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A Report

On
CSR Activities at TCS
SUBMITTED TO,
PROF. ASITA GHEWARI
BY,
ASHWINI K. DHATRAK
MBA-II (HR)
Roll No.: 11

SINHGAD INSTITUTE OF MANAGEMENT


VADGAON (BK) PUNE

Table of Content
Sr. No.
1.
2.
3.

Title
Introduction to CSR
Company Profile of TCS
CSR Activities at TCS

Page No.
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7
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1. INTRODUCTION
The 21st century is characterized by unprecedented challenges and opportunities,
arising from globalization, the desire for inclusive development and the imperatives of
climate change. Indian business, which is today viewed globally as a responsible
component of the ascendancy of India, is poised now to take on a leadership role in the
challenges of our times. It is recognized the world over that integrating social,
environmental and ethical responsibilities into the governance of businesses ensures their
long term success, competitiveness and sustainability. This approach also reaffirms the
view that businesses are an integral part of society, and have a critical and active role to
play in the sustenance and improvement of healthy ecosystems, in fostering social
inclusiveness and equity, and in upholding the essentials of ethical practices and good
governance. This also makes business sense as companies with effective CSR, have
image of socially responsible companies, achieve sustainable growth in their operations in
the long run and their products and services are preferred by the customers.
Indian entrepreneurs and business enterprises have a long tradition of working
within the values that have defined our nation's character for millennia. India's ancient
wisdom, which is still relevant today, inspires people to work for the larger objective of
the well-being of all stakeholders. These sound and all-encompassing values are even
more relevant in current times, as organizations grapple with the challenges of modernday enterprise, the aspirations of stakeholders and of citizens eager to be active
participants in economic growth and development.
The idea of CSR first came up in 1953 when it became an academic topic in HR
Bowens Social Responsibilities of the Business. Since then, there has been continuous
debate on the concept and its implementation. Although the idea has been around for
more than half a century, there is still no clear consensus over its definition.
One of the most contemporary definitions is from the World Bank Group, stating,
Corporate social responsibility is the commitment of businesses to contribute to
sustainable economic development by working with employees, their families, the local
community and society at large, to improve their lives in ways that are good for business
and for development

Corporate Social Responsibility (Definition):


Corporate Social Responsibility (CSR) is a concept whereby organizations consider
the interests of society, based on the impact of their activities on customers, employees,
shareholders, communities and the environment, for all aspects of their operations.
CSR is a concept which suggests that commercial corporations must fulfill their
duty of providing care to the society
Ethical behavior of a company or business towards society, promoting activities like
engaging directly with local communities, identifying their basic needs, and integrating
their needs with business goals and strategic intent.
The government perceives CSR as the business contribution to the nations
sustainable development goals.
Essentially, it is about how business takes into account the economic, social and
environmental impact of the way in which it operates.

Fundamental Principle:
Each business entity should formulate a CSR policy to guide its strategic planning
and provide a roadmap for its CSR initiatives, which should be an integral part of overall
business policy and aligned with its business goals. The policy should be framed with the
participation of various level executives and should be approved by the Board.

Core Elements:
The CSR Policy should normally cover following core elements:
1. Care for all Stakeholders:
The companies should respect the interests of, and be responsive towards all
stakeholders, including shareholders, employees, customers, suppliers, project affected
people, society at large etc. and create value for all of them. They should develop
mechanism to actively engage with all stakeholders, inform them of inherent risks and
mitigate them where they occur.
2. Ethical functioning:

