Company: Tata Motors Ltd
Income 2005-2006 =Rs 17000 Cr (rounded off)
Net profit after tax (05-06) = Rs 1200 Cr (rounded off)
Karmayog CSR Rating- 2/5
CSR activities:
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 �doing the right thing� as against merely being compliant by �not 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
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� 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 �Motor 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 �Trainees� 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 �As 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 Upgradation
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
Soul Curry: Story of the Beneficiaries
The Fruits of Baijnathdih
Five years ago, Mr. Man Singh Murmu of Baijnathdih Village near Jamshedpur was finding it hard to make ends meet for himself and his family. Residing in a rain-shadow area with virtually no agricultural activity in the entire village, the condition of his co-villagers was no better. The Community Services Department, Jamshedpur, correctly analysed that the need was improving environmental conditions through tree plantation. It was looking for a leader from within the community to mobilise community support. Mr. Man Singh Mumu rose to the occasion and successfully motivated the other members of his village to actively participate in tree plantation on their waste lands.
In fact, the leadership abilities displayed by Mr. Mumu ultimately led to the formation of Baijnathdih Forest Protection Group with him as the President. The group took up the responsibility for identifying waste land for tree plantation, for planting and taking care of the saplings.
In partnership with the company, the diligent efforts of the group have borne fruits. Today about 60 acres of waste land have been brought under plantation with fruit trees. The plantation has positively impacted the environment and has also supplemented the incomes of the villagers, thereby upgrading the social and economic fabric of the region.
Mr Murmu, who also works as a guard in a private security firm, says with pride �I would not have become what I am today if Community Services of Tata Motors had not come to my village. Today my fellow villagers and my family have gained enormously in terms of both income and a healthy community life. I take interest in other aspects of development for my village in consultation with my co-villagers. Acknowledging our unity and attitude towards development, support has been extended from the Government as well and a 200 metres. PCC Link Road and one big Culvert has been developed, which has created access to better communication facility for the villagers�.
The Rebirth of Jowahar Ram Paswan
Mr. Jowahar Ram Paswan, a resident of Chaibasa, got the first traces of leprosy at the age of 15. At the time nobody paid much attention to the patch that had appeared on his right elbow and his health steadily deteriorated. Ill health reduced his concentration levels and he dropped out of school. On quitting school, Mr. Paswan tried to enroll himself in several vocational courses but could not complete any of them and he finally started earning a meager amount painting sign boards and banners. One day while working in direct sunlight, his face became unnaturally red and he was taken to a local hospital, where he was diagnosed to be suffering from advansed stage leprosy. However, due to lack of money, he could not complete his treatment. Circumstances deteriorated and Mr. Paswan moved to Jamshedpur where he found a job as an attendant at a guest house. However, when the superintendent of the guest house came to know of his disease, he was immediately dismissed. His neighbours in the place where he was staying also turned him out for they feared having a leper living amongst them.
With a sense of defeat and dejection, Mr. Paswan returned to Chaibasa and started trading in illicit liquor but it was against his will and he once again left for Jamshedpur in search for salvation. This time, on the advice of some acquaintances, Mr. Paswan visited Nav Jagrat Manav Samaj (NJMS), a Tata Motors supported society. At NJMS, he was given the job of painting and writing educational material for exhibitions and was being treated for leprosy as well. When NJMS started the Temporary Stay ward and Old Age Home for leprosy patients, Mr. Paswan was given the job of Caretaker. Thus, Mr. Paswan, now having a permanent job and a steady income, can well support his wife and his children who are receiving good education in Jamshedpur.
Mr. Paswan comments, �I am grateful to NJMS for changing my life and giving me an opportunity for serving the leprosy patients, who are uncared, unloved and untouched by most. I know for sure that had it not been for NJMS, I would be on the streets or would be languishing behind bars for indulging in illicit liquor trade.�
New leaf at Gopalpur
Tata Motors, Community Services, Jamshedpur reached the village of Mr. Sujit Soren, Gopalpur, in 2004. Hitherto, the villagers who subsisted on a mono crop of paddy and supplemented their livelihood by engaging in menial jobs during agricultural lean seasons had no idea of the techniques for conserving soil and rainwater. The village itself had no irrigational facilities either.
Thus, as the first step, Community Services personnel formed a Village Committee constituting of small and marginal farmers. The members were exposed to agriculture training and were motivated to partake in the Watershed Project for the development of their village. Continuous training and demonstration programmes on horticulture like cultivation of lin-seed, pulses, maize, vegetables, spinach, Pisciculture, Animal Husbandry as well as Bee Keeping were constantly organized at Gopalpur by the skilled personnel of Gram Vikas Kendra, an Institution dedicated for rural development under the umbrella of Community Services. Having gone through these trainings, discussions and exposures, Mr. Sujit Soren was deeply motivated to take a lead role as a harbinger of change in his village. While he himself tried doing the things in his own land, he motivated other members of his village to actively participate and adopt the practices as demonstrated to them. The breakthrough was made with one pond being dug by the support of Community Services on his land. Other villagers followed suit and subsequently 11 ponds were dug in the village within six months.
