Csr

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CSR

Corporate Social Responsibility
Introduction

Corporate social responsibility is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. In a democratic society any kind of enterprise exists for the sake of society. Corporation has to behave as a good citizen. The corporation has to donate generously towards causes of public welfare and must get itself directly involved in social welfare programmes

Objective

The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality

In India many companies are highly into CSR, let see one of the best example of an Indian MNCs ie.,

Tata Motors

Tata motors - Guided by Legacy
The Tata Group is guided by the Principle of Trusteeship and the conviction that Free Enterprise, in order to thrive, must serve the needs of society. This is the cornerstone of our Corporate Sustainability initiatives. Tata Motors is committed, in letter and spirit, to the improvement in the quality of life of people.

Need for Proactive Stance
Equally, Tata Motors believes in being proactive in achieving a balance between business growth and social and environment related needs. Hence, the company¶s business focus is both on personal and public transportation. Hence the company is itself working on or supporting development of alternate fuels, electric and hybrid vehicles, both for personal and public transportation.

Need to go beyond Compliance
Whether in pursuing its business growth or meeting its responsibilities, Tata Motors intent is to contribute by ³doing the right thing´ as against merely being compliant by ³not doing the wrong things´.

Boost to Brand Image
In a global syndicated study conducted by TNS across 18 major automotive markets, it was evident that general public¶s perception of a company¶s conduct is a strong reflection of the overall market sentiment towards that company. 94% of the Indian respondents and 89% of the respondents across the globe maintained that they were more likely to purchase a product or a service from a company that they believe follows responsible and ethical business practices. Tata Motors¶ approach endorses contributing back to society from which it draws resources, and communicates the impact of its initiatives to all stakeholders.

Structure for Corporate Sustainability
CS in Tata Motors benefits from the active involvement of apex management. The CS Committee reviews, monitors and guides the company¶s CS initiatives across all locations. It comprises senior executives, including the Managing Director, Executive Director for Finance and Corporate Affairs, Executive Director, Commercial Vehicles and President, Passenger Cars.

The Donations Committee facilitates donations/discounts on vehicles/used vehicles and used/surplus/obsolete assets such as computers and office equipment. This committee also has the Managing Director and the Executive directors, along with other senior executives as its members. CS Departments, which are part of the Human Resources Department, looks after CS at plant locations. The activities are designed on the basis of the needs of the region where a manufacturing unit is located. The volunteers support CS activities at all locations. Cutting across several departments, they have taken the lead in conceptualizing, organising and implementing several CS activities.

Overview of the Initiatives for Corporate Sustainability: Integrated Rural Development
The company has adopted several villages around its manufacturing units at Pune, Jamshedpur and Lucknow. Integrated Rural Development aims at meeting basic needs in five broad areas Health, Education, Water, Environment and Livelihoods. An overview of the activities in 2006-07 and their impact is given below: Health: A Healing Touch Education: Igniting Minds Environment: Caring for Tomorrow Water: Quenching Arid Areas Livelihood: Infusing Self-Dependence

Employability
The company is establishing the small car plant at Singur in West Bengal. CS at Singur focuses on enhancing the employability of the youth and women in the region through training and skill development. Skills being imparted are attuned to the immediate requirements and future demands that would be generated with the coming of the ancillaries. A glimpse into the activities is given below:

Technical and Vocational Training for Youth Members
‡ 179 youth members having the minimum qualification of SSC passed were given four months intensive training in technical skills like electrician, fitter, turner and welder at Ram Krishna Shilpa Mandir. 18 other youth members who were ITI passed underwent a reorientation programme for six months at our manufacturing unit at Jamshedpur

‡ A total of 346 youth members from the nearby communities are being imparted technical skills in welding, fitting, electrical work, motor mechanics and sheet metal work at various training institutes, including the prestigious ITI, Hooghly, ATI, Dasnagar and Howrah Homes ‡ 224 youth members from the affected community are being trained in computers from NIIT and in apparel making from Apparel Training and Design Centre Employment Opportunities for Empowering Women . ‡ A women¶s co-operative, of 25 members was formed to provide catering facilities to Tata Motors, SP&C and other government agencies ‡ Another group of 50 women is currently undergoing sewing training Direct Employment ‡ Currently 250 community members are engaged as unskilled labour for construction activity of the plant ‡ The CSR team at Singur is exploring feasibility of engagement of these members on a sustainable basis through service providers

