CSR activities:
TOPIC
CORPORATE SOCIAL RESPONSIBILITIES (CSR) OF TATA STEEL
INDEXSr.NoTopics
1Introduction of TATA STEEL
2About the Company
3Expansion plans
4THE TATA STEEL VISION
5Meaning and definition of CSR
6Ongoing Programmes
7Responsible Development
8Conclusion
9Recommendations
10Significance
11References
Introduction of TATA STEEL
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 anIndianmultinationalsteel-making company headquartered inMumbai, Maharashtra, India, and a subsidiary of theTata Group. It was the11th largest steel producing company in the worldin 2013, with an annualcrude steelcapacity 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 afterSAILTata 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 inJamshedpur,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 2014Fortune Global 500ranking of the world's biggest corporations.It was the seventh most valuable Indian brand of 2013 as perBrand Finance.
On 12 February 2012 Tata Steel completed 100 years of steel making in India.
About the CompanyTata Steel is principally engaged in mining, production and distribution of steel and steel products. The company has major domestic operations in India and international operations in Ivory Coast, Mozambique, Vietnam, South Africa, Australia and Oman. The company also operates 17 distribution and commercial centers around the world. The Tata Steel operations include steel division, bearings division, ferro alloys and minerals division, agrico division, Tata growth shop (TGS), tubes division, and wire division. The other major international operations of the company include Corus Group; NatSteel, a wholly-owned subsidiary of Tata Steel; Tata Steel (Thailand); and Tata Metaliks. The company is headquartered in Mumbai, Maharashtra, India.
HistoryTata Iron and Steel Company was established byDorabji Tataon 25 August 1907, as part of his fatherJamsetji'sTata 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.
AcquisitionsNatSteelin 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 Steelin 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 inBangkok.On 31 March 2013, it held approx. 68% shares in the acquired company.
Corusin 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 companyCompanhia 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.
Rolling mill companies in Vietnamin 2007:ata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd, acquired controlling stake in two rolling mill companies located in Vietnam: Structure Steel Engineering Pte Ltd (100% stake) and Vinausteel Ltd (70% stake). The enterprise value for the acquisition was $41 million. With this acquisition, Tata Steel got hold of two rolling mills, a 250k tonnes per year
bar/wire rod mill operated by SSE Steel Ltd and a 180k tonnes per year reinforcing bar mill operated by Vinausteel Ltd.
OperationsTata Steel is headquartered in Mumbai, Maharashtra, India and has its marketing headquarters at theTata CentreinKolkata, 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 plansTata 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:
a 6 million tonne per annum capacity plant in Kalinganagar, Odisha, India;
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 3 million tonne per annum capacity plant in Iran;
a 2.4 million tonne per annum capacity plant in Bangladesh;
a 10.5 million tonne per annum capacity plant in Vietnam (feasibility studies are underway); and
a 6 million tonne per annum capacity plant in Haveri,KarnatakaShareholdingAs 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 Indiais the largest non-promoter shareholder in the company with 14.88% shareholding.
ShareholdersShareholding
Promoters: Tata Group companies31.35%
Insurance Companies21.81%
Individual shareholders22.03%
Foreign Institutional Investors15.35%
GDRs02.41%
Others07.05%
Total100.0%
The equity shares of Tata Steel are listed on theBombay Stock Exchange, where it is a constituent of theBSE SENSEXindex,and theNational Stock Exchange of India, where it is a constituent of theS&P CNX Nifty.ItsGlobal Depository Receipts(GDRs) are listed on theLondon Stock Exchangeand theLuxembourg Stock Exchange.
Awards and recognitions
In 2013, Tata Steel was ranked India's 7th most admired company byFortune magazine. It was India's most admired company in 2012.
In 2013, Tata Steel received theMost 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 awardedDeming Application Prizefor excellence in Total Quality Management.
