Seminar Report of CSR

Near Kudi Haud, NH-65, Pali Road, Jodhpur, (RAJ).

Seminar Report

On

Corporate Social Responsibility

(Affiliated to Rajasthan Technical University, Kota)

Session

2008 – 2010

Submitted To: Submitted By:

Mrs Neelam Kalla Chetan Daiya (Professor VIM) MBA 2nd Sem.

Seminar Report on

Corporate Social Responsibility

Submitted to: Submitted by:Dr.G.N.Purohit Chetan Daiya MBA 2nd Sem.

Acknowledgement

With deep sense of gratitude, I wish to express our appreciation to

'VYAS INSTITUTE OF MANAGEMENT' and coordinator of M.B.A

Mrs.Neelam.Kalla and also our project instructor Mr.Shivdutt Joshi.

Although hardly suffice, I am deeply indebted for them for providing such a

wonderful opportunity to research on such a prestigious project.

I have no words to express my appreciation for all the research hints and

other necessaries provided by them without with this project would hardly

be possible.

I wish to express my gratitude and indebtness to Dr.G.N.Purohit, our

director, for his encouragement, valuable suggestion, helpful comments and

constructive criticism made by him while finalizing this report.

I also thank our faculty members for providing much needed support and

encouragement at various stages and also our classmates for co-operating

with me.

In Gratitude Chetan Daiya

Meaning of Corporate Social Responsibility “Corporate social responsibility as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force ,their families and the local community and society at large.” “CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government" "Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business? "A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis".

Corporate Social Responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance,[1] is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure their adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet, Profit.

Carroll’s Four Part DefinitionUnderstanding the Four ComponentsResponsibility Societal

ExpectationExamples

Economic Required Be profitable. Maximize sales, minimize costs, etc.

Legal Required Obey laws and regulations.

Ethical Expected Do what is right, fair and just.

Discretionary(Philanthropic)

Desired/Expected

Be a good corporate citizen.

CSR in Equation Form Is the Sum of: Economic Responsibilities (Make a profit) Legal Responsibilities (Obey the law) Ethical Responsibilities (Be ethical) Philanthropic Responsibilities (Good corporate citizen)

Economic Responsibilities “Economic Responsibilities refers to the fundamental responsibility of business to produce goods and services that society wants, and which it sells at a profit.” As a listed company Outokumpu is committed to making a profit for the benefit of its shareholders. The company delivers on this commitment by developing and maintaining competitive and profitable operations based on ethical business practices.

Legal Responsibilities “Legal Responsibilities refers to obligation of business to fulfill it’s economic mission within the confines of the law.”

Ethical Responsibilities This refers to the ethical responsibilities of companies that go beyond legal compliance.

Philanthropic Responsibilities This refers to voluntary responsibilities such as philanthropy, which a company can assume even if there are no clear cut societal expectations.

Business Responsibilities in the 21st Century Demonstrate a commitment to society’s values and contribute to society’s social,

environmental, and economic goals through action. Insulate society from the negative impacts of company operations, products and

services.

Share benefits of company activities with key stakeholders as well as with shareholders.

Demonstrate that the company can make more money by doing the right thing.

As 2009 wound down, ‘financial meltdown’ and ‘economic recession’ became amongst the most frequently used words in business journals and business meetings. A businessman in Kolkata said he had attended no less than 10 seminars on these subjects in December!

At the same time, other words which had been banished from the US (though not in Kolkata) began to reappear in that country. They were ‘socialism’ and even, God forbid, Karl Marx! In fact, booksellers in the US reported renewed demand for Das Kapital, Marx’s critique of capitalism.

In India, the US and elsewhere, business leaders who until 2009 had tried to get government out of business are now urging governments to vigorously save businesses. They want governments to intervene in the markets but, at the same time to keep markets free.

This raises questions in the common man’s mind about what these beneficiaries of free markets want markets to be free from. Freedom only from barriers to trade? Or also freedom from government regulations? Or even freedom from responsibility for their own actions? Meanwhile, US voters going into the elections in November were no longer prepared to grant business all these freedoms because trust in business institutions and their leaders had broken down.

Like Arjun on the battlefield at Kurukshetra who asked Krishna a moral question, not advice on how to fight the battle, business leaders fighting the recession must also ask what they must change in their approach to business to regain society’s trust if they want freedoms in future. To begin with, they must dump the notion that radical capitalists in the US and UK have propagated, that the business of business must be only business.

