project on csr final

8/3/2019 Project on CSR Final

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Introduction

The term "corporate social responsibility" came in to common use in the late 1960s and

early 1970s, after many multinational corporations formed. The term stakeholder, meaning

those on whom an organization's activities have an impact, was used to describe corporate

owners beyond shareholders as a result of an influential book by R. Edward

Freeman,Strategic management: a stakeholder approach in 1984.[2]Proponents argue that

corporations make more long term profits by operating with a perspective, while critics

argue that CSR distracts from the economic role of businesses. Others argue CSR is

merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog

over powerful multinational corporations.

CSR is titled to aid an organization's mission as well as a guide to what the company stands

for and will uphold to its consumers. Developmentbusiness ethics is one of the forms

ofapplied ethics that examines ethical principles and moral or ethical problems that can

arise in a business environment. ISO 26000 is the recognized international standard for

CSR (currently a Draft International Standard). Public sector organizations (the United

Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR

adheres to similar principles but with no formal act of legislation. The UN has developed

the Principles for Responsible Investmentas guidelines for investing entities.
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Corporate social responsibility

Corporate social responsibility (CSR, also called corporate conscience, corporate

citizenship, social performance, or sustainable responsible business)[1]is a form

ofcorporate self-regulation integrated into a business model. CSR policy functions as a

built-in, self-regulating mechanism whereby business monitors and ensures its active

compliance with the spirit of the law, ethical standards, and international norms. The goal

of CSR is to embrace responsibility for the company's actions and encourage a positive

impact through its activities on the environment, consumers, employees,

communities, stakeholders and all other members of the public sphere. Furthermore, CSR-

focused businesses would proactively promote the public interest(PI) by encouraging

community growth and development, and voluntarily eliminating practices that harm the

public sphere, regardless of legality. CSR is the deliberate inclusion ofPI into corporate

decision, that is the core business of the company or firm, and the honoring of a triple

bottom line: people, planet, profit.
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Approaches

An approach for CSR that is becoming more widely accepted is a community-based

development approach. In this approach, corporations work with local communities to

better themselves. For example, the Shell Foundation's involvement in the Flower Valley,

South Africa. In Flower Valley they set up an Early Learning Centre to help educate the

community's children as well as develop new skills for the adults. Marks are also active in

this community through the building of a trade network with the community -

guaranteeing regular fair trade purchases. Often activities companies participate in are

establishing education facilities for adults and HIV/AIDS education programmes. The

majority of these CSR projects are established in Africa. JIDF For You, is an attempt to

promote these activities in India.

A more common approach of CSR is philanthropy. This includes monetary donations and

aid given to local organizations and impoverished communities in developing countries.

Some organizationsdo not like this approach as it does not help build on the skills of the

local people, whereas community-based development generally leads to more sustainable

development. Another approach to CSR is to incorporate the CSR strategy directly into the

business strategy of an organization. For instance, procurement ofFair Trade tea and coffee

has been adopted by various businesses including KPMG. Its CSR manager commented,

"Fairtrade fits very strongly into our commitment to our communities."[5]

Another approach is garnering increasing corporate responsibility interest. This is

called Creating Shared Value, or CSV. The shared value model is based on the idea that

corporate success and social welfare are interdependent. A business needs a healthy,

educated workforce, sustainable resources and adept government to compete effectively.

For society to thrive, profitable and competitive businesses must be developed and

supported to create income, wealth, tax revenues, and opportunities for philanthropy. CSV

received global attention in the Harvard Business Review article Strategy & Society: The

Link between Competitive Advantage and Corporate Social Responsibility[1] by Michael E.

Porter, a leading authority on competitive strategy and head of the Institute for Strategy

and Competitiveness at Harvard Business School; and Mark R. Kramer, Senior Fellow at the
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Kennedy School at Harvard University and co-founder of FSG Social Impact Advisors. The

article provides insights and relevant examples of companies that have developed deep

linkages between their business strategies and corporate social responsibility. Many

approaches to CSR pit businesses against society, emphasizing the costs and limitations of

compliance with externally imposed social and environmental standards. CSV

acknowledges trade-offs between short-term profitability and social or environmental

goals, but focuses more on the opportunities for competitive advantage from building a

social value proposition into corporate strategy.

Many companies use the strategy of benchmarking to compete within their respective

industries in CSR policy, implementation, and effectiveness. Benchmarking involves

reviewing competitor CSR initiatives, as well as measuring and evaluating the impact that

those policies have on society and the environment, and how customers perceive

competitor CSR strategy. After a comprehensive study of competitor strategy and an

internal policy review performed, a comparison can be drawn and a strategy developed for

competition with CSR initiatives.


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Social Accounting, Reporting &

Auditing

For a business to take responsibility for its actions,

that business must be fully accountable. Social

accounting, a concept describing the communication

of social and environmental effects of a company's

economic actions to particular interest groups within society and to society at large, is thus

an important element of CSR.[6]

Social accounting emphasizes the notion of corporate accountability. D. Crowther defines

social accounting in this sense as "an approach to reporting a firms activities which

stresses the need for the identification of socially relevant behavior, the determination of

those to whom the company is accountable for its social performance and the development

of appropriate measures and reporting techniques."[7]An example of social accounting, to a

limited extent, is found in an annual Director's Report, under the requirements ofUK

company law.