Moreover, with the promotion of Pisciculture, over 50,000 certified fish fingerlings were distributed to the pond owners with the motivational help of Mr. Soren. The first Bee Box with successful extraction of honey also was made at Mr. Soren�s home. The flavours of Mr. Soren�s successful demonstration of Horticulture, Pisciculture, Bee Keeping, Tree Plantation and Animal Husbandry spread across to the other villages as well. Today more than 100 acres of land is irrigated perennially and over 10,000 fruit and timber plants have been grown in the village wastelands. With Mr. Soren�s income multiplying many times over, he has become an example for others to adopt mixed agriculture as a successful means for making a good livelihood.
The commitment towards improving the quality of life of the villagers led the Community Services to take on other projects in Gopalpur and surrounding villages. Capitalizing on the influence that Mr. Soren had come to wield over the villagers through his status as an informal leader, the entire village of Gopalpur as well as the other six villages under the Kalapathar Panchayat, were covered cent per cent by the sanitation drive. Low cost toilets were built in every household in the villages of Kalapathar Panchayat, which was then declared as a Nirmal Panchayat. In fact, the Honourable President of India awarded the prestigious Nirmal Gram Puraskar to the Panchayat on May 04, 2007.
Realising Dreams at Bhamboli
Vinod Pachpute, today an esteemed employee of Tata Motors, ERC, hails from a small village in Pune called village Vasuli. The Community Development Department in Pune, in 1992, started the �Bhamachandra High School� at Bhamboli village, which became the only school in the vicinity, catering to populations from 7 surrounding villages. At present, a total of 450 students receive education in this school.
Reflecting on his progress, Mr. Vinod remarked, �I completed my Diploma in Mechanical Engineering after studying in Bhamachandra High School, which is promoted by Tata Motors. The quality of education received there enabled me to get employment in Tata Motors ERC, purely on merit. I feel proud to work and use my expertise for growth of this organization, which has helped me in my education and has provided me the opportunity for improving my lifestyle. I feel extremely happy when I watch young friends from my village learn and grow under the able guidance of teachers in my school.�
Tata Motors CSR philosophy rests on the purpose of making communities self-dependent. The main aim has always been to initiate and nurture projects that are sustainable. This school is one of the classic examples of one such project which was started by the company as apart of its CSR but has now been completely handed over to the community and is managed and run by it. The company constantly ensures the participation of all community members at all stages of the project, in order to inculcate in them a sense of ownership for the projects. The company has assisted the School Board to liaison with the government to get a get grant-in-aid from the Education Board of the Government. The project thus has become self-sustaining. At present, the Board of the school is primarily run by the representatives from the villages and employees of the community development department are honorary members, playing an advisory role.
Mr Navnath Karande, an employee and an ex-student of Bhamachandra High School, who has now completed his Diploma in Mechanical Engineering and is on the Bhamachandra Board of Trustees remarks, �The company has set a goal for creating responsible citizens caring for society and we will solemnly stand by it�.
The Fruits of Baijnathdih
Mr. Devendra Kumar is one of the 39 village youth who set up enterprises in the villages where Samaj Vikas Kendra, Lucknow started the Entrepreneurship Development Programme (EDP) in the year 2000. The objective of the EDP was promotion of self-employment.
Mr. Devendra belongs to Alipur village of Barabanki district and he set up a fabrication unit �Awadh Fabricators� in village Jainabad. An ITI in welder trade from Aliganj Polytechnic, Lucknow, Mr. Devendra participated in the six week Entrepreneurship Development Programme in the year 2000. He started fabrication unit in the year 2003 with an amount of Rs. 25,000/- and invested another sum of Rs. 50,000/- to purchase the machines and tools. Come year 2006, he has now employed four more employees from his own village and is able to make a small profit of around Rs. 4000/- per month.
In words of Mr. Devendra, �I was expecting a job after completing NCVT and wasting my time since 1999. I belong to a small farmer family from Alipur village and was finding it difficult to make ends meet while waiting for a job. Samaj Vikas Kendra has given me an opportunity to change my life. Their programme and personal motivation gave me the confidence to start my own business and I have dreams to expand my business in the future.�
His progress indeed gives direction to rural unemployed youth towards self-employment.
The Power of Pawar
Mr. Meenal Harischandra Pawar, a resident of Navaze village in Thane District, passed the Motor Mechanic Vehicle (MMV) Trade Course at Sakwar with 83% and found employment at Bafna Motors (Mumbai) Pvt. Ltd., Nerul as a mechanic. Today, Meenal is a Workshop Supervisor and his work profile includes interacting with customers for understanding problems with vehicles off-road, allocating jobs to mechanics and ensuring its completion to the satisfaction of the customer, arranging parts for vehicles, opening of job cards in SIBEL system and completion of billing procedure
Meenal acquired computer skills and is today able to operate a laptop for identifying the faults in EURO-III vehicles with the sensors attached to the vehicles.
