A Tata CSR presentation to CoRE-BCSD India

at Bangalore
on 6th August 2003
Building Community…

… always a way of doing business

 J. N. Tata
The example and the inspiration

“In a free enterprise, the community is not

just another stakeholder in business but is in
fact the very purpose of its existence”.
- Jamsetji Tata
Founder, Tata Group
 What does this mean to us?

9 Markets work for all – when based on inclusion

9 Creating a ‘people-centered’ purpose – for sustained development

So that,
Institutions serve the good of all
 India’s most respected Brand

100 years of tradition

Tatas building self-reliant communities

Group Social Responsibility

( TCCI )

Sports & Culture

( Sports Club & NCPA )

Relief & Rehabilitation

( TRCs )

Philanthropy / Social Investment

( Tata Trust )
 Revisiting CSR & Learning from the
Winds of Change

• Globalisation
• Liberalisation
• Restructure

REFORMS
• Economic
• Administrative
• Trade
• Legal

3 Social Reform is at the bottom of all Change process.

3 Finding a role for business in development.
 Social Reforms
through participatory development

Go
ve
Os rn
m
NG en
t
Dev
. Ag
Aca

ia
Community

Med
dem
enc
ie s
ia
/

Business /
Industry
 Role for Tata businesses….

“The developing world has two options. The

first is to sit back and react only when the
problems arise. The second is to act as
conscious citizens and rise above our vested
interests for the sake of future generations,
so that history does not record that we
deprived them of their livelihood.”

“I think that the message we should leave with our CEOs is that
there is an integrated approach – that we want them to be profit-
oriented, we want them to be cost effective, we want them to be
quality conscious, and we want them to be good corporate
citizens.”
- Mr. R. N. Tata
Our Collective Stand

Tata Council for Community Initiatives

We will evolve a common direction for community development
programmes from diverse activities of all Tata business units
through sharing and participatory networking.

We will strive together constantly to strengthen our professional

and organizational abilities to fulfill our commitments towards
society at large.

B. G. Deshmukh
Chairman
 PARTICIPATORY NETWORKING FOR
STRATEGY DEVELOPMENT & DEPLOYMENT
Council (Strategy Development)
B. G. Deshmukh-Chairman
R. Gopalakrishnan K. A. Chaukar J. J. Irani F. K. Kavarana S. Ramadorai
B. Muthuraman S. Ramakrishnan Ravi Kant S. K. Gupta F.A.Vandrevala
Prasad Menon Bhaskar Bhat Simone Tata H.R.Khusokhan Ashok Soni
Rajeev Dubey A. N. Singh H.S.Billimoria S.Deoras P.Siganporia
S.S.Ghosh Y.Nath D.S.Gupta K.A.Mahashur B.L.Raina
C.D.Kamath V.Deshpande Ranaveer Sinha Harsh Jha A.K.Vora
S.Chakravorty Partha Sengupta Ian Watts Ajay Pandey T.R.Doongaji
S.Pradhan M.A.Pathan B.Martyris J.Ardeshir

Anant G. Nadkarni Group HR & TQMS

TCCI Secretariat

Company Level (Strategy Deployment)

(Cross-Functional Teams)
Corporate Head-Social Responsibility
Community & Environment Facilitators
Corporate Heads - HR, Quality & Ethics

Tata Volunteers
 Tata Declarations on CSR
• Serving the Community is the purpose of business - The Community is central to the core
values we adhere to in the Tata Group and it is not just another stakeholder in business, but is in fact the very
purpose of its existence

• Enhancing Human Excellence and Improving the Quality of Life - Tata Community programs
aim at building trust, improving the quality of life, enhance human excellence and build Community

• Integrating Environmental Management with Social Development - A Tata enterprise is

proactive in addressing environmental, ecological and biodiversity concerns arising out of its operations and
this is integrated with our social responsibilities

• Sharing Core Competence and Technology with the underprivileged - Tata Companies
evolve their programs out of their core competence and expertise

• Business as a Partner in Development - Tata Companies work together with other players engaged
in the development of communities

• Culture of Volunteering - In the Tata Group there is a culture of volunteering and Tata Companies enable
committed employees to spare their skills and talents in the service of the needy and the underprivileged

• Organizational and Personal Learning - Tata employees recognize the valuable opportunities
Community provides for individual and group learning. So programs are designed to foster learning, creativity,
and experimentation in order to build knowledge to share it with others

• Institutionalizing Social Responsibility in the Business Process - Commitment to social

responsibility is explicit and visible in every Tata Company by way of management support and involvement;
proactive methods in planning and deployment of resources; engagement of employees; and, sharing of
knowledge.
 Where to make the difference
Influencing Policy & Impacting Attitudes

Vocational Training
/ Education Health /
/ Technology Woman & Child
for the poor

Initiatives in FRAMEWORK
biodiversity
Water Management,
restoration &
Integrated Rural &
conserve wildlife Urban Development

Introduce EMS
proactively & beyond
compliance of
regulation
What does it mean at the Company level ?