In that view, the only responsibility of business leaders is to maximise returns to investors — without doing anything illegal, of course, or at least not being punished for it. In fact, five years ago, The Economist declared that CSR (corporate social responsibility) was the most dangerous fad in management circles then. In this view, benefits of profitable businesses automatically trickle down and business leaders should not be distracted by trying to address these societal side-effects.

Now CSR is back in fashion. It can be a dangerous fad, though not for the reasons The Economist feared. It is dangerous because it can lull business leaders into believing that CSR is the way to discharge their responsibilities to society.

CSR is expenditure of some portion of a company’s profits on social causes. And philanthropy, its close cousin, is funded from accumulations into trusts of profits from business. CSR is an inadequate concept because it is limited to what companies do with a portion of the profits they make.

Objectives To study the reasons why companies engage themselves in social issues. To find out whether the companies which are more socially responsible

are able to create positive brand image in the minds of consumers. To find out which companies can be considered more socially responsible

in the Indian context. To have an overview about which countries are more socially responsible

than others in the global perspective.

Motives Improve long-term corporate profitability Distract the public from ethical questions posed by their core operations Commercial benefit by raising their reputation with the public or with

government To be committed to Sustainable Development whilst simultaneously

engaging in harmful business practices

CSR initiatives of Some Indian CompaniesName Of thecompany CSR Principle

CSRRating Initiatives

Aditya BirlaGroup

Help build model villages that canstand on their own feet. 3/5

Healthcare, education, ruraldevelopment

GodrejIndustries

Belief in green environment leadsto enhancement of productivityand quality 3/5

Environment andagriculture, infrastructure

Indian OilCorporation

To help enrich the quality of life ofthe community and preserveecological balance and heritagethrough a strong environmentconscience. 2/5

Community developmentprogrammes, medical services,education, art and culture, socialobjective schemes

HLL Social welfare initiatives boththrough charity and social investment 3/5

Child welfare, Aids awareness,Women Upliftment, ruraldevelopment, disaster reliefactivities, environment

ICICI bank

To build the capacities of thePoorest of the poor to participate inthe large economy 3/5

Poor health and nutrition, childeducation, micro financial services,

Infosys Support the unprivileged inSociety and enrich their lives 4/5

Healthcare, social rehabilitationand rural upliftment, learning andeducation, art and culture

Procter & Gamble

Commitment to sustainable development as "ensuring a better quality of life for everyone, now and for generations to come.”

2/5   Child education, women education, health and environment

Reliance Industries

Principle of symbiotic relationship with the local communities, recognizing that business ultimately has a purpose - to serve Human needs

2/5 Scholarship schemes, healthcare initiaves, cancer and AIDS prevention, health, safety, environment, social responsibility and community development, rural development, women and youth empowerment, skill upgradation

Tata Steel Sharing Wealth to diminished disparities

4/5 Education, Tribal welfare, healthcare, Health and AIDS awareness, environment

Wipro To contribute in the areas of education, community and social development

3/5 Learning enhancement, infrastructure facilities, disaster relief activities

Responsibility Towards Different Groups Responsibility to Customer

Responsibility to Investors

Responsibility to Employees

Responsibility to Society

Responsibility to Government

Responsibility to CustomerKBC group sets great store by customer-friendliness. It attaches a good deal of importance to expertise and professionalism, and aims to provide the best solutions for its customers. However, the group also strives to be a responsible bancassurer through, for example, paying a good deal of attention to the privacy of its customers and providing information that is as clear and accurate as possible.

Responsibility to InvestorsAccording to Michael Harpster, a 30-year veteran of film finance and distribution, the producer has two responsibilities to his investors. The first one is to get the film made and the second is to make money for the people who helped get it made. Period. According to Mr. Harpster, “Many films can be made with a relatively small amount of capital if leveraged properly but a lot of attention must be paid to making money for the participants and that always involves distribution.”

Responsibility to EmployeesSocial responsibility in a company primarily means responsibility for employees. They are our most important resource and crucial to the company's success. Comprehensive programs on personnel development and equal opportunities, profit-sharing and pensions encourage qualified, contented employees.

