Mr. B. Muthuraman
Vice Chairman - Not Independent, Non-Executive Director
Mr. B Muthuraman joined Tata Steel in 1966 as a Graduate Trainee.
On completion of training, he worked in the areas of Iron-making
and Engineering Development for ten years and then moved to the
Marketing & Sales Division and spent nearly twenty years there,
ultimately rising to the position of Vice President.
Mr. H.M. Nerurkar
Managing Director - Not Independent
Mr. Hemant M. Nerurkar was Executive Director of India and
South East Asia of Tata Steel Limited since April 9, 2009 and was
appointed as Managing Director of Tata Steel Limited from
October 01, 2009. A B.Tech in metallurgical engineering from the
College of Engineering, Pune University, Mr. Nerurkar has attended several management
courses in India and overseas, including CEDEP in France.
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Dr. Karl-Ulrich Khler
Not Independent, Non-Executive Director
Dr. Karl-Ulrich Khler is appointed as a Director of the Company
with effect from 12th November 2010. He has been Chief Executive
Officer and Managing Director of Tata Steel Europe Limited since
October 1, 2010. He was appointed Chief Operating Officer of Tata Steel Europe Limited in
February 2010.
Mr. Nusli Neville Wadia
Independent, Non-Executive DirectorMr. Nusli Neville Wadia - Mr. Wadia is foremost among famous
Indian industrialists and the Company Director and Chairman of
various Indian companies. Taking over responsibilities from his
father Neville Wadia, he made the Wadia Group and Bombay Dyeing the most respected
and widely diversified business houses in the corporate world.
Mr. Andrew Robb
Independent, Non - Executive Director
Mr. Andrew M. Robb is a Fellow of the Chartered Institute of
Management Accountants and holds a Joint Diploma in
Management Accounting. Mr. Andrew Robb has been a Non
Executive Independent Director of Tata Steel Limited since November 22, 2007. He joined
the board of Corus Group plc and became Chairman of the Audit Committee in August2003.
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Mr. S. M. Palia
Independent, Non - Executive Director
Mr. S M Palia, a B.Com., LL.B., CAIIB and CIIB ( London ) is a
Development Banker by profession. He was with IDBI from 1964
to 1989 during which period he held various responsible
positions including that of an Executive Director to the Bank. He joined the Company as a
Director in 1994.
Mr. Ishaat Hussain
Not Independent, Non - Executive Director
Mr. Ishaat Hussain graduated in economics from St StephensCollege, New Delhi. He is a fellow of the Institute of Chartered
Accountants in England and Wales (FCA). Mr. Hussain joined the
board of the Indian Tube Company (a Tata Steel associate company) in 1979.
Mr. Subodh Bhargava
Independent, Non - Executive Director
Mr. Subodh Bhargava is a Mechanical Engineer from the
University of Roorkee. He joined Board of the Company as a
Director in 2006. Mr. Bhargava was the Group Chairman and
Chief Executive Officer of the Board of Eicher Group of
Companies and is now the Chairman Emeritus of the same group.
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Mr. Jacobus Schraven
Independent, Non - Executive Director
Mr. Jacobus Schraven was appointed as an Additional Director
of the Company with effect from May 17, 2007. He was
appointed a non-executive Director and Deputy Chairman of
Corus Plc. in December 2004. Mr. Schraven, in 2005 was
appointed a Member and Chairman of the Supervisory Board of Corus Nederland BV. Until
June 2005 he was President of the Confederation of The Netherlands Industry and
Employers (VNO-NCW).
Mr. Suresh Krishna
Independent, Non - Executive Director
Mr. Suresh Krishna received a Bachelor of Science degree from
Madras Christian College in 1955 and an M.A. in literature from
the University of Wisconsin in 1959. He did his post-graduate
work in literature at the University of Munich, Germany. Mr. Krishna is the Chairman and
Managing Director of Sundram Fasteners Ltd.
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CSR activities of TATA
A continued focus on health care
With emphasis on improving the health and welfare of employees and local communities,
the programmes conducted by the Group focus on adolescent health and HIV / AIDS
awareness. In South East Asia, NatSteel has a comprehensive programme of health
screening for employees and their families. This programme also creates awareness on
lifestyle diseases among the community.
