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INDEX
Sr.No
Topics
Expansion plans
Ongoing Programmes
Responsible Development
Conclusion
Recommendations
10
Significance
11
References
The Company was originally incorporated as "The Tata Iron and Steel Company Limited"
on August 26, 1907 as a public limited company, under the provisions of the Indian
Companies Act, 1882. The Company was established by Jamsetji N. Tata, the founder of
the Tata companies and today is one of the flagship Tata companies. Pursuant to a
resolution of the Board of Directors dated May 19, 2005 and of the shareholders of the
Company dated July 27, 2005, the name of the Company was changed to "Tata Steel
Limited" with effect from August 12, 2005. The Registered Office of the Company is
situated at Bombay House, 24 Homi Mody Street, Fort, Mumbai 400 001.
There has been no change in the Registered Office of the Company. The Company
manufactures a diversified portfolio of steel products, with a product range that includes
flat products and long products, as well as some non-steel products such as ferro alloys
and minerals, tubes and bearings. The Company, through its Indian operations, is a large
manufacturer of ferro chrome and steel wires in India and a supplier of chrome ore
internationally. The Companys main markets include the Indian construction, automotive
and general engineering industries. The Companys main facilities have been historically
concentrated around the Indian city of Jamshedpur (Jharkhand), where the Company
operates a 6.8 mtpa crude steel production plant and a variety of finishing plants close to
the iron ore and coal reserves. The Company proposes to increase the crude steel
production of the Jamshedpur plant by 2.9 mtpa to 9.7 mtpa. The Companys bearing
division is located at Kharagpur (West Bengal), ferro manganese plant is located in Joda
(Orissa), charge chrome plant is located in Bamnipal (Orissa), cold rolling complex is
located in Tarapur (Maharashtra) and wire division is located at Tarapur (Maharashtra),
Bangalore (Karnataka), and Indore (Madhya Pradesh). The Company also has iron ore
and coal mines, collieries and quarries in the states of Jharkhand, Orissa and Karnataka.
In February 2005, the Company acquired the steel-related businesses of NatSteel Asia,
with facilities located in Singapore, China, Malaysia, Vietnam, the Philippines, Thailand
and Australia. In March 2006 the Company also acquired a 25.0% interest in Millennium
Steel, the largest steel producer in Thailand, and in April 2006 a further 42.1% interest,
for a total interest of 67.1% in Millenium Steel, (now known as Tata Steel (Thailand)
Public Company Limited). On April 2, 2007 the Company acquired Corus Group
Limited, with key production facilities located in the United Kingdom and the
Netherlands. The acquisition was implemented by Tata Steel UK Holdings Limited which
is a wholly owned subsidiary of Tata Steel Europe Limited, formerly known as Tulip UK
Holdings (No. 1) Limited. In April 2009, Hoogly Metcoke & Power Company Limited,
which was earlier a subsidiary of the Company was merged with the Company. The
Equity Shares of the Company were first listed on the BSE in 1937 as per records
available with the Company and previously were also listed with the Native Share and
Stock Brokers Association Limited (the predecessor of the BSE). The Companys Equity
Shares were listed on the NSE on November 18, 1998. The Companys Equity Shares
were delisted from the Calcutta Stock Exchange Association Limited ("CSE") with effect
from May 30, 2008. 3,867 Global Depository Receipts issued by the Company are listed
on the Luxembourg Stock Exchange and 5,753,386 Global Depository Receipts issued by
the Company are listed on the London Stock Exchange. Convertible Alternative
Reference Securities ("CARS") issued by the Company are listed on the Singapore Stock
Exchange. The Convertible Bonds issued by the Company are listed on the Singapore
Exchange Securities Trading Limited. The Company has entered into a Brand Equity and
Business Promotion Agreement with the Promoter dated December 18, 1998 for the use
of the "Tata" name. The Company is not operating under any injunction or restraining
order.
Born 175 years ago, in 1839, Jamsetji Nusserwanji Tata, the Founder of the Tata group,
was a visionary who felt the need to use the resources and capabilities at his command to
the service of the people of the country and make India
a self-reliant economy.