Responsibility to Society The mantle of service, earlier the prerogative of few, has been extended to a larger part of society, the business community. There has been a call for corporate entities to put in resources and services for the betterment of society. Service to the community through the establishment of facilities, infrastructure and uplift plans for those in need is also an agenda with the corporate of the 21st century. In the course of doing business, corporations are also taking keen interest in implementing their social responsibility. Whether at international, national, regional or local levels their activities and operations are carried out keeping their social responsibility objectives in mind.

Responsibility to Government Governments all over the world must enact laws to safeguard the interest of consumers and to protect the environment from greedy and unethical corporations. These laws must be tough and strict and more importantly lay down tough measures for violations and prosecution. Consumers as well as the environment must be protected; however, this must be built into the social responsibility role of organizations. The purpose of this paper is to evaluate and analyze how Corporate Social Responsibility (CSR) policies assist consumers and or organizations in the global markets; and more importantly to evaluate whether government regulatory polices differ throughout the world.

Evolution of CSR in IndiaJRD Tata was instrumental in conducting the first social audit in India. Since its

inception, the Tata and Steel Company has been a shining example of social responsibility.

History of Tata Motors Started in 1945 in Mumbai, India. Original production was on locomotives. 1954 First car rolled off of the assembly line. Tata’s are a family The family founded:

Ironworks Steelworks cotton mills hydroelectric-power plants

Are of their endeavors have been proved to be crucial to India's industrial development. of Indian industrialists and philanthropists.

Tata Motors is India’s owns the largest independent company in India. Mercedes and Tata teamed up to create a truck line.

First major business deal with another firm. Together both companies started their commercial vehicle operations in 1960. in 1986 the company created and sold the first LCV

LCV = light commercial vehicle Was the Tata 407

Tata Motors decided to pursue joint ventures. Cummins Engine Co., Inc., was the first company to jointly venture with

Tata in 1993. Manufactured a diesel engine that had high horsepower and emitted less

harmful chemicals.

Began creating new lines in the late 1990’s and earl• : Compressed natural gas buses y 2000’s 1109 vehicle, used for commercial purposes. Ex-series Newly designed LCV called the 207 DI

Tata Group

• 100 companies throughout 7 business sectors• Engineering, materials, energy, chemicals, services, consumer products,

information systems and communications• Tata AutoComp Systems - Automotive• Tata Steel - Materials• Tata Power - Energy• Rallis India - Chemicals• Tata Realty and Infrastructure - Service• Tata Tea - Consumer Products• Tata Technologies - Information Systems and Communications

Corporate Social Responsibility of TATA• “A Company that cares about the future”

• Committed to corporate social responsibility• Signed the United Nations Global Compact

• Plays role in community development• Environmentally-friendly products and technology• Two main concerns:

• Reduction of pollution• Restoration of ecological balance

• Implemented soil and water conservation programs• Cleaner Engines

• Advanced emission-testing labs• Developing alternate fuel engines

• Sewage treatment facilities• Encourages tree planting

Community Development:The Company's Community Service Division works through various societies to improve the conditions of neighbouring villages - encouraging economic independence through self-initiated cottage industries and contributing to community and social forestry, road construction, rural health, education, water supply and family planning. Tata Motors has been making numerous well-planned efforts in the area of rural development, with specific focus on the following:

Health & Sanitation: Mobile health service staff provide preventive and curative health services under the "Health For All" programme. They train village health workers in conducting the same. Safe drinking water facilities are provided to ensure health of the villagers.

Employment Generation: Tata Motors encourages self-sufficiency with the aim to improving the confidence, morale and lives of its

employees and their dependents. The Company has worked on some novel ideas around its townships. Employees' relatives at Pune have been encouraged to form various industrial co-operatives engaged in activities such as re-cycling of scrap wood into crates and furniture, welding, steel scrap baling, battery cable assembly etc. The Tata Motors Grihini Social Welfare Society caters to employees' women dependents'. The women folk make a variety of products, ranging from pickles and uniforms to electrical cable harnesses etc.

Community Centers: These centres are situated in various parts of Jamshedpur, Pune and some of their neighbouring towns. The centres regularly organise various programmes & neighbouring populations are encouraged to participate in these activities.