Their governance systems should be underpinned by Ethics, Transparency and


Accountability. They should not engage in business practices that are abusive, unfair,
corrupt or anti-competitive.
3. Respect for Workers' Rights and Welfare:
Companies should provide a workplace environment that is safe, hygienic and
humane and which upholds the dignity of employees. They should provide all
employees with access to training and development of necessary skills for career
advancement, on an equal and non-discriminatory basis. They should uphold the
freedom of association and the effective recognition of the right to collective
bargaining of labour, have an effective grievance redressal system, should not employ
child or forced labour and provide and maintain equality of opportunities without any
discrimination on any grounds in recruitment and during employment.
4. Respect for Human Rights:
Companies should respect human rights for all and avoid complicity with
human rights abuses by them or by third party4.
5. Respect for Environment:
Companies should take measures to check and prevent pollution; recycle,
manage and reduce waste, should manage natural resources in a sustainable manner
and ensure optimal use of resources like land and water, should proactively respond to
the challenges of climate change by adopting cleaner production methods, promoting
efficient use of energy and environment friendly technologies.
6. Activities for Social and Inclusive Development:
Depending upon their core competency and business interest, companies
should undertake activities for economic and social development of communities and
geographical areas, particularly in the vicinity of their operations. These could include:
education, skill building for livelihood of people, health, cultural and social welfare
etc., particularly targeting at disadvantaged sections of society.

According to Schedule-VII of Companies Bill, 2012 the following activities can


be included by companies in their CSR Policies:i.

Eradicating extreme hunger and poverty;

ii.

Promotion of education;

iii.

Promoting gender equality and empowering women;

iv.

Reducing child mortality and improving maternal health;

v.

Combating human immunodeficiency virus, acquired immune deficiency


syndrome, malaria and other diseases;

vi.

Ensuring environmental sustainability;

vii.

Employment enhancing vocational skills;

viii.

Social business projects;

ix.

Contribution to the Prime Ministers National Relief Fund or any other fund
set by the Central Government or the State Governments for socio-economic
development and relief and funds for the welfare of the Scheduled Caste, the
Scheduled Tribes, other backward classes, minorities and women.

2. COMPANY PROFILE
Mission of TCS reflects the Tata Group's longstanding commitment to providing
excellence:

To help customers achieve their business objectives by providing innovative, bestin-class consulting, IT solutions and services.

To make it a joy for all stakeholders to work with us.

Values: Leading change, Integrity, Respect for the individual, Excellence, Learning and
sharing.
Tata Consultancy Services Limited (TCS) is an IT services, business solutions and
outsourcing organization that delivers real results to global businesses, with a high level
of certainty. TCS offers a consulting-led, complete and integrated portfolio of IT and ITenabled services delivered through its unique Global Network Delivery Model,
recognized as the benchmark of excellence in software development.
Founded in 1968 as part of the Tata group, TCS is headquartered in Mumbai, India
and is a public limited company, listed on the National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE) in India. In FY 2011, TCS reported consolidated
revenues of USD 8.2 billion. TCS has built a global reputation for its ability to help
customers achieve their business objectives- by providing innovative, best-in-class
consulting, IT and IT-enabled solutions and services. TCS core set of values underpin all
activities in the Company and these include leadership with trust, integrity, excellence,
respect for the individual and learning/sharing.
The Company plans to further strengthen and consolidate its position in the global
IT industry as an integrated full services player with a global footprint in terms of
innovation, operations and service delivery.
Large global corporations which make up the customer-base are today looking for
strategic partners who not only excel in technology and possess a full-services delivery
capability but can also understand their business and leverage that domain expertise to
deliver technology-led solutions to their business problems.
The customer-centric, domain-led business unit structure helps TCS constantly
sharpen and grow its competencies in each of the industry verticals it services. Domain
expertise is advanced through investments made in a global network of solution centers

and innovation labs, hiring industry experts and by encouraging associates to get
industry-recognized certifications and training.
TCS has a Global Footprint
They have invested in building a large, global sales network to reach out to clients
across the world.
As of March 31, 2011, TCS had 145 offices across 42 countries, catering to some
1034 active clients.