Motivated by the early nationalists of the Indian freedom movement in the latter half of
the nineteenth century, Jamsetji Tata devoted his entire energy and effort to implement his
vision of building an industrial enterprise in India that would provide economic freedom
to the country. An enlightened entrepreneur and a great nationalist, his vision for a free
enterprise was one that would make the community the very purpose of its existence.
A simple and altruistic viewpoint, it enveloped within it a complex, hitherto unheard of,
holistic ideology of business enterprise as corporate citizens. His basic premise was that
just as other citizens had both rights and duties, the duty of a corporate citizen required it
to serve the plural interests of diverse stakeholders perhaps collectively viewed by him
as the community. Even long before the steel plant was established, Jamsetji had the
vision that Tata Steels business practices should follow few principles for common good
including adopting an ethical value system and transparent business practices, driven by
the ideals of good governance that consider the interests of the shareholders our own, and
focus on the health and welfare of the employees. His vision for Tata Steel was not
restricted to the steel works but also of a planned city with a lot of greenery around where
the contented and productive work force would reside. In later years, the city thus born
out of his vision aptly came to be named as Jamshedpur. He consciously abjured
philanthropy, choosing instead to equip India to climb out of poverty by establishing the
means to harness its finest minds.
Tata Steel over the last century has always endeavoured to align its strategy and actions
that are focused on building sustainable and long-term business by placing equal
emphasis on stakeholder value creation and corporate citizenship.
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is
an Indian multinational steel-making company headquartered in Mumbai, Maharashtra,
India, and a subsidiary of the Tata Group. It was the 11th largest steel producing company
in the world in 2013, with an annual crude steel capacity of 25.3 million tonnes, and the
second largest private-sector steel company in India (measured by domestic production)
with an annual capacity of 9.7 million tonnes after SAIL
Tata Steel has manufacturing operations in 26 countries, including Australia, China,
India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs
around 80,500 people. Its largest plant is located in Jamshedpur, Jharkhand. In 2007 Tata
Steel acquired the UK-based steel maker Corus which was the largest international
acquisition by an Indian company till that date. It was ranked 486th in the 2014 Fortune
Global 500 ranking of the world's biggest corporations. It was the seventh most valuable
Indian brand of 2013 as per Brand Finance.
On 12 February 2012 Tata Steel completed 100 years of steel making in India.
History
Tata Iron and Steel Company was established by Dorabji Tata on 25 August 1907, as part
of his father Jamsetji's Tata Group.By 1939 it operated the largest steel plant in the
British Empire. The company launched a major modernization and expansion program in
1951. Later in 1958, the program was upgraded to 2 Million metric tonnes per annum
(MTPA) project. By 1970, the company employed around 40,000 people at Jamshedpur,
with a further 20,000 in the neighbouring coal mines. In 1971 and 1979, there were
unsuccessful attempts to nationalise the company. In 1990, it started expansion plan and
established its subsidiary Tata Inc. in New York. The company changed its name from
TISCO to Tata Steel in 2005.
Acquisitions
NatSteel in 2004: In August 2004, Tata Steel agreed to acquire the steel making
operations of the Singapore based NatSteel for $486.4 million in cash. NatSteel had
ended 2003 with turnover of $1.4 billion and a profit before tax of $47 million. The steel
businesses of NatSteel would be run by the company through a wholly owned subsidiary
called Natsteel Asia Pte Ltd. The acquisition was completed in February 2005. At the
time of acquisition, NatSteel had a capacity of about 2 million tonnes per annum of
finished steel.
Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-based
steelmaker Millennium Steel for a total cost of $130 million. It paid US$73 million to
Siam Cement for a 40% stake and offered to pay 1.13 baht per share for another 25% of
the shares of other shareholders. For the year 2004, Millennium Steel had revenues of
US$406 million and a profit after tax of US$29 million. At the time of acquisition,
Millennium Steel was the largest steel company in Thailand with a capacity of 1.7 million
metric tonnes per annum, producing long products for construction and engineering steel
for auto industries. Millennium Steel has now been renamed to Tata Steel Thailand and is
headquartered in Bangkok. On 31 March 2013, it held approx. 68% shares in the acquired
company.
