BUSINESS ETHICS

TATA Power: Corporate Social Responsibility and

Sustainability

Summary:
This case elaborate the strategic dilemma involved in making a decision on the method of
operation of the corporate social responsibility (CSR) department for one of the leading
Indian multinational corporations, Tata Power Company (TPC) from Tata Group of
Companies. TPC had undertaken the CSR activities for decades, reflecting the company's
commitment towards sustainable energy generation without undue compromise to human and
environmental development. These activities were undertaken as a voluntary initiative by the
employees of TPC, and there was no separate CSR department. However, with large scale
expansion, the need to have CSR as a separate entity was felt. The dilemma for the decision
manager was whether to create a separate CSR department or continue with the existing set
up. Other related issues needed to be addressed strategically as well as tactically to maintain a
balance between shareholders' interest and other stakeholders.
Problem Statement:
Tatas Power business growth is causing an increase in environmental hazards .which
requires the company to increase its involvement in social responsibility and sustainability
while maintaining the interest of their stakeholders. And it is considered to be the major
contributor in environmental pollution and there is a lack of uniformed formal CSR initiatives
and the one more problem is how to incorporate the interests of the various stakeholders.
Following are the few problems:

Implementing of CSR activities

Identifying the community
Estimation of CSR activities
Efforts taken by TPC
Limited opportunities for villagers
Environmental hazards

Causes of the Problem:

The Case deals with the intricate connections between the group profitability and
competitiveness on the one hand and its long standing relation of the social responsibility on
the other. It explores value creation leadership ethics and sustainable development on
backdrop of rapid internalizations and shifting stakeholders expectations for cooperate social
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responsibility .Environmental Issues an wrong perception of Production are also Considered

as problem
The Companys culture and its long standing tradition negative issues arising from their
methods of producing reduction. The methods of people being benefited by their charitable
living. The voluntary will of the company to help the environmental and the society. The
Company executive concern and awareness of the environmental issues. The Financial needs
of the company, the employees and the stake holders.
Decision Criteria:

The department will have to work closely with the other departments and thus will
have higher levels of interactions with the stakeholders.

Sustainability ideas can be addressed more scientifically and professionally.

Since TPC will have independent budget allocated for CSR activities, the return on
the CSR activities can be accounted for and effectiveness can be measured.

Power structure would be independent, hence Tewari will have power to execute CSR
activities independently.

Alternative Solution:
o Maintaining the existing CSR structure as part of operations, however increasing their
CSR efforts.
o Creating separate CSR department hire internally or hire externally.
o Implementing a coexistence of CSR department along with a PBO/NGO.
Recommended Solution:
Creating separate CSR department hire internally or hire externally. They must decide on the
limitations and the boundaries they have to set involving their CSR and CS.
Strategy & Structure:
Integrate CSR into TPCs vision .mission and values and link it to the companys
objective
Set up specific goals bound with a time frame
Focus on developing strengths
Establish the CSR department in head office
Establish a cross functional CSR committee
Determine where authority and CSR decision making lies in TPC
Establish accountability
Create an environmentally sensitive corporate culture.
Utilizing the existing employees
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Partnering with NGOs for individual projects.

Networking with community and enabling agencies
Leveraging core competence and expertise.
Alignment of internal processes for implementation

Bibliography:

http://oikos-international.org/publications/tata-power/

http://iosrjournals.org/iosr-jbm/papers/vol3-issue5/D0351727.pdf
https://www.google.com.pk/url?
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