Tata Steel Group5 2a383z

PUTTING PRINCIPLES INTO PRACTICE

C004 Vineet Agarwal C006 Jerry Alex C008 Charles David Antony Arul Raj C010 Hardik Baranth C015 Rishika Bothra C049 Shruti Menon 1

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Tata Steel: A Pioneering Enterprise

Tata Steel, a subsidiary of the Tata Group was established in 1907

Founded in the vision of Jamsetji Tata, a true nationalist

Corporate Social Responsibility in Indian industry traces its roots from him.

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Jamsetji Tata: A Visionary Ahead of His Times

•Laid foundation of Indian industrialization •Laid foundation for scientific development in India •Set up J N Tata Endowment for Education •In 1902 advised that modern civic amenities to be provided for workers when steel plant was still being constructed. •Undertook affirmative action not mere charity “In a free enterprise, the community is not just another stakeholder in business, but is, in fact, the very purpose of its existence.” J N Tata 3

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A Vision Translates Into Tradition

“Let industry established in the countryside ‘adopt’ the villages in its neighborhood; ...it is also clearly in the interests of industry that surrounding areas should be healthy, prosperous and peaceful.” J R D Tata, Chairman, Tata Group 1938- 1993

“I do believe that we, in the Tata Group, have held a view and sense of purpose that our companies are not in existence just to run our business and to make profit but that we are responsible and good corporate citizens over and above our normal operations” Ratan N Tata, Chairman, Tata Group

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Tata Steel: CSR Policy

“ Tata Steel believes that the primary purpose of a business is to improve the quality of life of people. Tata Steel will volunteer its resources, to the extent that it can reasonably afford, to sustain and improve a healthy and prosperous environment and to improve the quality of life of the people of the areas in which it operates.”

Employees

People (Community)

Planet 5

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Employee Relations

• Pioneer in ensuring just and fair workplace • 26,348 employed in SC/ST Category • Safety Excellence Journey • Suraksha Scheme • Upholds UN declaration of Human Rights

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People

• Livelihood • System of Rice Intensification (SRI) • Navajeeven Cooperative Ltd • Encourage tribal women to leverage art

• Employability • Prerna , RDTT, ITI Tamar • Samarth Skill Development Center • Nursing Training for tribal girls

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People

•Health care facilities open to employees and non-employees • MANSI and RISHTA • Hospital on wheels • HIV Awareness – AIDS core group , TSRDS

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People

Jamshedpur is a Centre for excellence in education • Commitment to rural and tribal children

• Financial aid and infrastructure • Jyoti Fellowship • eDUCATION

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People

• Displacement and Post – Displacement Settlement • Tata Steel Parivar • Alternative livelihood through Navajeeven • Residential schools in rehabilitation centers

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Planet Conserving Nature for Future Generations • Founder member of UN Global Compact

• Guiding Principles of Environmental sustainability • PRINCIPLE 7: Business should a precautionary approach to environmental challenges • PRINCIPLE 8: Business should undertake initiatives to promote greater environmental responsibility • • • • •

Energy efficiency and abatement of GHG Waste Management Water sustainability Pollution Control Responsible Mining 11

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Monitoring, Execution & Measurement

•Tata Steel has spent 3.31% of its PAT on CSR activities in 2013- 14. •Tata steel has set up an executive board committee with 13 directors of which 7 are independent.

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Monitoring, Execution & Measurement • Complaint Committees were formed at 13 locations • In 2005, a Whistle Blower Policy was formulated •Sessions about HIV/AIDS, sexual harassment, education, alcohol & drug • Farmers educated about judicious use of water and increase in productivity •Employee Programme, connecting the employees and Line and HR managers •SAMPARK, a intranet service to ensure smooth complaint mechanisms 13

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Critical Analysis

Investors in Tata Steel considered for this report

Sir Ratan Tata Trust

Sir Dorabjee Tata Trust

Heavy investments have been made by the trusts in the areas of : • Rural Livelihood improvement • Improving the health of the local residents • Water conservation and improvement in water quality • Improvement in the business environment in the area 14

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Critical Analysis For the Kalinganagar land issue we have mapped the above stakeholders as follows: Stakeholders

Power

Legitimacy

Shareholders

Y

Y

Consumer

Y

Y

Employee

Urgency

Y

Suppliers

Y

Y

Community

Y

Y

Y

Trade union

Y

Y

Y

Banks and Insurers

Y

Y

Government

Y

Y

Regulators

Y

NGOs

Y

Media

Y

Y 15

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Critical Analysis • People: • 656 core families and 989 extended families of at least five villages near Gopalpur were displaced in 1996, when Tata Steel acquired around 2,970 acres of land • In the Kalinganagar Project, police opened fire killing 13 tribals in Kalinga Nagar while land acquisition process was going on. • employees and contract workers were injured following an explosion in the LD gas holder inside its factory in Jamshedpur in 2013 • Planet:

• irreversible damage to ecology through the dredging activities carried out at Dhamra Port, Orissa 16

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“We generate wealth for the people. What comes from the people must, to the extent possible, therefore get back to the people.” - Bharat Ratna, J R D Tata

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References •http://www.corpwatch.org/article.php?id=13620 •http://mset-biospectra.org/studies-on-water-pollution-of-river-subarnarekhaatdomuhani-jamshedpur-jharkhand-based-on-physico-chemical-properties-of-water. •www.tatasteelindia.com •http://www.scunthorpetelegraph.co.uk/Tata-s-air-pollution-deadlineextended/story-26231859-detail/story.html#ixzz3j5Sso7Iw •http://www.telegraphindia.com/1130717/jsp/jharkhand/story_17125282.jsp#.VdIA 8LKqqkp •http://www.dorabjitatatrust.org/id/85/Annual%20Report/

•http://www.kractivist.org/capitalist-punishment-how-tata-steel-killed-a-cityjamshedpur%E2%80%AC/

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