Photo: Mr. Deepak M Deshpande, AGM, Corporate HR inaugurating the bus donated to ADHAR, an Association of Parents of Mentally Differently Abled Children

“There is a strong business sense in investing in CSR, in so far as corporations benefit in multiple ways by operating with a perspective broader than their own immediate business results. These benefits can range from brand differentiation, boost to recruitment and retention, risk management and licence to operate to more individual goals of personal satisfaction.Tata Motors’ CSR is carried on by CSR teams at all the manufacturing units. A structured process has facilitated co-ordination among team members, continuous experience sharing across locations, monitoring and evaluation of all CSR programmes and periodic reporting, giving CSR activities at Tata Motors a Company wide synergy. CSR through the lens of the CSR Team Leaders at these locations is presented in this section.”

Photo: Dr. Rohit Kumar, Divisional Manager, Medical services, Lucknow checking a patient at the health camp organised for contract labourers from nearby villages “From philanthropy to Corporate Social Responsibility, the journey has been one that started with a vision of benevolence, the vision that wanted to see India become not necessarily an economic superpower but a “happy nation”, which visualised developing not just a company, establishing a factory, but the development and growth of townships and communities around. Terms like CSR may have recently become more widely used than ever before but the purpose of improving lives of people has always been central to our business. We have moved far beyond ad hoc stand alone programmes to acknowledging interlinkages of social development with business sustainability. A journey that the Tata Group began a century ago has only matured with passage of time and we continue to fine tune our processes such that we have created a benchmark for CSR.”

Photo: From the right, Dr D G Joglekar, DGM, Health Services with Dr. J U Gokhale, AGM, HR and Mr. B G Ogale, AGM, Training & Safety at the laying down of foundation stone of the vocational centre at Bhamchandra High School, Pune

“CSR is a part of all business processes. It is about taking responsibility for the impact of our business activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond statutory obligation to comply with legislation and sees the Company voluntarily taking further steps to improve the quality of life for the local community and society at large. That is what is being termed as Corporate Sustainability, the focus of companies on the “triple bottom line” of “people, planet and profit”. We constantly strive to improvise both our methods and outcomes and towards this endeavour, have implemented the Tata Protocol in Pune last year. Tata Protocol is a measuring tool for social performance, based on the line of the Tata Business Excellence Model. Pune was ranked in the highest band (with total score of 663).”

Photo: Mr. Ashutosh Varman, Div. Manager, Admin. (right) with Mr. U J Salvi, Div. Manager, Maintenance at Dhumakot . Inter College for recruiting students for the 10+2 scheme. This scheme is two years technical training programme in Uttarakhand plant in relevant automotive trades.

“We have begun to incorporate the local communities in the growth process that industrialisation in Uttarakhand has brought about. Initially, various techniques were employed to identify the needs of the communities by deploying participatory methods of engaging the community members. Better health facilities and employment-focused skill base enhancement were the top requirements of the communities. Towards this end, health check-up camps have been held in villages and we have also started a technical training programme in collaboration with an ITI in order to upgrade the skill base of the youth and enhance their employability. The process for identifying other opportunities for engaging women and more youth members from the villages is underway. We are moving towards a more structured CSR programme and are in the process of establishing a dedicated team. The support of top management has played a key role in giving a boost to the CSR activities in the region.”

Mr. Ashutosh Varman

Silver LiningsThe Company has streamlined its CSR activities into four focus areas of Health, Employability, Education and Environment. The programmes under these thrust areas vary across locations, depending on local contexts and needs. The method of implementation of these programmes also varies across locations. At Pune and Singur, the departments themselves implement the programmes, while at Lucknow and Jamshedpur, Tata Motors’ supported and managed societies run the day-to-day programmes, with the active involvement of the CSR teams. All initiatives feed into the larger goal of improving the quality of life of people. Over the years, these initiatives have had a transformational impact in several facets in the adopted villages around the manufacturing units. Cases demonstrating this transformation are highlighted in this section. This section also gives an overview of the current scenario in areas that are defined as our thrust and the impact our CSR initiatives have had in 2007-08. Tables have been used to give an overview of alignment of the CSR programmes with national and international goals - the Bharat Nirman Programme (BN), a four year business plan for rural infrastructure outlined by the Prime Minister of India and the United Nation’s Millennium Development Goals (MDGs), which are a blueprint of targets agreed to by all countries, to be achieved by 2015.Case studies would also be used to demonstrate how Tata Motors touches the lives of those who do not directly impact or get impacted by the Company but are nevertheless an integral part of the vision of the founders of being the “central purpose of our business”.