In 2012, Tata Steel became the first integrated steel company in the world to be awarded theDeming 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. Environment protection at Dhamra Port: TheDhamra Port, ajoint venturebetweenLarsen & Toubroand Tata Steel near Dhamra river in Bhadrak district ofOdissa, has come in for criticism from groups such asGreenpeace,Wildlife Protection Society of Indiaand the Orissa Traditional Fishworkers' Union for environment protection.The port is being built within five kilometres of theBhitarkanika National Park, aRamsar wetland of international importance, home to an impressive diversity ofmangrovespecies,saltwater crocodilesand an array of avian species. The port will also be approximately 15km. from the turtle nesting ofGahirmatha 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 forhorseshoe crabsas 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 competitorsTata Steel's major competitors includeArcelorMittal,Essar Steel,JSW Steel,SAILandVISA Steel.
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 portal-Valueabled.com at the Jaipur Literature Festival, an online extending company sustained campaign to inspire the youth to embrace a value driven society.
THE TATA STEEL VISION
To be the global steel industry benchmark for value creation and corporate citizenship.
We will achieve this through:
Our people by fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion.
Our offer by becoming the supplier of choice, delivering premium products and services, and creating value for our customers.
Our innovation by developing leading-edge solutions in technology, processes and products.
Our conduct by providing a safe and healthy workplace, respecting the environment, caring for our communities and demonstrating high ethical standards.
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.
Raw Material Security
A pioneer in prospecting, discovering and extracting iron ore, coal and other minerals required for steelmaking, Tata Steel has almost a century of experience in mining raw materials safely, efficiently and sustainably. The companys long-term strategy is to have as much control as possible over its raw material resources and to ensure security of supply for its operations globally.
Company-owned and operated mines and collieries have met most of the raw material
needs of the Jamshedpur steel plant since its inception. Tata Steels raw materials division in India produces over 14 million tonnes of ores a year from its captive collieries, iron ore mines and quarries in the states of Jharkhand
and Orissa.
Other significant investments in raw materials include a recently enhanced holding in the Riversdale Mining Limited coal project, development of an iron ore project with New Millennium Capital Corporation, and Dhamra Port Company Limited a 50:50 joint venture between Tata Steel and Larsen & Toubro to construct a deepwater port on the eastern coast of India. Tata Steel also has several joint ventures in Africa, Australia and Canada to further increase its raw material security.
Research and Development
A collaborative approach, cross-fertilisation of better practices and technology absorption through integration of processes have led to measurable and continuous improvement in many aspects of Tata Steels performance. In addition to its ongoing drive to improve the quality and quantity of the steel it produces, Tata Steel continues to conduct extensive research with the objective of making its steel production operations more energy efficient, cost-effective and environmentally sustainable.
The research and development (R&D) centres are located at IJmuiden in the Netherlands, Rotherham and Teesside in the UK, and Jamshedpur in India. A clear focus on development of cutting edge technology has enabled Tata Steel to become one of the lowest cost steel producers worldwide. Current activities in this area include research on
agglomerates chemistry, blast furnace burden distribution, integrated through-process modelling, reduced zinc consumption during tube galvanising, and many others. A number of research groups in India and Europe are actively engaged in developing new products. Research relating specifically to the automotive sector, for example, includes the development of advanced high strength steels, new forming techniques, new and improved joining techniques, innovative coatings, and improved fatigue life of components. Tata Steels R&D centres also conduct many programmes to improve the
life cycle and sustainability of its products. These include projects to reduce energy consumption, CO and other emissions.
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.
Joint ventures, subsidiaries, associates
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.
The acquisition of Corus in 2007 transformed Tata Steels manufacturing capacity, capability and market position to a global scale. Today the European operations employ some 35,000 people. Tata Steel has a crude steel production capacity of over 20 mtpa in Europe more than two thirds of the Groups total capacity with major steelmaking centres in Port Talbot, Rotherham and Scunthorpe in the UK and IJmuiden in the Netherlands.
IJmuiden is currently the Groups largest single steel plant with a crude steel production capacity of 7.6mtpa. Tata Steel has additional manufacturing operations in Germany, France and Belgium, backed by a global network of sales and service centres offering a wide range of products and service solutions to customers throughout the world.
