International Journal of Research in Management and Business (ISSN: 2395-4329): Volume 2 Issue2 13

CORPORATE SOCIAL RESPONSIBILITY- A CASE STUDY IN TATA STEEL

Mousumi Panda
Regional College of Management, Bhubaneswar, India

Abstract

Corporate Social Responsibility is a term each and every individual of this era is aware of. The
evolution of CSR in India refers to changes over time in India of the cultural norms of
corporations engagements of CSR. Among other countries,India has one of the richest traditions
of CSR. In recent years, Indian Entrepreneurs are aware of their responsibilities towards society.
The study is about the CSR activities of Tata Steel,which believes in society development since
its inception. Leaders of Tata Group like Jamshedji Tata, JRD Tata, Ratan Tata have contributed
hugely towards CSR,which helps in sustainable development and good corporate
governance.CSR has always been taken care of by Tatas. In this study, we have focused on CSR
activities of Tata Steel in and around Jamshedpur.Data is collected through primary and
secondary sources upto 2013,as the study was done before two and half years.The study shows
how Tata Steel contributes in the areas of Education,Health,Tribal and Sports.This is a thorough
study which may be carried forward for future study when data would be available for 2014,2015
and 2016.

Introduction

Corporate Social Responsibility in now accepted as a means to achieve sustainable development

of an organization. CSR is about integrating economic, environmental and social objective with a
companys operations and growth. CSR impacts governance and ethics, employee welfare,
society welfare, environment protection etc. and many more. The Companies Bill, 2012 intends
to inculcate the philosophy of CSR among Indian companies. There are different types of CSR
like Environmental CSR, Community based CSR, HR based CSR and Philanthropy.
The functions of CSR are Ethical, Legal, Societal and Ecological functions. The ethical functions
of CSR help to present conflicts of interest between earning corporate profits and maintaining the
integrity of the company. The legal function of CSR helps to encourage transparency in a
companys business practices and financial reporting. The societal functions of CSR helps to
respect and invest in the communities in which the company operation. The ecological functions
of CSR helps not only to respect the immediate environment in which the company operates but
also to respect the companys effect on the global environment.
This study on CSR at Tata Steel has sufficient reasons to be established. Many such studies have
been done at Tata Steel on CSR initiatives in the past. But, the recent study will throw lights on
the perseverance and continuous efforts of Tata Steel for CSR activation. Here few quotations of
the great leaders are justified to be given.

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 profits but that we are
responsible and good corporate citizens over and above our normal operations.
Ratan N. Tata, Chairman
Tata Group, 1993-2012

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Let the industry established in the countryside adopt the villages in its neighbourhood, it is
also clearly in the interests of industry that surrounding areas should be healthy, prosperous and
peaceful.
JRD Tata,Chairman
Tata Group, 1938-1993

In a free enterprise, the community is not just another stakeholder in business but is in fact the
very purpose of its existence."
- Jamsetji Nusserwanji , Tata Founder, Tata Group.

CSR at Tata Steel

Tata Steel for the last 100 years has focused on responsible business practices with community-
centric interventions. Sustainable development and inclusive growth is facilitated by CSR
department through the Tata Steel Rural Development Society (TSRDS), the Tata Steel Family
Initiative Foundation (TSFIF), the Tribal Cultural Society (TCI), the Tata Steel Skill
Development Society (TSSDS) and the Urban Services, which contribute to health, drinking
water, education, sustainable livelihood, renewable energy, employability Training and Tribal
ethnicity.
More than 700 SHGs (Self Help Groups) accounting for 9000 plus members function with the
support of Tata Steel. SHGs are adopted by Tata Steel to promote enterprise development.

Engagements with SHGs includes:

Empowerment of women to give then a greater say in decision making within the family.
Income generation and entrepreneurship development.
Facilitating credit linkages and marketing of products.
Trained to adopt a more professional approach and improving the quality packaging and
branding of their production.
Competitions to encourage creativity & leadership.