Mother and child health
The concept of a healthy mother and a healthy baby
is one of the cornerstones of Tata Steels health care
programmes. Through investments in maternal and
neonatal programmes, the Group has helped
improve the health of thousands of women and
children each year.
The hospital on rails continues its journey
The Lifeline Express the worlds first hospital on rails offers medical services such as
on-the-spot diagnosis, medication and advanced surgical treatment for orthopedics, ear,
nose, throat and eye ailments. In a recently concluded camp, conducted at the Jajpur Road
Railway in Odisha, the Lifeline Express gave services to 4,309 physically challenged people
from the districts of Keonjhar, Bhadrak, Dhankanal, Jajpur and Cuttack in Odisha.
Strengthening the future
The most common threats to growing children often arise from lack of nutrition and
hygiene. To control these problems, the Tata Steel Rural Development Society has been
conducting regular health checks in schools and providing children with necessary
medicines free of cost.
Drug and alcohol abuse
In an effort to battle the high rate of drug and alcohol abuse in the towns of Port Talbot and
Newport in South Wales, Tata Steel has joined forces with various organizations like the
Gwent Alcohol Project, the West Glam organ Council on Alcohol and Drug Abuse, the
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Community Union and key contractors. The Group has also raised funds for the
development of community centers which could help young children stay away from drugs.
Sustainable livelihood through wasteland development
Another strand of the work Tata Steel does with rural communities focuses on
strengthening agricultural capabilities. Aid is offered to farmers to increase productivity
and to bring wastelands under cultivation. A large portion of Indias land falls under the
category of wasteland. To better utilize this land, Tata Steel has been partnering the
National Horticultural Mission since 2005. By 2009-10, almost 9,000 acres of land had been
brought under cashew and mango plantations, benefiting 3,700 households from 129
villages in the East Singh hum district of Jharkhand. At the Joda East Iron Mine in Odisha,
Tata Steel has also introduced a scientific rainwater harvesting system to check the
depleting levels of ground water. A large storage-cum-percolation lake has been
constructed at a favorable location to pool in the water from the vast catchment area
around the lake. This project will help increase the ground water levels of surrounding
settlements, including the Joda Township.
Self-help groups for women
Self-help groups (SHGs) formed by rural women have been effective agents of change in
rural areas. Empowerment initiatives have raised the skill levels of rural women, enabling
rural households to benefit from additional income sources. While the SHGs get financial
assistance from government departments and banks, Tata Steel's support is both financial
and technical. The Company often partners with professional groups to assist women in
starting their own businesses.
Employability training
Apart from a strong focus on primary and secondary education, the Tata Steel Group has
actively supported employability or vocational training. The initiative aims at developing
skills among communities, women and young people, supporting local artisans to provide
them with better opportunities to compete in the job market. Job oriented training
programmes are regularly conducted in many centers in India, Africa and South East Asia.
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Sharing Wealth to Diminish Disparities
For Jamsetji Tata, the progress of enterprise, welfare of people and the health of the
enterprise were inextricably linked. Wealth and the generation of wealth have never
"been ends in themselves, but a means to an end, for the increased prosperity of India,"
The Times of India said in 1912 of the Tatas.
Successive generations of Tata Group leaders have always held the belief that no
succession material terms is worthwhile unless it serves the interest of the nation and is
achieved by fair and honest means. Conscious that the task of social progress, especially in
a country as diverse as India, cannot be undertaken by the Government alone, J R D Tata
the Chairman of the Tata Group from 1938 to 1991, believed that, "to create good working
conditions, to pay the best wages to its employees and provide decent housing to its
employees are not enough for the industry, the aim of an industry should be to discharge
its overall social responsibilities to the community and the society at large, where industry
is located." At the vanguard of social commitment Guided by this mandate, Tata Steel has
for decades used its skills and resources, to the extent it can reasonably afford, to give back
to the community a fair share of the product of its efforts.
Education
Tata Steel has influenced the integration oftribals in the economy in a less obvious and
immediate way by propping up the education of tribal children and youth of various ages
and at various stages of their academic career.
Infants and toddlers are prepared for formal schooling in the informally run balwadis
(crches/nurseries). The dropout rate of tribal students in schools and colleges has been
checked with financial assistance and sponsorships.
The TCS bears the entire expense of two tribal students who secure admissions for
management education at the Tata Institute of Social Sciences. It also coaches students
for entrance into administrative, technical and the public services.
An unusual project called Sahyog, implemented in five schools, helps tribal students to
develop self-esteem and plan their future.
The Xavier Institute for Tribal Education near Jamshedpur has also been supported by
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Tata Steel to produce professionally trained personnel. Had it not been for this fellowship
from Tribal Cultural Society, I was bound to be like Many others, recycled into the family's
earning process at an age when I needed to be at School, says Sunita Murmu.
And then come the announcement of Jyoti Fellowships. Sunita won the award not just for
the year, but, for the next seven consecutive years as well. The fellowship saw her
through matriculation and Intermediate. Relieved of the pressure, Sunita was able to
concentrate and secure first division all through. At an award ceremony, when asked
what she had to say about this assistance, Thank you, Tata Steel and Tribal Cultural
Society were the words she uttered with extreme gratitude
Tribalsculture
Efforts to support tribals may well leave them at the doorstep of
Development without a sense of belongings and their cultural heritage.
With a view to helping the tribal population preserve its rich inheritance, Tata Steel has
set up the Tribal Culture Centre (TCC) at a cost of Rs 35, 00,000. This Centre showcases
the tribal legacy of four major and five minor tribes of Jharkhand and Orissa and evokes a
lot of interest amidst scholars, researchers and even laypersons. TCC not only documents
Relevant research but also enables the continuation of the tradition by sharing it with the
Youth and non-tribal. Additionally, a Santali Language Laboratory has also been initiated in
the Centre since 2002-03.
The centre was instrumental in reviving the now almost forgotten 'Kati' - a game played
between two teams that attempt to score points by hitting the opponent's Kati - a
semicircular piece of wood by a long wooden stick using their feet. Known to be a game
that used to be played by youths in non agricultural season, it tests the team spirit,
physical strength and concentration levels of the players.
Adim Dastoor, a three day programme, was organized at Bari Maida, Jamshedpur. This
cultural extravaganza showcased the heritage and lifestyle of the indigenous people in
Jharkhand. Lecture demonstration sessions on tribal heritage, exhibitions on historical
advent of tribal movements, various forms of tribal dance and music, their relevance and
specifics were dwelled upon at great length followed by actual performance by the
experts.
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The event also showcased a day-night Kati tournament between 25 teams from all over
Jharkhand and tribal Orissa. Tribal belief has it that within the 'Akhara' (common meeting
place for men within the village), no one is an audience. Every step taken is dance; every
word that is uttered is a song. The climax of the three-day event resounded this belief as
hundreds of people in the ground joined in the performance accompanied by 25 drum
beaters who lent a sparkling end to the festival.
Income generation for tribals
Reliant and sustainable way, Tata Steel has long been involved with increasing the
Agricultural productivity for them in the rural areas through assured irrigation. Tata Steel,
holding the belief that the tribals know best for themselves, has assisted in the formation
of many Self Help Groups (SHGs).
These SHGs enable the tribals to arrange for credit and engage in micro-enterprises like
making Dokra items, carpet weaving, terracotta, paper bag making, mat making, food
processing, poultry, mushroom farming, piggery, pisciculture and floriculture. Tata Steel
provides these groups with training, networking and assistance in marketing.
For making a long term impact on the prospects of the tribals, the Company has given
them vocational training in areas like basic computer operation, software management
shorthand, typing, motor driving and handling pregnancies as birth attendants.
"There was will and that was what saw us through..."Opportunity from TCS came like a
ray of hope. Not knowing what to expect from the workshop, I still dragged myself to
participate in it. Simple techniques on packaging the candles we made, helped improve
the presentation of the product... Deepawali, Christmas and Gram Shree Mela provided
us with huge business prospects, which we were able to encash upon. Next we received
an order from Tata Steel to supply 5000 candles in a week's time. But there was will and
that was what saw us through. My future plans are to improve our business extensively
and also to enter the metropolitan market.
