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Sustainability Initiatives and Practices In

L e a de rs hip w ith trus t




Sagar kaknale F-04 Vikas kumar F-46

Sanjay sharma F-21 Sachin sharma F-20

Section- 1
Introduction of company: How old HQ location, no. of plants Major lines of business/products Revenue No. of employees 500 words

Section- 2
the companys activities on the three pillars of Sustainability: Social Environmental Economic 2500 words

Initiatives and programs are being carried out by the company

1000 words


Annexure- company literature of the Tata group

This project is about of the company name TATA GROUP which deals in various segments. Tata group has interwoven its business interest with the larger interest of India and progressive emerging economies. As a company prides itself on building things that build the nation, they also build sustainability based growth platform to achieve its mission. The objective behind preparing this project is to acquaint students about sustainability, how it built itself as a successful sustainable business.


We would like to thank Prof. Bijoy. S. Guha for giving us this project to educate us about Business sustainability which will help us to understand sustainability and incorporate all the aspects in our business ventures. We would also like to thank the group members, teachers and mentors for their invaluable support.

INTRODUCTION:Tata Group is one of India's largest and most respected business groups. Tata Group's name is synonymous with India's industrialization. The Group gave India her first steel plant, hydro-electric plant, inorganic chemistry plant and created a reservoir of scientific and technological manpower for the country. Its Trusts have instituted the Tata Institute of Social Sciences in 1936; India's first cancer hospital, the Tata Memorial in 1941, and in 1945, the Tata Institute of Fundamental Research, which became the cradle of India's Atomic energy program. Today, Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. Headquarters location:Tata Group Chairman is Mr. Ratan Tata. And Tata Group headquarter is in Mumbai India called as Bombay House. TTL's international headquarters is in Singapore, with key regional headquarters in India (Pune), USA (Novi, Michigan) and the UK (Luton). The company has global development centers in Germany, India, Thailand, the UK and the USA and also has offices in Canada, China, France, Germany, Ireland, Japan, Korea, Mexico, and the Netherlands. HISTORY


The beginnings of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji Tata established a trading company dealing in cotton in Bombay (now Mumbai), British India. This was followed by the installation of 'Empress Mills' in Nagpur in 1877. Taj Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji Tata became the chairman of the group after his father's death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation (1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals (1939), Tata Motors, Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent chairman of the group succeeded JRD Tata in 1991. REVENUE:The Tata Group has a leadership position in many industries. It is the world's largest integrated tea operation, Asia's largest software exporter, the world's sixth largest manufacturer brand of watches (Titan), and Indias largest private sector steel producer, the largest 5-star chain of luxury hotels in India, India's largest manufacturer of soda ash and India's largest private sector power utility

Facts: -Revenues equivalent to 2.6%of India's GDP -Trusted by 2 million shareholders -Serving India for 126 years -91 operating companies -Revenues of US$ 14.25 billion -Accounts for 5%of India's exports -91 operating companies in seven business sectors: materials, chemicals, energy, and engineering products are product-driven; engineering services, automotive, communications and IT, services and consumer goods brand-driven.

Employment profile:Personnel White-collar employees 2008-09* 261,388









Blue-collar employees


Total employment


Market capitalization of Tata companies as on March 24, 2011 Name of company Tata Consultancy Services Tata Elxsi Tata Communications Tata Motors Voltas Tata Steel Taj Hotels, Resorts and Palaces Tata Power Rs. Cr 214,012 2,453 6,824 73,217 5,499 58,584 6,159 30,102 $ billion 47.81 0.55 1.52 16.36 1.23 13.09 1.38 6.73

Tata Global Beverages (Tata Tea) Titan Industrie Trent Tata Chemicals Rallis

6,125 15,487 1,833 8,320 2,524

1.37 3.46 0.41 1.86 0.56

Tata products and services

1. Agriculture 2. Appliances 3. Automobiles 4. Beverages 5. Charter flights 6. Chemical 7. Crockery 8. DTH television 9. Energy 10. Financial services 11. Food 12. Holiday homes 13. Hotels 14. Housing 15. Jewelry 16. Leather 17. power 18. Retail 19. Solar appliances 20. Steel 21. Telecommunications 22. Watches and clocks

The clear definition of CSR is

SECTION 2:Three pillars of sustainability followed by the company..