Key Interventions in CSR at Tata Steel:

1. Sustainability Initiatives
2. Rehabilitation and Resettlement Initiatives
3. Skill Development
4. Tribal Initiatives
5. Urban Services
6. Empower women self help groups
7. Training programme Initiatives.

Corporate Social Responsibility has always been taken care of by the Tata group. The founder
Mr. Jamshedji Tata used to grant scholarships for further studies abroad in 1892. He also
supported Gandhijis campaign for racial equality in South Africa. Tata group has given country
its first science center and atomic research center . "The wealth gathered by Jamsetji Tata and his
sons in half a century of industrial pioneering formed but a minute fraction of the amount by
which they enriched the nation. Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is

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that 'give back to the people what you have earned from them'. So from the very inception,
Jamshetji Tata and his family have been following this principle." (a statement on the Tata
group's website www.tata.com) .
In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that
in future TISCO would not deal with companies, which do not conform to the company's
Corporate Social Responsibility(CSR) standards. Speaking at the annual general meeting of the
Madras Chamber of Commerce and Industry, He stated, "We will not either buy from or sell to
companies that do not measure up to Tata Steel's social responsibility standards."
Through different companies and societies Tata group keeps on heading towards the fulfillment
of corporate social responsibility. Tata Steel has adopted the Corporate Citizenship Index, Tata
Business Excellence Model and the Tata Index for Sustainable Development. Tata Steel spends
5-7 per cent of its profit after tax on several CSR initiatives.
For the last 100 years, Tata Steel has focused on responsible business practices with community-
centric interventions. In the initial years, Tata Steels CSR interventions were more as a
provider to society where the community was given support for its overall needs, both for
sustenance and development e.g. distribution of medicines, free distribution of seeds/fertilizers,
farm equipments, etc.

Objective of the study: To find out the current CSR initiatives taken by Tata Steel.

Scope of the Study: Tata Steel, Jamshedpur

Research Methodology: Methodology consists of interviewing the different SHGs and persons
associated with CSR under various heads such as Education,Health,Tribal,Sportsetc.Secondary
data is collected from websites, company magazines and records.

Data Analysis:

EDUCATION

1) How many SC/ST students have registered for competitive examination coaching and how
many of them have been selected?
2)
SELECTED SELECTED
TOTAL SELECTED GOVT BANK OTHER NOT
CANDIDATES BANK PO JOBS CLERKS JOBS SELECTED

71 7 4 3 25 32

80 total candidates

60 selected as bank po
selected in govt jobs
40
selected as bank clerks
20 selected in other jobs

0 not selected

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INTERPRETATION

From the graph we can interpret that out of total candidates i.e. 71 who have registered
themselves in the coaching classes for competitive examinations 39 have been selected which is
more than 50% success. Previously it was just 26%. So these centres are successful in giving
good results for the SC/ST children.

3) How many girls are there in the camp schools over last few years?

FY YEAR NO. OF GIRLS

2008-09 200
2009-10 192
1010-11 200
2011-12 100
2012-13 1142

1500

1000

NO. OF GIRLS
500

0
2008-09 2009-10 1010-11 2011-12 2012-13

INTERPRETATION

It is seen from the graph that during the year 2008-09 the number of girls in the camp schools
were 200. In the year 2009-10 there was a decrease in the number which was 192. Again next
year it raised to 200. But in the year 2011-12 the number has further decreased to 100.
Surprisingly in the year 2012-13 the number has increased to 1142. This is a huge success for the
CSR team of Tata Steel.

4) How many adult learners are there over last few years?

FY YEAR NO. OF LEARNERS

2009-10 2295
2010-11 2565
2011-12 5600
2012-13 10000

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15000

10000
NO. OF LEARNERS
5000

0
2009-10 2010-11 2011-12 2012-13

INTERPRETATION

From the graph we can interpret that during the year 2009-10 the number of adult learners were
2295. The next year the number increased to 2565. During the year 2011-12 the number has
further increased to 5600. Now the number has reached to 10000. If this trend continues there
will be maximum literacy in our country.