Corus in 2007: On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch
company, Corus to buy 100% stake at 4.3bn ($8.1 billion) at 455 pence per share. On 19
November 2006, the Brazilian steel company Companhia Siderrgica Nacional (CSN)
launched a counter offer for Corus at 475 pence per share, valuing it at 4.5 billion. On
11 December 2006, Tata preemptively upped its offer to 500 pence per share, which was
within hours trumped by CSN's offer of 515 pence per share, valuing the deal at 4.9
billion. The Corus board promptly recommended both the revised offers to its
shareholders. On 31 January 2007, Tata Steel won their bid for Corus after offering 608
pence per share, valuing Corus at 6.7 billion ($12 billion).
In 2005, Corus employed around 47,300 people worldwide, including 24,000 in the
UK. At the time of acquisition, Corus was four times larger than Tata Steel, in terms of
annual steel production.Corus was the world's 9th largest producer of Steel, whereas Tata
Steel was at 56th position. The acquisition made Tata Steel world's 5th largest producer
of Steel.
bar/wire rod mill operated by SSE Steel Ltd and a 180k tonnes per year reinforcing bar
mill operated by Vinausteel Ltd.
Operations
Tata Steel is headquartered in Mumbai, Maharashtra, India and has its marketing
headquarters at the Tata Centre in Kolkata, West Bengal. It has a presence in around 50
countries with manufacturing operations in 26 countries including: India, Malaysia,
Vietnam, Thailand, UAE, Ivory Coast, Mozambique, South Africa, Australia, United
Kingdom, The Netherlands, France and Canada.
Tata Steel primarily serves customers in the automotive, construction, consumer goods,
engineering, packaging, lifting and excavating, energy and power, aerospace,
shipbuilding, rail and defence and security sectors.
Expansion plans
Tata Steel has set a target of achieving an annual production capacity of 100 million tons
by 2015; it is planning for capacity expansion to be balanced roughly 50:50 between
greenfield developments and acquisitions. Overseas acquisitions have already added an
additional 21.4 million tonnes of capacity, including Corus (18.2 million tonnes),
NatSteel (2 million tonnes) and Millennium Steel (1.2 million tonnes). Tata plans to add
another 29 million tonnes of capacity through acquisitions.
Major greenfield steel plant expansion projects planned by Tata Steel include:
an expansion of the capacity of its plant in Jharkhand, India from 6.8 to 10 million
tonnes per annum;
a 5 million tonne per annum capacity plant in Chhattisgarh, India (Tata Steel
signed a memorandum of understanding with the Chhattisgarh government in 2005;
the plant is facing strong protest from tribal people);
a 10.5 million tonne per annum capacity plant in Vietnam (feasibility studies are
underway); and
Shareholding
As on 31 March 2013, Tata Group held 31.35% shares in Tata Steel. Over 1 million
individual shareholders hold approx. 21% of its shares. Life Insurance Corporation of
India is the largest non-promoter shareholder in the company with 14.88% shareholding.
Shareholders
Shareholding
31.35%
Insurance Companies
21.81%
Individual shareholders
22.03%
15.35%
GDRs
02.41%
Others
07.05%
Total
100.0%
The equity shares of Tata Steel are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India,
where it is a constituent of the S&P CNX Nifty.
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange and
the Luxembourg Stock Exchange.
In 2013, Tata Steel was ranked India's 7th most admired company by Fortune
magazine. It was India's most admired company in 2012.
In 2013, Tata Steel received the Most Admired Knowledge Enterprises (MAKE)
award for 2012 at Global and Asian level. The company has previously been
recognised by the Indian MAKE awards on six accounts since its inception in 2005.
It won the 'Golden Peacock' award in 2009 for its corporate social responsibility
(CSR) initiatives.
