INTRODUCIONBACKGROUNDIn recent times, the issue of corporate social responsibility (CSR) has been given a lot of attention by both Dutch business and various stakeholders. Since the advisory report of the Sociaal Economische Raad (Social Economic Council, advisory board to the Dutch government) De Winst van Waarden (The Profit of Values) it is broadly acknowledged among government, business and stakeholders in the Netherlands, that CSR is not about charity, but that it belongs to the core business of a company and therefore should be an integral part of doing business. Companies are under increasing pressure from society to take their social responsibility. This is especially so if it concerns companies with a business relation in a developing country, since these companies are more confronted with CSR issues.CSR is a container concept which encompasses many different ecological, social and economic issues. In order to give a more specific interpretation to the concept of CSR a platform of Dutch NGOs has composed a so-called CSR Frame of Reference. Aim of this framework is to give companies a coherent overview of what NGOs define as CSR. The Frame of Reference is mainly based on international treaties, guidelines and instruments enjoying broad international support that are relevant for business, such as human rights, labour rights, environmental protection, consumer protection, socio-economic development, corruption and other aspects of CSR. It also includes some fundamental operational aspects of CSR like supply chain responsibility, stakeholder involvement, transparency and reporting and independent verification.In order to validate the CSR Frame of Reference in an international context, the India Committee of the Netherlands (ICN or Landelijke India Werkgroep in Dutch) has initiated a project on corporate social responsibility by Dutch companies in India. ICN has asked CREM BV (Consultancy and Research for Environmental Management) to perform the research in the Netherlands and PiC (Partners in Change) to perform the research in India. CUTS (Consumer Unity and Trust Society) has commented on the Frame of Reference, this report and organised the workshop in India.The project was financed by the Netherlands Ministry of Housing, Spatial Planning and the Environment (VROM) and the Dutch Interchurch Organisation for Development Co-operation (ICCO).BASICS OF CORPORATE SOCIAL RESPONSIBILITYCorporate World exists in the society. It draws its resources material or human from the society. It grows and develops due to support from the society and its environment. In brief, every corporate entity owes to the society and must give its due back to the society. The developmental/welfare activities undertaken by corporate world are popularly known as Corporate Social Responsibility (CSR) activities, which have been dealt with in greater details in Chapter 5 of this Thesis. The motto behind CSR activities matters a lot. If CSR activities are backed by the principle of Trusteeship, they can play miracle and bring real prosperity in our life. It has power to create society which will have least conflict and hence, maximum harmony in the society.THEORETICAL COUNTERS ON CSR Introduction The definition of the term CSR is not unanimous. It means different things to different people. Even the definition is not clear to the corporate in developed world, too. Unless the concept is clear, CSR will be just looked upon as philosophy which is good to talk about but, practically, difficult to implement. Hence, there is need to deliberate upon it seriously. A responsible citizen is expected to be socially responsible which further implies that he/she should be law abiding, should be conscious about his/her duties and responsibilities towards him/herself, society, state, country and world and act responsibly so that no harm is done to anyone to which he/she interacts. There is behavioural ethics involved in being socially responsible. The behaviour of person has its genesis in his thought. Anyone who is unethical in his thought and hence action cannot be called a socially responsible person in true sense of the term. The above idea of individual social responsibility may be extended to corporate world in their capacity as corporate citizen. The idea of Corporate Social Responsibility rests on the foundation of Responsible Corporate citizenship, which in turns means taking care of all stakeholders of the corporate by conducting business ethically. So, CSR has a broad concept. Basically, it involves doing the business honestly and hence, it is not easy to adopt the concept of CSR and practice it in letter and spirit. It will be interesting to find a CSR model, exists. However, efforts should be made to approach the ideal model as described above. It is presumed that ethical business behavior in corporate world is not possible if the company has to augment its profit and grow. Does it mean the concept of CSR as described above is just a dream and impossible to put into practice? It may sound so. However, the concept must not be discarded. True CSR model may be difficult to achieve but not impossible. CSR asks for total and lasting change. It asks for fundamental change in the thoughts of leadership of Corporate World. The CEO must not only worry about making profits but they should also worry about making profits ethically. So, they would have to pay attention on quality of their services/product so that they meet the requirements of their clients. Not meeting the expectation of client by supplying substandard product/services would be construed as unethical corporate behavior. Discharging the industrial affluent into river/open space without treating them to reduce their cost of production and hence increase their profits is another example of unethical corporate practice. So, not abiding the rule of the land and polluting the environment is a deviation from CSR practices. Not taking care of the employees (who are one of the stakeholders) by paying them less than minimum wages, making them work for longer hours without paying extra remuneration, making them work in unhygienic working condition and hence playing with their health and lives, is another example of irresponsible CSR practices. So, an exploitative organization with a large number of their employees being unhappy cannot be described as responsible Corporate Citizen. In brief, CSR is concerned with one and all activities of corporate world commencing from Design, planning, commercial activities, production, marketing and sale, personnel administration and any other activities based on the concept as described above. Perhaps, hardly such model outsourced to other agencies. If there is compromise with quality and any unethical behavior anywhere, the same would not be construed a good CSR practice. In view of the above, CSR must not be construed as just CHARITY wing of corporate world. Corporate does engage in charitable activities such as opening schools, conducting health camps, however, such charitable activities may be included under broad spectrum of CSR and they should not be considered synonymous to CSR (which in itself is a business philosophy) as CSR in comprehensive sense has to do with day to day business practice being followed by the company and charitable activity may be just one of them. A company may indulge in violation of Pollution Act although it may be doing various charitable activities and hence, such company has not understood the concept of CSR. Today business/company is under pressure from both shareholders and community to adopt responsive business practices. Company is expected to fulfill its social and environmental responsibilities. Demand is for a more equitable society where gap between rich and poor is minimized. Only profitability is not the sole factor in deciding business strategy. There is concern for sustainability of social, ethical and environmental values. Often these values are ignored in quest of maximization of profit, which, too, is important as no business can afford to ignore profit, otherwise the very existence of the business will be threatened. So, there is need for balance approach in the matter. There is need for managing the business efficiently as well as ethically and satisfy all the stakeholders.CSR - Meaning Concept of CSR has been evolving since early seventies and till date there is no uniform definition accepted globally. Corresponding to different CSR practices, a large number of codes/conventions/principles/standards have been evolved. Reasons of varying practices, approaches and attitudes on CSR in different economies are largely due to differences in a) social and economic system, b) legal and regulatory framework, c) cultural practices, d) local public needs and expectations. Different Organizations have framed different definitions, although there is considerable similarity among them. As per Anarde Foundation, CSR is about how companies manage the business processes to produce an overall positive impact on the society.The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and RichardWatts, states CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. CSR is about capacity building for sustainable livelihoods. CSR respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government (in Ghana), CSR is about business giving back to the society (in Phillipines). As per Peter Drucker, Corporate can discharge its social responsibility if it converts them into business opportunities. For example, a company working in the field of solar energy may carry out research to develop low cost solar energy devices and make them popular among rural masses. Here, they are converting social responsibility into business opportunity. Company and society both are benefitted in the process. As per Nelson, the greatest contribution business can make to development is to produce safe and cost effective products and services in a profitable manner while obeying the law enhancing the positive economic, social and environment multipliers associated with this process and managing and minimizing the negative multipliers.Important multipliers are: Generating Income and Investment (through wages, taxes, dividends, royalty, foreign exchange earnings) Creating jobs both within the company and along the supply line, while minimizing the human cost of layoff Developing human resources training, skill development, health Building local businesses through backward and forward linkages Spreading International Business Standards and Practices environment, health, safety, human rights, ethics quality Supporting Technology Development R& D Increasing access to basic services providing economically viable solutions to providing water, energy credit, IT and health services to poor Establishing physical and institutional infrastructure plant and machinery, telecommunication and transport system to legal and financial framework To conclude with, CSR is doing business without compromising ethics and taking care of their employees, society and environment. Only Maximization of Profit must not be the criteria for Business Decision for a company which wants to be a CSR model for others.CSR - Present Status There are three Generations in development of CSR and they are described as under by Simon Zadek: First Generation Company does not get detracted from commercial success Company adopts strategic approach to philanthropy Second Generation Company focuses on CSR as an integral part of long term business strategy Third Generation Company addresses to issues such as poverty, environmental degradation Company focuses on partnership with civil society Company advocates for change in public policyThe above description of generation does not have any time frame. These generations show maturity of a company/organization in matter of CSR. All these generations may be seen in one organization only. When an organization earns profit and thinks of diverting part of its profit for philanthropy, takes strategic decisions in the matter and acts on these decisions, it is the first generation of CSR activity. In second generation stage, an organization makes CSR as long term business strategy and coverts social responsibility into business opportunities. As the company matures in CSR matters, it becomes conscious about environment and various developmental issues pertaining to common masses. The company wants to become partner with Government and civil society in various developmental activities and policy matters. TATA group has reached the Third generation stage and it has carried out research in providing low cost house (cost only Rs.32000/-) to poor rural masses and holding discussion with government and civil society in the matter. CSR in Developed Country: Different countries have different values and circumstances and hence have different model for CSR.CSR in a developed country would focus on issues related to governance, business ethics, human rights particularly as enshrined in UN convention and environment. CSR in USA: The CSR in USA is defined as under. CSR is defined much more in terms of philanthropic model Companies make profit unhindered and they fulfill their duty to pay taxes Companies donate a certain share of the profits to charitable causesCSR in Europe: The CSR in USA is defined as under Focuses on operating the business in a socially responsible way Investment is done in community for solid business reasons Social responsibility is an integral part of wealth creation process During hard times, there is incentive to practice CSR CSR in Developing Country: In developing countries like India, CSR means nation building and socio economic development regional development, employment generation, education, healthcare services, apart from the issues which are of concern to developed nations.CSR in India: The concept of CSR is not new to India. The religious text Geeta advocates for devotion of ones life for the cause of other. Trusteeship Principle has been part of Indian Psyche. During British days, many Indian Companies supported Indian Struggle for Freedom, although their interest was supreme. They believed that their own government would take of their business interests. Such activities made many companies such as Bajaj Group patriotic in eyes of Indians. Many textiles groups in Ahmedabad openly supported Gandhis efforts for bringing freedom to the country. Such companies felt themselves socially responsible and acted in that matter, although CSR was not their business philosophy. After, India got freedom, Companies Act, 1956 came into being. Indian Corporate has contributed a lot for the social cause since then. Pioneer in the field is TATA and its various foundations. CSR is being practiced as core value of Business by TATA. However, many corporate houses perceived CSR as tax saving device and hence they perceived CSR differently. Now, Companies Act is being amended to ensure that a company spends at least 1% of their net profit for CSRactivities and the bill is likely to be introduced in monsoon season during 2011. CSR in Gujarat: Gujarat is one of fastest developing states in India. It is regarded a vibrant state in terms of business opportunities, infrastructure development and other economic parameters, however, it lags behind in matter of Human Development Indices. So, development has taken place but its HRD aspects need to be boosted. Gujarat is well known for its entrepreneurial culture. Mahajan Community famous in the business, have generously contributed for various social and political causes in Gujarat.Birla and Bajaj famous business families from Gujarat, contributed generously for cause of freedom struggle and they still contribute for various social causes. There are other corporate houses, too, such as Anarde Foundation, Lalbhai Group, Rural Development Programme, Sharda Trust of Arvind Mills, Mafatlals Sadguru Foundation, BAIF (Vansada), Vivekanand Training and Research Institute (Kutch), Shroff Foundation, Deepak Medical Foundation/Deepak Trust (Vadodara), Bhanushali Trust (Banaskantha), Ambuja Cement Foundation (Kodinar), Tata Foundation, Adani Foundation, in Gujarat, which are contributing for the cause of community. Also, co-operative movement in field of Dairy has been highly successful in Gujarat. Amul Pattern of co-operative movement is well known all over India. Amul Patten was the vision of Sardar Patel and Morarjibhai Desai. The lives of millions of people/household were successfully changed by this co-operative movement commenced in Kheda district of Gujarat.Most of districts in Gujarat have Corporate Sponsored NGOs (CNGOs) which are contributing for welfare of people in one or other ways. The prominent among them are Tata Chemicals Society for Rural Development (Tata Chemicals Limited), Jamnagar, Shree Vivekanand Research and Training Institute (Excel Industries Limited), Kutch, Anarde Foundation (Aegis Chemicals Limited), Rajkot, Ambuja Cement Foundation (Gujarat Ambuja Cement Ltd.), Junagadh, Shroffs Foundation (Transpek Industries), Vadodara, N. M. Sadaguru Water Development Foundation (Mafatlal Industries), Dahod, and Reliance Rural Development Trust (Reliance Industries). Survey on CSR: Companies need to answer to two aspects of their operations 1) quality of their management both in terms of manpower and the processes, 2) the nature/quality of their impact on society in the various areas. Outside stakeholders take a lot of interest in the activity of the company. They want to know what the company has actually done (good or bad) in terms of its impact on the environment and local community, How does it treat and develop its workforce A CSR survey was conducted in India in 2002 through joint approach of UNDP, British Council and Confederation of Indian Industry. Questionnaires were sent to 1000 companies out of which 102 companies responded. 55% of those responded belonged to Engineering, Banking and Electronics Sector. CSR activities included mainly Relief Services, Education and Training, Community and Water Development, Environment, Healthcare, Rural Development and Agriculture Development. The survey also emphasized that a) Social Responsibility was not the exclusive domain of government, and b) the passive philanthropy alone no longer constituted CSR.Public perceptions of companies are influenced by three main factors: Social Responsibility (49%) Brand quality/reputation (40%) Business fundamentals (32%) CSR as per the handbook on CSR is judged by Triple Bottom Lines : a) Financial Bottom Line, b) Social Bottom Line and c) Environmental Bottom Line. CSR perspective of a company is judged by these three bottom lines only. It is important to see the companies commitment in terms of percentage of net profit earmarked for the purpose of CSR activities. Similarly, it is interesting to see the yardsticks followed by them in deciding the social or developmental activities to be undertaken by them as part of CSR activities. Last but not the least, developmental/welfare activities to be undertaken with poor environmental concern would undermine the CSR rating of the company. Future Scenario Over the last ten years, those institutions which have grown in power and influence have been those which can operate effectively within a global sphere of operations. These are effectively the corporates and NGOs. Those institutions which are predominantly tied to the nation state have been finding difficult to shape and manage events due to various reasons. These include national governments, police, judiciary and others. There is a growing interest, therefore, in businesses taking a lead in addressing those issues in which they have an interest where national government have failed to come up with a solution. Poverty and Education are two major issues on which foundation of global CSR will rest. These two issues form global agenda for globalCSR. A millennium poll on CSR in 1999 conducted in 23 countries covering 25000 citizens endorsed this global agenda for CSR. 67% of respondents want companies to go beyond their historical role of a)making profit, b) paying tax, c) employing people and d) obeying laws of the land. They wanted companies to contribute to broader societal goals and be responsible to the society, nation and international community for their actions.Conclusion As stated above, Poverty and Education are two major issues on which foundation of CSR will rest. There is urgent need for involvement of corporate sector vide their CSR activities to alleviate the poverty so rampant in India and other undeveloped countries as well as to raise the human development indices. A well planned CSR strategy involving corporate sector, community and Government will improve the various parameters of human development indices in the long run and reduce unrest/disharmony in the society.

