A Critical Analysis of Tata Steel’s Corporate Social Responsibility Initiatives Globally

1. Corporate Social Responsibility

A critical analysis of Tata Steel’s Corporate Social Responsibility Initiatives Globally

[pic 1]SUBMITTED BY:  Group 4

Divya Gupta (E030)

Jigar Gada (E023)

Geetika Dutta (E021)

Shivam Kaushal (E037)

Akshita Chhabra (E016)

Nikhil Gupta (E032)

1. Contents

Corporate Social Responsibility        1

1.        Introduction        3

2.        Social Responsibility Integration with Business Model        3

3.        Social Responsibility Interventions        4

3.1 People        4

3.1.1 Workplace        5

3.1.2 Marketplace        7

3.1.3 Community        8

3.2 Planet        11

3.3 Purpose        12

4.        Critical Analysis        12

4.1 Analysis        12

4.2 Cases against Tata Steel        13

5.        References        13

1. Introduction

Tata Steel, being a responsible employer ensures through its activities to have a positive impact on the communities in which it operates. They believe that a company should play a significant and beneficial role within the community and society. Their CSR activities are aimed at improving the quality of life of the communities they serve. They also claim to utilize their products and services for their CSR activities. They are committed to giving back to society and to inclusive growth.

Tata Steel has always tried to conduct its business responsibly, keeping in mind their social accountability, obeying all the applicable laws, and have regard for human rights and dignity. They visualize long term value creation for all their stakeholders.

1. Social Responsibility Integration with Business Model

Tata Steel focusses on driving and maintaining excellence in its business operations through aiming at improvement in process, product and people. It has six guiding principles based on CSR integration with business:

1. Impact: They have well defined KPIs to measure the impact of CSR initiatives on target groups. In addition to this, there are independent third parties for assessment and feedback is used as a key input for redesign of further initiatives.
2. Partnerships: The company collaborates with other TATA group companies, and likeminded organisations, funding agencies, NGOs, community based organizations, government, in order to receive complementary resources, expertise and influence to improve Tata Steel’s CSR initiatives. Tata Steel also engages with Tata Trust and works on joint projects with them which align with their CSR strategy.
3. Volunteerism: They provide opportunities to their employees, their families and Tata Steel ecosystem to engage in volunteering activities that benefits the communities and support their own CSR efforts. This creates both social and business impacts.
4. Communication: There is a two-way communication channel so that the needs and expectations of stakeholders are mapped and the feedback is used to identify gaps in the process and redesigning of their initiatives.
5. Innovation: They strive to develop innovative solutions to tackle intractable social problems. They possess technology and models for sourcing, partnering and delivery of initiatives.

1. Social Responsibility Interventions

There are various social responsibility interventions encountered in CSR report described as below:

3.1 People

The overarching framework of Tata values and Tata code of conduct has upheld respect for human rights. The Universal Declaration of Human Rights, ILO conventions, and International convention on the rights of child serve to guide business decisions. Respect for the rights of indigenous committees with special emphasis on women and children, creation of decent work, and quality of life has led to myriad of initiatives. Tata Steel’s such policies are manifestations of its commitment to human rights and their flourishing application in workplace.

With the objective of comparing performance over time, generating transparency, and driving improvement, Tata Steel sought to apply the global Social Accountability 8000, i.e., SA8000 standard. The elements of Universal Declaration of Human Rights and ILO conventions comprises of SA8000 clauses. SA8000 is a global, auditable, and voluntary certification standard for decent working conditions that considers various provisions for workers and suppliers (as discussed above) through the following:

• Child labour: Tata steel does not support the use of child labour. No employee is less than 18 years of age. This policy is also communicated to all contractors and suppliers for complying with SA8000.
• Forced Labour: They do not engage in human trafficking in human beings and condemn the same.
• Health and Safety
• Free association and collective bargaining: Tata worker’s union (TWU) serves as the representative body for workers. Tata Steel does not interfere with the functioning of TWU.  The TWU representatives are elected through fair and election process.
• Discrimination: Tata steel does not support discrimination in hiring, remuneration, access to training, promotion, termination or retirement based on caste, race, birth, nationality, gender, sexual orientation. They provide equal remuneration to men and women for the same category of work. Grievance Redressal system is also there for the same.
• Disciplinary practices
• Working hours and compensation

Tata steel strives to raise awareness and compliance on social issues in supply chains by initiating third party audits of the vendor it engages in.

1. 3.1.1 Workplace

They hold that diversity in workplace positively impacts business. Hence, they guide initiatives in increasing employee productivity through structural improvements. The various concerns and the initiatives taken to address those concerns are given as follows: