8/2/2019 TATA STEEL Challenges Future Learnings Shrikant

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Challenges

1. Expertise in the fields: Tata Steels core business is manufacturing steel and not CSR.2. Affects the bottom line: CSR activities does involves outflow of cash. It does affects the bottom line

i.e. profit of the company.

3. CSR is a continuous affair: Though the CSR immediately impacts the bottom line, but itscorresponding positive effect on top line is not seen immediately. CSR is a continuous affair, if not

done it affects the top line.

4. Diversion of resources: CSR not only involves outflow of funds but also of time and other resourcesof the organization. CSR cannot be outsourced entirely. The officials of the Company have to devote

their time towards theses activities.

5. Time consuming: CSR activity does consume time. One cannot just delegate it to some partner andcarry on with other work. For a successful CSR, lot of efforts mainly time is required to be devoted.

6. Even in times of economic distress, we can allocate less or more, but we cannot entirely shutdown CSR: As discussed above that it is a continuous affair. Unlike other activities which can be

brought to a standstill, CSR has to be undertaken irrespective of the state of economy.7. It is shareholders money: It is a matter of argument that it is the shareholders who own the

businesses or corporations. They are the real beneficiaries of the funds generated by the business.

The argument goes further by claiming that money allocated by managers toward CSR is money

stolen from the shareholders.

8. Right partner: It is true that Companies form their own institutions for CSR work, but sometimesthey have to also find right partner to undertake the tasks. It is important because the partner is

working on behalf of the Tata Steel and reputation of the company is on the stake.

9. Tata Corus layoffs: Though Tata as considered as one of the preferred employers, Tata ownedCorus in 2010 was thinking of laying off 1600 employees, which also affected jobs of 8000

employees in supply chain. British ministers also conducted strike against this move and unionleaders also considered taking strategic actions.

10.Mining bill: The new mining bill envisages that coal mining companies pay 26% of their profits andnon coal miners will have to pay equal amount of royalty paid to the project affected people. This

will lead to 9% decline in profits of Tata Steel. This has added burden to existing CSR activities of

Tata.

11.Dhamra Port Olive Ridley turtles: Greenpeace strongly condemned building a port trust atDhamra since it posed threat to endangered species. So to overcome the dispute and a part of CSR

they produced a movie (Hello Zindagi) spreading awareness about conservation of the species.

Future

1. Valueabled: This is the new drive started by Tata Steel where in they have emphasized on values.This website is totally dedicated to mainly 10 values like fairness, honesty, integrity, giving,

truthfulness etc. This site involves participation of users along with stresses on need to share the

same on social networking sites. The users can earn points by sharing views and stories related to

the values and redeem the same.

8/2/2019 TATA STEEL Challenges Future Learnings Shrikant

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2. Greenfection: Nationwide initiative to spread message of green, organize tree planting and otherenvironmentally friendly practices. We can plant tree online by referring the message to 5 people.

For referring to 5 people, Tata steel will plant tree on our behalf.

Learnings

1. TATA name is synonymous with philanthropy in India2. The name itself has been changed to Jamshedpur/Tatanagar. Jamshedpur is as good as a privately

owned village

3. They have epitomized that even large corporations can successfully make a balance between theircore business and contribution to society

4. The range of activities is humongous5. Top officials of Tata believe in wealth creation for others rather than accumulating for themselves.6. The area is surrounded by naxalites. But there is no instance of any harm to Tata employee due to

work they are doing to the society. This speaks about the goodwill of Tata. L N Mittal

7. Jamshedpur was first south Asian city to be selected as a UN Global Compact City. The globalcompact cities pilot programme aims at handling pressing urban problems such as shortage of

potable water, crumbling infrastructure, food and shelter, deteriorating health services and others

on the one hand and issues related to human rights, labour standards and environment on the other.