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Policies Of Corporate Social Responsibility

Anurag Shukla Ankit Gautam Deepak Anand Rubal Singh Srishti Sharma

We think we started on sound and straight forward business principles, considering the interests of the shareholders our own and the health and welfare of the employees, the sure foundations of our success Jamsetji N Tata, Founder

Content

CSR Vision Key Drivers Approach CSR Integration with business Strategy

Initiatives Partnership Deployment

Evaluation & Reporting

CSR - Definition

Corporate Social Responsibility is a commitment to improve community well being through discretionary business practices and corporate resources.

Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007

About TATA

The Group was founded by Sir Jamsetji Tata in the mid 19th century The TATA Group has 28 publicly listed enterprises with shareholder base of over 2 million Operations in more than 80 countries across six continents TATA companies together employ some 3,00,000 people. The Tata Group comprises of 96 operating companies in seven business sectors Revenues in 2007-08 of $ 62.5 billion (Rs. 2,51,543 Cr) Contributes to about 5.3 per cent of the country's production of goods & services

Philosophy

Trust Through Trusteeship - TATA Group Philosophy


By improving the communities they serve Returning to society what they earn Leadership with trust No success or achievement in national terms is worthwhile unless it serves the needs or interests of the country and its people.- JRD Tata

Core Values
The five core TATA values are: Integrity: Conduct business fairly, with honesty and transparency. Everything they do must stand the test of public scrutiny Understanding: Caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities they serve Excellence: Constantly strive to achieve the highest possible standards in day-to-day work and in the quality of the goods and services Unity: Work cohesively with colleagues across the Group and with customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation Responsibility: Continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over

Key Drivers for CSR


Guided by Legacy The Tata Group is guided by the Principle of Trusteeship and the conviction that Free Enterprise, in order to thrive, must serve the needs of society Need for Proactive Stance Equally, Tata Motors believes in being proactive in achieving a balance between business growth and social and environment related needs

Need to go beyond Compliance


Whether in pursuing its business growth or meeting its responsibilities, Tata Groups intent is to contribute by doing the right thing as against merely being compliant by not doing the wrong things

Boost to Brand Image In a global syndicated study conducted by TNS it was evident that general publics perception of a companys conduct is a strong reflection of the overall market sentiment towards that company

Key Drivers for CSR

Top Management involvement Public image building Safety, Health & Environment responsiveness

Local community
Culture and Tradition

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Approach

Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is that 'give back to the people what you have earned from them'. So from the very inception, Jamshetji Tata and his family have been following this principle." Moreover he says that for any business to sustain in the long run they have to look beyond business. The organisation believes that India is far away from reaching that phase of economic development where government is solely responsible for the basic needs of the public. We don't have a social security, adequate health and education services. So till then corporate houses should fill the gaps. The group's policy is to provide livelihood instead of giving money.

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Approach
Tata group has instituted the Tata Council for Community Initiatives TCCI, a central body that acts as a facilitator for the entire groups social initiatives Formation of the TCCI has given a common direction to the Tata groups CSR activities To achieve its aim, the TCCI planned to draw up a set of guidelines that would form the basic framework within which individual companies who worked closely with TCCI contributed their core competencies for the betterment of the community. TCCI has brought about a more structured approach to the CSR activities at the Tata group. CSR is implemented through the P-D-C-A Model a management system The common approach to community development ensures that every activity or project is checked out on certain important aspects of development and values the group collectively agrees upon.

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Approach
Regional Groups were formed in five major cities in the country, so that, as teams they can perform better To ensure accountability and encourage participation, their Performance Management System is integrated with CSR extended to recognize employee performance and also enhance accountability. A social evaluation system helps to measure the impact of programmers with respect to predetermined objectives. The effort in the coming years would be to progressively enroll volunteers so that the value for discharging social responsibility is shared by a large resource base. This would be a gradual process with some planned interventions and more of learning-from-doing.

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Integration With Business Strategy


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 (TBL) 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 Tata group companies, the management is encouraged to make a declaration of policy, strategy and budgets for environment and community development, and run activities as part of a non-negotiable minimum programme aimed at generating the reputation for the Tata Brand.