HealthWorld Health Organization defines health as a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. The health status is usually measured in terms of life expectancy at birth, infant mortality rate, fertility rate, crude birth rate and crude death rate. These indicators of health are determined by numerous factors such as per capita income, nutrition, housing, sanitation, safe drinking water, social infrastructure, health and medical care services provided by government, geographical climate, employment status, incidence of poverty and the like (Reddy and Selvaraju 1994; Dadibhavi and Bagalkoti 1994).According to the Country Health System Profile, World Health Organization, public health infrastructure in rural India consists of a three-tier system, a sub centre for every 5,000 population with a male and female worker; a Primary Health Centre (PHC) for every 30,000 population with a medical doctor and other paramedical staff, and a Community Health Centre (CHC) for every 100,000 population with 30 beds and basic specialists. In urban areas, it is two tier systems with Urban Health Centre (UHC)/Urban Family Welfare Centre (UFWC) for every 100,000 population followed by general

hospital. The existing public health infrastructure is not evenly distributed across the States. Many institutions are not functional due to staff shortage and non-availability of drugs and consumables and essential equipment. As a result of such inadequate public health facilities, it has been estimated that less than 20 percent of the population, which seek OPD services, and less than 45 percent of that which seek indoor patient treatment, avail of such services in public hospitals. A large portion of population seek medical care services from private sector despite the fact that most of these patients do not have the means to make out-of-pocket payments for private health services (National Health Policy 2002).

Silver LiningsHealthKeeping these figures in mind, the Company has launched several initiatives for improving the health status of community members in the CSR project areas across locations. The initiatives include both preventive as well as curative health care services. In addition, infrastructural development for ensuring a perennial supply of clean drinking water and improved health through better sanitation facilities is also included in the CSR programme of the Company. Facts on Health• Expenditure in health sector is low - ranging from 1 to 3 percent in any given year• Total population: 1,151,751,00• Gross national income per capita (PPP international $): 3,800• Life expectancy at birth male/female (years): 62/64• Healthy life expectancy at birth male/female (years, 2003): 53/54• Probability of dying under five (per 1000 live births): 76• Antenatal care coverage: 51%• Births attended by skilled health personnel: 47%• Total expenditure on health per capita (2005): $100• Total expenditure on health as % of GDP (2005): 5.0• Access to improved sanitation: 28%- Source: World Health Statistics 2008All figures for 2006 except where mentioned

Alignment to Millennium Development Goals

Impact in 2008-09

Millennium Development Goals 5:Improve Maternal Health

• Antenatal cate and anaemua detection and treatment for 590 women

• Institution of Village Health Workers established - Community members identified and trained for providing basic health care to village communities

Millennium Development Goals 6:Combat HIV/AIDS, Malaria and other diseases

• Curative & Preventive health services were provided to over 92,390 persons through the Company's community health programmes, including immunization drives for polio, measles.

• Special country-wide programmes were conducted for drivers during service camps. 46,548 drivers availed of the free general health and eye check-up camps and AIDS awareness programmes

Employability

* Unemployment rates (number of persons {or person days} unemployed per 1000 persons {or person days})Source: National Sample Survey Organization’s 60th Round Survey on Employment and Unemployment conducted in January-June 2004

The table clearly indicates that unemployment rates on the basis of current daily status are much higher than those on the basis of usual status (unemployed on an average in the reference year) implying a high degree of intermittent unemployment. This is mainly because of the absence of regular employment for many workers.

Sector Facts on Employability• India's labour force is growing at a rate of 2.5 per cent annually, but employment is growing at only 2.3 per cent• Sixty per cent of India's workforce is self-employed, many of whom remain very poor• Nearly 30 per cent are casual workers (i.e. they work only when they are able to get jobs and remain unpaid for the rest of the days)• More than 90 per cent of the labour force is employed in the "unorganized sector", i.e. sectors which don't provide with the social security and other benefits of employment in the "organized." United Nations Industrial Development Organization’s `Industrial Development Report 2002-03', highlights that the country's skill base is weak and deteriorating and in this regard has warned that India may face skill constraints when it tries to upgrade technologies in a large range of activities to compete in liberalized markets. It is very important therefore that India improves its productivity if it is to compete successfully in an era of rapid technological and economic change. This requires not only heavy capital investment, but also the acquisition by the workforce of new skills