In 1996, the Tata Bearings division was awarded the "Best of all" Rajiv Gandhi
National Quality Award.
In 2008, Tata Steel was awarded Deming Application Prize for excellence in Total
Quality Management.
In 2012, Tata Steel became the first integrated steel company in the world to be
awarded the Deming Grand Prize.
The company is part of the composite Dow Jones Sustainability World Index
(DJSI World) since 2008. DJSI World comprises leaders in sustainability (the top
10% in terms of performance), selected on the basis of long-term economic,
environmental and social criteria, from the largest 2500 companies in the world.
Controversies
Job cuts at Teesside in UK: In 2009, the subsidiary company Corus announced
mothballing of the blast furnace at Teesside. This would result in approx. 1,700 job
cuts. In 2003, Corus had informed that the production at Teesside Cast Products
(TCP) was a surplus to its needs. In December 2009, it informed about partial
mothballing of the plant. To help the workers, a Corus Response Group was formed
which developed a comprehensive package of support. This plan was in place over
the past 10 months of announcement. This plan included employment experts on site
in January 2010 to put in place support for affected workers, such as individual
sessions with workers to update CVs, highlight job opportunities and look at
retraining options. The response group will also be working closely with the Teesside
Cast Products supply chain to offer similar support. In February 2011, the TCP plant
was bought by Thailand's Sahaviriya Steel Industries from Corus for $469 million.
The acquisition was expected to create more than 800 jobs on top of the existing
workforce of 700 at the steel plant, which will be brought back into full operation.
The Dhamra Port, a joint venture between Larsen & Toubro and Tata Steel near
Dhamra river in Bhadrak district of Odissa, has come in for criticism from groups
such as Greenpeace, Wildlife Protection Society of India and the Orissa Traditional
Fishworkers' Union for environment protection. The port is being built within five
kilometres of the Bhitarkanika National Park, a Ramsar wetland of international
importance, home to an impressive diversity of mangrove species, saltwater
crocodiles and an array of avian species. The port will also be approximately 15 km.
from the turtle nesting of Gahirmatha Beach, and turtles are also found immediately
adjoining the port site. Aside from potential impacts on nesting and feeding grounds
of the turtles, the mudflats of the port site itself are breeding grounds for horseshoe
crabs as well as rare species of reptiles and amphibians. The port began commercial
production in May 2011. In response, the company website informs that it has been
working with International Union for Conservation of Nature (IUCN) for guidance
and assistance in the implementation of environmental standards and designing
mitigation measures for potential hazards during construction and operation of the
Port.
Major competitors
Timeline
1907 - The Tata Iron and Steel Company Limited was formed in 1907 at Mumbai. The
Company manufactures rails, fishplates, bars, light structurals, heavy structurals, plates,
black sheets, galvanised sheets, tin bars, sleeper bars, sleepers, blooms, billets, sheet bars,
wheels, tyres and axles, skelp and strip, and special steels tools such as picks, beaters,
hammers and shovels and red-oxide, coal tar, sulphate of ammonia, etc.
1917 - During the year 1,50,000 equity shares issued at par and 26,250 deferred shares
issued at a premium of Rs.370 per share.
1919 - During the year 7,00,000 second pref. shares of Rs.100 each issued at par. 6181
second pref. shares forfeited.
1954 - During the year, 8750 defd. shares of Rs.30 each converted into 292,500 equity
shares of Rs.75 each. 642,500 bonus equity shares issued in prop. 1:1.
1973 - With effect from 1st April, the wholly owned subsidiary, West Bokaro Ltd., was
amalgamated with the company.
1980 - Tata Steel and ACC signed a long-term agreement, valid up to the end of 1991,
whereby the slag from the granulation plant could be taken by ACC.
1983 - During the year Indian Tube Company Limited was amalgamated with the
company. After the amalgamation, the company produces a wide range of tubes including
seamless and welded quality tubes. The company also makes agricultural implements and
alloy steel baring rings.