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Integration With Business Strategy


Strategy for Synchronizing Triple Bottom Line

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Tata Business Excellence Model (TBEM)


Tata Business Excellence Model (TBEM) Community: The strategy that each Company evolves, needs to be focused on the real needs of the communities in which the company operates and which it seeks to serve. Overall Development: There needs to be a dovetailing of the skills and strengths of the Company and its employees with the immediate and long-term gaps in the overall development of those communities - be they in the field of education, health, environment, civic amenities, infrastructure, family planning, vocational skills etc. Minimum programme: TATA Brand: In Tata companies we encourage the management to make a declaration of policy, strategy and budgets for environment and community development, and run activities as part of a non-negotiable minimum programme aimed at generating the reputation for the Tata Brand.
CSR expenditure budgeted before preparation of profit and loss account by companies

Active volunteering programme in Group


Over 11,500 registered volunteers in 20 companies 150,000 volunteer man hours

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5 Core Values
Importance of these initiatives which makes them Stand Out amongst other corporate companies Integrity Fair, Honest & Transparent in all dealing (In the Interest of stakeholder) Understanding Care, Respect for customers & colleagues (For the benefit of employees) Excellence - Best Business practices i.e. provide better service to society and thats why people call it as Tatas means Trust. Unity bcoz of Tatas following fair business practices they acquired International Business houses like Corus & Jaguar (global recognition) Responsibility - Agreed and amended the clause of retaining the existing work force.

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Social Responsibility

Stakeholders & affected


Environment, Community &Society, Government, NG0. Employee &Contractors

Impact/ Risk
Pollution, Global Warming, Resource Usage, Ecological imbalance, legal noncompliance Health care and safety, legal noncompliance, Disaster management Income generation, unemployment, social unrest, health & hygiene, education

Strategic action plans Supported


Improving the quality of life

Environmental Leadership

Health & Safety

Quality of life, environmental, safety and health sustainability Improving the quality of life, partnership with society and social license to operate Quality of life and EHS sustainability

Public conduct/ interaction with community & society for capturing their concerns Safety, health and environment education

Community & Society, NGOs, Citizens

Employees, Community & Society

Health and environment care and safety consciousness

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Initiatives

TATA CONSULTANCY SERVICES (TCS)


TCS is committed to reducing the environmental impact of its operations through appropriate ongoing material management. Reduction of waste at source Reuse of material wherever possible Recycling Purchasing of products with recycled content

Tata MOTORS The Company is engaged in community and social initiatives on labor and Environment .
Reducing Pollution Restoring Ecological Balance End of Life Vehicle Treatment and Recycling

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Initiatives
TATA Group companies have always displayed a keen interest in the welfare of the communities in which they operate. As pioneers in the area of CSR, TATA has played an important role in nation building

and socio-economic development since the early 1900s.

A survey conducted by the website indianngos 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.

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Initiatives
At Tata Steel major CSR programme are managed by three organizations Tata Steel Rural Development Society (TSRDS), Tata Steel Family Initiatives Foundation (TSFIF) and the Tribal Culture Society (TCS).

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

TSRDS started with 32 villages around Jamshedpur now covers over 700 villages in the states of
Jharkhand and Orissa.

Projects includes developing of water sources, training farmers on improved agricultural practices, promoting rural enterprise, infrastructure development to boost the village economy, encouraging animal husbandry, promoting art, culture, sports and games. Some projects also in the area of sanitation, water conservation, tube well installation and the enhancement of livelihood.

The infrastructure it has developed includes schools and hostels, community sheds, rehabilitation hutments, link roads, culverts, etc

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Initiatives
The Tribal Culture Society (TCS) of Tata Steel has done outstanding work for the tribals of Jamshedpur and the surrounding areas in Jharkhand.

The society focuses on three important issues: education, improvement of livelihood opportunities and the preservation of the ethnic identity of the tribal community.

TCS has also made arrangements for a number of mobile clinics to treat diseases like tuberculosis,

diarrhoea, leprosy, cleft lip and other general ailments. It also looks into immunization of babies and
creates awareness on subjects like contraception, breast feeding, etc.

Through these and other measures, TCS has demonstrated that it has the will and the desire to give a helping hand to the less privileged sections of society.