for emerging jobs. It is also necessary for employers, if they are to be successful, to play a more active role in enhancing employability. The trend towards market-oriented training systems gives an increasingly prominent role to the private sector. Enterprises, in particular, are expected to undertake a proactive role in training. Conversely, the traditional role of the State is evolving from government-led and government-owned training systems towards creating an enabling environment for enterprises and individuals, employers and employees, to invest and actively participate in a collective training effort. (Source: India: Enterprise participation in training, a document released by International Labour Organization, 1997)The Company has initiated several efforts to enhance employability of youth in addition to the Apprenticeship programmes that are run within the premises of the manufacturing units, as per the Apprenticeship Act 1961. The Company has built public-private partnership with government authorities to upgrade the quality of Industrial Training Institutes (ITIs). The up gradation process has been initiated in four ITIs in 2007-08. These ITIs have been equipped with latest machines and tools, students have been taken on exposure visits to understand manufacturing processes and ‘Train the Trainer’ programmes have been organized for their faculty. In addition, several technical and vocational programmes are run for rural youth from the project areas, including Motor Mechanic Vehicle Trade Course, electrical, welding, a/c refrigeration, computer skills, bee-keeping, etc. Special programmes are also run for women including sewing training, beautician courses, manufacturing food products and utility items and cable harnessing and assembly work. So far, more than 9,000 youth and women have benefited from these programmes across our locations.

Photo: Dr. J U Gokhale (Standing in centre in blue) and Rohit Saroj, Manager, CSR (in white shirt) with women from the project area of CSR, Pune who received training in tailoring and were donated sewing machines under the Women Empowerment initiative, called Bahujan Hitay in Pune

Alignment to Millennium

Development Goals

Impact in 2008-09

Millennium Development Goals 1:

Eradicate extreme poverty and hunger

• As a part of its skill development programme, the Company has identified 10 ITIs across the country to upgrade their facilities and enhance the relevance of their programmes to industry needs. Of these, four ITIs have been covered in 2007-08

• 1,085 youth from areas adjacent to the Company's plants, were trained in various technical and vocational trades. At the new plant location of Singur alone, over 350 local youth have been trained in partnership with the government and the social sector, making them employable

• All 18 students of the Company-supported Mechanic Motor Vehicle Trade Course, 2007-08, in association with the Ramakrishna Mission at Sakwar, Thane district, Maharashtra, have been successfully placed at the Company's dealerships. Two students from the previous batch have been facilitated to become entrepreneurs and have opened their own workshop on the Mumbai-Ahemedabad Highway

Millennium Development Goals 3: Promote gender equality and empower women

To make the women economically independent:

• 1,058 women have been trained in manufacturing food products and utility items, sewing and beautician courses

Education“Social infrastructure like education is as important as physical infrastructure, not only for sustaining high growth but also for enhancing welfare. The root of poverty often lies in illiteracy.” Education encompasses both the teaching and learning of knowledge, proper conduct, and competency. It thus focuses on the cultivation of skills as well as mental, moral and aesthetic development. The right to education is a fundamental human right and is guaranteed under the Indian Constitution (Article 16, Part III or the Constitution of India). Yet, the statistics of education in India portray a dismal picture.

The literacy ratio of India is 65.38% with male literacy at 75.85% and female literacy at 54.16%. Moreover, there is tremendous discrepancy in terms of availability of educational facilities in rural and urban areas and even from one region to the other. Therefore, while some areas have no educational facilities; others are fraught with low enrollment, high drop out rates and poor quality of education.Tata Motors has contributed towards improving education through infrastructural development for promoting schooling among the villagers and through upgradation of educational facilities (building computer laboratories, sports ground, etc.) and organizing teacher’s training programmes to better the quality of education.

Facts on Education• Less than half of India's children between the age 6 and 14 go to school • A little over one-third of all children who enroll in grade one reach grade eight• At least 35 million children aged 6 - 14 years do not attend school• 53% of girls in the age group of 5 to 9 years are illiterate• In India, only 53% of habitation has a primary school • In India, only 20% of habitation has a secondary school• In nearly 60% of schools, there are less than two teachers to teach Classes I to V• High cost of private education and need to work to support their families and little interest in studies are the reasons given by 3 in every four drop-outs as the reason they leave

Alignment to Millennium

Development Goals

Impact in 2008-09

Millennium Development Goals 1:

Achieve universa primary education

• Infrastructure was improved at 13 schools, promoting higher education for 2,000 children from over 25 villages

