13 CORPORATE SOCIAL RESPONSIBILITY- A CASE STUDY IN TATA STEEL Mousumi Panda Regional College of Management, Bhubaneswar, India Abstract Corporate Social Responsibility is a term each and every individual of this era is aware of. The evolution of CSR in India refers to changes over time in India of the cultural norms of corporations engagements of CSR. Among other countries,india has one of the richest traditions of CSR. In recent years, Indian Entrepreneurs are aware of their responsibilities towards society. The study is about the CSR activities of Tata Steel,which believes in society development since its inception. Leaders of Tata Group like Jamshedji Tata, JRD Tata, Ratan Tata have contributed hugely towards CSR,which helps in sustainable development and good corporate governance.csr has always been taken care of by Tatas. In this study, we have focused on CSR activities of Tata Steel in and around Jamshedpur.Data is collected through primary and secondary sources upto 213,as the study was done before two and half years.the study shows how Tata Steel contributes in the areas of Education,Health,Tribal and Sports.This is a thorough study which may be carried forward for future study when data would be available for 214,215 and 216. Introduction Corporate Social Responsibility in now accepted as a means to achieve sustainable development of an organization. CSR is about integrating economic, environmental and social objective with a company s operations and growth. CSR impacts governance and ethics, employee welfare, society welfare, environment protection etc. and many more. The Companies Bill, 212 intends to inculcate the philosophy of CSR among Indian companies. There are different types of CSR like Environmental CSR, Community based CSR, HR based CSR and Philanthropy. The functions of CSR are Ethical, Legal, Societal and Ecological functions. The ethical functions of CSR help to present conflicts of interest between earning corporate profits and maintaining the integrity of the company. The legal function of CSR helps to encourage transparency in a company s business practices and financial reporting. The societal functions of CSR helps to respect and invest in the communities in which the company operation. The ecological functions of CSR helps not only to respect the immediate environment in which the company operates but also to respect the company s effect on the global environment. This study on CSR at Tata Steel has sufficient reasons to be established. Many such studies have been done at Tata Steel on CSR initiatives in the past. But, the recent study will throw lights on the perseverance and continuous efforts of Tata Steel for CSR activation. Here few quotations of the great leaders are justified to be given. I do believe that we, in the Tata group, have held a view and sense of purpose that our companies are not in existence just to run our business and to make profits but that we are responsible and good corporate citizens over and above our normal operations. Ratan N. Tata, Chairman Tata Group, 1993-212
14 Let the industry established in the countryside adopt the villages in its neighbourhood, it is also clearly in the interests of industry that surrounding areas should be healthy, prosperous and peaceful. JRD Tata,Chairman Tata Group, 1938-1993 In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence." - Jamsetji Nusserwanji, Tata Founder, Tata Group. CSR at Tata Steel Tata Steel for the last 1 years has focused on responsible business practices with communitycentric interventions. Sustainable development and inclusive growth is facilitated by CSR department through the Tata Steel Rural Development Society (TSRDS), the Tata Steel Family Initiative Foundation (TSFIF), the Tribal Cultural Society (TCI), the Tata Steel Skill Development Society (TSSDS) and the Urban Services, which contribute to health, drinking water, education, sustainable livelihood, renewable energy, employability Training and Tribal ethnicity. More than 7 SHGs (Self Help Groups) accounting for 9 plus members function with the support of Tata Steel. SHGs are adopted by Tata Steel to promote enterprise development. Engagements with SHGs includes: Empowerment of women to give then a greater say in decision making within the family. Income generation and entrepreneurship development. Facilitating credit linkages and marketing of products. Trained to adopt a more professional approach and improving the quality packaging and branding of their production. Competitions to encourage creativity & leadership. Key Interventions in CSR at Tata Steel: 1. Sustainability Initiatives 2. Rehabilitation and Resettlement Initiatives 3. Skill Development 4. Tribal Initiatives 5. Urban Services 6. Empower women self help groups 7. Training programme Initiatives. Corporate Social Responsibility has always been taken care of by the Tata group. The founder Mr. Jamshedji Tata used to grant scholarships for further studies abroad in 1892. He also supported Gandhiji s campaign for racial equality in South Africa. Tata group has given country its first science center and atomic research center. "The wealth gathered by Jamsetji Tata and his sons in half a century of industrial pioneering formed but a minute fraction of the amount by which they enriched the nation. Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is