1986 - In October, higher recovery of iron-bearing materials from waste materials viz., a
Rs.18.5 crores waste-recycling plant, was commissioned.
1990 - In November, the 80-tonne energy optimising furnace set up with Korf
Technology was commissioned.
1991 - During the year Company acquired a 100% export-oriented ferro-chrome
manufacturing unit of OMC Alloys Ltd. from the Orissa State Government at a total cost
of 156 crores. It is located at Bammpal, Orissa, and has a capacity to produce 50,000
tonnes per annum of ferro-chrome.
1995- The company was implementing expansion of the Hot Strip Mill to two million
tonnes per annum and increasing the saleable steel capacity to 3.20 million tonne per
annum. The company proposed to install a bar and rod mill of 5,00,000 tonnes per annum
capacity and put up a facility to produce forging quality Rounds/Squares.
1998 - During the year it was proposed to set up a cold rolling mill at the company's
works in Jamshedpur to add value to current product mix-up. Letters of intent for most of
the major equipment, foreign and indigenous were placed. Nippon Steel were appointed
as technology consultants for the project.
2001 - Tata Iron and Steel Company Ltd. is the recipient of National Award for
Excellence in Corporate Governance for the year 2000. Tata SSL has become a subsidiary
of Tata Iron and Steel Company, following a successful open offer to the shareholders of
TSSL.
2004 -Tata Steel April-Dec output of crude & saleable steel over 3 million tonnes. Tata
Steel gets Petroleum Conservation Research Association award for energy conservation
2008 - Tata Steel gets the Best Establishment Award by the President of India, Mrs.
Patibha Patil
2009 - Tata Steel, through its subsidiary, Tata Steel Global Minerals Holdings has entered
into Joint Venture Agreement on 6th November 2009 with New Millennium Capital
Corp.
- Tata Steel wins Golden Peacock Award for Corporate Social Responsibility -Tata Steel Corus signs Share Purchase Agreement with Klesch for sale of aluminium smelters -Tata
Steel - Corus signs MoU on Teesside sale with Marcegaglia and Dongkuk -Tata Steel
enters into Joint Venture Agreement with New Millennium, Canada
2010 - Tata Steel, Indias leading steel makers has teamed up with State Bank of India,
Orissa government and CAP, for the manufacturing of the skilled labour.
- Tata Steel has added one more milestone to its locker, as the Tata Steel has been ranked
among the world's top ten of the "Most Admired Company" rated by Fortune Magazine
and the Hay Group during the year.
- Tata Steel won the Most Admired Knowledge Enterprise (MAKE) Winner for the year
2010 for sustained excellence in field of Knowledge Management.
2011 - Tata Steel - Joint Venture for Automotive Cold-Rolled Flat Products. TSRDS
Jharia receives Best NGO award.
2012- Tata Steels prominence on safety at all levels of its operations received national
ovation with the Company bagging the prestigious National Safety Award
- Safety & Health Excellence Recognition 2012 awarded to Tata Steel by Worldsteel
Association
2013 - Tata Steel was awarded the 'CII-ITC Sustainability Prize' in the 'Category A' for
Large Independent Company at the CII-ITC Sustainability Awards 2012.
- Tata Steel, a pioneer in steel manufacturing, launched a new version of its online portalValueabled.com at the Jaipur Literature Festival, an online extending company sustained
campaign to inspire the youth to embrace a value driven society.
Tata Steel has always believed that the principle of mutual benefit between countries,
corporations, customers, employees and communities is the most effective route to
profitable and sustainable growth.
Tata Steel is among the top ten steel manufacturers in the world. It operates in more than
20 countries and has a commercial presence in over 50.
A focus on continuous improvement and cutting-edge R&D has enabled Tata Steel to
stay ahead.
Areas of business
Tata Steels operations in Jamshedpur are among the most cost competitive in the global
steel industry.
Throughout its century-long history, Tata Steel in India has been a pioneer in industrial
and employment practices. Today it has a 6.8 mtpa crude steel production plant as well as
a significant presence in all the key product segments.
