THE TATA PERSPECTIVE ON CSR

Presentation for the National CSR Conclave

January 18, 2012

Achala Kumar, Tata Group

Tata Group Snapshot

Group Purpose

Attain leadership through

business excellence in the

sectors the Group operates

in; while upholding our

values and Integrity, to

improve the quality of life of

the communities we serve.

Tata Holding Structure

TATA - CSR

1. Spirituality and Corporate Social Responsibility have had a deep-rooted connection.

2. Responsible Business – beyond Corporate Social Responsibility.

Management Philosophy

“In a free enterprise, the community isnot just another stakeholder in businessbut is in fact the very purpose of itsexistence”.

- Jamsetji Tata- Founder, Tata Group

TRUSTS

Corporate ‘Firsts’

1916 Social Welfare measures

1912 8 hours working day

1920 Leave with pay

1928 Maternity benefit

1934 Profit sharing bonus

1937 Retiring gratuity

1951 Planned Family Initiative

1971 Tata Steel Rural Development Society

1982 Externally published social audit report

Partnerships for benchmarking with best practices and growing together

What does it mean at the Company Level?

Making Social Responsibility happen at three levels

TCCI Programme on institutionalizingsupport for CSR

Leadership / Capacity Building /Performance Management System

Procedure on process documentation &learning

Give me a Purchase Order not a Charity Cheque

Tata Motors – Grihini Udyog : The companyhas a MoU with a Co-operative society of aspouses of employees to produce ingredientsfor the canteen, they assemble parts for thevehicle and the third generation is now doingcomputer data and information management.

Tata Teleservices – Amba Initiative – Thecompany has offloaded back office work witha NGO that cares for mentally retardedchildren This is remunerative, restoresdignity

Give me a Purchase Order not a Charity Cheque

Titan Industries – MYRADA -Many years ago, Titan set upan NGO for the disabled in thelocality and trained them tosupply parts, engaging mainlyadolescent girls, therebyensuring they latch upon tothe company’s progress.

Where are we going?

Tata Interactive develops a uniqueteaching process for children withLearning Difficulty / Disability (LD) usinge-learning technology.

A team of executives volunteer todevelop this process and generate abuisness alternative. The company hascreated the Learning Disability Forum totake this forward through stakeholderconsensus.

This has reached 440 schools impactingover 1000 children. It will scale up allIndia with change in policy.

Innovations to Serve – Safe Drinking Water for all!

Tata Projects – develops sea waterdesalination U water related treatmentplants

This spreads to Andhra Pradesh, Punjab,Rajasthan, Karnataka, Tamil Nadu &Maharashtra, 173 units have been suppliedwith 5 lac beneficiaries.

The company has a co-operation agreementwith Naandi Foundation to take this forwardthrough its “Community Safe DrinkingWater” programme

Taj Group level Initiatives ……Bhavishya – Multi Stakeholder Alliance

Knowledge partnership with ICDs inorder to enhance the quality and tasteof food being served throughsupplementary nutrition program tochildren between 0-6 years, pregnantand lactating women. Training oftrainers approach was followed to reachout of interior, tribal district ofNandurbar in Maharashtra.

Local ingredients and the local tastewere kept in mind and more than 40recipes were developed. 12,000 SHGworkers and local women were trainedby the Taj-ICDs-Bhavishya network

Opportunities to serve – Tata Steel Limited

Tata Steel has the largest integrated Ruraldevelopment programme for over 700 villagesaround Jamshedpur

Tata Steel has combated TB, Smallpox, Malaria &Cataract through strategic programs

Tata Steel’s HIV / AIDS initiative is not only well-know locally but has been recognized by the UNGlobal Coalition Awards for HIV

Jamshedpur City has been selected by the UNGlobal Compact Cities Programme which TataSteel is coordinating

Opportunities to serve –Tata Motors Limited

Like most Tata companies – Tata Motors has a hugebiosphere created in an around its plant in Pune.