15 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." (a statement on the Tata group's website www.tata.com). In July 24, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that in future TISCO would not deal with companies, which do not conform to the company's Corporate Social Responsibility(CSR) standards. Speaking at the annual general meeting of the Madras Chamber of Commerce and Industry, He stated, "We will not either buy from or sell to companies that do not measure up to Tata Steel's social responsibility standards." Through different companies and societies Tata group keeps on heading towards the fulfillment of corporate social responsibility. Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model and the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its profit after tax on several CSR initiatives. For the last 1 years, Tata Steel has focused on responsible business practices with communitycentric interventions. In the initial years, Tata Steel s CSR interventions were more as a provider to society where the community was given support for its overall needs, both for sustenance and development e.g. distribution of medicines, free distribution of seeds/fertilizers, farm equipments, etc. Objective of the study: To find out the current CSR initiatives taken by Tata Steel. Scope of the Study: Tata Steel, Jamshedpur Research Methodology: Methodology consists of interviewing the different SHGs and persons associated with CSR under various heads such as Education,Health,Tribal,Sportsetc.Secondary data is collected from websites, company magazines and records. Data Analysis: EDUCATION 1) How many SC/ST students have registered for competitive examination coaching and how many of them have been selected? 2) TOTAL CANDIDATES SELECTED BANK PO SELECTED GOVT JOBS SELECTED BANK CLERKS OTHER JOBS 71 7 4 3 25 32 NOT SELECTED 8 total candidates 6 4 2 selected as bank po selected in govt jobs selected as bank clerks selected in other jobs not selected
16 From the graph we can interpret that out of total candidates i.e. 71 who have registered themselves in the coaching classes for competitive examinations 39 have been selected which is more than 5% success. Previously it was just 26%. So these centres are successful in giving good results for the SC/ST children. 3) How many girls are there in the camp schools over last few years? FY YEAR NO. OF GIRLS 28-9 2 29-1 192 11-11 2 211-12 1 212-13 1142 15 1 5 NO. OF GIRLS 28-9 29-1 11-11 211-12 212-13 It is seen from the graph that during the year 28-9 the number of girls in the camp schools were 2. In the year 29-1 there was a decrease in the number which was 192. Again next year it raised to 2. But in the year 211-12 the number has further decreased to 1. Surprisingly in the year 212-13 the number has increased to 1142. This is a huge success for the CSR team of Tata Steel. 4) How many adult learners are there over last few years? FY YEAR NO. OF LEARNERS 29-1 2295 21-11 2565 211-12 56 212-13 1
17 15 1 5 NO. OF LEARNERS 29-1 21-11 211-12 212-13 From the graph we can interpret that during the year 29-1 the number of adult learners were 2295. The next year the number increased to 2565. During the year 211-12 the number has further increased to 56. Now the number has reached to 1. If this trend continues there will be maximum literacy in our country. TRIBALS 1. What is the number of students learning tribal scripts (youth )? YEAR NO. OF STUDENTS 211-12 9 212-13 8 1 8 6 4 2 211-12 212-13 NO. OF STUDENTS From the graph it can be interpreted that during the year 211-12 the number of students learning tribal scripts were 9. During the year 212-13 it has increased to a great extend i.e. 8. This indicates that more tribal youths are learning their tribal scripts. 2. What is the change in the number of players in the tribal sports meet? YEAR NO. OF PLAYERS 211-12 8 212-13 15
18 NO. OF PLAYERS 2 15 1 5 NO. OF PLAYERS 211-12 212-13 The graph represents the number of players in the tribal sports meet during the last two years. In the year 211-12 there were 8 players. This has increased during the year 212-13 and raised up to 15. This indicates a rising trend in the graph which shows that now more tribal people are taking interest in these sports. 3. What is the number of persons in the FY 212-13 that have registered in coaching for trade apprentice? TYPE NO. OF PERSONS TRAINED 52 EMPLOYED 14 6 5 4 3 2 1 TRAINED EMPLOYED NO. OF PERSONS This graph shows how many people have registered for the coaching facilities provided to the tribals. Many of them are trained and many are employed. The graph indicates 52 people are trained and 14 are employed.