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Initiatives
Tata Chemicals Society for Rural Development (TCSRD) Tata Chemicals set up TCSRD in 1980 to promote social uplift projects for communities in and around Mithapur (Gujarat), Babrala (M.P.) and Haldia (West Bengal). The initiatives that TCSRD is involved in include: Agricultural development Education Women's programmes Animal husbandry Rural energy Watershed development Relief work 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.

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Initiatives - Institutions

Indian Institute of Science (IISc): IISc has produced Nobel laureates, trained many of India's greatest scientists and helped nurture some of the country's finest scientific institutions. JRD TATA Ecotechnology Centre (JRDTEC): JRDTEC is devoted to seeding and encouraging sustainable development, that protects the environment while benefiting the people who depend on it. TATA Institute of Fundamental Research (TIFR): Founded by Homi J Bhabha and JRD TATA in 1945 with objective to improve India's scientific temper and strengthen the nation's science infrastructure. TATA Institute of Social Sciences (TISS): Set up in 1936, TISS is a pioneer in the field of social-work education in Asia-Pacific region.

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Initiatives - Healthcare
TATA Memorial Centre (TMC): Established in 1941, TMC is India's best-known cancer hospital and research centre. In this global centre of excellence, 70 per cent of patients get free primary care. It has added significantly to its capacity and capabilities since then.

TATA Medical Centre: To be commissioned in 2009, TATA Medical Centre in Kolkata, is being equipped with the most contemporary and state-of-the-art medical equipment and will be one of the leading cancer care and research institutions in the country.

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PARTNERSHIP

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PARTNERSHIP

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DEPLOYMENT
Although it seems too early to have an elaborate system and convention to collect information, analyze and measure performance, our previous experience encourages us to suggest the following line of action.

Council and Policy Support Level

Executive Committee / Secretariat action plan level


Regional Group Level Company Level Employee commitment and volunteering level

Deployment of resources level


The Tata Process for documentation of case studies Motivating Community Champions Participatory Networking - a model for group level resourcing
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DEPLOYMENT

The Process is segmented as follows: The Minimum Programme to measure the commitment at the Company level The reconstituted Council has decided that the Community Initiatives of the Company shall be integrated as part of the regular business plan every year. Moreover, as a one time effort, certain basic steps will be taken by the Company to institutionalize community development work with the aim of involving a large number of employees. The following are the major steps to be taken by every Company: I) The Case Study documentation procedure to measure the impact at Programme/Activity level II) The scheme for Tata volunteers to measure the performance of talent and resource made available to the community

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DEPLOYMENT

III) A suggested convention for Regional Group Management This document contains the common approach and this section is about some operating conventions for Regional Groups for them to function more cohesively. IV) Building Partnerships and Networking TATAs believe in Networking not only as an important technology for expanding community-development work, but more as a way of life. We believe in creating partnerships which can harness the synergy within the various departments of the company, within the TATA Group of companies and extending this to encompass NGOs, government, development agencies and others, in order to strengthen our professional, organisational and resource base.

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Evaluation
TATA Council of Community Initiative
{Umbrella entity that co-ordinates and integrates various social projects}

UNDP

{United Nations Development Programme}

Tate Index of Sustainable Human Development

Tata Index for Sustainable Human Development, measures and improves the community work that Tata enterprises undertake The Index provides guidelines for Tata companies looking to fulfill their social responsibilities Helps structure efforts and quantify the effect

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Reporting Scale of Human Excellence


{Group companies are required to rate their performance on a scale on 0 - 1000}

Human consideration (0-250) - indicating the starting level of CSR Human concern (251-450) - indicating the evolution of its value system Human achievement (451-650) - employees demonstrate a high degree of realization, accomplishment and capability for collective action. Human Development (651-875) - building a community with a focus to human survival and growth Human Excellence (876-1000) - the self expression of people who have a quality of life that is a benchmark for others to emulate 33

Reporting
Tata Index has been into action since June 2004 to assure continuous improvement in the delivery of social responsibility initiatives at the company level. In 2005, reporting companies averaged almost half of its intended goal, i.e. 452.95 points on a 1000 point scale, with companies scoring as high as 712 (Tata Steel). In 2006/07, TCS scored 490. Tata Motors, now at 663, was one of the best performers on corporate sustainability within the group. These scores were only the start. The purpose behind the Index is to seed new benchmarks and motivate continuous innovation in sustainability across each companys operations.