The changes will allow Tata to optimally position its economic, social, and environmental sustainability efforts while addressing the companys growing global presence, the evolving definitions of sustainability, and the increasing demand from stakeholders for measurement and transparency. Internally, the company will develop a concise definition of sustainability and a Sustainability Credo to guide corporate innovation and evaluation efforts

1 Environment : The company is doing huge for the environment not only
in India but in the whole world. The kinship of Tata group with the environment cause has resulted in a slew of initiatives that place the good earth above bottom lines. If there is anything at all we can assume about the shape our fragile world is taking, it is this: the condition of the air we breathe, the water we drink and the land we live on will all get worse if human rapaciousness continues to go unchecked. "Environment is a focus area within our overall corporate social responsibility matrix," says Kishor Chaukar, chairman, and by keeping it into mind the group is doing work on environment. They work to conserve plant as well as

animal species. They improve land and water to use and protects forest and green sanctuaries. the groups contribution to conserve environment falls into two categories :

1 the effort of different tata companies 2philanthropic trust of Tata trust

The company is saving environment by the effort of big and small companies and they all preserve, save and enrich the environment in their areas of operations. And in second they trust to help the nongovernmental small companies which are working for saving the environment and are fighting for the environment directly or indirectly. Under these programs they help and invest in land regeneration and in forestry projects and the protection of endangered species. Tatas, view the environment saving as an inherent duty which is a part of business. The Tata group beliefs that the sustainability is depend on the preservation of plants and environment in a efficient manner because we need a healthy environment to business in.

2 social :
The company is doing enormous for the society. The company is investing $603 milllion annually on social activities. Tata companies promises to fprtify the groups commitment to helping society. From the temples of learning and research to institutions of art and culture, from outstanding centers of healing to a huge variety of social development programmes, the group has contributed enormously to philanthropic causes without ever looking for monetary or public returns. Thats because helping the society is the main aim of the Tata group. The group never feels profit in isolation. Their aim is to improve human element and to build strong community. The first step towards institutionalisation was putting together the basic statements of intent, the declarations. The declarations state that the community is central to the core values of the Tata group. This means that their products, the locations of our facilities, the finalising of business processes and of purchasing equipment, the behaviour of our employees,

everything is central to serving the nation. Their commitment to social responsibility is so fundamental that when we say community we actually mean the nation. The compensation Tata Steel gave to the community was much higher than what the government had offered. That is an example of the Tata way. Car advertisements talk about quality of life but that doesnt hold any meaning if they are going to pollute the air. When we talk about improving the quality of life, we are doing it in the true sense of the phrase.

On working with NGOs NGOs have the expertise of working in certain areas and it is better for companies to work through them. It is actually a three-way partnership, between the company, the NGO and the government, (because it is the government which is going to take the initiative forward). NGOs want partners they can trust and the Tata name has an advantage here. 3 economic : the economic value of Tata groups reach into developing markets. The company is organically grown in India, it understands the operational challenges associated with growth in developing economies. This value is derived from eventual external consulting services, and internal growth of Tata companies in developing markets. This is estimated to be around $ 5 billion, as having indepth experience in communities will enable Tata to excel in global competition Assuming 10 percent dividend growth, this is valued at US$ 14,955 per share with 400,000 privately held shares, totaling an economic value of US$ 5.982 billion. Assuming Tata Sons holds 75 percent of all companies publicly listed, this brings value of held equities to US$ 58.05 billion (see chart for market capitalization). The total financial value is therefore estimated at US$ 64.032 billion. Its turnover of $21.9bn, unsurprisingly, equals nearly 3% of India's gross domestic product (GDP) After spending about $1.5bn buying foreign companies and ensuring that some 30% of its revenues are generated outside India, the group is fiercely taking advantage of the globalised economy.

As we can see in the diagram that by meeting the above three pillars Tata group is able to maintain the sustainability and will also maintain the sustainability in future or we can say that pillars are the concept whereby a company will have to look at not just where the company should deploy its profits but how it made its profits in the first place .This implies looking at impacts on all its stakeholders which in essence is the base of business.


The clear definition of CSR is that, Community is not just another stakeholder in our business but very purpose of existence -Jamshedji Tata

"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 profit but that we are responsible and good corporate citizens over and above normal operations", -Ratan Tata

Tata group companies have always displayed a keen interest in the welfare of the communities in which they operate. The work they do on this front is managed by, and channeled through, organizations established to further the cause of community development

CSR ACITIVIES:Tata group companies have always displayed a keen interest in the welfare of the communities in which they operate. The work they do on this front is managed by, and channeled through, organizations established to further the cause of community development

1) Community initiatives

The panoply of Tata endeavors to improve the communities in which group companies function. Tata Council for Community Initiatives Tata index for sustainability Tata company initiatives

2) Environment:-

Tata's policies and record on the environment and on ecology issues

3) Tata trusts

The Tata trusts support an assortment of causes, institutions and individuals in a wide variety of areas. Sir Dorabji Tata and allied trusts Sir Ratan Tata Trust JN Tata Endowment

4) Institutions

The national institutes of learning and research that Tata helped establish and continue to support. Indian Institute of Science JRD Tata Eco technology Centre Tata Institute of Fundamental Research Tata Institute of Social Sciences Tata Memorial Centre Tata Medical Center 5) Sports and arts