CASE STUDY CASE STUDY NO. 1Corporate Social Responsibility: Tata ModelBrief HistoryFounded by Jamsetji Nusserwanji Tata (JN Tata) in 1868, the Tata group has developed into one of India's largest business conglomerates. Tata Sons, which was established as a trading company by JN Tata in 1868, is the promoter of the Tata group. Tata Industries, initially established in 1945 as a managing agency for the businesses promoted by Tata Sons, propelled the group's entry into new and high-tech industries during the early 1980s. The group has 102 companies in diverse sectors and has been moving from product-driven businesses to brand-driven businesses. The group listed its materials, chemicals, energy and engineering products as product-driven while engineering services, automotive, communications and IT, services and consumer goods have been identified as branddriven businesses. TATA is a respected brand name throughout India and it cannot happen without delivering quality product and services. The group is famous for practicing Y-Theory of management. The management is not coercive in nature and believes in co-operative approach in management. People who join TATA, do stay with company which has a name for their good HRD practices. Employees in turn, too, feel proud of being part of TATA family. There are professionals who have no blood relations with TATAs but have occupied higher positions in TATA group of companies due totheir capabilities. So, management style of TATA needs to be commended. The working class (mainly the workers working in various TATA companies and Factories such as TISCO) is organized. They have access to various facilities such as PF, Gratuity, leave including medical leaves, minimum working hours, over time facilities etc, as per the legal provisions. Apart from the above, they enjoy other facilities, too, such as housing, education for their children, medical, scholarship to their children etc.. Strike by TATA employees/lock out is hardly heard of. There appears to be good communication between management and workers. Matter/dispute if any is sorted out to the mutual satisfaction of the concerned parties and there is industrial peace within TATA group companies. So, there appears to be sense of belongingness among Employees and hence, TATA group has steady and upward business growth even during hard times. TATAs preferred to set up their Steel Plant in a undeveloped area (Sakchi) in Jamshedpur. It is a tribal area with poor tribal population but rich in mineral resources. TATA set up the factory there as there was availability of basic resources needed for manufacturing of steel in the area/nearby area but they did not ignore the local community. They took care of, for alleviating the misery of local poor population by providing various basic facilities such as road, schools (education), medical care, employment etc. The TATA salt factory at Mithapur, too, has taken care of the population in its surrounding area by carrying out various rural development activitiesAll TATA Groups companies are known for commencing development activities in the surrounding villages. TISCO is carrying out various welfare/development activities in Jharkhand. Similar is the case with other TATA group companies, too. The society has a lot of expectations from TATAs. TATAs have met the expectations of people/nation, too, by establishing world class educational institutions, hospitals and other institutions of repute the details of which will follow in the subsequent pages.