NatSteel Holdings: NatSteel Holdings, Tata Steels, largest entity in SEA, is a leading steel producer in the region. A leading supplier of premium steel products for the construction industry, NatSteel has operations in seven countries in Asia.
NatSteel delivers high steel solutions for the construction industry including both upstream as well as customised downstream products and services. Headquartered in Singapore, it has operations in Australia, China, Thailand, Vietnam, and Philippines.
Employing over 3000 people across the region, NatSteel has a total production capacity of over 2 mtpa, and is poised for further growth. Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 mtpa and further expansions planned.
Tata Steel Thailand: A major steel producer in Thailand, the company produces steel for the construction industry.
Tinplate Company of India: Industry leader in India in the manufacture of tinning line products, including electrolytic tinplate, tin-free steel and cold-rolled products.
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 Refractories: Produces high-alumina, basic, dolomite, silica and monolithic refractories and offers design, procurement and re-lining service.
Tata Sponge Iron: Produces sponge iron lumps and fines.
Tata Metaliks: Manufactures and sells foundry-grade pig iron.
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 compounds used for the production of low-sulphur, high-quality steel.
TM International Logistics: Provides material handling and port operation services at the Haldia and Paradip ports in India; also has freight-forwarding and chartering services.
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 e-marketplace for steel.
TRF: In the business of design, manufacture, supply, installation and commissioning of engineered-to-order equipment and systems in the areas of bulk material handling, processing, reclaiming and blending.
Jamshedpur Utility and Service Company: Re-engineered out of Tata Steel's town services, JUSCO provides municipal and civic services for townships.
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.
Sila Eastern Company: Established to develop limestone mines in Thailand, mainly for captive use.
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 calledcorporate conscience,corporate citizenshiporsustainable responsible business/ Responsible Business)is a form ofcorporateself-regulationintegrated into abusiness 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 internationalnorms. 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 andstakeholdersincluding 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 existingeconometricstudies 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 flawedempirical analysisand claimed when the study is properly specified, CSR has a neutral impact on financial outcomes.
Criticsquestioned the "lofty" and sometimes "unrealistic expectations" in CSR.or that CSR is merelywindow-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerfulmultinational corporations.
Political sociologists became interested in CSR in the context of theories ofglobalization,neoliberalismand 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 ethicsis the part ofapplied ethicsthat examines ethical principles and moral or ethical problems that can arise in a business environment.ISO 26000is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to thetriple 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.DefinitionBusiness 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 includephilanthropyandvolunteering.
Consumer perspectivesMost 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 loyaltySmith (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 serviceOppewal et al. (2006) found that not all CSR activities are attractive to consumersThey 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.
TOWARDS A CONTINUED CORPORATE SOCIAL RESPONSIBILITY FOCUS
Tata Steel has adopted an integrated business model to support its vision of being a global leader in creation of value, while being a steel industry benchmark organisation in Corporate Citizenship in its efforts towards Social Responsibility and Environmental performance.
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
Significant CSR Achievements, Financial Year 2013-14:
1. A CSR Advisory Council was set up with eminent names from academia and the development sector to guide the Companys approach towards CSR.
2. Project MANSI on maternal and new born survival, which is underway in 167 villages of Seraikela district, has brought down the infant mortality rate by 26.5% and neonatal mortality rate by 32.7%.
3. Project RISHTA on adolescent health was scaled up from Seraikela Kharsawan to other operational areas of the Company and is now being implemented in 700+ villages across 7 districts in Jharkhand and Odisha.
4. To provide healthcare services to deprived communities, Tata Steel in partnership with Hewlett Packard set up an E-health centre at Bagbera in Jamshedpur. Patients are catered to by doctors sitting at a distant location using real time technology solutions.
5. Jyoti Fellowship was given to nearly 3,000 meritorious students from the SC/ST communities across Jharkhand, Chhattisgarh and Odisha.
6. The Company partnered with several organisations to set up skill development centres for IT, hospitality, textile, cosmetology etc.