A number of reporting guidelines or standards have been developed to serve as

frameworks for social accounting, auditing and reporting including:

Accountabilitys AA1000 standard, based on Ellingtons triple bottom line (3BL)reporting

The Prince's Accounting for Sustainability Project's Connected Reporting Framework The Fair Labor Association conducts audits based on its Workplace Code of Conduct

and posts audit results on the FLA website.

The Fair Wear Foundation takes a unique approach to verifying labour conditions incompanies' supply chains, using interdisciplinary auditing teams.

Global Reporting Initiative's Sustainability Reporting Guidelines Good Corporations Standard developed in association with the Institute of Business

Ethics

Earthcheckwww.earthcheck.org Certification / Standard
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Potential business benefits

The scale and nature of the benefits of CSR for an organization can vary depending on the

nature of the enterprise, and are difficult to quantify, though there is a large body of

literature exhorting business to adopt measures beyond financial ones (e.g., Deming's

Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes found a correlation

between social/environmental performance and financial performance. However,

businesses may not be looking at short-run financial returns when developing their CSR

strategy.

The definition of CSR used within an organization can vary from the strict "stakeholder

impacts" definition used by many CSR advocates and will often include charitable

efforts and volunteering. CSR may be based within the human resources, business

developmentor public relations departments of an organization, or may be given a

separate unit reporting to the CEO or in some cases directly to the board. Some companies

may implement CSR-type values without a clearly defined team or programme.

Human resources

A CSR programme can be an aid to recruitmentand retention,[12]particularly within the

competitive graduate student market. Potential recruits often ask about a firm's CSR policy

during an interview, and having a comprehensive policy can give an advantage. CSR can

also help improve the perception of a company among its staff, particularly when staff can

become involved through payroll giving, fundraising activities or community volunteering.

CSR has been found to encourage customer orientation among frontline employees.[13]See

also Corporate Social Entrepreneurship, whereby CSR can also be driven by employees'

personal values, in addition to the more obvious economic and governmental drivers.
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Risk management

Managing riskis a central part of many corpo rate

strategies. Reputations that take decades to build up can be

ruined in hours through incidents such as corruptionscandals or environmental accidents.[14]These can also

draw unwanted attention from regulators, courts,

governments and media. Building a genuine culture of 'doing the right thing' within a

corporation can offset these risks.[15]

Brand differentiation

In crowded marketplaces, companies strive for a unique selling proposition that can

separate them from the competition in the minds of consumers. CSR can play a role in

building customer loyalty based on distinctive ethical values.[16]Several major brands, such

as The Co-operative Group, The Body Shop and American Apparel[17]are built on ethical

values. Business service organizations can benefit too from building a reputation for

integrity and best practice.

License to operate

Corporations are keen to avoid interference in their businessthrough taxation or regulations. By taking substantive voluntary steps, they can persuade

governments and the wider public that they are taking issues such as health and safety,

diversity, or the environment seriously as good corporate citizens with respect to labour

standards and impacts on the environment.
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Nature of business

Milton Friedman and others have argued that a corporation's purpose is to maximize

returns to its shareholders, and that since only people can have social responsibilities,

corporations are only responsible to their shareholders and not to society as a whole.

Although they accept that corporations should obey the laws of the countries within which

they work, they assert that corporations have no other obligation to society. Some people

perceive CSR as in-congruent with the very nature and purpose of business, and indeed a

hindrance to free trade. Those who assert that CSR is contrasting with capitalism and are in

favor ofneoliberals argue that improvements in health, longevity and/orinfant

mortality have been created by economic growth attributed to free enterprise.[18]

Critics of this argument perceive neoliberals as opposed to the well-being of society and a

hindrance to human freedom. They claim that the type of capitalism practiced in many

developing countries is a form of economic and cultural imperialism, noting that these

countries usually have fewer labour protections, and thus their citizens are at a higher risk

of exploitation by multinational corporations.[19]

A wide variety of individuals and organizations operate in between these poles. For

example, the Leadership Alliance asserts that the business of leadership (be it corporate or

otherwise) is to change the world for the better.[20]Many religious and cultural traditions

hold that the economy exists to serve human beings, so all economic entities have an

obligation to society (see for example Economic Justice for All). Moreover, as discussed

above, many CSR proponents point out that CSR can significantly improve long-term

corporate profitability because it reduces risks and inefficiencies while offering a host of

potential benefits such as enhanced brand reputation and employee engagement.

