Roll no.

15221002
Name: Tajala Maqsood
Business Ethics
Topic: Tata power
EXECUTIVE SUMMARY
Tata Power is also a company that believes strongly in corporate social responsibility. Their main
areas of focus includes: Environmental, healthcare, education, and sustainable livelihood. In the
environment, Tata Power has started environment awareness campaigns, helped to conserve
water and other natural resources, to help better the environment. Their healthcare focus is
mainly centered on AIDS awareness programs, and Immunization/Health checkup camps. Tata
Power has built a strong culture throughout the company, as it pertains to social responsibility.
(Thompson)
PROBLEM STATEMENTS
Problem 1:
Although the volunteer initiative worked for TPCs present CSR model, Tewari was aware that
the company was looking to expand and CSR activities would need to be a part of this
expansion.
Problem 2:
Tata Power is also challenged with the task of managing multiple stakeholder interests. Tata
Power has a high level of diversity in their CSR activities, and as a result, properly managing the
interest of all the stakeholders is a daunting task. Stakeholders for the company include:
Employees, Stockholders, Foreign Governments, domestic & foreign customers, etc.
Problem 3:
After the CSR department became a separate entity, how would assess the cost and how monitor
the cost.

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Key Persons involved

Company TATA power

Volunteers and employees

Tewari

CAUSES OF THE PROBLEM:

.Since the diversity of the CSR activities is high, first Tata Power should seek to prioritize the
stakeholders of the company. Listing the people and organizations that are affected most by the
operations of the company will help to narrow the focus when seeking to satisfy stakeholders
interest. The stakeholders prioritization can be measured on a scale of power, and interest in the
company. While a stakeholder, who has low power and low interest, will only receive minimum
attention from the company. This strategy of prioritization will help to increase Tatas CSR
efficiencies, and decrease resources used on low prioritized stakeholders.
There are other issues related to it which needs to be addressed strategically as well as tactically
to maintain a balance between shareholders interest and other stakeholders. The case has been
developed for the academicians as well as practitioners to have better insight into the issue from
the perspective of business strategy and business environment. The case will help to analyse the
issue of corporate sustainability from the business angle.

ALTENATIVE SOLUTIONS:

Create a Sustainability Council with an NGO partnership

Effective corporate citizenship creates goodwill and improves relations with local governments
and other important constituencies. (Porter) Therefore, the CSRC should consist of top executive
leaders from: Human Resources, Corporate Communications (Public Relations), Operations, and
Finance. The council should also comprise qualified/experienced social workers who have a firm
understanding of the needs of the community where projects would be implemented.
The CSR Mission/Policy should focus upon: 1) Identification of societal felt needs that require
intervention. 2) Possibilities for Public-Private-Government Partnerships. 3) Broad

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program/project design guidelines. 4) Methodologies for talent identification in the community.

5) Leads for corporate R&D in the direction of these felt needs. 6) Financial implications. 7)
Campaign, communication and presentation methodologies Information, Education and
Communication (IEC). 8) Community feedback analysis. 9) Result mapping. 10) Future
projections. 11) Inter-departmental synergy modules HR/CC/CSR to streamline CSR
initiatives.

Creating a Separate CSR Department

One potential action for TPC is to create an entirely separate CSR department. To create this
infrastructure, TPC can capitalize on the culture of CSR already developed at TPC with the
employee volunteer efforts, by selecting some home-grown employees to fill positions in the
new department. Key executive positions should be a mixture of internal employees already
familiar with the culture of TPC and outside leadership with a background in CSR. A sample
organization structure would be one Executive Vice President overall in charge of the CSR
department, (typically a Sustainability Officer), with three executive leaders below him to
oversee the three divisions that TPC maintains are its main CSR activities; community welfare,
environment, and energy.

Managing stakeholder interest:

Since the diversity of the CSR activities is high, first Tata Power should seek to prioritize the
stakeholders of the company. Listing the people and organizations that are affected most by the
operations of the company will help to narrow the focus when seeking to satisfy stakeholders
interest. The stakeholders prioritization can be measured on a scale of power, and interest in the
company. For example, if a stakeholder has high power and high interest, the company should
seek to closely manage and fulfill their expectations. While a stakeholder, who has low power
and low interest, will only receive minimum attention from the company. This strategy of
prioritization will help to increase Tatas CSR efficiencies, and decrease resources used on low
prioritized stakeholders.

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EVALUATION OF OPTIONS:

pros

cons

Opt 1:

Opt 1:

company will get more and more ideas and

more option for the problem

Cost effective

Manageable for the organization.

Managerial decisions involve
Exclusive for the company
More beneficial for the company7

Opt 3:

NGOs are not exclusive for an organization

they have to do work with different
companies

Opt 2:

Opt 2:

Costly
risky

Opt 3:

cost effective

risky

DECISION CRITERIA
In this situation we have to follow the rules of ethic for the decision making.
They should have to apply the rule of porpoise and consequences.in which company have to take
decision for the company and society welfare. First they should have to know who the
stakeholder are. And they manager should have to identify the relevant purpose and
consequences.
A symbiotic relationship develops: The success of the company and the success of the
community become mutually reinforcing. Typically, the more closely tied a social issue is to the
companys business, the greater the opportunity to leverage the firms resources and capabilities,
and benefit society. (Porter)
In the below table I have showed the option weightage.
Option
Create a Sustainability Council with

weightage
35%

an NGO partnership

Creating a Separate CSR

45%

Department

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Managing stakeholder interest

20%

RECOMMENDATION
An advantage to creating this infrastructure is that the CSR department would better able to
produce an annual CSR report that could provide a complete portfolio of CSR efforts in one
place. Under the current structure, this type of report would have to be piecemealed internally
and externally and would require tremendous resources. This type of report is beneficial not only
to the company as a measure of whether they are meeting their goals, but also to the shareholders
as an indication of the value being added to the company through the achievement of social
activities.
Few companies have engaged operating management in processes that identify and prioritize
social issues based on their salience to business operations and their importance to the companys
competitive context. Even fewer have unified philanthropy with the management of their CSR
efforts, much less sought to embed a social dimension into their core value proposition.
Companies must shift from a fragmented, defensive posture to and integrated, affirmative
approach. The emphasis must be on substance not image. (Porter)
CONCLUSION
Tata Power must move towards fully understanding their key stakeholders, in order to properly
manage them. Learning how to communicate, and engaging stakeholders in new project
initiatives are vital to the growth of the company, as well as CRS activities. Internal and external
surveying can be conducted, to gain valuable information for the company. Internal surveys can
cover topics such as: strategic planning, potential managerial conflicts, employee growth, etc. in
order to understand the thoughts of the employees and investors of the company

REFRENCES
1. https://hbr.org/product/tata-power-corporate-social-responsibility-andsustainability/910M13-PDF-ENG
2. https://www.tatapower.com/sustainability/case-study-women-empowerment.html
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