Basic values/principles

As a global benchmark for CSR and a pioneer of the concept in India, the Tata group has adopted social responsibility as one of its integral values and the group has made concerted efforts to link it with the group's overall strategy for achieving business excellence. Besides undertaking CSR initiatives through its various companies, the Tatagroup has been actively involved in facilitating the development of this Gujarat concept in India by setting standards and benchmarks. Moreover, Tata Group has adopted participatory approach in the matter of CSR as depicted in the above diagram. Also, Tatas declarations on CSR are mentioned in the slide follow hereunder;

Approach TATAs are the pioneer in the field of CSR in India. A unique feature of the group is that 65 percent of the equity capital of the parent firm - Tata Sons Limited - is held by Tata Trusts, which are philanthropic in nature. Over 75 per cent of Trust's funds come from dividends on the shares it owns in Tata Sons, the group's holding company. The remaining comes from their own statutory investments. The trusts don't handle corporate social responsibility; they are more of a funding agency, like the Ford Foundation. The Sir Dorabji Tata Trust was established in 1932 by Sir Dorab Tata, the elder son of group founder Jamsetji Tata, and is one of the oldest philanthropic organisations in India. The Trust's vision of constructive philanthropy has been sensitive to the fast-growing needs of a developing nation, and the projects and programmes it supports bear contemporary relevance. The grant-making pattern of the Trust involves three broad areas: endowment grants (grants to institutions), grants to non-governmental organisations (NGOs) and grants to individual (medical and educational grants). Reinforcing the implicit beliefs the group brings to its mission of sustainable development is an explicit set of structures, embodied most notably by the Tata Council for Community Initiatives (TCCI). The Council has, in collaboration with the United Nations DevelopmentProgramme (India), crafted the Tata Index for Sustainable Human Development, which measures and improves the community work that Tata enterprises undertake. The Tata Index for sustainable human development is a pioneering effort aimed at directing, measuring and enhancing the community work that Tata group enterprises undertake.The index provides guidelines for Tata companies looking to fulfill their social responsibilities, and is built around the Tata Business Excellence Model, an open-ended framework that drives business excellence in Tata companies.Speaking about the Tata index, Anant G Nadkarni, VP, group corporate sustainability, says: "We have adopted a business model to drive social responsibility efforts within the group because that way you ensure a huge network. The index helps structure our efforts and quantify their effect on the communities and people they are aimed at." The index is actually a set of guidelines for Tata companies looking to fulfil their social responsibilities, and it is the third set of such guidelines fashioned by TCCI. Mr Nadkarni sees the index as a work in progress, not some edict set in stone. "What we have here is a framework; that's the spirit in which the Index was drafted." The Tata culture in this critical segment of the overall corporate sustainability matrix inclusive of working for the benefit of the communities in which they operate, of building Indias capabilities in science and technology, of supporting art and sport springs from an ingrained sense of giving back to society. "This is a matter of principle for us, it is in our bloodstream," says Mr Irani, "and it isn't something we like to shout about. Some people consider social responsibility as anadditional cost; we don't. We see it as part of an essential cost of business, as much as land, power, raw materials and employees." The Tata tradition in community development has, since the earliest days of the group's history, been defined by its core values. It never was charity for its own sake or, as group founder Jamsetji Tata put it, "patchwork philanthropy". Sustainability, says Kishor Chaukar, a member of the Tata Group Corporate Centre, is of fundamental importance. "I don't believe charity makes a substantial impact on society," he explains. "All you are doing, then, is satisfying the mendicant mentality. The real contribution comes when communities are enabled in a manner that has a sustained developmental impact. That way you empower people, educate them, give them instruments of income, a feeling of self-respect and dignity, a reason to live." The time was the early 1990s and the occasion was gathering of industrialists called by Indias prime minister, PV Narasimha Rao. Representing the Tata group were Chairman Ratan Tata and JJ Irani, the managing director of Tata Steel at that point. The prime minister proposed that we business people set aside 1 per cent of our net profit for community development projects totally unconnected to the workers and industry any of us was involved with, recalls Mr Irani. Mr Tata and I looked at each other; we didn't make any comment. Later, we drew up a chart that quantified Tata Steels contribution on Mr Raos scale. We discovered that, over a 10-year period, the company had been dedicating between 3 and 20 per cent ofits profits to social development causes. In the years since, depending on profit margins, the figure has continued to vacillate within this band.

The Tata Steel example is not an anomaly for a Tata company. If there is one attribute common to every Tata enterprise, it has to be the time, effort and resources each of them devotes to the wide spectrum of initiatives that come under the canopy of community development. The money numbers are staggering: by a rough estimate the Tata group as a whole, through its Trusts and its companies, spends about 30 per cent of its profits after tax (PAT) on social-uplift programmes. In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO), announced that in future TISCO would not deal with companies, which do not confirm to the company's Corporate Social Responsibility (CSR) standards. Speaking at the annual general meeting of the Madras Chamber of Commerce and Industry, Muthuraman stated, "We will not either buy from or sell to companies that do not measure up to Tata Steel's social responsibility standards."