To quote Meenal, �I come from a poor tribal village. My father is a farmer and since we have very little land of our own, my father works in other rich farmer�s fields. After completing my Class X, I did not have any direction as to what next steps to take. At that time, I went to Ramakrishna Mission where I came to know of the MMV Trade Course that was supported by Tata Motors. After completing the one-year duration of the course, I received a joint certificate from Tata Motors and Ramakrishna Mission. The technical, theoretical and practical knowledge that I had received during the course, helped me to excel in the interview for employment with Bafna Motors. I now am a Supervisor and am able to save and send Rs. 1000/- p.m. to my family. With that money, my two younger brothers are receiving education and I hope that some day they too would get good jobs�.
Adhering to International Standards
Global Reporting Initiative
About Global Reporting Initiative
Global Reporting Initiative (GRI) is a multi-stakeholder process to develop and disseminate globally applicable Sustainability Reporting Guidelines. It is based on the �Triple Bottom Line� of Strong Financial Performance (Profit), Strong Environmental Management (Planet) and Corporate Social Responsibility (People).
Benefits of reporting using GRI guidelines
?Provides a complete picture of the company�s long term prospects
?Improves credibility
?Is a useful tool for financial analysts to advise investors on the company�s performance
?Gives advance warning of problem areas
GRI Report content includes
?Company Profile
?Vision and Strategy for Sustainability
?Governance Structure and Management System
?Performance Indicators �
?Economic
?Environmental
?Social
Status Update
?Reporting began in 2002- 2003
?Third Party assurance audit by PwC for report 2004-05
GRI Report 2005-06 based on to the latest G3 Guidelines
?GRI Report for 2006-07 likely to be made public after seeking an external assurance for the same
Global Compact
About Global Compact
Global Compact (GC) is a United Nations Initiative that was launched in July 2000. It is based on ten principles in the areas of:
?Human Rights,
?Labour,
?Environment and
?Anti-corruption
Benefits of participating in GC
?Demonstrating leadership by advancing responsible corporate citizenship
?Managing risks by taking a proactive stance on critical issues
?Sharing good practices and learning
?Improving corporate/brand management
Status Update
?Tata Motors made a beginning in 2003-04 and has since submitted three reports (called Communication on Progress � COP) to the Global Compact
?Tata Motors is the only Indian automobile company that has been appreciated for its Communication on Progress for the second consecutive year in 2005-06
Social Accountability 8000
About Social Accountability 8000
Social Accountability 8000 (SA 8000) was developed by Social Accountability International (SAI), a non-profit affiliate of the Council on Economic Priorities (CEP. It is based on:
United Nations Convention on the Rights of the Child and
Universal Declaration of Human Rights
SA 8000 measures the performance of companies in eight key areas. These include:
Child labour Forced labour
Health and Safety Discrimination
Disciplinary Practices Working Hours
Compensation Free Association &Collective Bargaining
SA 8000 is applied by companies for auditing and certifying labor practices in their facilities and those of their suppliers and vendors. The measures are designed for independent third party certification and provides for a social accountability management system to demonstrate ongoing conformance with the standard.
Status Update
? Tata Motors is one of the four Tata Companies that has adopted SA 8000 in 2006
? The standards would be applied within the facilities, starting from manufacturing unit at Pune
Awards for CSR
�CII Award for Corporate Sustainability Reporting
The company received the award for presenting a balanced picture of its economic, environmental and social performance
�Golden Peacock Global Award for Corporate Social Responsibility
Tata Motors has received the award based on assessment, by an independent jury, of the company’s integration of CSR concerns with corporate functioning, responsiveness to the needs of different stakeholders, and development of innovative partnership models to fulfill social responsibilities
�Hellen Keller Award for CSR
The company won the award in Category C – Companies / organisations / institutions who through their policies and practices demonstrate their belief in equal rights and gainful employment for persons with disabilities. Tata Motors directly and indirectly provides employment to several disabled people. The company has a policy on ‘Equal Opportunities and Non-Discrimination in Employment�
�Bombay Natural History Award for Green Governance
The company won the award for its initiatives to protect and preserve the environment
Recognitions for CSR
�Tata Motors is the only Indian Automobile Company to have been recognised as �Notable COP� for the second consecutive year by the Global Compact Society in 2006
�GRI Report 2005-06 was prepared on newly revised G3 guidelines
�National Environment Awareness Campaign (NEAC) of the Ministry of Environment and Forests, recognized Gram Vikas Kendra, a Tata Motors� society, as the Regional Resource Agency for Jharkhand state for the 13th consecutive year in 2006
Amount spent on CSR : No information regarding the amount spent on CSR was available on the homepage .
Contact details : Tata Motors Ltd
Bombay House,24, Homi Mody Street,.
Mumbai 400 001
Contact No – 022-66658282
Web address : http://www.tatamotors.com