Partnering with the Public and the Social Sector
In West Bengal, Tata Motors is closely collaborating with several government agencies, primarily the West Bengal Industrial Development Corporation (WBIDC). The company, in partnership with WBIDC, has trained several youth members in technical and vocational courses. The women¶s co-operative mentioned above was also formed in association with the WBIDC. The company has also partnered with the Ramakrishna Mission for conducting technical training for the youth. These partnerships have helped the company get a more holistic picture of the needs and requirement of all stakeholders of the small car project and have ensured that the CS activities in Singur are well aligned to suit the needs of the community. It is noteworthy that the West Bengal government has publicly announced that Tata Motors has set the benchmark, for all companies coming to the state, its demonstration of commitment to community development.

Towards Community Development - MMV Trade Course at Sakwar
The chief CSR project in Thane is the µMotor Mechanic Trade Course (MMV)¶ at Sakwar. The MMV Trade course is carried out in association with the Ramakrishna Mission, Mumbai. The students selected for the MMV Trade Course are tribal youth members who have passed at least Class VIII and are eager to learn the trade. The course is spread over a period of one year and follows a syllabus that includes theory classes along with practical training at various dealerships thrice a year for a period of 15 days each and at Pune Training Division for a week. The classroom is equipped with visual aids and cut sections of various components, which enables

easy learning. The students are tested twice a year and after passing theory, oral and written examinations, they receive a certificate on behalf of Tata Motors and Ramakrishna Mission. The company also co-ordinates the placement of these students and our volunteers act as mentors for them. The company has donated a bus to the Mission to facilitate the transportation of the students to and from the various dealerships and Pune Training Division. On days that the bus is not used to transport the students, it acts as a Mobile Medical Van to provide preventive and curative health services to the remote and otherwise inaccessible tribal areas. In the year 2006-07, 26 students underwent the MMV Trade course and are now placed as µTrainees¶ in Unitech and Bafna Motors, drawing a stipend of Rs.2500/- in addition to boarding and lodging facilities. Once the students complete their training for three months, they are mostly absorbed as permanent employees at these dealerships

Industry Partnerships
Tata Motors partners in the efforts of various industry forums like the CII, BCCI, SIAM and TERI. In the year 2006-07, Tata Motors has took the first steps towards assessing the ³As is´ status of the affirmative actions that the company has taken so far for improving the condition of the disadvantaged, particularly the Scheduled Caste and the Scheduled Tribe populations (Report Attached as Annexure II). While grappling with the issue of withstanding the threat of reservations being introduced in the private sector, the company commits itself to better the present status of the SC/ST populations by taking measures to improve their educational status, enhance employability and create entrepreneurs through mentoring and promoting leadership amongst the SC/ST community. Representatives from Tata Motors also participated in various conferences and seminars organised by BCCI, TERI and SIAM and contributed positively to the discussions regarding sustainability and industry¶s role in preserving the triple bottom line of people, planet and profit.

Aid to NGOs
The Donations Committee reviewed several applications from NGOs and institutions and after determining their need and merit, approved donations. A sum of Rs. 1.17 million was disbursed in the last year towards donation of Tata vehicles to organisations (list attached as Annexure I) working in the field of health, education and road safety. Donations in kind to the organisations help the company to forge relationships with the social sector by playing an important role in sustaining the work of such organisations. Partnerships across the nation with these organisations help the company to reach out to a larger community base unbound by limitations of geography and outreach ability.

The International Business Unit has ensured that the ethos of the company ± contributing back to the society - is practiced in foreign markets too.

Skill Up gradation
Around 445 dealer sales and service staff have been trained since the inauguration of the training centre in 2005. Apart from the dealer staff, trainings are also conducted for fleet owners, institutional customers and drivers. The training sessions include classroom as well as hands on training .The programme has lead to the creation of employment for more than 100 people in 2006-07

Health Awareness
The campaign, in addition to the free check-up of TATA vehicles, also included Drivers' Training and Technical Tips, free Medical Checkup, Eye Camp and AIDS Awareness programme

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