Implementation of CSRTATA TrustsThe Sir Dorabji Tata supports different kinds of NGOs some do social work, some research, while others are community based usually for a period of three to five years. It also works with international agencies such as the United Nations, mostly in times of natural disasters. From time to time the Sir Dorabji Tata Trust also initiates the process for establishing institutes of national importance. CSR activities taken by Sir Dorabji Tata trust can be categorized invarious groups and described as under: Endowment grants : TATA Trust has promoted, and continued to support, several institutions of learning, research and culture in India.These include the Tata Institute of Social Sciences, Mumbai, the Tata Memorial Centre for Cancer Research and Treatment, Mumbai, the Tata Institute of Fundamental Research, Mumbai, the Tata Agricultural and Rural Training Centre for the Blind, Phansa, and the National Centre for the Performing Arts, Mumbai. The Trust has also helped in establishing the Sir Dorabji Tata Trust Centre for Research in Tropical Diseases at the Indian Institute of Science, Bangalore, the JRD Tata Ecotechnology Centre, Chennai, and the National Institute of Advanced Studies, Bangalore. NGO grants : The Trust makes grants to NGOs in five social development sectors:Management of natural resources: The Trust supports projects related to water and water resources, land degradation and better methods of cultivating and harvesting crops.Livelihoods: The Trust has backed several projects in this sector, covering unorganised labourers, capacity building of grassroots groups, and business development of a variety of people-based organisations.Education: The Trust has supported initiatives in the field of education,focusing on children, adolescents and adults (within and outside the formal education system).Health: The Trust has made contributions in creating and upgrading medical infrastructure and healthcare facilities across India, while focusing on training community health workers. The Trust also supports research studies in alternative systems of medicine such as ayurveda.Social development initiatives: These cover many areas, including community development, human rights, family welfare, civil society, art and culture, and relief work. Individual grants : The Trust gives merit and need-based educational and medical grants to individuals.Medical: Financial help is extended to individuals for the treatment of diseases and to solve other health problems.Education: The Trust offers scholarships for higher education and travel grants for studying abroad and for attending conferences, as well as for sports activities.The Allied Trusts under Sir Dorabji Tata trust are, primarily, smaller trusts; while some have a specific mandate, the rest are broad-based in their approach to grant-making. The Sir Dorabji Tata Trust administers the Allied Trusts. JN Tata Endowment: The first of the Tata trusts, it was established by group founder Jamsetji Tata, in 1892 to provide scholarship loans to individuals for the pursuit of higher studies abroad. Over 120 students are selected every year from across India as JN Tata scholars. Lady Tata Memorial Trust : Established by Sir Dorabji Tata in 1932 in memory of his wife, Lady Meherbai, who died of leukaemia in 1930, the Trust spends four-fifths of its income on international research inleukaemia. The Trust also supports institutional research carried out by recognised Indian institutions, with the emphasis on leukaemia research. Lady Meherbai Tata Education Trust : Set up in 1932, the Trust grants scholarships to young Indian women graduates of recognized Indian universities to pursue higher studies abroad in the fields of social work and public health. Additionally, and also coming under the umbrella of the Allied Trusts, are the Tata Social Welfare Trust, the RD Tata Trust, the Tata Education Trust, the JRD Tata Trust, and the JRD Tata and Thelma Tata Trust, all of which focus on women and children. The Jamsetji Tata Trust concentrates on overall developmental issues.Sir Ratan Tata Trust was established in 1919 in accordance with the will of Sir Ratan Tata, the younger son of group founder Jamsetji Tata, the trust is a grant-bestowing public foundation. The trust seeks to be a catalyst in development through giving grants to institutions in various areas. It focuses its grants towards organizations that it can partner to undertake innovative and sustained initiatives with the potential to make a visible difference. It also provides grants for endowments, has a separate programme for small grants and gives grants to individuals for education and medical relief. Institutional grants : The bulk of the trusts institutional grants are in the areas of rural livelihoods and communities, and education. Rural livelihoods and communities : The trust focuses on the following key initiatives within the broad areas of land and water development and microfinance:Central India Initiative (CInI): CInI involves a series of livelihood projects across the central India region, addressing core issues aimed at alleviating poverty among tribal communities in a sustainable manner.Himmothan Pariyojana: The initiative addresses some of the key rural development issues confronting the inhabitants of the Himalayas, on a systematic basis.Kharash Vistarotthan Yojana (KVY): This initiative tackles issues related to seawater ingress on the Gujarat coastline through field projects and coordination with the state government.Drought proofing in West Rajasthan: The objective is to develop replicable models for drought proofing in the desert regions of Rajasthan.Reviving the Green Revolution: The initiative involves a series of interventions encouraging crop diversification in Punjab and Tamil Nadu to tackle the negative impact of the rice-wheat cropping system.Sakh Se Vikas: The initiative consolidates and expands community-based micro-finance in Rajasthan by strengthening livelihoods and reducing vulnerabilities. While strengthening linkages between micro-finance and development, the trust is also supporting a large community-based microfinance programme in South India.Sukhi Baliraja Initiative: The initiative addresses the recurrent issue of farmers suicides in six distress districts located in Vidharbha region of Maharashtra through promoting sustainable, improved agricultural practices, microfinance, development ofmarket linkages, soil and water conservation and alternative livelihood options.North East Initiative: The initiative addresses livelihood issues of the North-eastern states comprising Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. Education: The trusts grants in the field of education follow a focused approach in reforming elementary education, nurturing education as a discipline, alternative education and higher education Health: The trust focuses its efforts in the following areas: Rural health programmes Specialised healthcare services Health training and capacity building Clinical establishment Enhancing civil society and governance: The trusts grants are based on the three sub-themes of Citizenship and participation, Human rights and governance and Governance in civil societyArts and culture: Here, the trusts grants are focused around the Arts institutions and infrastructure, which revolves around regenerating institutions, theatre infrastructure and advanced learning in the arts; Arts and the public domain, revolving around urban spaces and new design pedagogy and Arts and the culture industries focusing on new media practices, researching culture industries, conservation and archiving and independent publishing in India on bringing arts practice into the classroom. The Ratan Tata Trust, too, depends on dividends from its Tata Sons shares and its investments. Trusts focus has changed over the years from charity to development funding, though the provisions of Sir Ratan's will are still the trust's principal guidelines.

Both trusts (Dorabji and Ratan Tata) can and do come together sometimes to fund large projects with different components. The two have stringent appraisal, assessment, accounting and auditing requirements for the NGOs they fund. Projects must be aimed towards sustainability for the community, and money is always released in a phased manner that meets the requirements of recipients.

Surprisingly, the trusts do not usually encourage or consider supporting projects run by Tata companies. The trustees' view is that if a company has started something then it should sustain itself through its own funds instead of asking the trusts for financial support. However, The Sir Ratan Tata Trust has funded initiatives by Tata Steel and Tata Chemicals.

"To die rich is to die disgraced," said Andrew Carnegie, the American business legend who transformed himself from robber baron to philanthropic epitome. For Carnegie, "the surplus wealth of the few will become, in the best sense, the property of the many." The narratives in this subsection are a window to the breadth and depth of the philanthropic endeavours of the Tata trusts, their quiet contribution to the cause of the country's poor and needy, and a ringing affirmation of the values of the group's founders.

Tata Company Initiatives

Tata group companies have always displayed a keen interest in the welfare of the communities in which they operate. The work they do on this front is managed by, and channeled through, organisations established to further the cause of community development.

Tata Chemicals Society for Rural Development

Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social uplift projects for communities in and around Mithapur (in the state of Gujarat in western India), Babrala (in the state of Madhya Pradesh in northern India) and Haldia (in the state of West Bengal in eastern India).

The Society works to protect and nurture the rural populations in these areas and helps people achieve self-sufficiency in natural resource management, livelihood support and the building of health and education infrastructure.

Through TCSRD, Tata Chemicals works to improve the quality of life of the people and communities around its operations, and to support sustainable development, a theme that is central to the company's corporate philosophy. Tata Chemicals employees endorse this philosophy by helping empower rural communities chart their own developmental course.

The initiatives that TCSRD is involved in include:1 Agricultural development & Animal husbandry2 Education3 Women's programmes4 Rural energy5 Watershed development6 Relief work

Tata Steel for Rural Development Society

Established in 1979, the Tata Steel Rural Development Society (TSRDS) is involved in various social development programmes aimed at helping the rural communities living around Tata Steel's operational units.

Prior to the setting up of TSRDS, Tata Steel's community initiatives were conducted through its rural and community services division. However, the fundamental differences between the imperatives of rural and urban development prompted the company to reclassify its community initiatives programmes under three units: Community Development and Social Welfare, TSRDS and Adivasi and Harijan Welfare Cell, now known as the Tribal Cultural Society.

TSRDS covered 32 villages around Jamshedpur (in the state of Jharkhand in eastern India) in its first year of operation. Today, the Society has seven separate units, six in Tata Steel's operational areas, and covers 600 villages in the states of Jharkhand and Orissa (also in eastern India). TSRDS is actively involved in the spheres of livelihood generation, health and hygiene, and people empowerment.

TSRDS has expanded its agenda and identified the advancement of education, sports and self-reliance as tools to ensure a better quality of life for the people it works with.

Rallilove ACTS

Rallilove ACTS (Assisting Communities Through Service), an organisation set up by Rallis, seeks to improve the quality of life of the poor, especially women and children, through sustainable community development programmes.

Rallis has, through ACTS, been involved in a variety of community development initiatives in areas such as health and education, and especially in helping the girl child.

Voltas for Women

Voltas for Women (VOW) was founded in 1965. The organisation, whose membership is restricted to female employees of Voltas and the wives of male employees, helps the needy with assistance in health and education, and offers career and vocational guidance.

Community Development Initiatives

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. A survey conducted by the website www.indianngos.com revealed that Tatas spent Rs. 1.5 billion on community development and social services during the fiscal 2001-02 - the highest by any corporate house in India

Even when economic conditions were adverse, as in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in 1999-2000. From its inception, the Tata group has taken up a number of initiatives for the development of society.