Motives

Some critics believe that CSR programs are undertaken by companies such as British

American Tobacco (BAT),[21]the petroleum giantBP(well known for its high-profile

advertising campaigns on environmental aspects of its operations), and McDonald's (see

below) to distract the public from ethical questions posed by their core operations. They

argue that some corporations start CSR programs for the commercial benefit they enjoy
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through raising their reputation with the public or with government. They suggest that

corporations which exist solely to maximize profits are unable to advance the interests of

society as a whole.[22]

Another concern is that sometimes companies claim to promote CSR and be committedto sustainable developmentbut simultaneously engage in harmful business practices. For

example, since the 1970s, the McDonald's Corporation's association with House has been

viewed as CSR and relationship marketing. More recently, as CSR has become mainstream,

the company has beefed up its CSR programs related to its labor, environmental and other

practices[23]All the same, in McDonald's Restaurants v Morris & Steel, Lord Justices Pill,

May and Keane ruled that it was fair comment to say that McDonald's employees

worldwide 'do badly in terms of pay and conditions'[24]and true that 'if one eats enough

McDonald's food, one's diet may well become high in fat etc., with the very real risk ofheart

disease.'[25]

Royal Dutch Shell has a much-publicized CSR policy and was a pioneer in triple bottom

line reporting, but this did not prevent the 2004 scandal concerning its misreporting ofoil

reserves, which seriously damaged its reputation and led to charges of hypocrisy. Since

then, the Shell Foundation has become involved in many projects across the world,

including a partnership with Marks and Spencer (UK) in three flower and fruit growing

communities across Africa.

Critics concerned with corporate hypocrisy and insincerity generally suggest that better

governmental and international regulation and enforcement, rather than voluntary

measures, are necessary to ensure that companies behave in a socially responsible manner.

A major area of necessary international regulation is the reduction of the capacity of

corporations to sue states under settlement provisions in trade or investment treaties if

otherwise necessary public health or environment protection legislation has impeded

corporate investments.[26]Others, such as Patricia Werhane, argue that CSR should be

considered more as a corporate moral responsibility, and limit the reach of CSR by focusing

more on direct impacts of the organization as viewed through a systems perspective to

identify stakeholders.
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Ethical consumerism

The rise in popularity ofethical consumerism over the last two decades can be linked to the

rise of CSR. As global population increases, so does the pressure on limited natural

resources required to meet rising consumer demand (Grace and Cohen 2005, 147).Industrialization, in many developing countries, is booming as a result of both technology

and globalization. Consumers are becoming more aware of the environmental and social

implications of their day-to-day consumer decisions and are therefore beginning to make

purchasing decisions related to their environmental and ethical concerns.[27]However, this

practice is far from consistent or universal.

Globalization and market forces

As corporations pursue growth through globalization, they have encountered new

challenges that impose limits to their growth and potential profits. Government

regulations, tariffs, environmental restrictions and varying standards of what constitutes

"labor exploitation" are problems that can cost organizations millions of dollars. Some view

ethical issues as simply a costly hindrance, while some companies use CSR methodologies

as a strategic tactic to gain public support for their presence in global markets, helping

them sustain a competitive advantage by using their social contributions to provide a

subconscious level of advertising. (Fry, Keim, Meiners 1986, 105) Global competition places

a particular pressure on multinational corporations to examine not only their own labor

practices, but those of their entire supply chain, from a CSR perspective.
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Social awareness and education

The role among corporate stakeholders is to work collectively to pressure corporations

that are changing. Shareholders and investors themselves, through socially responsible

investing are exerting pressure on corporations to behave responsibly. Non-governmental

organizations are also taking an increasing role, leveraging the power of the media and the

Internet to increase their scrutiny and collective activism around corporate behavior.

Through education and dialogue, the development of community awareness in holding

businesses responsible for their actions is growing.[28]In recent years, the traditional

conception of CSR is being challenged by the more community-conscious Creating Shared

Value concept (CSV), and several companies are refining their collaboration with

stakeholders accordingly.

Ethics training

The rise of ethics training inside corporations, some of it required by government

regulation, is another driver credited with changing the behavior and culture of

corporations. The aim of such training is to help employees make ethical decisions when

the answers are unclear. Tullberg believes that humans are built with the capacity to cheat

and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning

normative values and rules in human behavior.[29]The most direct benefit is reducing the

likelihood of "dirty hands" (Grace and Cohen 2005), fines and damaged reputations for

breaching laws or moral norms. Organizations also see secondary benefit in increasing

employee loyalty and pride in the

organization. Caterpillar and Best Buy are examples of

organizations that have taken such steps.[30]

Increasingly, companies are becoming interested in

processes that can add visibility to their CSR policies and

activities. One method that is gaining increasing popularity is

the use of well-grounded training programs, where CSR is a

major issue, and business simulations can play a part in

this.[citation needed]
http://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-27http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-27http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-27http://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-28http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-28http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-28http://en.wikipedia.org/wiki/Caterpillar_Inc.http://en.wikipedia.org/wiki/Best_Buyhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-29http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-29http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-29http://en.wikipedia.org/wiki/Business_simulationhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Business_simulationhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-29http://en.wikipedia.org/wiki/Best_Buyhttp://en.wikipedia.org/wiki/Caterpillar_Inc.http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-28http://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-27http://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Socially_responsible_investing


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One relevant documentary isThe Corporation, the history of organizations and their

growth in power is discussed. Corporate social responsibility, what a company does to in

trying to benefit society, versus corporate moral responsibility (CMR), what a company

should morally do, are both important topics to consider when looking at ethics in CSR. For

example, Ray Anderson, in The Corporation, takes a CMR perspective in order to do what is

moral and he begins to shift his company's focus towards the biosphere by utilizing carpets

in sections so that they will sustain for longer periods. This is Anderson thinking in terms

of Garret Hardin's "The Tragedy of the Commons," where if people do not pay attention to

the private ways in which we use public resources, people will eventually lose those public

resources.
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Laws and regulation

Another driver of CSR is the role of independent

mediators, particularly the government, in ensuring that

corporations are prevented from harming the broader

social good, including people and the environment. CSR

critics such as Robert Reich argue that governments

should set the agenda for social responsibility by the way

of laws and regulation that will allow a business to

conduct them responsibly.