• Shiksha Prasar Kendra, a Tata Motors society at Jamshedpur, supported 18,000 students (of which 7,500 are girls) from across 33 schools

Quality of education improved throughL

• Teacher's training programme conducted in 4 schools• Extra-curricular activities organised in 31 schools with participation from over 4,300 students• Computer labratory built in Beraberi High School at Singur in West Bengal

• Scholarships for higher studies awarded to 375 students

EnvironmentThe environmental issue facing the world today is that of Climate Change, which is any long-term significant change in the “average weather” that a given region experiences. Average weather may include average temperature, precipitation and wind patterns. It involves changes in the variability or average state of the atmosphere over durations ranging from decades to millions of years. These changes can be caused by dynamic processes on Earth, external forces including variations in sunlight intensity, and by human activities.The dominant factors to which recent climate change has been attributed all result from human activity. They are: • Increasing atmospheric concentrations of greenhouse gases • Global changes to land surface, such as deforestation • Increasing atmospheric concentrations of aerosols

Facts on EnvironmentRecent reports from the Intergovernmental Panel on Climate Change (IPCC) report have concluded that:• "Most of the observed increase in globally averaged temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic greenhouse gas concentrations.” • "From new estimates of the combined anthropogenic forcing due to greenhouse gases, aerosols, and land surface changes, it is extremely likely that human activities have exerted a substantial net warming influence on climate since 1750." • "It is virtually certain that anthropogenic aerosols produce a net negative radiative forcing (cooling influence) with a greater magnitude in the Northern Hemisphere than in the Southern Hemisphere. The IPCC, which represents consensus in the scientific community, defines "very likely," "extremely likely," and "virtually certain" as indicating probabilities greater than 90%, 95%, and 99%, respectively.

In view of the threat to environment, the Tata Group places a special emphasis on environmental and ecological issues. The Group's efforts to preserve and regenerate environment find expression in the slew of projects and programmes it has undertaken in and around its facilities and operations. A focus area for the Group, in this context, is the climate change crisis.

Tata Motors’ beliefs on sustainability have led to a corporate policy that emphasises environment preservation. The Company works on projects that include reducing effluents and emissions, maintaining local ecologies, repairing green cover and improving long term corporate sustainability.

Alignment to Millennium

Development Goals and Bharat Nirman

Impact in 2008-09

Millennium Development Goals 7: Ensure environment sustainablity

Over 175,242 saplings have been planted with a 80% survival rateSmokeless chullahs constructed to promote use of environment-friendly practicesAgricultural training imparted to minimize the use of environmentally hazadous materials and methodsAwareness camps on environment related issues

Bharat Nirman Target: 10 million hectares of additional irrigarion capacity to be created by 2009

Community irrigation wells and check dams have been constructed at villages near Pune, augmenting incomes of families through improved irrigation. In Jamshedpur, 85 acres of land has been brought under irrigation and tree plantation has extensively been carried out in over 152 acres

Donation’s CommitteeTata Motors values its partnership with the social sector and through the Donation’s Committee, which includes the Managing Director and the Executive Director as well, endeavours to extend support through donation of vehicles to support the furtherance of cause of the NGOs. In 2007-08, Rs. 12.8 millions was disbursed for use of organisations as ambulances, school buses for the underprivileged and for community development purposes, plying in remote and inaccessible parts of the country.

Photo: Mr. Dilip Sengupta, Head HR, Small Car and Mr. M B Paralkar, former Sr. GM, donating a Tata Sumo to be used as an ambulance to Ramakrishna

Mission in Kolkata

Silver Linings

“Since 2006, your institution has adopted our Diwad village and since then considerable progress has been made in the village. Some of the projects that have been completed include:

1. Tree plantation on the land owned by the village (2000 trees have been planted since the tree plantation drive began in 2006)2. Construction of a 2kms road on the mountainous terrain3. Distribution of toys and games to Angandwadi (2 pre-primary schools)4. Seeting up of computer laboratory and repair work in the secondary school5. Infrastructural development of primary school6. Distribution of teaching aid to secondary school7. Support for providing clean drinking water in the village8. Ensuring hygiene and sanitation through construction of 200 individual toilets, covering all families9. Donation of Excavator machine for the development work of the village

We hope your institution would continue to support the village through the coming years.”