Tatas steps towards Green future

Nurturing Nature : The Tata group's kinship with the environmental cause has resulted in a slew of initiatives that place the good earth above bottom lines.

A big chunk of the responsibility for containing the plague driving our polluted and populous planet towards peril rests with industry and business. Balancing the imperatives of creating jobs and selling products and services with the absolute necessity of protecting and regenerating what remains of the natural environment is an onerous challenge. That it can be done is beyond doubt, but this is a task requiring a commitment to ideals more than bottom lines, to the good earth rather than profiteering. The long history of the Tata group teems with examples of just such a commitment.

The Tata ethos places a special emphasis on environmental and ecological issues. "Environment is a focus area within our overall corporate social responsibility matrix," says Kishor Chaukar, chairman, Tata Council for Community Initiatives, a centrally administered nodal agency that coordinates, among other activities, the environmental efforts of group companies. A host of Tata companies also adhere to environmental procedures drawn up by the Global Reporting Initiative (GRI), which operates under the aegis of the United Nations.

Important as it is, following directives and guidelines from within and without is just one facet of the Tata approach to environmental issues. The greater portion of what the group does in this sphere is by choice and conviction. From this flows its support for endeavours to conserve plant and animal species, improve land and water use, and protect forest tracts and green sanctuaries. The central tenet of this earthy philosophy is people and communities, often in rural regions and frequently facing inequitable struggles to secure livelihoods. Understanding that no environment policy can operate in isolation means an enhanced ability to link processes and people in a manner that benefits both nature and those dependent on it.

The group's contribution to conservation falls into two categories: the efforts of different Tata companies, big and small, to preserve and enrich the environment in and around their areas of operation, and the philanthropic thrust of the Tata trusts, which support a diverse cluster of non-governmental organisations working in areas such as the management of natural resources, community development and livelihoods. This dual canopy accommodates and nurtures a variety of initiatives in a range that extends from watershed programmes and land regeneration to forestry projects and the protection of endangered species.

The flora and fauna stories and articles in this subsection attempt to encapsulate the Tata group's allegiance to the environmental cause. "Ours is a deliberate effort to do more than what is required by statute," says Mr Chaukar. "Our real contribution, on the environment front and on the entire corporate responsibility issue, is being socially responsible, and that means doing much more than staying on the right side of the law."

Mr Chaukar articulates the group's environmental philosophy as an obligation to society. "Some people think that environmental matters are cause for concern. The Tatas, on the other hand, view them as an inherent duty that is part and parcel of being in business. The general mindset, the discourse of our times, tends to see the environment as something we have inherited from our ancestors. The reality, as I see it, is that we have borrowed it from our children and the generations after them.

"Looked at from that perspective, it becomes obvious that I as an individual, I as a corporate entity, I as a factory, have no God-given right to do what I please with what can never truly belong to me. Polluting the environment in one place to supply a product to consumers in some other, far-removed place - how can that ever be justified? There used to be a time when rivers were sources of clean drinking water; today any child will tell you that rivers are giant garbage cans, carriers of filth and waste. There is no way out of this messy situation other than affording the environment the highest priority, and that's what the Tatas are doing." Only those living in denial can argue that environment and ecology are subjects too esoteric for a society bred on consumerism and the pleasures of the present. Humankind is currently engaged in the surprisingly easy job of driving into extinction more plant and animal species than at any time since the dinosaurs disappeared 65 million years ago. Our forests are fading; our oceans are rising; the snowcaps on our mountain peaks are shrinking; our climate is mutating. Meanwhile, our water, our air and our bodies are becoming the unwitting recipients of all manners of toxic intruders. Business can and do, as the Tatas have proved make a huge difference in turning this beastly tide.

Addressing climate change : The Tata group is facing up to the challenge of climate change and making it integral to its processes. The broad idea is to develop a common approach to the critical questions confronting the group's businesses on the environmental front, and formulate policies that can deal effectively with issues that impact climate change.

Coordinating and directing the climate change efforts of the group's companies is Tata Quality Management Services (TQMS), a centrally administered organisation that draws on the experience and expertise of senior Tata leaders.

The Tata group considers climate change to be a serious issue and is taking the following steps to increase carbon consciousness and institute mitigation strategies:

A steering committee and working group have been assigned to address the climate change issue and cascade it into a group-level movement. Tata companies from five business sectors steel, automotive, power, chemicals and IT will participate in the first phase through the following strategies:

Intensive awareness and training programmes will be conducted for senior leadership. Climate change champions will be identified in each company. Policies on energy efficiencies, green buildings, green data centres and green protocols will be developed. Awareness will be created amongst all stakeholders. Individual Tata companies will measure their current carbon footprint to assess where the group stands. This will be extrapolated for future years. Cost abatement curves will be established and mitigation strategies identified for the major companies. Other Tata companies will follow in the second phase. The climate change initiative will be integrated with the Tata group's internal business excellence framework, the Tata Business Excellence Model, in order to further.

Climate change policy for Tata companies :Tata companies will play a leadership role in climate change by being knowledgeable, responsive and trustworthy, and by adopting environment-friendly technologies, business practices and innovation, while pursuing their own growth aspirations and the enhancement of shareholder value.

Tata companies will measure their carbon footprint and will strive to:

Be the benchmark in their segment of industry on the carbon footprint, for their plants and operations. Engage actively in climate change advocacy and the shaping of regulations in different business sectors. Incorporate green perspective in all key organisational processes.

Impact

The JN Tata Endowment Scheme for higher education (established in1896) helped bright Indian students of moderate means become administrators, scientists, doctors, lawyers and engineers, funding their education through loans and grants. The maiden grant was to Dr Freney Cama, who became one of the first women gynecologists in India and who would come to have a maternity hospital in Mumbai named after her.

Of the 37 beneficiaries in the first batch, as many as 15 joined the Indian Civil Service, the colonial version of the Indian Administrative Service, realising Jamsetji Tata's objective that Indians should learn how to govern themselves. By 1924, over a third of Indian ICS officers were Tata scholars. Illustrious JN Tata Endowment scholars include former president KR Narayanan, renowned scientists Raja Ramanna, Jayant Narlikar and Raghunath Mashelkar, and Gyanpeeth award-winning writer and actor Girish Karnad. The Endowment has thus far supported more than 3,500 scholars.

Philanthropy as a means of promoting higher education and research was a novel concept, even in the United States, at the end of the 19th century. Andrew Carnegie's path-breaking endowment of $1 million to set up a'technical school' in Pittsburgh, now the Carnegie Mellon University, was made in 1900. But Jamsetji Tata preceded him. Two years earlier, in September 1898, he pledged half his personal wealth, an amount of Rs30 lakh (then 200,000), to make his dream of a "university or institute of research" a reality. That the Indian Institute of Science (IISc) in Bangalore would take another 13 years to be born, aided by a generous donation of 300 acres of land from the Maharajah of Mysore, is quite another matter. Jamsetji Tata died in 1904, unaware that his vision for science in India would indeed be fulfilled. Over the next 50 years it became a prime source of India's technological prowess. When various national laboratories were established in the late 1940s and 1950s, IISc alumni provided the intellectual manpower.

Jamsetji Tata's idea of philanthropy was to be given true expression by his sons, Sir Dorab Tata and Sir Ratan Tata, both of whom donated the major chunk of their personal wealth for the public good. Sir Dorab was the quintessential entrepreneur, working tirelessly to make his father's visionary ideas a reality roaming the jungles of what is now Jharkhand in eastern India in a bullock cart to set up Tata Steel and pioneering the generation of hydroelectric power in the wilds of the Western Ghats while Sir Ratan was a connoisseur of the arts and a passionate votary of social development.

Sir Ratan gave a grant to support Mahatma Gandhi's work in South Africa and another for Gopal Krishna Gokhale's nationalist activities in India. He also funded the first archaeological excavation at Pataliputra, which resulted in the discovery of the 100-pillar Mauryan throne room of Ashoka's palace. He donated resources that enabled the London School of Economics (LSE) to research the causes of poverty and how to alleviate it, leading to the establishment in 1912 of LSE's Sir Ratan Tata Department, subsequently called the Department of Social Sciences (the department's first lecturer was a bright young man named Clement Attlee, later to become the British prime minister who gave India its independence).