The issues surrounding government regulation pose several problems. Regulation in itself

is unable to cover every aspect in detail of a corporation's operations. This leads to

burdensome legal processes bogged down in interpretations of the law and debatable grey

areas (Sacconi 2004). For example, General Electric failed to clean up the Hudson

River after contaminating it with organic ppollutants. The company continues to argue via

the legal process on assignment of liability, while the cleanup remains stagnant. (Sullivan &

Schiff 2005).

The second issue is the financial burden that regulation can place on a nation's economy.

This view shared by Blakeley, who cites the Australian federal government's actions to

avoid compliance with the Kyoto Protocol in 1997, on the concerns of economic loss and

national interest. The Australian government took the position that signing the Kyoto Pact

would have caused more significant economic losses for Australia than for any other OECD

nation (Blakeley 2001, pg 436). On the change of government following the election in

November 2007, Prime Minister Kevin Rudd signed the ratification immediately after

assuming office on 3 December 2007, just before the meeting of the UN Framework

Convention on Climate Change. Critics of CSR also point out those organizations pay taxesto government to ensure that society and the environment are not adversely affected by

business activities.

Denmarkhas a law on CSR. On 16 December 2008, the Danish parliament adopted a bill

making it mandatory for the 1100 largest Danish companies, investors and state-owned
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companies to include information on corporate social responsibility (CSR) in their annual

financial reports. The reporting requirements became effective on 1 January 2009.[31]The

required information includes:

information on the companies policies for CSR or socially responsibleinvestments (SRI)

information on how such policies are implemented in practice, and information on what results have been obtained so far and managements expectations

for the future with regard to CSR/SRI.

CSR/SRI is still voluntary in Denmark, but if a company has no policy on this it must state

its positioning on CSR in their annual financial report. More on the Danish law can be found

atCSRgov.dk

Crises and their consequences

Often it takes a crisis to precipitate attention to CSR. One of the most active stands against

environmental management is the CERES Principles that resulted after the Exxon

Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead

poisoning paint used by toy giantMattel, which required a recall of millions of toys globally

and caused the company to initiate new risk management and quality control processes. In

another example, Magellan Metals in the West Australian town of Esperance was

responsible for lead contamination killing thousands of birds in the area. The company had

to cease business immediately and work with independent regulatory bodies to execute a

cleanup. Odwalla also experienced a crisis with sales dropping 90%, and the company's

stock price dropping 34% due to several cases ofE. coli spread through

Odwalla apple juice. The company ordered a recall of all apple or carrotjuice products and

introduced a new process called "flash pasteurization" as well as maintaining lines of

communication constantly open with customers.
http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-30http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-30http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-30http://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://www.csrgov.dk/sw51190.asphttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Lead_poisoninghttp://en.wikipedia.org/wiki/Lead_poisoninghttp://en.wikipedia.org/wiki/Mattelhttp://en.wikipedia.org/wiki/Magellan_Metalshttp://en.wikipedia.org/wiki/Escherichia_colihttp://en.wikipedia.org/wiki/Applehttp://en.wikipedia.org/wiki/Carrothttp://en.wikipedia.org/wiki/Carrothttp://en.wikipedia.org/wiki/Applehttp://en.wikipedia.org/wiki/Escherichia_colihttp://en.wikipedia.org/wiki/Magellan_Metalshttp://en.wikipedia.org/wiki/Mattelhttp://en.wikipedia.org/wiki/Lead_poisoninghttp://en.wikipedia.org/wiki/Lead_poisoninghttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://www.csrgov.dk/sw51190.asphttp://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-30


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Stakeholder priorities

Increasingly, corporations are motivated to become more socially responsible because

their most important stakeholders expect them to understand and address the social and

community issues that are relevant to them. Understanding what causes are important to

employees is usually the first priority because of the many interrelated business benefits

that can be derived from increased employee engagement (i.e. more loyalty, improved

recruitment, increased retention, higher productivity, and so on). Key external

stakeholders include customers, consumers, investors (particularly institutional investors),

and communities in the areas where the corporation operates its facilities, regulators,

academics, and the media.

Branco and Rodriguez (2007) describe the stakeholder perspective of CSR as the inclusion

of all groups or constituents (rather than just shareholders) in managerial decision making

related to the organizations portfolio of socially responsible activities.[32]This normative

model implies that the CSR collaborations are positively accepted when they are in the

interests of stakeholders and may have no effect or be detrimental to the organization if

they are not directly related to stakeholder interests. The stakeholder perspective suffers

from a wheel and spoke network metaphor that does not acknowledge the complexity of

network interactions that can occur in cross sector partnerships. It also relegatescommunication to a maintenance function, similar to the exchange perspective.[33]
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Tata Group Profile

The Tata Group of Companies has always believed strongly in the concept of collaborative

growth, and this vision has seen it emerge as one of India's and the world's most respected

and successful business conglomerates. The Tata Group has traced a route of growth that

spans through six continents and embraces diverse cultures. The total revenue of Tata

companies, taken together, was 67.4 billion USD (around Rs319, 534 crore) in 2009-10,

with 57 per cent of this coming from business outside India. In the face of trying economic

challenges in recent times, the Tata Group has steered Indias ascent in the global map

through its unwavering focus on sustainable development. Over 395,000 people worldwide

are currently employed in the seven business sectors in which the Tata Group Companies

operate. It is the largest employer in India in the Private Sector and continues to lead with

the same commitment towards social and community responsibilities that it has shown in

the past.

The Tata Group of Companies has business operations (114 companies and subsidiaries) in

seven defined sectors Materials, Engineering, Information Technology and

Communications, Energy, Services, Consumer Products and Chemicals. Tata Steel with its

acquisition of Corus has secured a place among the top ten steel manufacturers in theworld and itis the Tata Groups flagship Company. Other Group Companies in the different

sectors are Tata Motors, Tata Consultancy Services (TCS), Tata Communications, Tata

Power, Indian Hotels, Tata Global Beverages and Tata Chemicals.

Tata Motors is Indias largest automobile company by revenue and is among the top five

commercial vehicle manufacturers in the world. Jaguar and Landover are now part of Tata

Motors portfolio.

Tata Consultancy Services (TCS) is an integrated software solutions provider with

delivery centers in more than 18 countries. It ranked fifth overall, and topped the list for IT

services, in Bloomberg Business weeks 12th annual 'Tech 100', a ranking of the world's

best performing tech companies.


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Tata Power has pioneered hydro-power generation in

India and is the largest power generator (production

capacity of 2300 MW) in India in the private sector.

Indian Hotels Company (Taj Hotels, resorts and palaces)

happens to be the leading chain of hotels in India and one of the largest hospitality groups

in Asia. It has a presence in 12 countries in 5 continents.

Tata Global Beverages (formerly Tata Tea), with its major acquisitions like Tetley and

Good Earth is at present the second largest global branded tea operation.

When Jamsetji Tata gave shape to his vision of nation building by forming what was to

become the Tata Group in 1868, he had envisaged India as an independent strength

politically, economically and socially. In order to become a force that the world has to

reckon with, the Tata Group has always ventured into path breaking territory and

pioneered developments in industries of national importance.

As a policy, the Tata Group Companies promote and encourage economic, social and

educational development in the community, returning wealth to the society they serve.

Two-thirds of the equity of Tata Sons is held in philanthropic trusts that take care of

endowments towards improvement programmes in these spheres.

Through the years, the Tata Group has been amongst the most prestigious corporate

presences in the world governed by its principles of business ethics. Its foray intointernational business has been recognized by various bodies and institutions. Brand

Finance, a UK based consultancy firm after a recent valuation of the Tata brand at $11.22

billion has ranked it 65th among the world's top 100 brands. In Business Weekmagazine's

list of the 25 most innovative companies the Tata name appears 13 th and The Reputation


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Institute, USA has evaluated the Tata Group as the 11th in a global study of the most

reputed companies.

In the road ahead, the Tata Group is focusing on integration of new technologies in its

operations and breaking new grounds in product development. The Eka supercomputer

had been ranked the worlds fourth fastest in 2008 and the launch of the Nano has been a

benchmark for the auto industry specifically and the economy in general.

With a holistic approach in all its business operations, a loyal and dedicated workforce and

its rooted belief in value creation and corporate citizenship, the Tata Group is always ready

to realise its vision and objectives. The challenges of the future will only help to enhance

the Groups performance and transform newer dreams to reality.


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TATA Steel

Established in 1907, Tata Steel is among the top ten global steel companies with an annual

crude steel capacity of over 28 million tons per annum (mtpa). It is now one of the world's

most geographically-diversified steel producers, with operations in 26 countries and a

commercial presence in over 50 countries. The Tata Steel Group, with a turnover of US$

22.8 billion in FY '10, has over 80,000 employees across five continents and is a Fortune

500 company.

Tata Steels vision is to be the worlds steel industry benchmark through the excellence of

its people, its innovative approach and overall conduct. Underpinning this vision is a

performance culture committed to aspiration targets, safety and social responsibility,continuous improvement, openness and transparency.

Tata Steels larger production facilities include those in India, the UK, the Netherlands,

Thailand, Singapore, China and Australia. Operating companies within the Group include

Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel, and Tata

Steel Thailand (formerly Millennium Steel).


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Board of Directors

Mr. Ratan TataChairman - Not Independent, Non-Executive Director

Mr. Ratan N. Tata is presently Chairman of Tata Sons, the holding

company of the Tata Group and also Chairman of the major Tata

companies including Tata Steel. It is under his leadership that the Company has scaled new

heights and established a presence as one of the leading steel conglomerates in the world.

Mr. Ratan Tata is a Bachelor of Science in the field of architecture.

Mr. B. Muthuraman

Vice Chairman - Not Independent, Non-Executive Director

Mr. B Muthuraman joined Tata Steel in 1966 as a Graduate Trainee.

On completion of training, he worked in the areas of Iron-making

and Engineering Development for ten years and then moved to the

Marketing & Sales Division and spent nearly twenty years there,

ultimately rising to the position of Vice President.

Mr. H.M. Nerurkar

Managing Director - Not Independent

Mr. Hemant M. Nerurkar was Executive Director of India and

South East Asia of Tata Steel Limited since April 9, 2009 and was

appointed as Managing Director of Tata Steel Limited from

October 01, 2009. A B.Tech in metallurgical engineering from the

College of Engineering, Pune University, Mr. Nerurkar has attended several management

courses in India and overseas, including CEDEP in France.


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Dr. Karl-Ulrich Khler

Not Independent, Non-Executive Director

Dr. Karl-Ulrich Khler is appointed as a Director of the Company

with effect from 12th November 2010. He has been Chief Executive

Officer and Managing Director of Tata Steel Europe Limited since

October 1, 2010. He was appointed Chief Operating Officer of Tata Steel Europe Limited in

February 2010.

Mr. Nusli Neville Wadia

Independent, Non-Executive DirectorMr. Nusli Neville Wadia - Mr. Wadia is foremost among famous

Indian industrialists and the Company Director and Chairman of

various Indian companies. Taking over responsibilities from his

father Neville Wadia, he made the Wadia Group and Bombay Dyeing the most respected

and widely diversified business houses in the corporate world.

Mr. Andrew Robb

Independent, Non - Executive Director

Mr. Andrew M. Robb is a Fellow of the Chartered Institute of

Management Accountants and holds a Joint Diploma in

Management Accounting. Mr. Andrew Robb has been a Non

Executive Independent Director of Tata Steel Limited since November 22, 2007. He joined

the board of Corus Group plc and became Chairman of the Audit Committee in August2003.


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Mr. S. M. Palia


Mr. S M Palia, a B.Com., LL.B., CAIIB and CIIB ( London ) is a

Development Banker by profession. He was with IDBI from 1964

to 1989 during which period he held various responsible

positions including that of an Executive Director to the Bank. He joined the Company as a

Director in 1994.

Mr. Ishaat Hussain

Not Independent, Non - Executive Director

Mr. Ishaat Hussain graduated in economics from St StephensCollege, New Delhi. He is a fellow of the Institute of Chartered

Accountants in England and Wales (FCA). Mr. Hussain joined the

board of the Indian Tube Company (a Tata Steel associate company) in 1979.

Mr. Subodh Bhargava


Mr. Subodh Bhargava is a Mechanical Engineer from the

University of Roorkee. He joined Board of the Company as a

Director in 2006. Mr. Bhargava was the Group Chairman and

Chief Executive Officer of the Board of Eicher Group of

Companies and is now the Chairman Emeritus of the same group.


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Mr. Jacobus Schraven


Mr. Jacobus Schraven was appointed as an Additional Director

of the Company with effect from May 17, 2007. He was

appointed a non-executive Director and Deputy Chairman of

Corus Plc. in December 2004. Mr. Schraven, in 2005 was

appointed a Member and Chairman of the Supervisory Board of Corus Nederland BV. Until

June 2005 he was President of the Confederation of The Netherlands Industry and

Employers (VNO-NCW).

Mr. Suresh Krishna


Mr. Suresh Krishna received a Bachelor of Science degree from

Madras Christian College in 1955 and an M.A. in literature from

the University of Wisconsin in 1959. He did his post-graduate

work in literature at the University of Munich, Germany. Mr. Krishna is the Chairman and

Managing Director of Sundram Fasteners Ltd.


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CSR activities of TATA

A continued focus on health care

With emphasis on improving the health and welfare of employees and local communities,

the programmes conducted by the Group focus on adolescent health and HIV / AIDS

awareness. In South East Asia, NatSteel has a comprehensive programme of health

screening for employees and their families. This programme also creates awareness on

lifestyle diseases among the community.

Mother and child health

The concept of a healthy mother and a healthy baby

is one of the cornerstones of Tata Steels health care

programmes. Through investments in maternal and

neonatal programmes, the Group has helped

improve the health of thousands of women and

children each year.

The hospital on rails continues its journey

The Lifeline Express the worlds first hospital on rails offers medical services such as

on-the-spot diagnosis, medication and advanced surgical treatment for orthopedics, ear,

nose, throat and eye ailments. In a recently concluded camp, conducted at the Jajpur Road

Railway in Odisha, the Lifeline Express gave services to 4,309 physically challenged people

from the districts of Keonjhar, Bhadrak, Dhankanal, Jajpur and Cuttack in Odisha.

Strengthening the future

The most common threats to growing children often arise from lack of nutrition and

hygiene. To control these problems, the Tata Steel Rural Development Society has been

conducting regular health checks in schools and providing children with necessary

medicines free of cost.

Drug and alcohol abuse

In an effort to battle the high rate of drug and alcohol abuse in the towns of Port Talbot and

Newport in South Wales, Tata Steel has joined forces with various organizations like the

Gwent Alcohol Project, the West Glam organ Council on Alcohol and Drug Abuse, the


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Community Union and key contractors. The Group has also raised funds for the

development of community centers which could help young children stay away from drugs.