Making Social Responsibility happen at three levels

TCCI Programme on
Company-level institutionalizing support
for CSR

Leadership / Capacity
Building / Performance
Employee-level Management System

Procedure on process
documentation & learning
Programme-level
Draft Guidelines capture common patterns – 1996-1997

Case study approach forges a common framework - 1998

Focus on 7 Regional Groups – 1998-99

Final Guidelines declare the Tata Way - 2000

Focus on 28 Tata Companies (Report on community initiatives) - 2001

Focus on 15 Tata Companies (Report on environmental initiatives) - 2002

First report on Corporate Sustainability by Tata Steel - 2002

Group Corporate Sustainability

Tata Companies’ commitment to community

development
180
160
140
Rupees Crores

120
100
80
60
40
20
0
1996 1998 2000 2001

Expenditure on Community Development

Involvement of Group Companies

250

200
Numbers

150

100

50

0
1996 1998 2000 2001

Community Champions Business Units Involved

Cases Documented
 How are we positioned…

• TCCI works closely with Tata Quality managers & HR heads

in 33 BEBP Companies

• 12 major Tata Companies are certified under ISO14001

• 20 major Companies have embarked on Sustainability programme.

Dr. J. J. Irani is the Tata representative on the Executive Board
of the UN-Global Reporting Initiatives (GRI)

• All 33 major Tata Companies have signed in for the CII-UNDP

Social Code and the UN-Global Compact. Mr. K. A. Chaukar is the
Tata representative for the UN-Global Compact

• TCCI & UNDP have developed the first ever Corporate Index on
Human Development.
• Key leaders assuming group level responsibilities on CSR

• Holding hands and growing together

• Emerging Group Resource on CSR

 Partnerships for benchmarking with
best practices and growing together

A
p
Tata (Process and p
TCCI
Report at l
Guidelines Company i
level) Business
c Excellence
Corporate a
Sustainability t
TBEM
Best i
Practices o
n
Tradition

Values 1] Tata Values & Traditions

2] Tata Best Practices
Others TATA 3] Flexibility / Openness
4] A way of doing business
Building new perspectives on
responsible behaviour….

• Focus on ‘Corporate’ Social Responsibility

• Integrate Environment, Biodiversity, Safety, Health with

social initiatives

• Build a sustainable Business Model based on multiple

‘bottom lines’.
 Transforming the Mindset
Managing identity

Society / Trusts Participatory Networking

Person centered Process / Brand driven

Company centered To become a group

Scarcity Abundance

Changing work culture

Social Work (Activity based) Development centred (facilitate)

Avoidable Expense Essential venture Cost

Welfare (Creating dependence) Building Community (Self-reliance)

Single Goal - Profit Triple Bottom Line

From Management To Governance

 Are we really building sustainable enterprises?

Economic Environmental Social

Value Added Factors Impact
Leadership 9
9 9
Strategic Planning
9 ? ?
Customer & Market Focus 9 ? ?
Measurement, Analysis & 9 ? ?
Knowledge Management

Human Resource Focus 9 ? ?

Process Management 9 ? ?

Business Results 9 9 9
 Tata Code of Conduct
Tata Group Purpose Statement
Our Purpose in Tata is to improve the communities we serve….Our heritage of
returning to society what we earn evokes Trust among consumers, employees,
shareholders and the community. This heritage will be continuously enriched by
formalizing the high standards of behaviour expected from employees and companies.

Clause 8: HEALTH, SAFETY AND ENVIRONMENT

Clause 10: CORPORATE CITIZENSHIP

• Over 2,25,000 employees abide by the Code personally committed to their

social responsibility at an individual level

• A process for Self evaluation ensures that over 200 Community &
Environmental Facilitators conduct their self-appraisal for attunement .
Leading Beyond the Walls….

• Corporate Governance with the “relating genius”

• Director with additional charge for CSR

• CEO’s Balanced Scorecard

• Corporate Head-Social Responsibility at level II

• Cross-Functional Team

• Community and Environment Facilitators.

Strategy on CSR

• Taking technology to the poor

• Rooted in Core Competence – matrix driving the CSR

Vision and Mission

• Factoring CSR in all functional / operational levels

• CSR permeating through all locations and supplier chain.

To make markets work for
The very underprivileged
all, the underprivileged segments that cannot access
must participate markets on their own and in a
way are marginalized by
imbalanced wealth creation.

C
B
A

Present markets
Expanding markets accessible absorbing our products
for the best and most competitive and services under
products and services highly existing market and price
sensitive to price elasticity. conditions.
Generating responsible profits: Assessing, Costing,
Accounting and Reporting for Development

Corporate
giving out of
surplus Responsible
profit of Business
Profit

Other
costs

Other
costs “Corporate giving”
built as a
‘development cost of
business’

Traditional model Contemporary model

(First generating profits not (Generating responsible profits)
considering social cost)
 Responsible Profit
Market economy works well when
prices tell the truth

• Traditionally, we factored in costs of

– Raw materials,
– Power,
– Consumables,
– Employees,
– Borrowings, etc.

• We have learnt to include the cost of Quality - in

absence of which the total costs are even higher.

• Why do we not factor Environmental and Social

costs as part of normal business-expense?
Learning, Listening & Thinking CSR

• Environmental Impact Assessment, Social Impact Surveys,

“Community Dialogue” to periodically impact strategy,
Process and Results

• CSR to become part of employee satisfaction feedback and

Brand perception-surveys

• Periodic CSR presentations to the Board, Senior

Management and strategy function.
People Focus

• Building Community beyond developing

Organizations – within and outside

• CSR is performance driven by high performers

• Volunteering Scheme – an enabling culture for

self-management.
It is not the mountain we conquer but ourselves

Tata Corps of Volunteers – transforming lives

• We recognize the learning it brings to us

• We are fired more by the spirit of service
• A large number of volunteers means a broader base for
Brand assurance.
“I think what we should try to do is to start off a movement that will
consciously institutionalize what many of our companies have been
doing for many years. And now what we are doing here, through the
TCCI, is to institutionalize this strength into a common entity. And we
should make sure that the CEOs of various companies feel that all
this is part of the Tata ethos.”

- Mr. R. N. Tata

• 2 Tata Companies have over 1000 registered volunteers.

• 6 major Tata Companies have 100 – 500 registered volunteers.

• 19 other Tata Companies have 50 – 100 registered volunteers.

10,417 TATA Volunteers

Improving Quality of Life (Process)

• Facilitate development and a sense of belonging

• Enhance human achievement and development

• Encourage a sense of enterprise

• Improve attitudes / behaviour / procedure

• Enhance self and institutional learning.

 A TATA program is a Journey towards Human Excellence
The way it is positioned / Scaled up

Human Excellence
(876-1000)

Human Development
(651-875)

Human Achievement
(451-650)

Human Concern
(251-450)

Human Consideration
(0-250)

The distinctions / new perspectives built

 Improving the Quality of Life

Synchronising
Triple Bottom Line for
Sustainable
Development

Harmonizing
Harmonizing Building
Building Social
Social
Adding
Adding Environmental
Environmental Capital
Capital in
in the
the
Economic
Economic Value
Value Factors
Factors Community
Community

Reduce negative Initiatives to become

impact environment- friendly

Senior Management Provide facility Strengthen &

Volunteers share Networking to
involvement in and support work along with
social
skills and raise funds
from the Community Based
competencies and resources
programmes companies Organizations
 Tata Model for Corporate Sustainability

Tata Index for Environmental Tata Index for Sustainable

and Ecological Management Human Development
1. Managing change & assessment
1. Compliance to Regulation of social impact
2. Reduce, Reuse, Recycle 2. Felt needs of the key community
3. Green House Gases related to core competencies
4. Green the supply chain 3. Volunteering Process in the
5. Life Cycle Analysis Community
6. Restore Biodiversity 4. Social concerns addressed
7. Conserve Wildlife through programs
8. Deployment Mechanism. 5. Improving attitudes / government
processes
6. Self-reliance & sustenance
7. Learning & Innovation transfer
8. Effective Management & Good
Governance & Deployment
Mechanism.
 Triple Bottom-Line: Building the Brand Assurance process

Improving the Quality of Life

Triple Bottom Line under the UN Global

Reporting Initiatives & Global Compact
under implementation in Tata Companies

Building
Building Building
Environmental
Economic Capital Social Capital
Capital

Tata
Tata Index
Index for
for Sustainable
Sustainable Human
Human Development
Development

• 27 Tata Companies signed the UN Global Compact

• 20 Tata Companies engaged in the UN Global Reporting Initiatives
• All Tata Companies enrolled under the CII-UNDP Social Code for Business.
 Networking and Strategy Deployment

Cross-Functional Teams
Tata CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)
Group CSR CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)
Resource
CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)

(TCCI / CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)

TQMS / CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)
Group-HR/ CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)
TMTC)
CH-SR+CH-HR+CQH+EC+Facilitators (Community & Environment)

Sharing Best Practices

20 Tata Companies have
formed these teams.
GRI UN CII WBCSD & others
 More
Achieves
Everyone
Together
 Thank You!

For further information, contact:

[email protected]