TRIBALS

1. What is the number of students learning tribal scripts (youth )?

YEAR NO. OF STUDENTS
2011-12 900
2012-13 8000

10000
8000
6000
4000 NO. OF STUDENTS
2000
0
2011-12 2012-13

INTERPRETATION

From the graph it can be interpreted that during the year 2011-12 the number of students learning
tribal scripts were 900. During the year 2012-13 it has increased to a great extend i.e. 8000. This
indicates that more tribal youths are learning their tribal scripts.

2. What is the change in the number of players in the tribal sports meet?

YEAR NO. OF PLAYERS

2011-12 800
2012-13 1500

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NO. OF PLAYERS
2000
1500
1000
NO. OF PLAYERS
500
0
2011-12 2012-13

INTERPRETATION

The graph represents the number of players in the tribal sports meet during the last two years. In
the year 2011-12 there were 800 players. This has increased during the year 2012-13 and raised
up to 1500. This indicates a rising trend in the graph which shows that now more tribal people
are taking interest in these sports.

3. What is the number of persons in the FY2012-13 that have registered in coaching for trade
apprentice?

TYPE NO. OF PERSONS

TRAINED 52
EMPLOYED 14

60
50
40
30
NO. OF PERSONS
20
10
0
TRAINED EMPLOYED

INTERPRETATION

This graph shows how many people have registered for the coaching facilities provided to the
tribals. Many of them are trained and many are employed. The graph indicates 52 people are
trained and 14 are employed.

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4. What is the number of persons trained and employed including both SC/ST and Non SC/ST
in the past years?

SC/ST SC/ST TOTAL INCLUDING

YEAR TRAINED EMPLOYED NON SC/ST
2010-
11 398 111 2159
2011-
12 1074 191 2802
2012-
13 685 194 1979

NO. OF STUDENTS TRAINED AND EMPLOYED

Total no of youth trained No.of SC/ST youth trained No.of SC/ST youth employable
2802
2159 1979
1074
685
398 191
111 134

2010-11 2011-12 2012-13

INTERPRETATION

This graph indicates the total number of SC/ST and non SC/ST who are trained and are
employed during the last three years. During the year 2010-11 the total number of youths trained
are 2159, 398 are SC /ST who are trained, 111 are SC/ST who are employed. During the year
2011-12 the total number of youths trained are 2802, 1074 are SC /ST who are trained, 191 are
SC/ST who are employed. During the year 2012-13 the total number of youths trained are 1979,
685 are SC /ST who are trained, 134 are SC/ST who are employed.

ENVIRONMENT

1. In which areas are the solar lights installed and in how many households?

Area No of
Households
SabarTola 55
BeltandChowk 25
Mansurkota 130
Sarubera 88
Ankua 570
Dumri 30
Tarajhar&tentuligotha 100
Kankadagudi 30

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Bhalukantia 65

No of Households
600
500
400
300
200
100 No of Households

INTERPRETATION

This graph represents the number of households in some locations in which solar lights has been
installed by Tata Steel as a part of CSR. It is seen that in Ankua region there is maximum
number of solar lights where as in Beltand chowk it is minimum.

2. Which are the various districts where the solar lights are installed in various numbers?

Locations 2011-2012 2012-2013 2013-2014 TOTAL

Gopalpur 42 170 335 547

KPO 0 60 310 370
Sukinda 15 129 250 394
Bamnipal 14 25 35 74
Joda 0 0 289 289
Noamundi 126 263 56 445
West Bokaro 35 180 200 415
Latehar 0 0 28 28
Jamadoba 0 200 145 345
Gomardih 0 0 33 33
Gulma 5 0 0 5
ITI Tamar 0 10 0 10
Surda Mines 0 27 0 27
East Singhbhum 434 700 1018 2152

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Total 671 1764 2699 5134

solar lights
6000
5000
4000
3000
2000 2011-2012
1000 2012-2013
0 2013-2014
Gopalpur
KPO
Sukinda
Bamnipal
Joda
Noamundi

TOTAL
West Bokaro
Latehar
Jamadoba
Gomardih
Gulma
ITI Tamar
Surda Mines
East Singhbhum
Total
INTERPRETATION

This graph depicts the various locations and the number of solar street lights installed in the last
few years.