Sustainable livelihood through wasteland development

Another strand of the work Tata Steel does with rural communities focuses on

strengthening agricultural capabilities. Aid is offered to farmers to increase productivity

and to bring wastelands under cultivation. A large portion of Indias land falls under the

category of wasteland. To better utilize this land, Tata Steel has been partnering the

National Horticultural Mission since 2005. By 2009-10, almost 9,000 acres of land had been

brought under cashew and mango plantations, benefiting 3,700 households from 129

villages in the East Singh hum district of Jharkhand. At the Joda East Iron Mine in Odisha,

Tata Steel has also introduced a scientific rainwater harvesting system to check the

depleting levels of ground water. A large storage-cum-percolation lake has been

constructed at a favorable location to pool in the water from the vast catchment area

around the lake. This project will help increase the ground water levels of surrounding

settlements, including the Joda Township.

Self-help groups for women

Self-help groups (SHGs) formed by rural women have been effective agents of change in

rural areas. Empowerment initiatives have raised the skill levels of rural women, enabling

rural households to benefit from additional income sources. While the SHGs get financial

assistance from government departments and banks, Tata Steel's support is both financial

and technical. The Company often partners with professional groups to assist women in

starting their own businesses.

Employability training

Apart from a strong focus on primary and secondary education, the Tata Steel Group has

actively supported employability or vocational training. The initiative aims at developing

skills among communities, women and young people, supporting local artisans to provide

them with better opportunities to compete in the job market. Job oriented training

programmes are regularly conducted in many centers in India, Africa and South East Asia.


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Sharing Wealth to Diminish Disparities

For Jamsetji Tata, the progress of enterprise, welfare of people and the health of the

enterprise were inextricably linked. Wealth and the generation of wealth have never

"been ends in themselves, but a means to an end, for the increased prosperity of India,"

The Times of India said in 1912 of the Tatas.

Successive generations of Tata Group leaders have always held the belief that no

succession material terms is worthwhile unless it serves the interest of the nation and is

achieved by fair and honest means. Conscious that the task of social progress, especially in

a country as diverse as India, cannot be undertaken by the Government alone, J R D Tata

the Chairman of the Tata Group from 1938 to 1991, believed that, "to create good working

conditions, to pay the best wages to its employees and provide decent housing to its

employees are not enough for the industry, the aim of an industry should be to discharge

its overall social responsibilities to the community and the society at large, where industry

is located." At the vanguard of social commitment Guided by this mandate, Tata Steel has

for decades used its skills and resources, to the extent it can reasonably afford, to give back

to the community a fair share of the product of its efforts.

Education

Tata Steel has influenced the integration oftribals in the economy in a less obvious and

immediate way by propping up the education of tribal children and youth of various ages

and at various stages of their academic career.

Infants and toddlers are prepared for formal schooling in the informally run balwadis

(crches/nurseries). The dropout rate of tribal students in schools and colleges has been

checked with financial assistance and sponsorships.

The TCS bears the entire expense of two tribal students who secure admissions for

management education at the Tata Institute of Social Sciences. It also coaches students

for entrance into administrative, technical and the public services.

An unusual project called Sahyog, implemented in five schools, helps tribal students to

develop self-esteem and plan their future.

The Xavier Institute for Tribal Education near Jamshedpur has also been supported by


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Tata Steel to produce professionally trained personnel. Had it not been for this fellowship

from Tribal Cultural Society, I was bound to be like Many others, recycled into the family's

earning process at an age when I needed to be at School, says Sunita Murmu.

And then come the announcement of Jyoti Fellowships. Sunita won the award not just for

the year, but, for the next seven consecutive years as well. The fellowship saw her

through matriculation and Intermediate. Relieved of the pressure, Sunita was able to

concentrate and secure first division all through. At an award ceremony, when asked

what she had to say about this assistance, Thank you, Tata Steel and Tribal Cultural

Society were the words she uttered with extreme gratitude

Tribalsculture

Efforts to support tribals may well leave them at the doorstep of

Development without a sense of belongings and their cultural heritage.

With a view to helping the tribal population preserve its rich inheritance, Tata Steel has

set up the Tribal Culture Centre (TCC) at a cost of Rs 35, 00,000. This Centre showcases

the tribal legacy of four major and five minor tribes of Jharkhand and Orissa and evokes a

lot of interest amidst scholars, researchers and even laypersons. TCC not only documents

Relevant research but also enables the continuation of the tradition by sharing it with the

Youth and non-tribal. Additionally, a Santali Language Laboratory has also been initiated in

the Centre since 2002-03.

The centre was instrumental in reviving the now almost forgotten 'Kati' - a game played

between two teams that attempt to score points by hitting the opponent's Kati - a

semicircular piece of wood by a long wooden stick using their feet. Known to be a game

that used to be played by youths in non agricultural season, it tests the team spirit,

physical strength and concentration levels of the players.

Adim Dastoor, a three day programme, was organized at Bari Maida, Jamshedpur. This

cultural extravaganza showcased the heritage and lifestyle of the indigenous people in

Jharkhand. Lecture demonstration sessions on tribal heritage, exhibitions on historical

advent of tribal movements, various forms of tribal dance and music, their relevance and

specifics were dwelled upon at great length followed by actual performance by the

experts.


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The event also showcased a day-night Kati tournament between 25 teams from all over

Jharkhand and tribal Orissa. Tribal belief has it that within the 'Akhara' (common meeting

place for men within the village), no one is an audience. Every step taken is dance; every

word that is uttered is a song. The climax of the three-day event resounded this belief as

hundreds of people in the ground joined in the performance accompanied by 25 drum

beaters who lent a sparkling end to the festival.