Sir Ratan died in 1918 at the relatively young age of 47. Apart from donating his unparalleled art collection, especially of Chinese jade, to the Prince of Wales Museum in Mumbai, he left directives in his will for his personal wealth to be used for basic and advanced (postgraduate) education, primary and preventive health, rural livelihood and communities, art and culture and public initiatives, for all Indians at a time when almost all trusts were communal in nature. The Sir Ratan Tata Trust was set up that same year.

A few months before his death in 1932, Sir Dorab bequeathed most of his personal wealth, then estimated at Rs1 crore and comprising substantial shareholdings in Tata Sons, Indian Hotels and allied companies, his landed property and his wife's jewellery including the famous Jubilee diamond, twice the size of the Kohinoor and even his pearl-studded tie pins and cuff links, to the newly registered Sir Dorabji Tata Trust.

The Sir Dorabji Tata Trust is best known for promoting six pioneering institutions of national importance. Four of these were established in Mumbai: the Tata Institute of Social Sciences, in 1936; the Tata Memorial Centre for Cancer Research and Treatment, in 1941; the Tata Institute of Fundamental Research, in 1945; and the National Centre for the Performing Arts, in 1966. The National Institute of Advanced Studies (set up in 1988) and the Sir Dorabji Tata Centre for Research in Tropical Diseases (1999) are in Bangalore. The brief description of these six institutes may be referred to the Annexure 1.

In 1931, at the age of 50, Sir Dorab's wife, Lady Meherbai, died of leukaemia. Sir Dorab started two trusts in his wife's memory. The Lady Meherbai D Tata Education Trust enables young women to go abroad and specialise in social work. So far it has supported over 225 women graduates. The Lady Tata Memorial Trust (LTMT) sponsors international research into leukaemia and the alleviation of human suffering. An international committee of experts in London carefully selects the researchers. In 1996-97, the Trust spent 200,000 for research into the subject by nine scientists from four countries. Some of the research that qualified for the Nobel and other international prizes was initially conducted by LTMT scholars at early stages in their careers.

The Sir Ratan Tata Trust and the Sir Dorabji Tata Trust and their allied institutions are at the heart of the enduring Tata commitment to community development, but there are several other trusts too. The JRD Tata Trust, established in 1944, gives institutional donations to promote the advancement of learning, supports research grants and scholarships, provides disaster relief and backs social welfare projects. The MK Tata Trust, set up in 1958 by Minocher K Tata with his personal resources, delivers research grants and scholarships for the advancement of learning in all its branches as well as donating medical and other relief during natural calamities.

The Jamsetji Tata Trust, established in 1974 to mark the centenary of the first Tata enterprise, bestows grants for innovation. The RD Tata Trust, named after Jamsetji Tata's cousin and JRD Tata's father, and set up in 1990, gives institutional grants to advance learning and also backs social welfare projects. The Tata Social Welfare Trust and the Tata Education Trust were founded in 1990 and provides grants for institution maintenance and support of education institutes, hospitals and non- governmental organisations (NGOs) working in the sectors of livelihoods and management of natural resources. The JRD and Thelma J Tata Trust, set up in 1991 by JRD Tata with his and his wife Thelma's personal wealth, works to uplift women and children.

Tata's endeavour to strengthen the fabric of India has manifested itself in multiple ways. A crucial component of the Tata idea of nation building was, and remains, the creation and sustaining of exceptional institutions of learning, research, knowledge and intellectual capital.

Tata's long-standing support for sports and the arts in India has spawned a wide variety of efforts in both spheres: from creating academies in different sporting disciplines and backing talented sportspeople to helping the cause of culture in the country in many ways.

Tata's commitment to helping India find a place in the sporting sun has spawned academies for different sports and support for talented sportspeople from different disciplines.

Arts overview: The rubric of Tata patronage has enriched the tapestry of Indian culture, and it has benefited artists as much as those who enjoy their creativity.

National Centre for the Performing Arts: NCPA, gifted to the city of Mumbai by the Sir Dorabji Tata Trust, is an institution created to serve the cause of the performing and allied arts.

Marg: Marg, a unique magazine of the arts and a publisher of books on the arts, was founded in 1946. It is an encyclopaedia of the art and culture of India and related civilisations.

Analysis from the angle of broad principles of Trusteeship

The Tata founders bequeathed most of their personal wealth to the many trusts they created for the greater good of India and its people. Today, the Tata trusts control 65.8 per cent of the shares of Tata Sons, the holding Tata company. The wealth that accrues from this asset supports an assortment of causes, institutions and individuals in a wide variety of areas.

It is noteworthy point that Tatas among the country's biggest and most illustrious industrial families for well over a century never show up on any of those ritual listings of India's richest people. The reason is as simple as it is remarkable. Over generations, the Tatas have sustained a tradition of bequeathing much of their personal wealth to the many trusts they have created for the greater good of India and its people. That is how the Tata trusts have come to control 65.8 per cent of the shares of Tata Sons, the holding company of the group. The trusteeship principle governing the way the group functions casts the Tatas in a rather unique light: capitalistic by definition but socialistic by character. India has an old tradition of philanthropy, passed on down the ages by kings, noblemen and rich merchants. Jamsetji Tata, the founder of the Tata group, gave new meaning to this term. In his words: "There is one kind of charity common enough among us It is that patchwork philanthropy which clothes the ragged, feeds the poor, and heals the sick. I am far from decrying the noble spirit which seeks to help a poor or suffering fellow being. [However] what advances a nation or a community is not so much to prop up its weakest and most helpless members, but to lift up the best and the most gifted, so as to make them of the greatest service to the country."

Conclusion

The panoply of community development endeavours undertaken by Tata companies embracing everything from health and education to art, sport and more has touched, and changed, many lives. No matter how elaborate, systems and processes cannot really capture the magnitude and dispersion of all that the Tatas do in the field of community development. From health and education to livelihoods and women-children welfare, from tribal hamlets in Jharkhand and the rural outback of Gujarat to the high ranges of Kerala and disadvantaged villages in Andhra Pradesh the community work being undertaken by Tata companies touches a multitude of Indians across the land. Beyond purely social work, this support extends to individuals and institutions pursuing artistic, sporting and academic excellence. And now, as Tata enterprises spread their wings to reach global locations, the social uplift efforts of the group are reaching communities in different parts of the world.

The big boys in the group, the likes of Tata Steel, Tata Tea and TataChemicals, have in-house organisations dedicated to the community development task, but that does not mean smaller companies lag behind. Each Tata company has its own priorities in social development. They take up whatever is relevant to the communities and constituencies in which they function. Somebody is working in water management, somebody is in education, someone is in Aids containment, someone in income generation; the range is huge.

JRD Tata, Chairman (1938-1991) - Tata group, strongly believed that the CSR initiatives of the Tata group should be institutionalized and it should not be left to individuals to carry them forward. Therefore, suitable amendments were made to the Articles of Association of the major Tata group companies in the 1970s. Newly included was an article stating that the "company shall be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community." In another bid to institutionalize the CSR charter, a clause on this was put into the group's 'Code of Conduct.' This clause stated that group companies had to actively assist in improving the quality of life in the communities in which they operated. All the group companies were signatories to this code.

Since inception, the Tata group has placed equal importance on maximizing financial returns as on fulfilling its social and environmental responsibilities - popularly known as the triple bottom line. After decades of corporate philanthropy, the efforts of the group in recent years have been directed towards synchronization of the Triple Bottom Line (TBL Financial Return, Social Responsibility and Environment Responsibility). Through its TBL initiative, the Tata group aimed at harmonizing environmental factors by reducing the negative impact of its commercial activities and initiating drives encouraging environment-friendly practices. In order to build social capital in the community, the group has got its senior management involved in social programs, and has encouraged employees to share their skills with others and work with community-based organizations.

TATA model for CSR can be seen as a model which is worth applying by other industries.

Annexure-1Brief description on Institutions of repute set up by TATA Trust

Indian Institute of Science : IISc has produced Nobel laureates, trained many of India's greatest scientists and helped nurture some of the country's finest scientific institutions. Housed in a 375-acre campus in Bangalore, this trailblazing institution has 40 departments and centres pursuing R&D and teaching in all departments of science, engineering and technology.

JRD Tata Ecotechnology Centre: The flag bearer of the ecotechnology movement in India, JRDTEC is part of the MS Swaminathan Research Foundation, Chennai. Established in 1996, it is devoted to seeding and encouraging sustainable development, one that protects the environment while also benefiting the people who depend on it.