Ongoing Programmes
Mother and Infant Survival Programme Population Stabilization Operation Muskaan for
cleft lips and palates "YARS" - Youth and Adolescent Reproductive Services
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specifically targeted programmes on HIV and AIDS. Project "WATSAN" for Water and
Sanitation Free Health Checkups for Women at Surya Clinics Pioneer in Family Initiatives
and HIV/AIDS Awareness Ringing the first alarm bell for Population Control The first
corporation in the country to launch a family welfare programme, Tata Steel has been
promoting controlled family planning since the 1950s. Through the innovative use of
communication media, motivational programmes have extremely successfully broken the
barriers of prejudice and myths to bring about the participation of communities, in even
those which do not readily accept family planning.
Jamshedpur today is a leader in demographic indices in the country. For the past 16
years, Tata Steel Family Initiatives Foundation (TSFIF) - formerly the Family Planning
Department - has been reaching out to the Community in Jamshedpur with Family
Planning and Reproductive Health Services. It covers a heterogeneous population of over
10,00,000 including adolescents and youth, industrial workers, busted dwellers and those
from the indigenous tribes of the area. Now it is in the process of reauthoring its role, so
as to extend both its capability and services into emerging sectors of need.
Health and AIDS Awareness
The health and safety of the employees and the communityis critically interlocked with
productivity enshrined in Tata Steels Vision. The Company has thus taken proactive steps
in AIDS preventon by spreading awareness not only amongst its employees, but also the
community at large so that the inhabitants of Jamshedpur
and at other locations, remain safe.
Tata Steel has evolved a corporate sector model to prevent
the spread of STD/HIV/AIDS,globally and nationally. This
model is being shared through forums like ILO, Global
Business Coalition on HIV/AIDS, Global Compact Initiatives,
WHO-SE Asia Regional
Office, NACO (National AIDS Control Organization) and JAPC (Jharkhand AIDS
Prevention Consortium) and more recently through Global Reporting Initiatives. This
programme extends to the rural and urban populace residing in and around Jamshedpur.
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The Global Business Coalition, which is an alliance of over a hundred major international
companies who are expected to lead by example, is dedicated to combating this disease.
Tata Steel is one of its founding members. The prestigious "Global Business Coalition
Award (GBC) for 2003 for Business Excellence" was conferred on Tata Steel for its
response to the epidemic and its outstanding HIV/AIDS Awareness work in Jamshedpur.
The award is conferred on companies who have evolved best practices on HIV/AIDS
prevention, especially to reduce the stigma and discrimination. This award places Tata
Steels initiatives at par with the best in the world, to be showcased globally.
Environment
Tata Steel believes that environment management is integral to sustainable
business. The company's commitment in this area can be further gauged from the fact,
that Tata Steel is the first company in the country to be conferred ISO-14001 Certification
for its main steel works and utility services in Jamshedpur All its mines and collieries are
also ISO-14001 Certified for environmental management. Tata Steel's collieries and mines
which support the 'Save Forests' campaign are a benchmark in environment management,
further augmenting its commitment in this field, Tata Steel, has planted 1.5 million
surviving trees as a part of the Green Millennium campaign. It may be worth mentioning
that Jamshedpur has the best tree cover in the country.
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Conclusion
We have conclude about the project of "corporate social responsibility" We have done study
on TATA STEEL Pvt Ltd. CSR is titled to aid an organization's mission as well as a guide to
what the company stands for and will uphold to its consumers. Developmentbusiness
ethics is one of the forms ofapplied ethics that examines ethical principles and moral or
ethical problems that can arise in a business environment. We have got more knowledge &
experience from this project.
http://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Business_ethics8/3/2019 Project on CSR Final
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Bibliography
Search Engine:
www.google.comwww.wikipedia.com
Books:
Business ethics & corporate social responsibility.(VIPUL Prakashan)
Recommended