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Evaluation & Reporting TATA CSR Protocol


Assurance levels Total score Break-up (process + outcome)

Level I

Systems level

275

150 + 125

Level II

People level

175

100 + 75

Level III

Programme level

550

300 + 250

Total points

1000

550 + 450

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System Level

There are 4 major points for action under this Level that will demonstrate explicit commitment and involvement of senior leadership in providing direction to company level CSR and also ensure that the intent is actually deployed and implemented.

Leadership Commitment and Involvement: Management Structure and Deployment Strategy Development & Action Plan Review Mechanism, Process Documentation and Reporting, Communication & Awareness.

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People Level
Positioning the right people is important to build credibility and continuity, and is part of the brand assurance / deliverable.

While putting the right people is one part, training, orientation, updating and development of facilitators on a constant basis is another important aspect. The HR function is the process owner.

Selection, Career Development of key Employees, Performance Management and Succession Planning Training for Professional, Organizational, Managerial Competence and Enhancement of Role in CSR Training for Leadership Development, Enrolment of other employees, Personal Learning, Development and enhancing Role in CSR Volunteer Scheme and increasing / maturing degree of Volunteering

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Program Level
At the Program Level a Company assesses its performance on the CSR initiatives taken for local communities, at national and global levels that directly impacts the lives of people. Typical project work moves towards creating an enterprise driven by entrepreneurship generating not only opportunities but more jobs. Finally all activity culminates in building community-based institutions that enable empowerment and sustenance. Risk management of Social / Environmental impact; Strive towards developmental change, Biodiversity Restoration & Wildlife Conservation Serving Communities around basic needs in the neighborhood: Encouraging Social & Novel Entrepreneurships to convert existing charity - driven initiatives into sustainable ventures:

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GRI /G3 Framework


About Global Reporting Initiative Global Reporting Initiative (GRI) is a multi stakeholder process to develop and disseminate globally applicable Sustainability Reporting Guidelines. It is based on the Triple Bottom Line of Strong Financial Performance (Profit), Strong Environmental Management (Planet) and Corporate Social Responsibility (People) Framework:

Strategy & Analysis


Organization Profile Report Parameters Governance, commitments & Engagement Disclosure of Mgt Approach Economic Performance Indicators Environmental Performance Indicators Social Performance Indicators 39

GRI /G3 Framework


Upon finalization of their report, preparers should declare the level to which they have applied the GRI Reporting Framework via the GRI Application Levels system. Declaring an Application Level results in a clear communication about which elements of the GRI Reporting Framework have been applied in the preparation of a report. To meet the needs of new beginners, advanced reporters, and those somewhere in between, there are three levels in the system. They are titled C, B, and A An organization can self-declare a plus (+) at each level (ex., C+, B+, A+) if they have utilized external assurance. An organization self-declares a reporting level based on its own assessment of its report content against the criteria in the GRI Application Levels

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GRI /G3 Framework


This report is in accordance with GRI application level A. This annual Corporate Sustainability report is used as a main method of reporting to stakeholders on range of policies, priorities and performance.

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GRI/ G3 Framework

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Global Compact
Global Compact (GC) is a United Nations Initiative that was launched in July 2000. It is based on ten principles in the areas of: Human Rights, Labour, Environment and Anti-corruption

Tata Motors made a beginning in 2003-04 and has since submitted three reports (called Communication on Progress COP) to the Global Compact Tata Motors is the only Indian automobile company that has been appreciated for its Communication on Progress for the second consecutive year in 2005-06

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Social Accountability 8000


Social Accountability 8000 (SA 8000) was developed by Social Accountability International (SAI), a non profit affiliate of the Council on Economic Priorities (CEP). It is based on: United Nations Convention on the Rights of the Child and Universal Declaration of Human Rights SA 8000 measures the performance of companies in eight key areas. These include: Child labour Forced labour Health and Safety Discrimination Disciplinary Practices Working Hours Compensation Tata Motors is one of the four Tata Companies that has adopted SA 8000 in 200 The standards would be applied within the facilities, starting from manufacturing unit at Pune

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