Signed, Sarpanch, Gram Panchayat, Diwad village, Pune

P.S. the above is a loose translation of the original letter

Toasting Togetherness

Photo: Mr. Ravi Kant, Managing Director, planting a tree at Uttarakhand plant

Photo: Mr. Vinod Sahay, Regional Manager (North) at Health Check-up camp held for the employees at the Kolkata regional office. More than 35 colleagues both

from PCBU and CVBU participated in the same

Soul CurryEmpowerment is more than earning capability…Story of Geeta…

Photo: Geeta Devi

Ms. Geeta Devi, a resident of Murlipur village, Lucknow, traversed a difficult path from a housewife to being the main bread winner of the family. A tragic incident that forced her to leave the confines of her home and fend for her entire family has changed her personality and the confidence that she exuberates today is inspiring. The journey has not been an easy one and breaking away from tradition was perhaps one of the greatest challenges she faced but her will and concern for family helped her tide over hurdles. She gives a part of the credit to Samaj Vikas Kendra, a Tata Motors supported society in Lucknow, which had taken the initiative to support eight underprivileged families from the villages in the project area by providing six months training for sub-assembly work.

(“I am a daughter-in-law in Murlipur village. My household was running smoothly before a tragic incident ruined that. My husband, who was a school teacher, lost his eyesight. Since he became unemployed, we were facing great difficulty in running the family and raising our children. It was at this juncture that I was informed by Samaj Vikas Kendra that needy women from the village were being given a chance for employment. I applied and got selected for the training. All this wasn’t so easy for me as even wearing salwar suit and getting out of the house was opposed. But I managed to persuade them. Today I stand on my own feet, my children go to school and for all this

I am grateful to Samaj Vikas Kendra”)

She gives a part of the credit to Samaj Vikas Kendra, a Tata Motors supported society in Lucknow, which had taken the initiative to support eight underprivileged families from the villages in the project area by providing six months training for sub-assembly work.

Lead Kindly Light Volunteers: Selfless with their Time and Intellect

Photo: Mr. Ravi Kant along with Mr. Rajani Kant Gope (second from left) lauding the plantation of a sandalwood sapling in KhakriparaMr. Rajani Kant Gope’s co-operation and support to CSR activities at his village, Khakripara and adjoining villages in Jamshedpur right from the time of its inception in 1966, has been invaluable for development of these villages. Fondly known as ‘Rajani Babu’, he is an active Tata Motors’ employee volunteer and is regarded highly in the area. Rajani Babu has a deep association with Gram Vikas Kendra in the capacity of being President of Gram Vikas Samity. Presently working in Quality Assurance Division of Tata Motors, he observes, “I have been working in Tata Motors for the last 36 years. Ever since the company established a Community Development Centre at Khakripara, I have been associated with its activities.

When Gram Vikas Kendra came into inception during 1978, I volunteered to associate myself with the Gram Vikas Samity as a member and later on as its Secretary and now as the President.

Adherence to International Standards

Global Reporting Initiative

It is widely accepted that organisations have the ability to exert positive change on the state of the world’s economy and environmental and social conditions. Global Reporting Initiative (GRI) is a sustainability reporting framework, which urges corporations to voluntarily report on their economic, environmental and social performance in a given year. Reporting on sustainability performance is an important way for organizations to manage their impact on sustainable development.

Tata Motors put its GRI Report 2006-07 in the public domain - for the first time - and the report is available on the website as well. It was commendable that within the first year of it being made public, the Company’s GRI Report was short listed from amongst 800 reports for final selection for the GRI Reader’s Choice Awards.

Conclusion:- Corporations must communicate their CSR initiatives to promote a positive image

about the company in people’s mind.

With increasing and widespread commitment of corporate resources to CSR, attention is now shifting to the strategic formulation, implementation, and measurement of the market returns to CSR initiatives.

Emphasize the need for better measurement models of CSR that capture and estimate clearly the effects of a company’s CSR actions on its stakeholders as well as the nations in which they are operating

“It is important for corporations to take stakeholder CSR priorities seriously, bearing in mind the triple bottom-line of ‘People, Planet & Profit’. This will not only help in the overall betterment of the country, but will also help corporations gain valuable mind space in the stakeholder community”.

Bibliography:- http://economictimes.indiatimes.com https://www.kbc.com/ http://www.wacker.com http://knol.google.com/k/osman-masahudu-gunu/the-impact-of-

government-regulations-on/1kietb77pgwru/18# http://www.tatamotors.com