19 4. What is the number of persons trained and employed including both SC/ST and Non SC/ST in the past years? SC/ST TRAINED Total no of youth trained No.of SC/ST youth trained No.of SC/ST youth employable 282 2159 1979 398 SC/ST EMPLOYED YEAR 21-11 398 111 2159 211-12 174 191 282 212-13 685 194 1979 TOTAL INCLUDING NON SC/ST NO. OF STUDENTS TRAINED AND EMPLOYED 174 685 111 191 134 21-11 211-12 212-13 This graph indicates the total number of SC/ST and non SC/ST who are trained and are employed during the last three years. During the year 21-11 the total number of youths trained are 2159, 398 are SC /ST who are trained, 111 are SC/ST who are employed. During the year 211-12 the total number of youths trained are 282, 174 are SC /ST who are trained, 191 are SC/ST who are employed. During the year 212-13 the total number of youths trained are 1979, 685 are SC /ST who are trained, 134 are SC/ST who are employed. ENVIRONMENT 1. In which areas are the solar lights installed and in how many households? Area No of Households SabarTola 55 BeltandChowk 25 Mansurkota 13 Sarubera 88 Ankua 57 Dumri 3 Tarajhar&tentuligotha 1 Kankadagudi 3
2 Bhalukantia 65 No of Households 6 5 4 3 2 1 No of Households This graph represents the number of households in some locations in which solar lights has been installed by Tata Steel as a part of CSR. It is seen that in Ankua region there is maximum number of solar lights where as in Beltand chowk it is minimum. 2. Which are the various districts where the solar lights are installed in various numbers? Locations 211-212 212-213 213-214 TOTAL Gopalpur 42 17 335 547 KPO 6 31 37 Sukinda 15 129 25 394 Bamnipal 14 25 35 74 Joda 289 289 Noamundi 126 263 56 445 West Bokaro 35 18 2 415 Latehar 28 28 Jamadoba 2 145 345 Gomardih 33 33 Gulma 5 5 ITI Tamar 1 1 Surda Mines 27 27 East Singhbhum 434 7 118 2152
Gopalpur KPO Sukinda Bamnipal Joda Noamundi West Bokaro Latehar Jamadoba Gomardih Gulma ITI Tamar Surda Mines East Singhbhum Total International Journal of Research in Management and Business (ISSN: 2395-4329): Volume 2 Issue2 21 Total 671 1764 2699 5134 6 5 solar lights 4 3 2 1 211-212 212-213 213-214 TOTAL This graph depicts the various locations and the number of solar street lights installed in the last few years. HEALTH 1. What are the various health services given and the number of persons to whom the service was provided for the last three years? SERVICE 21-11 211-12 212-13 FAMILY PLANNING 8783 6633 7198 ANTI-NATAL CHECKUP 12931 11629 12 IMMUNIZATION 9914 12717 146 PRIMARY HEATH CARE SERVICES 21328 289517 37
22 4 35 3 25 2 15 1 5 health services NO. OF PERSONS IN 21-11 NO. OF PERSONS IN 211-12 NO. OF PERSONS IN 212-13 The graph represents the various health services and the number of persons the service has been provided. In the year 211 the family planning service has been provided to 8783 people but in the next two years the number has decreased. In anti natal checkup in the year 211 the number of persons were 12931 but the next year it decreased and in the third year a slight increase is seen. For the immunization programme there is an increasing trend for the three years. Similar is in case of primary health care services. 2. What is the number of persons and the expenditure amount taken for the awareness programme on HIV AIDS for the last three years? 21-11 211-12 212-13 NO. OF PERSONS 35659 31 31 EXPENDITURE 1123 1234112 18263 2 15 1 5 NO. OF PERSONS HIV AIDS AWARENESS COVERAGE EXPENDITURE 21-11 211-12 212-13 The graph represents the statistics about the awareness programme conducted on HIV AIDS for the last three years i.e. 211, 212, 213. It is seen that in the year 211 the number of persons were less and the expenditure was also less as compared to the next two years. The graph depicts
23 a clear picture that each year the number of persons made aware are increasing and also the amount of expenditure that has been taken for the initiative. Conclusions The above study has four parts, 1. Education 2. Tribal 3. Environment and 4. Health. Education section involves SC/ST, girls and adult education. Tribal section includes training, coaching, placement of Tribal Children in sports. Environment includes solar lights provided by Tata Steel. Health includes health services provided to the society by Tata Steel. The study includes data upto financial year 213-214 in some cases and upto 212-213 in other cases as per the availability of data. After analyzing both primary and secondary data, we can visualize the active involvement of Tata Steel in CSR activities. Apart from the above activities, there are various other activities like community centres, coaching centres and training centres which constantly work for the upliftment of the society in and around Jamshedpur, Jharkhand. Every organization has some responsibility towards the society and ultimately towards the nation, social involvement of the organization would enhance a healthy relationship between society and organization for mutual growth. Tata group has gone a long way in fulfilling its duty and responsibility towards the society. Tata group has spent Rs. 66 crores on CSR in 213-14. Tata Steel employees feel proud to be a part the company for these CSR activities. This is the first company including the government sector to start the CSR initiatives. The company believes in inclusive growth and sustainable growth. The study prepares a strong base for the future study of the said topic. References 1. Annual Report of Tata Steel of the year 211-12 2. Annual Report of Tata Steel of the year 212-13 3. Sustainability Livelihood Options for Primitive Tribal Group in Jharkhand: CSR initiatives by Tata Steel 4. Tribal Cultural Society Annual Report 212-13 5. 13 th Corporate Sustainability Report 212-13 6. Tata Steel Family Initiatives Foundation Annual Report 212-13 7. Bowen, H.R; Social responsibilities of the businessman ( New York : Harper & Row, 1953) 8. S.K Bhatia, Business Ethics and Global Values, Deep & Deep Publications Pvt. Ltd., New Delhi, 28. 9. Fredcrick, W.C., The growing concern over business responsibility ( California Management Review, vol. 2, 196), pp. 54-61. 1. Wood, D.J. towards improving corporate social performance (Business Horizons, Vol. 34 No.4).