HEALTH

1. What are the various health services given and the number of persons to whom the
service was provided for the last three years?

SERVICE 2010-11 2011-12 2012-13

FAMILY PLANNING 8783 6633 7198
ANTI-NATAL CHECKUP 12931 11629 12000
IMMUNIZATION 9914 12717 14006
PRIMARY HEATH CARE
SERVICES 213208 289517 370000

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health services
400000
350000
300000
250000
200000
150000
100000 NO. OF PERSONS IN 2010-11
50000
0 NO. OF PERSONS IN 2011-12
NO. OF PERSONS IN 2012-13

INTERPRETATION

The graph represents the various health services and the number of persons the service has been
provided. In the year 2011 the family planning service has been provided to 8783 people but in
the next two years the number has decreased. In anti natal checkup in the year 2011 the number
of persons were 12931 but the next year it decreased and in the third year a slight increase is
seen. For the immunization programme there is an increasing trend for the three years. Similar is
in case of primary health care services.

2. What is the number of persons and the expenditure amount taken for the awareness
programme on HIV AIDS for the last three years?

2010-11 2011-12 2012-13

NO. OF PERSONS 35659 310000 310000
EXPENDITURE 1012300 1234112 1826300
HIV AIDS AWARENESS COVERAGE
2000000
1500000
2010-11
1000000
2011-12
500000
2012-13
0
NO. OF PERSONS EXPENDITURE

INTERPRETATION

The graph represents the statistics about the awareness programme conducted on HIV AIDS for
the last three years i.e. 2011, 2012, 2013. It is seen that in the year 2011 the number of persons
were less and the expenditure was also less as compared to the next two years. The graph depicts

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a clear picture that each year the number of persons made aware are increasing and also the
amount of expenditure that has been taken for the initiative.
Conclusions

The above study has four parts, 1. Education 2. Tribal 3. Environment and 4. Health.
Education section involves SC/ST , girls and adult education. Tribal section includes training,
coaching, placement of Tribal Children in sports. Environment includes solar lights provided by
Tata Steel. Health includes health services provided to the society by Tata Steel. The study
includes data upto financial year 2013-2014 in some cases and upto 2012-2013 in other cases as
per the availability of data.
After analyzing both primary and secondary data, we can visualize the active involvement of
Tata Steel in CSR activities. Apart from the above activities, there are various other activities
like community centres, coaching centres and training centres which constantly work for the
upliftment of the society in and around Jamshedpur, Jharkhand. Every organization has some
responsibility towards the society and ultimately towards the nation, social involvement of the
organization would enhance a healthy relationship between society and organization for mutual
growth. Tata group has gone a long way in fulfilling its duty and responsibility towards the
society. Tata group has spent Rs. 660 crores on CSR in 2013-14. Tata Steel employees feel
proud to be a part the company for these CSR activities. This is the first company including the
government sector to start the CSR initiatives. The company believes in inclusive growth and
sustainable growth. The study prepares a strong base for the future study of the said topic.

References

1. Annual Report of Tata Steel of the year 2011-12

2. Annual Report of Tata Steel of the year 2012-13
3. Sustainability Livelihood Options for Primitive Tribal Group in Jharkhand: CSR
initiatives by Tata Steel
4. Tribal Cultural Society Annual Report 2012-13
5. 13th Corporate Sustainability Report 2012-13
6. Tata Steel Family Initiatives Foundation Annual Report 2012-13
7. Bowen , H.R; Social responsibilities of the businessman ( New York : Harper & Row ,
1953)
8. S.K Bhatia, Business Ethics and Global Values , Deep & Deep Publications Pvt. Ltd.,
New Delhi , 2008.
9. Fredcrick, W.C . , The growing concern over business responsibility ( California
Management Review , vol. 2 , 1960) , pp. 54-61.
10. Wood, D.J. towards improving corporate social performance (Business Horizons, Vol. 34
No.4).

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