Capacity expansion is a key strategy for Tata Steel in India, where it derives much of its
competitive advantage as a low-cost producer from the quality and yield of its raw
material sources. The mines have provided raw material security and also partially
insulated Tata Steel from the volatility within the global markets for these raw materials.
Work is currently under way to increase steelmaking capacity at Jamshedpur to 9.7 mtpa
of crude steel by 2012. This additional capacity will enable the company to increase its
market share in flat products and to use its existing resources more efficiently, including
manpower, utilities and its captive mines. Looking further into the future, the company
plans to continue to increase its capacity significantly through both brownfield and
greenfield developments.
The company produces crude steel and basic steel products, and makes steel for building
and construction applications through Tata BlueScope Steel, its joint venture with
Australia's BlueScope Steel.
Tata Steel has also set up joint ventures for the development of limestone mines in
Thailand, the procurement of low-ash coal from Australia and coking coal from
Mozambique, and the setting up of a deep-sea port in Orissa in India. The company is
exploring opportunities in the titanium dioxide business in Tamil Nadu, India, and will
soon be producing high carbon ferrochrome from its plant in South Africa.
Tata Steel Europe: Europes second largest steel maker with major operations in
the UK and continental Europe, Tata Steel Europe produces long and strip
products for the construction, automotive, packaging, engineering and other
markets worldwide.
Tata Steel Thailand: A major steel producer in Thailand, the company produces
steel for the construction industry.
Tayo Rolls: Indias leading roll manufacturer and supplier, the company produces
rolls for integrated steel plants, power plants, the paper, textile and food
processing sectors, and the government mint.
Tata Ryerson: Offers hot- and cold-rolled flat steel products in customised sizes
and quantities.
Tata Pigments: Produces oxides of iron, dry cement paint, exterior emulsion
paint and distemper. Its products are used in paints, emulsions, cement floors and
plastics.
Jamshedpur
Injection
Powder:
Manufactures
carbide
de-sulphurising
mjunction services: A 50:50 joint venture involving Steel Authority of India and
Tata Steel, it is India's largest e-commerce company and the world's largest emarketplace for steel.
Indian Steel and Wire Products: Recently acquired by Tata Steel, ISWP has a
wire unit and a steel roll manufacturing unit.
Tata BlueScope Steel: A joint venture with BlueScope Steel, Australia, the
company offers a comprehensive range of branded steel products for building and
construction applications.
Dhamra Port Company: A joint venture between Larsen & Toubro and Tata
Steel to build a deep-draft (18 metres) all-weather port in Orissa on the east coast
of India.
Hooghly Met Coke & Power Company: A joint venture with the West Bengal
Industrial Development Corporation, producing met coke and electric power.
Lanka Special Steel: A Sri Lankan unit that manufactures galvanised wires.
Tata Steel KZN: Setting up a high carbon ferrochrome plant in South Africa with
an annual production capacity of 135,000 tonnes.
Tata NYK: A 50:50 joint venture with Nippon Yusen Kabushiki Kaisha (NYK
Line) to set up a shipping company to handle dry-bulk and break-bulk cargo.
CSR Philanthropy
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship or sustainable responsible business/ Responsible Business) is a form
ofcorporate self-regulation integrated into a business model. CSR policy functions as a
self-regulatory mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards and international norms. With
some models, a firm's implementation of CSR goes beyond compliance and engages in
"actions that appear to further some social good, beyond the interests of the firm and that
which is required by law." CSR aims to embrace responsibility for corporate actions and
to encourage a positive impact on the environment and stakeholders including consumers,
employees, investors, communities, and others.
The term "corporate social responsibility" became popular in the 1960s and has remained
a term used indiscriminately by many to cover legal and moral responsibility more
narrowly construed.
Proponents argue that corporations increase long term profits by operating with a CSR
perspective, while critics argue that CSR distracts from business' economic role. A 2000
study compared existing econometric studies of the relationship between social and
financial performance, concluding that the contradictory results of previous studies
reporting positive, negative, and neutral financial impact, were due to flawed empirical
analysis and claimed when the study is properly specified, CSR has a neutral impact on
financial outcomes.