Income generation for tribals

Reliant and sustainable way, Tata Steel has long been involved with increasing the

Agricultural productivity for them in the rural areas through assured irrigation. Tata Steel,

holding the belief that the tribals know best for themselves, has assisted in the formation

of many Self Help Groups (SHGs).

These SHGs enable the tribals to arrange for credit and engage in micro-enterprises like

making Dokra items, carpet weaving, terracotta, paper bag making, mat making, food

processing, poultry, mushroom farming, piggery, pisciculture and floriculture. Tata Steel

provides these groups with training, networking and assistance in marketing.

For making a long term impact on the prospects of the tribals, the Company has given

them vocational training in areas like basic computer operation, software management

shorthand, typing, motor driving and handling pregnancies as birth attendants.

"There was will and that was what saw us through..."Opportunity from TCS came like a

ray of hope. Not knowing what to expect from the workshop, I still dragged myself to

participate in it. Simple techniques on packaging the candles we made, helped improve

the presentation of the product... Deepawali, Christmas and Gram Shree Mela provided

us with huge business prospects, which we were able to encash upon. Next we received

an order from Tata Steel to supply 5000 candles in a week's time. But there was will and

that was what saw us through. My future plans are to improve our business extensively

and also to enter the metropolitan market.

Ongoing Programmes

Mother and Infant Survival Programme Population Stabilization Operation Muskaan for

cleft lips and palates "YARS" - Youth and Adolescent Reproductive Services


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specifically targeted programmes on HIV and AIDS. Project "WATSAN" for Water and

Sanitation Free Health Checkups for Women at Surya Clinics Pioneer in Family Initiatives

and HIV/AIDS Awareness Ringing the first alarm bell for Population Control The first

corporation in the country to launch a family welfare programme, Tata Steel has been

promoting controlled family planning since the 1950s. Through the innovative use of

communication media, motivational programmes have extremely successfully broken the

barriers of prejudice and myths to bring about the participation of communities, in even

those which do not readily accept family planning.

Jamshedpur today is a leader in demographic indices in the country. For the past 16

years, Tata Steel Family Initiatives Foundation (TSFIF) - formerly the Family Planning

Department - has been reaching out to the Community in Jamshedpur with Family

Planning and Reproductive Health Services. It covers a heterogeneous population of over

10,00,000 including adolescents and youth, industrial workers, busted dwellers and those

from the indigenous tribes of the area. Now it is in the process of reauthoring its role, so

as to extend both its capability and services into emerging sectors of need.

Health and AIDS Awareness

The health and safety of the employees and the communityis critically interlocked with

productivity enshrined in Tata Steels Vision. The Company has thus taken proactive steps

in AIDS preventon by spreading awareness not only amongst its employees, but also the

community at large so that the inhabitants of Jamshedpur

and at other locations, remain safe.

Tata Steel has evolved a corporate sector model to prevent

the spread of STD/HIV/AIDS,globally and nationally. This

model is being shared through forums like ILO, Global

Business Coalition on HIV/AIDS, Global Compact Initiatives,

WHO-SE Asia Regional

Office, NACO (National AIDS Control Organization) and JAPC (Jharkhand AIDS

Prevention Consortium) and more recently through Global Reporting Initiatives. This

programme extends to the rural and urban populace residing in and around Jamshedpur.


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The Global Business Coalition, which is an alliance of over a hundred major international

companies who are expected to lead by example, is dedicated to combating this disease.

Tata Steel is one of its founding members. The prestigious "Global Business Coalition

Award (GBC) for 2003 for Business Excellence" was conferred on Tata Steel for its

response to the epidemic and its outstanding HIV/AIDS Awareness work in Jamshedpur.

The award is conferred on companies who have evolved best practices on HIV/AIDS

prevention, especially to reduce the stigma and discrimination. This award places Tata

Steels initiatives at par with the best in the world, to be showcased globally.

Environment

Tata Steel believes that environment management is integral to sustainable

business. The company's commitment in this area can be further gauged from the fact,

that Tata Steel is the first company in the country to be conferred ISO-14001 Certification

for its main steel works and utility services in Jamshedpur All its mines and collieries are

also ISO-14001 Certified for environmental management. Tata Steel's collieries and mines

which support the 'Save Forests' campaign are a benchmark in environment management,

further augmenting its commitment in this field, Tata Steel, has planted 1.5 million

surviving trees as a part of the Green Millennium campaign. It may be worth mentioning

that Jamshedpur has the best tree cover in the country.


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Conclusion

We have conclude about the project of "corporate social responsibility" We have done study

on TATA STEEL Pvt Ltd. CSR is titled to aid an organization's mission as well as a guide to

what the company stands for and will uphold to its consumers. Developmentbusiness

ethics is one of the forms ofapplied ethics that examines ethical principles and moral or

ethical problems that can arise in a business environment. We have got more knowledge &

experience from this project.
http://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Business_ethics


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Bibliography

Search Engine:

www.google.comwww.wikipedia.com

Books:

Business ethics & corporate social responsibility.(VIPUL Prakashan)

project on csr final

Documents