7. To empower farmers of Patamda, a Market Yard was set up in January 2014 to provide options to aggregate and market the agriculture produce at a fair price.
8. Under the solar street light project, nearly 2,300 solar street lights were installed in villages of Jharkhand and Odisha.
9. Nearly 10,000 youth learned tribal scripts for Ho, Santhali and Oraon languages.
10. Some of the high-impact CSR projects in the pipeline for Financial Year 2014-15 include the 1,000 schools project in Odisha, aimed to improve the quality of education in government primary schools; a model school for underprivileged communities in Jharkhand; skill development centres in Jaipur, Gopalpur and Jamshedpur; and two more hospitals at Gopalpur and Kalinganagar.
Sharing Wealth to Diminish DisparitiesFor 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."Thank you Tata Steel and Tribal Cultural Society..." Had it not been for this fellowship from Tribal Cultural Society, I was bound to be like many others, recycled into the family's earning process at an age when I needed to be at school, says Sunita Murmu. And then came the announcement of Jyoti Fellowships. Sunita won the award not just for the year, but, for the next seven consecutive years as well. The fellowship saw her through matriculation and Intermediate. Relieved of the pressure, Sunita was able to concentrate and secure first division all through. At an award ceremony, when asked what she had to say about this assistance, Thank you, Tata Steel and Tribal Cultural Society were the words she uttered with extreme gratitude
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. "Hundreds of people joined..." Adim Dastoor, a three day programme, was organized at Bari Maidan, Jamshedpur. This cultural extravaganza showcased the heritage and lifestyle of the indigenous people in Jharkhand. Lecture demonstration sessions on tribal heritage, exhibitions on historical advent of tribal movements, various forms of tribal dance and music, their relevance and specifics were dwelled upon at great length followed by actual performance by the experts. The event also showcased a day-night Kati tournament between 25 teams from all over Jharkhand and tribal Orissa. Tribal belief has it that within the 'Akhara' (common meeting place for men within the village), no one is an audience. Every step taken is dance, every word that is uttered is a song. The climax of the three-day event resounded this belief as hundreds of people in the ground joined in the performance accompanied by 25 drum beaters who lent a sparkling end to the festival.
Income generation for tribals :In order to help tribals address their basic needs in a self-reliant and sustainable way, Tata Steel has long been involved with increasing the agricultural productivity for them in the rural areas through assured irrigation.
Tata Steel, holding the belief that the tribals know best for themselves, has assisted in the formation of many Self Help Groups (SHGs).
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 peri-urban 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 ProgrammesMother 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.
Health and AIDS AwarenessThe health and safety of the employees and the community is critically interlocked with productivity and is enshrined in Tata Steels Vision. The Company has thus taken proactive steps in AIDS prevention by spreading awareness not only amongst its employees, but also the community at large so that the inhabitants of Jamshedpur and at other locations remain safe.
Tata Steel has evolved a corporate sector model to prevent the spread of STD/HIV/AIDS, globally and nationally. This model is being shared through forums like ILO, Global Business Coalition on HIV/AIDS, Global Compact Initiatives, WHO-SE Asia Regional Office, NACO (National AIDS Control Organisation) and JAPC (Jharkhand AIDS 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 instrumental in increasing goodwill and corporate image.
2) To the Society
Development of infrastructure i.e. parks, water purification, education etc.
Environment protection
Uplifting of the rural populace Bringing the tribes into the mainstream of the country
3) To the Economy as a whole
Increase in the growth rate
Strategic CSR at political and corporate level can make the country a better 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 Direct results, such as, economic and financial savings Indirect results like increase in employee satisfaction, less absenteeism, less employee turnover evaluated by staff surveys3. Periodic review of the CSR activities should be conducted by every business entity so as to identify the pitfalls and the areas left out.
4. Innovation should essentially be a matter of concern ; be it searching the untouched areas and scope of CSR or the formulation of CSR strategy or the implementation thereof.
5. NGOs should be encouraged to act in collaboration for the CSR activities under different schemes and projects as they play a crucial role in the upliftment of the masses.
