Tata Steel Csr

[pic] [pic] [pic] Introduction: [pic] Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses nationally and internationally. As globalisation accelerates and large corporations serve as global providers, these corporations have progressively recognised the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe.The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL), which is used as a framework for measuring an organisation’s performance against economic, social and environmental parameters. The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities.

[pic] The key drivers for CSR are: ??Enlightened self-interest - creating a synergy of ethics, a cohesive society and a sustainable global economy where markets, labour and communities are able to function well together. ?? Social investment - contributing to physical infrastructure and social capital is increasingly seen as a necessary part of doing business. ?? Transparency and trust - business has low ratings of trust in public perception. There is increasing expectation that companies will be more open, more accountable and be prepared to report publicly on their performance in social and environmental arenas ? Increased public expectations of business - globally companies are expected to do more than merely provide jobs and contribute to the economy through taxes and employment. CSR Activities of Tata Steel: The Tata trusts are the unsung heroes of an extraordinary saga of philanthropy that has enriched India and its citizens in myriad ways. The Tata group has been credited for aggressively pursuing several corporate social responsibility (CSR) initiatives in India.

Considered as pioneers in the area of CSR, the Tata group has played an active role in nation building and socio-economic development since the early 1900s. Tata group has long accepted the idea that CSR makes business sense. This was realized by JN Tata way back in 1895, when he stated, "We do not claim to be more unselfish, more generous or more philanthropic than others, but we think we started on sound and straightforward business principles considering the interests of the shareholders, our own and the health and welfare of our employees...

the sure foundation of prosperity. The CSR programme is managed by three organisations — Tata Steel Rural Development Society (TSRDS), Tata Steel Family Initiatives Foundation (TSFIF) and the Tribal Culture Society (TCS). ? Sharing Wealth to Diminish Disparities. For Jamsetji Tata, the progress of enterprise, welfare of people and the health of the enterprise were inextricably linked. 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 .

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. It was the first to establish labour welfare practices, even before these were made statutory laws across the world. In 1912 it invited Sidney and Beatrice Webb, the Founders of the London School of Economics, to prepare a Memorandum of Health for the Steel City.The Company also instituted an eight-hour workday in 1912, free medical aid in 1915, a Welfare Department in 1917, leave with pay, Workers Provident Fund and Workmen’s Compensation in 1920 and Maternity Benefit for ladies in 1928. With the understanding that the hunger for employment can never be satisfied despite its best efforts, the Company took an enlightened decision to address the needs of those who migrated to its vicinity in search for employment.It first stimulated entrepreneurship and economic development in the Steel City and then reached out to the rural poor, empowering them with the means to create better livelihoods within their own villages.

At the same time, Tata Steel also fulfilled their basic need for health care, food security, education and income generation through the development of rural infrastructure, empowerment and community outreach programmes. ? EducationTata Steel has influenced the integration of tribals 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 (creches/nurseries). The drop out 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 ofSocial 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 Tata Steel to produce professionally trained personnel. ? Tribals –culture : 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-tribals. Additionally, a Santhali 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. ? Income generation for tribals : In order to help tribals address their basic needs in a self-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. Health care : Among the most active sponsors of the Lifeline Express – a hospital on wheels- Tata Steel has endeavored to take medical care far beyond those connected with its operations.

This unique train travels at the behest of its sponsors to those parts of rural India, left untouched by modern medicine. At Jamshedpur, the Company runs an 850-bed general hospital with a specialized Burn Centre, Dispensaries and Super Dispensaries to reach out to its employees as well as a large number of citizens across the steel city.The network of specialized medical care units it has created also fulfills the need for low cost, high quality medical care for the economically less privileged. It established the Jamshedpur Blood Bank to provide safe blood to those in need and has very successfully promoted a culture of voluntary blood donations.

At its out locations the Company has set up hospitals, which cater to the healthcare needs of people from the surrounding rural areas.The doctors and paramedical staff of its hospitals as well as the dedicated staff of its social welfare arms have also taken health care awareness including eye care, tuberculosis treatment, general health awareness, HIV/AIDS Awareness and Mother and Child survival programmes to a large number of villages and communities. Through the efforts of the Tata Steel Rural Development Society (TSRDS) and the Tata Steel Family Initiatives Foundation (TSFIF), the Company covers the rural and peri-urban population through basic health care amenities.Both these social welfare arms of the Company have been building capacity through training programmes to create community based health care partners as well as grass-root volunteers. The Company has successfully changed notions of millions of villagers on water and sanitation, created a demand for better health facilities, ensured immunization for tens of thousands and been instrumental in bringing down infant mortality rates.

? Ongoing Programmes ? Mother and Infant Survival Programmes Population Stabilization ? Operation Muskaan for cleft lips and palates "YARS" - Youth and Adolescent Reproductive Services ?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 For the past 16years, 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.Now it is in the process of re authoring 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 community is critically interlocked with productivity and is enshrined in Tata Steel’s Vision. The Company has thus taken proactive steps in AIDS prevention 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. 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-14001Certification 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. 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. Reasons for CSR Activities done by TATA STEEL: 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. 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 development or 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 programmes. The business case for CSR within Tata Steel was on the below arguments: ? Human resourcesThe CSR was aid to recruitment and retention, 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. Tata Steel had carried out CSR Activities taking into consideration the following norms. Risk management Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents.

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 Tata Steel did not want its company to face such problems so they had performed a huge number of CSR Activities in Jamshedpur. 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. 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 business through 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. Conclusion: Corporate Social Responsibility (CSR) initiatives are nothing new for the Tata Group, which has been serving society even before the term CSR was coined. Over the past 14 years, flagship Tata Steel has, on average, spent nearly 2 per cent of its revenues on such activities.Last year, for example, the company spent nearly Rs 181 crore on its CSR initiatives.

The goal of the CSR team is to empower people and focus their healthcare and hygiene in Jharkhand, Orissa and Chhattisgarh, where the company has operations or is planning to set up new plans. Last year, it introduced double cropping, which enables farmers to earn an extra Rs 5,000 per acre of land. Then, Tata Steel provides money from its Rs 15-crore kitty to 413 self-help groups in these states to empower locals to start their own small-scale business like candle and agarbatti making.It targets one person from each family in the local villages for this. Apart from building parks, laying pipelines and other civic amenities, the company has undertaken environmental and ecological initiatives to bring down carbon emission and save energy.

In 2006-07, the company’s initiatives on energy efficiency helped it to reduce energy consumption to 6. 720 Gcal/tcs (giga calories per tonne of crude steel) from 6. 959 Gcal/tcs, thus, saving nearly around Rs 50 crore per annum. Its carbon emission also came down from 2. 28 tonne per tonne of crude steel to 2.

2 tonne.Our strategic recommendations for Tata are intended to address all of the organizational, cultural, strategic, and operational considerations that a ten year sustainability strategy would necessitate. Specific sustainability initiatives need strategic support to flourish, and the creation of TSS would be useless without innovation and creativity to fuel its growth. With a new definition of sustainability, a framework for growth and transparency, and specifically tailored global strategies, Tata will be ideally positioned for the next ten years to sustain its culture and evolve.