A summary of Tata's efforts in support of sports and the arts. Sports Arts National Centre for the Performing Arts

6) Code of honour

Code of honour is a special edition of Tata Review, which features the corporate sustainability and community initiatives undertaken by Tata and the Tata Trusts 7) Tata Jagriti Yatra: A journey of discovery

The Tata Jagriti Yatra is an annual experiential train journey that seeks to awaken the spirit of social and economic entrepreneurship in young adults Why you think it has major consequences for both the Company and the World? Corporate Social Responsibility is thus only about two aspects: 1) Reducing the Negative Effects: Steps taken by a company to neutralise, minimise or offset the harmful effects caused by its processes and product-usage 2) Increasing the Positive Contributions: Further steps by a company using its resources, core competence, skills, location and funds for the benefit of people and the

The Tata philosophy to 'Give back what you get' has been followed by all their enterprises across India. Be it relief measures, rural development, health care, education and art and culture, they have been very forthcoming. Around 66 per cent of Tata Sons, the holding group of the Tata Group, is today owned by a trust. As management guru Peter Drucker says: "A healthy society requires three vital sectors: a public sector of effective governments; a private sector of effective businesses; and a social sector of effective community organizations." Tata must target interventions to maximize social impact and capture maximum value The Tata Group is not in the business of creating socially responsible goods and services. Yet, for this producer of steel, provider of consulting services, and manufacturer of just about everything in between, CSR is at the heart of its business model. The idea of Corporate Social Responsibility (CSR) is often presented as being at odds with the profitability of business operations. Corporations, for example, are applauded by environmentalists for investing in more expensive, but greener operating practices, while shareholders are left to fester. We reject the premise that such priorities must be at odds, and present the following ten-year strategic plan for the Tata Group as evidence that profitability and CSR, far from being mutually exclusive, are in fact increasingly interdependent. The Tata Groups CSR initiatives must not be viewed as costs, but as investments, which serve as the foundation of its competitive advantage and long-term profitability. its responsibilities towards its stakeholders

investors, employees, and communities are changing. If anything, they are growing. Tata must increasingly look beyond its own operations, and consider the impact of its products, both good and bad, on not just the groups direct shareholders, but on society as a whole. This focus on stakeholders will lead to a sustainable competitive advantage and increased profits It is the responsibility of the business to take care of the stakeholders, Employees, Suppliers, Creditors, Customers, Environment and the society in which it operates. So, the company must take care of the surroundings and should try to provide better products and services to the society and at the same time should take care of the environment and its biodiversity. If the company is doing CSR activities and providing benefits to the bottom level people, it creates feeling of honors to both for the company and the society. Tata group doing all CSR activities because of following reason -for economic, social, and environmental bottom lines - community pressure to do so - to enhance reputation - as a branding exercise - to improve community relations and public image - to enable employees to enjoy new levels of responsibility and leadership skills - to improve employee satisfaction, morale and loyalty - to get a sense of fulfillment as a result of contributing to the community The Tata index for sustainable human development is a pioneering effort aimed at directing, measuring and enhancing the community work that Tata group enterprises undertake. The index provides guidelines for Tata companies looking to fulfill their social responsibilities, and is built around the Tata Business Excellence Model, an open-ended framework that drives business excellence in Tata companies The Tata group CSR policy encompasses initiatives to conserve, sustain and renew the environment, to encourage sustainable socio-economic development of the community and to improve the quality of life of the people living in the areas in which it operates. In all their programs, the organizations seek to engage the ultimate beneficiaries of an initiative right from the conceptualization and planning stage to the implementation, with the company playing the role of a catalyst eliciting positive change. The attempt is to get the people to act out of their own convictions, and support them in their efforts to build a better future

Value Gained on Tata Brand Equity Due to CSR ($US BN)

Value of Tata brand 2008 Tata CSR contributions* Cost of CSR contribution in perpetuity** Value of Tata brand over CSR investment Value of Brand equity due to CSR*** % return on CSR for Brand Equity**** Annualized value of Tata brand Annualized value of Tata brand over CSR investment Annualized value gained on brand equity due to CSR % Return on CSR for Brand Equity

$9.92 $0.603 $6.03 $3.89 $1.94 32% $0.99 $0.39 $0.19 32%

***Though much of Tata's brand equity is due to its CSR policies, we recognize that a large portion of its brand equity is also due to factors such as product quality & reliability, operational effectiveness, internal sustainability investments, and other intangibles. We therefore estimate that only 50% of Tata's brand equity over CSR investment is due to the Group's CSR strategy. ***We recognize that 32% is a conservative estimate, as given the relative size of the various Tata companies; we believe the Tata Group's total CSR 2008 contributions to be less than $603M.


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1) Market capitalization table 2) Employment profile table 3) Tata group sustainable journey 2020.doc