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR. or that
CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a
watchdog over powerful multinational corporations.
Political sociologists became interested in CSR in the context of theories
of globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as a
form of capitalist legitimacy and in particular point out that what began as a social
movement against uninhibited corporate power was transformed by corporations into a
'business model' and a 'risk management' device, often with questionable results.
CSR is titled to aid an organization's mission as well as a guide to what the company
stands for to its consumers. Business ethics is the part of applied 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. 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 notion is now extended beyond purely commercial corporations, e.g. to universities.
Definition
Business dictionary defines CSR as "A companys sense of responsibility towards the
community and environment (both ecological and social) in which it operates. Companies
express this citizenship
(1) through their waste and pollution reduction processes,
(2) by contributing educational and social programs and
(3) by earning adequate returns on the employed resources."
A broader definition expands from a focus on stakeholders to
include philanthropy and volunteering.
Consumer perspectives
Most consumers agree that while achieving business targets, companies should do CSR at
the same time. Most consumers believe companies doing charity will receive a positive
response. Somerville also found that consumers are loyal and willing to spend more on
retailers that support charity. Consumers also believe that retailers selling local products
will gain loyalty Smith (2013] shares the belief that marketing local products will gain
consumer trust. However, environmental efforts are receiving negative views given the
belief that this would affect customer service Oppewal et al. (2006) found that not all
CSR activities are attractive to consumers They recommended that retailers focus on one
activity. Becker-Olsen (2006) found that if the social initiative done by the company is
not aligned with other company goals it will have a negative impact. Mohr et al.(2001)
and Groza et al. (2011) also emphasise the importance of reaching the consumer.
Responsible Development
The Tata Steel groups core purpose is To improve the quality of life of the communities
we serve through long-term stakeholder value creation.At Tata Steel, sustainable
development and inclusive growth is facilitated by the Corporate Social Responsibility
(CSR) department through its operating arms i.e., the Tata Steel Rural Development
Society (TSRDS), the Tata Steel Family Initiative Foundation (TSFIF), the Tata Steel
Tribal Cultural Society (TSTCS) and the Tata Steel Skill Development Society (TSSDS).
Its initiatives span health, education, sports, sustainable livelihoods, drinking water,
renewable energy (solar street lights), employability training and ethnicity.
Programmes
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 success
in 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.
It was the first to establish labour welfare practices, even before these were made
statutory laws across the world. In 1912 it invited Sidney and Beatrice Webb, the
Founders of the London School of Economics, to prepare a Memorandum of Health for
the Steel City. The Company also instituted an eight-hour workday in 1912, free medical
aid in 1915, a Welfare Department in 1917, leave with pay, Workers Provident Fund and
Workmens Compensation in 1920 and Maternity Benefit for ladies in 1928.
With the understanding that the hunger for employment can never be satisfied despite its
best efforts, the Company took an enlightened decision to address the needs of those who
migrated to its vicinity in search for employment. It first stimulated entrepreneurship and
economic development in the Steel City and then reached out to the rural poor,
empowering them with the means to create better livelihoods within their own villages.
At the same time, Tata Steel also fulfilled their basic need for health care, food security,
education and income generation through the development of rural infrastructure,
empowerment and community outreach programmes.
By virtue of the extent of its demonstrated commitment for decades, through the beliefs
and values it has acted upon, the resources it has deployed, the wealth it has shared as
well as the many "firsts" it has achieved through socio-economic programmes, Tata Steel
is Indias acknowledged Corporate Social Responsibility leader and is recognised as a
most humane organisation. Every lesson learned, every piece of knowledge gathered, the
Company offers to all those who wish to work alongside it to "improve the quality of life
of the communities it serves."
Education
Tata Steel has influenced the integration of tribals 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 drop out 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
Tata Steel to produce professionally trained personnel.
Tribals culture :
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-tribals.
Additionally, a Santhali 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.