Tata Institute of Fundamental Research: The need to improve India's scientific temper and strengthen the nation's science infrastructure were the objectives that drove scientist Homi J Bhabha and JRD Tata, the late chairman of the Tata group, to pursue their vision of establishing TIFR in Bombay [now Mumbai] back in 1945.

Tata Institute of Social Sciences : Set up in 1936, TISS is a pioneer in the field of social-work education in the Asia-Pacific region. The Institute, which offers postgraduate and doctoral programmes, has made significant contributions in the domains of social policy and planning, intervention strategies and human resource development.

Tata Memorial Centre : The Tata Memorial Centre is a comprehensive centre for cancer research and treatment. It is a landmark on the global health map where about 60 per cent of patients seeking primary care are treated free of charge.

Tata Medical Center : The Tata Medical Center coming up in Kolkata, India is a state-of-the-art centre for diagnosis, treatment and cancer research.

CASE STUDY NO. 2Corporate Social Responsibility: Excel Model

Brief History

As per Shri Kantisen Shroff, Chairman Emeritus of Excel Group and fondly known as Kaka, the seeds of Excel were planted way back in 1945 as Kitchen Laboratory by Late Chaturbhai Shroff, and today the Group has eight manufacturing plants strategically spread over the country in Maharashtra, Gujarat, Andhra Pradesh and Silvassa. The operations of Excel Industries Limited are currently organized into two major divisions Agrochemical division and Industrial Chemical Division. Since 2002, these divisions are separate companies konown as Excel Crop Care and Excel Industries respectively. However, community development activities are undertaken jointly.

Excel Crop Care covers the entire gamut of agri input products from soil enrichment to crop protective chemicals such as Insecticides, Herbicides, Fungicides and Fumigants.

Excel Industries is leader in the phosphorus based chemicals industry and has developed many new products based on phosphorus for the pesticides, pharmaceuticals and polymer industries. Excel Industries has Environ-Biotech Division which shows Excels commitment to integrate the pressing need to address the issues related to environmental protection and agriculture development. The major activity of the Division involves the process developed in-house to convert municipal solid waste into soil enricher. The Division has set up several plants for conversion of solid waste into soil enricher.

The brief introduction of the various organizations working under Excel Group for carrying out CSR activities follows hereunder;

167Basic values/Principles

Shri Kantisen Shroff is the key propelling force behind Community development interventions by Excel. As per him, we all are inseparable part of the planet and ecological system and hence, we all are interconnected. We cannot behave as if we are detached from the rest of the universe. He does not believe in completion, too. When we all are connected to each other then completion with whom such is the spiritual vision of Kaka behind community intervention. He believes in the following philosophy:

Let us own up the responsibility for the health of the planet Let us learn to be responsible and relevant Let us join hands with like-minded people, locally and globally Let us conserve and capitalize on natures resources Let us make people productive where they are.

The social norms for employees at Excel are defined as mentioned hereunder;

Excel still believes in Kitchen Lab mentality of a company as it is innovative, socially conscious and committed. The founder of the company Shri Chaturbhai Shroff had stated way back in 1945 We have our dreams nut they are of different nature. Yes, we want to set up an industry ourselves but the aim is not to get rich quick but to create a new society. The social purpose of an organizations existence is equally important. We have to be enlightened and be responsive to the changing needs of the society. Over six decades later, Mr. Ashwin Shroff, Managing Director of Excel Industries restates the same thing while expanding on the theme: any company, business entity or industry is not an island by itself but is part of the society drawing a great deal from the community and environment. Hence one can not thrive at the cost of community, environment and neighbours. The philosophy that drives us is that we have to plough back something to the society when we draw resources from it. At Excel from the beginning, it was realized that nurturing the environment, local and rural communities is our responsibility. At times, there may be financial constraints, but the basic urge to fulfill ones obligations to society has always been there

Implementation of CSR

First Phase : Shroff family had a tradition to contribute to charitable work and to a large extent it was devoted to its own Kutchi Community. Assistance was rendered to religious organizations carrying out various activities in Kutch. Shri C.C. Shroff passed away in 1967 and Late Shri Govindbhai became the Head of Excel Group. He, too, maintained the family tradition of giving. Upto 1968, the involvement of Excel in community work was only to the extent of helping Ramkrishna Mission in organizing relief work in Kutch. However, Shri Kantisen soon realized that any help in the form of short term relief work helped only in temporarily mitigating the hardships of local people during difficult times but did not result in any worthwhile long term solutions to the problem of drought which Kutch used to face so frequently. If droughts continued, people would migrate to cities and this would add the problems to the overcrowded cities and hence, he as a visionary thought of developing Kutch as the solution to the problem. Shri Kantisen did some inward thinking about Excels extent of involvement in this venture and consulted his family, his employees, friends and other business associates. Recollecting his memories he said, Let me tell you, though, at the core everyone concerned, with whom I discussed this matter, was bothered about the development of Kutch. The larger question was, from where would Excel get the financial and human resources headed for developing Kutch. He wanted a sustainable solution as regular donations in cash and kind made to relief victim would drain the companies resources and these exercises could be futile for the companies and communities if sustainable solutions are not found. Finally the solution emerged from the sustained discussion that took place. Excel decided to register an NGO and employ special staff to develop a sustainable model of intervention. Excel decided to provide initial funding to the NGO, give direction to its work, provide technical knowhow in matters of agriculture development and other relevant areas. Kantisenji formed Shri Vivekanand Research & Training Institute (VRTI) which was formally registered registered in 1978, though it working much earlier. Prior to VRTI, Shrujan, an NGO for women was registered in 1969 to help Kutch women to earn a dignified living through embroidery. Registration of NGO facilitated the flow of government funds and private donations to carry out developmental activities. This was the initial phase of institutionalizing Excels responsibility towards community as stakeholder. Kantisenji believed that it was necessary to involve local people, NGO, community leaders and government for development of Kutch. This was a concept of cross-sector partnership for accelerating the pace of development and that, too, way back in 1970. Kantisenji got SWOT analysis carried out to carve out the development of Kutch as it was necessary for planning and carrying out the interventions systematically. The results of SWOT analysis are depicted in the table follow hereunder;

Excel extended the spirit of employee voluntarism to rebuild Kutch. Specialized staff of Excel looked into the problems of agriculture and afforestation and decided the steps to be undertaken. The major areas identified were afforestation, employment generation, watershed management, water harvesting and cattle management.

The impact of interventions on the communities in Kutch had been tremendously rewarding. It emerged through the discussions with the local self help groups that as early as 1990, inspired by VRTIs and Excels efforts, the villagers built rainwater storage tanks, farm ponds and percolation tanks. They also built check dams and recharged hundreds of wells. This showed that people who once upon a time, were used to government charity, realized the importance of self -reliance. The agriculture production had increased substantially due to this. The impacts of the interventions are visible. The synergy between government, communities, individual donors and employees paid rich dividends. Excel encouraged employee voluntarism for development of Kutch and their social initiatives. Many employees felt that they could bring their lab knowledge to practical field and test it at ground level. In process, they learnt, too. So, it was two way process. Employees enriched their knowledge after application of techniques to the field. In fact, Excels business was founded on a close relationship with the farmers who used its products and their derivatives. Since the employee volunteers were constantly interacting with the community understanding their issues, problems, empathizing with them, the individuals in the community were the ones who gave them the ideas of what products Excel should make. So, CSR got infused into the business policy of Excel. CSR helped Excel in their new product development. Also, CSR helped Excel in developing a wonderful internal environment. Excel believes that employees are their biggest strength. Excel has defined a set of Social Norms for their employees.