Tens of villages have been adopted around their plantsin different locations for integrated developmentfocusing on Health, Education, Child & Women

Tata Motors has played a significant role in vocationaltraining and education for the last 40 years, trainingthousands of young people in skills and trade

Tata Motors created co-operatives to mobilize thespouses of employees not only to enhance theirincome but create entrepreneurship and builddifferent forms of alternate capabilities

Opportunities to serve –Tata Power Limited

Tata Power has created and preserved largereserves of bio-diversity in and around itsoperations

Tata Power has given training to teachers andstudents from over 2000 schools inparticipatory forestry, preserving and growingbiodiversity in and around their locations.

Tata Power has protected tremendous amountof wildlife and endangered species such as 325bird species, 330 species of butterflies, 221species of amphibians, 157 species of reptilesand 125 species of mammals

Opportunities to serve –Tata Chemicals Limited

Tata Chemicals have used satellite imaginary to help build checkdams in draught-prone areas for conserving the use of water foragriculture

The saltworks of Tata Chemicals and the Charakla saltworks inparticular, provides refuge to thousands of aquatic birds, bothnative and migratory. As many as 121 species of birds have beenrecorded at the Charakla saltworks, which has been listed as an“Important Bird Area”

In a unique initiative, the company created awareness and finallysaved an endangered species of the Whale Shark-an excellentexample of what business can do.

Tata Chemicals has also formed 204 Self Help Groups with 2000people participating out of which 1600 are women transacting inan activity valued at Rs. 21.10 lacs in order to promoteSustainable Livelihoods that ultimately resulted in artisan andentrepreneurship development.

The Tata Business Excellence Model integrates social responsibility into the framework of corporate management wherein social responsibility is encapsulated as Key Business Process. In fact all social service departments in Tata companies have annual programmes and budgets… and all this is aligned to the MD’s Balanced Score Card.

What then are best practices?

22

Corporate Sustainability• When you bring to your Company the values of “Sustainable

Development” and impregnate it indelibly in the Corporate DNA.

• When that happens- you stand committed to perpetuate yourbusiness and social vision from ‘now towards eternity’.

• Political boundaries do not limit your vision. Your business takes aworld view on issues seeking human response ,mitigation.

• Corporate values get internalized into individual employee values,

• a collective commitment to making the world a better place to livein develop an organizational response-

• Seek out Corporate partners and build coalitions against genericissues threatening the safety and future of generations

• Active Leadership involvement.-TCCI. Evolve a leadership modelwithin organization to carry on the torch of voluntarism

• Business Excellence and Business Performance is measured throughsustainability indicies.

TATA Declarations on CSR• Serving the Community is the purpose of business – The Community is central to the core values

we adhere to in the Tata Group and it is not just another stakeholder in business, but is in fact thevery purpose of its existence.

• Enhancing Human Excellence and Improving the Quality of Life – The Community programs aimat building trust, improving the quality of life, enhance human excellence and build Community.

• Integrating Environmental Management with Social Development – A Tata enterprise isproactive in addressing environmental, ecological and biodiversity concerns arising out of itsoperations and this is integrated with our social responsibilities

• Sharing Core Competence and Technology with the underprivileged – Tata Companies evolvetheir programs out of their core competence and expertise.

• Business as a Partner in Development – Tata Companies work together with other playersengaged in the development of communities.

• Culture of Volunteering – In the Tata Group there is a culture of volunteering and TataCompanies enable committed employees to spare their skills and talents in the service of theneedy and the underprivileged.

• Organizational and Personal Learning – Tata employees recognize the valuable opportunitiesCommunity provides for individual and group learning. So programs are designed to fosterlearning, creativity, and experimentation in order to build knowledge to share it with others.

• Institutionalizing Social Responsibility in the Business Process – Commitment to socialresponsibility is explicit and visible in every Tata Company by way of management support andinvolvement, proactive methods in planning and deployment of resources; engagement ofemployees, and, sharing of knowledge.

Any questions / suggestionsachalakumar@tata.com