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. And with TCS behind us, we will make it. If I
have found meaning in my life, it is because of TCS. Without them, my desire to do
something substantial would have remained intangible forever.
Health care:
Among the most active sponsors of the Lifeline Express a hospital on wheels- Tata
Steel has endeavored to take medical care far beyond those connected with its operations.
This unique train travels at the behest of its sponsors to those parts of rural India, left
untouched by modern medicine.
At Jamshedpur, the Company runs a 850-bed general hospital with a specialised Burn
Centre, Dispensaries and Super Dispensaries to reach out to its employees as well as a
large number of citizens across the steel city. The network of specialised medical care
units it has created also fulfills the need for low cost, high quality medical care for the
economically less privileged. It established the Jamshedpur Blood Bank to provide safe
blood to those in need and has very successfully promoted a culture of voluntary blood
donations. At its outlocations the Company has set up hospitals, which cater to the
healthcare needs of people from the surrounding rural areas.
The doctors and para medical staff of its hospitals as well as the dedicated staff of its
social welfare arms have also taken health care awareness including eye care,
tuberculosis treatment, general health awareness, HIV/AIDS Awareness and Mother and
Child survival programmes to a large number of villages and communities.
Through the efforts of the Tata Steel Rural Development Society (TSRDS) and the Tata
Steel Family Initiatives Foundation (TSFIF), the Company covers the rural and periurban population through basic health care amenities. Both these social welfare arms of
the Company have been building capacity through training programmes to create
community based health care partners as well as grass-root volunteers.
The Company has successfully changed notions of millions of villagers on water and
sanitation, created a demand for better health facilities, ensured immunisation for tens of
thousands and been instrumental in bringing down infant mortality rates.
Ongoing Programmes
Mother and Infant Survival Programme Population Stabilisation
Operation Muskaan for cleft lips and palates "YARS" - Youth and Adolescent
Reproductive Services
Specifically targeted programmers 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 heterogenous population of over
10,00,000 including adolescents and youth, industrial workers, bustee 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.
Prevention Consortium) and more recently through Global Reporting Initiatives. This
programme extends to the rural and urban populace residing in and around Jamshedpur.
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.
Conclusion
For bringing back and maintaining the general balance in the economic and social arena it
is evident to think deeply and act wisely about CSR. Every business house owe some
responsibility towards the society, nation and world in general which provide it with all
human, material and natural resources. Considering the long run growth and sustainable
development following the norms of CSR , devising new policies and effective
implementation is inevitable to bring and sustain a balance between corporate world and
society, present generation and upcoming generation, man and nature .
As far as the Tata group is concerned , it has gone a long way in fulfilling its duty and
responsibility towards the society and the nation. It has reached the masses to elevate
their lives, to nurture their dreams and to hone their skills justifying the statement of the
founder We do not claim to be more unselfish, more generous and more philanthropic
than other people. But we think we started on sound and straightforward business
principles, considering the interests of the shareholder, our own, and the health and
welfare of the employees, the sure foundation of our prosperity.
1. As business is an integral part of the social system it has to care for varied needs
of the society
2. Business which is resourceful has a special responsibility to the society
3. Social involvement of business would enhance a harmonious and healthy
relationship between the society and business seeking mutual benefit for the both.
4. Social involvement may create a better public image and goodwill for the
company which further becomes instrumental in attracting customers, efficient
personnel and investors.
Significance
1) To the Policy Makers
Encourages Private Public Partnership (PPP) for CSR promotion
encompassing infrastructure, pollution, child labor, labor productivity &
morale.
It may become helpful to make the policy makers at political and corporate
level as well consider CSR an investment and not an expense as it can become
investment destination .
Cumulative results may improve Human Development Index (H.D.I.) of the
country
Recommendations
1. The concept of private-public partnership (PPP) should be applied in the effective
implementation of CSR i.e. government and business houses should act in
collaboration for the cause.
2. The Human Resource department (at the political and private level both) should
be entrusted with the responsibility of measuring and evaluating in CSR
activities . It can be done in two forms