Second Phase: In 1980, Shri Kantibhai Shroff became MD of Excel and he wanted to streamline and institutionalize the community development initiatives. It was not easy for him to balance corporate and social demands. People at Excel and those at NGOs looked upon him as an inspirational force. NGOs considered him panacea for all problems. They used to look at him for generous donations. It was a matter of concern as there was a lot of dependency for community development works on Excel. This was the phase when Excel was recruiting professional managers at all levels to manage their affairs. Many of them felt that more investment should be made for welfare of the employees as they were the ones who contributed to the development of company. This new team considered making profit to be pre-condition for taking up community development works. This was the time for change and respect the views of new team. Kantisenji acknowledged that commercial success was a necessary condition for a corporate organization. However, he felt that it must not be a mandatory condition for deciding community initiatives/social works by a corporate entity. He discussed the matters at various levels including board level meetings during which financial sustainability of NGOs of Excel, too, were discussed in details. The results were encouraging and it was decided that Excel should contribute in creating societal values as well as should also take care of creating shareholder value and in doing so it must professionally handle the concerns. Kantisenji did not want community development initiatives of Excel to be peripheral and hence, he appointed a committee consisting of its employees, shareholders, academicians and NGO staff members to decide what should be the sphere of influence of Excel. Based on the discussion, the committee decided six areas of influence 1) Developing communities near Excels factories, 2) Development of Kutch and other rural communities, 3) Disaster Management, 4) Advocacy, policy dialogues and philanthropic activities, 5) Transferring technology to the grass root and 6) Educational Development.

Discussions were held on types of structures and processes that Excel should adopt to ensure that above mentioned programmes were undertaken. It was felt that effective selection of projects and their quality management was an important area in managing corporate social responsibility. Hence, to begin with Excel recruited a trained staff member qualified in managing social activities. The community development portfolio was positioned under HR Department of Excel. They were assigned the responsibility of planning, implementing, monitoring and evaluating the community developmental activities. This was the step towards furthering the institutionalization of Excels Social initiatives. In each of Excels locations Mumbai, Bhavnagar and Loteparusharam, the company appointed socially sensitive executives to design, develop and manage social/community development activities. In these locations, employee volunteers conduct adult education classes, bhajan mandals, organize health camps, holiday camps, non-formal education classes and other activities.

The communities with whom Excel NGOs worked, have been involved in consultative planning process. This has involved them right from the inception stage. The ownership of both the problem as well as becoming part of the solutions now rests with the people. Programmes of watershed management in partnership with the communities have been a great success. People have got socially uplifted and they have learnt to make best use of natural resources like land and water. The improvement in thequality and quantity of water has made it possible for the villagers to earn livelihood more easily. Hundreds of acres of land in Kutch, Bhavnagar and other places have been irrigated. This has created a positive impact on the lives of the people. The importance given to schooling, sanitation and community bonding has improved because of increased exposure to adult education operated by self-helf groups.

Excel extended managerial support wherever necessary and gradually tried to make its NGOs independent. This finally resulted into professional management of its NGOs. Over the years, VRTI has taken up the task of improvement of agriculture in collaboration with the scientists of other organizations like International Crop Research Centre for Semi Arid Tropics, Hyderabad, and National Research Centre for Groundnut, Junagadh and similar other reputed organizations. Shrujan, too, has partnered with SIDBI, NABARD, Ministry of Textiles and others. It is matter of pride and prestige for VRTI to have received two awards (one from Federation of Gujarat Industry, Vadodara in Rural Development and other from National Sanitation and Environment Improvement Foundation, Ahmedabad in field in the field of rural development and water harvesting).

The cross sector partnership at the grass root level have created values in the community (for example right to live with dignity and equality).For instance, in order to promote values of self reliance amongst women of Kutch and enable them to earn their living with dignity, Excel established Shrujan. Similarly, rural development interventions designed with VRTI in partnership with government have been towards creating a feeling of community bonding and creating community wealth. Partnerships with other NGOs have collaborated different skills and resources to tackle community problems. Excel and VRTI were instrumental in formulating a federation of NGOs in Kutch called Kutch Nav Nirman Abhiyan. Under the leadership of Late Tulsibhai Gajra, CEO of VRTI and Shri Kantibhai Shroff, Abhiyan commenced partnership with Public Systems, Corporate and Civil Society Organizations. Abhiyan a network of 29 civil society organizations, owned responsibility for providing materials, technology, supervision and rehabilitation services in Kutch. This federation played an important role in rehabilitating the earthquake victims and their families in the year 2001. All development works carried out by Excel has established its credibility with both state and National Government. The impact of its intervention in development of Kutch and other rural areas is patently visible.

All interventions undertaken by Excel have caused them huge investment both in terms of finance, human and other resources. Kantisenji says that fixing of bottom line by a corporate entity make them greedy and Excel does not have any bottom line. Excel believes that profit is the byproduct of services given. Explaining the benefit of community development to Excel, Shri Dipesh Shroff said: Involvement with the community has its own benefits. It is the outcome of our sustained interventions which have assured us of our markets. We know our communities value our contribution and they would be loyal to us. Every check dam constructed in the villages brings more land into productive use. Increasing crop production requires manure, agrochemicals and other farm inputs. Though all our activities, started with social objectives we got business opportunities a plenty only after we developed sustainable solutions to their problems. Our years of work in developing communities have created societal value as well as shareholder value. Emphasizing this aspect further, Shri G. Narayan, Chairman, Excel Industries said, we have received a lot of inputs-tangible and intangible benefits from the communities with whom we work. The knowledge acquired in this process has made a difference to the way in which we have been managing our business. The conscious use of cross functional teams to resolve social issues has created an atmosphere of cross fertilization of ideas, which is conducive to develop responsible individuals, communities and business.

Third Phase: In 1995, Shri Kantisen Shroff became the Chairman of Excel and Shri Ashwin Shroff became the Managing Director. Success did not slow down the pace of Excel in community development. Excel was fed on sound values and healthy practices and they helped Excel to grow a healthy business. The learnings that had taken place over the last four decades in the area of community development has been rich with experience. What began as an intervention with a social motive actually gave Excel excellent insights to look into their business and develop products accordingly. Today, Excel is engaged in areas like Integrated Crop Management, Solid Waste Management and Microbes Management.

The areas of intervention worked out in second phase are still continuing. The top management of Excel in this phase proposed and experimented to consciously build corporate strategy and community engagement around customer needs and core competencies for creating shareholder value and societal value. Excels experience in rural development had showed that farmers need many support services to improve their farm productivity. The main problem of our farmers is poverty and dependency on middlemen. Hence, on an experimental basis, Excel decided to initiate an innovative activity. For this Excel decided to work in collaboration with its other group companies for designing new initiatives. Excel along with Transpek Industry Ltd. Transmetal Limited, and Punjab Chemicals & Pharmaceuticals Ltd started a Not for profit Company AGROSEL. The project co-ordination of this unique activity is undertaken by the Traidcraft Exchange the leading UK charity in the area of fair trade for world development while the Shell Foundation has also provided part funding to the venture.

Agrocel is a Social Enterprise started as a desire to serve the farming community to raise per acre production with profitability and maintaining the environment balance. Agrocel makes all agro inputs available under one single roof at right time, of right quality and at reasonable price with the latest technical guidance for the farmers and thus to contribute in increasing national production by sustainable trading. Agrocel works with the cotton farmers, supporting the re-introduction of organic farming practices, restoring soil fertility, crop pest resistance and pooling the farmers production in an organic cotton bank. Agrocel started with one service centre at Koday- Mandvi-Kutch. Later by 2003, eleven more centres were added in Gujarat, Andhra Pradesh, Maharastra and Punjab. In recent years, Agrocel has sought to provide market support to farmers by sourcing different agro products directly from them. Agrocel in 1999 sent first container of HPS peanuts to one of the Fair Trade Organizations of UK, which expressed satisfaction with the produce. Today, Agrocel service centre has emerged as Agricultural Education and Advancement centre. The paraprofessional training given by Agrocel has helped individuals in rural areas to gain employment. They are popularly known as FARM DOCTORS. The Group Companies of Excel and other companies market their products to Agrocel. This assures the company of reaching out to larger areas. The profits generated by Agrocel are pumped back to Agrocel, which are then invested to start more centres. Finally, the framework of intervention for CSR activities of Excel may be depicted as hereunder;

Financial Contributions by Excel

Excel on an average contributes 2 to 3 percent of its profits for carrying out developmental work (Please refer to the table hereunder).In the event of calamities like cyclones and earthquakes, the company extends additional financial aid to mitigate the suffering. Apart from the it, Excel contributes in terms of material, infrastructure support and managerial expertise from volunteers, too. From contributing cash donation, Excel has moved over the years to innovative funding mechanism like providing loans to its NGOs, providing rotating funds and providing venture capitals to SHGs. The ad hoc in kind support, which Excel provided in sixties, has now moved towards giving more