3. CSR ACTIVITIES OF TCS


TATA GROUPS INITIATIVES FOR TRIPLE BOTTOM LINE

The Tata group has consistently adhered to the practice of corporate governance
and has initiated the process of the triple bottom line, consisting of benchmarking with
global practices.
Corporate ethics and governance having once been edged into the backseat by
blatant commercial interest are now wending their way back into the boardroom. The Tata
group, has, however consistently adhered to the practice of corporate governance for
many years. The group has initiated the process of the triple bottom line, consisting of
benchmarking with global practices.
The triple bottom line addresses the need for a company to assume responsibility
towards environment and society. The triple bottom line, a three-fold manifesto,
constitutes a company's environmental obligation, its social responsibilities, and its
financial bottom line. Traditionally, companies have followed a stringent reporting system
of its financial position, whereas environmental and social obligations have been pushed
onto the backburner. But the house of Tatas has been practicing the triple bottom line
way before it became a norm with corporate houses worldwide.
In the long run, it is worthwhile for an enterprise to play the game of business
according to rules, even if their competitors do not. In effect, while this benefits society at
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large, it also helps build the community's faith in the company. The Tata group, for one,
can illustrate this from its own business experiences. Bihar is a case in point. The state is
a crucible of social and political unrest. Disruptive forces have made several attempts to
undermine the good work done by other corporate houses, but the efforts of the Tata
group have never been adversely affected.

People: Sustainable Internal and External Communities


More than 250,000 employees are the backbone of TCS, who are actively engaged with to
drive sustainability initiatives. Externally, TCS conducts a diverse range of CSR
initiatives in the areas of education & skill building, health environment and affirmative
action using volunteering, sponsorships and pro bono leveraging of our IT capabilities as
the modes of engagement. In addition initiatives focused at promoting supply promoting
supply chain and procurement sustainability ensure the alignment of that our vendors and
suppliers to the sustainability objectives.
Planet: Environmental Sustainability
From designing sustainable infrastructure, running efficient operations, to engaging with
our supply chain partners in green procurement and disposal activities; TCS takes a
holistic approach towards reducing its energy, water, material, waste and carbon footprint.
TCS offices as well as IT infrastructure are sustainably designed and built for maximum
resource efficiency.
Profit: Sustainable Marketplace
In addition to ensuring sustainability of the Companys business performance, a
dedicated eco-sustainability team works across industry verticals with an aim to provide
next-generation sustainability services to customers. Integrating sustainability into
business strategies and unlocking environmental efficiencies in the entire value chain is
significant value add.
27.0%: Operating Margin
$56.7 billion: Market Capitalization

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TCS CODE OF CONDUCT

National Interest (focusing on Economic parameters)


The Tata Group is committed to benefit the economic development of the
countries in which it operates. No Tata company shall undertake any project or
activity to the detriment of the wider interests of the communities in which it
operates.
A Tata companys management practices and business conduct shall
benefit the country, localities and communities in which it operates, to the extent
possible and affordable, and shall be in accordance with the laws of the land.
A Tata company, in the course of its business activities, shall respect the
culture, customs and traditions of each country and region in which it operates. It
shall conform to trade procedures, including licensing, documentation and other
necessary formalities, as applicable.

Financial Reporting and Records (focusing on Financial parameters)


A Tata company shall prepare and maintain its accounts fairly and
accurately and in accordance with the accounting and financial reporting standards
which represent the generally accepted guidelines, principles, standards, laws and
regulations of the country in which the company conducts its business affairs.
Internal accounting and audit procedures shall reflect, fairly and
accurately, all of the companys business transactions and disposition of assets, and
shall have internal controls to provide assurance to the companys board and
shareholders that the transactions are accurate and legitimate. All required
information shall be accessible to company auditors and other authorized parties
and government agencies. There shall be no willful omissions of any company
transactions from the books and records, no advance-income recognition and no
hidden bank account and funds.
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Any wilful, material misrepresentation of and/or misinformation on the


financial accounts and reports shall be regarded as a violation of the Code, apart
from inviting appropriate civil or criminal action under the relevant laws. No
employee shall make, authorize, abet or collude in an improper payment, unlawful
commission or bribing.

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Health, Safety and Environment (focusing on Environmental parameters)


A Tata company shall strive to provide a safe, healthy, clean and
ergonomic working environment for its people. It shall prevent the wasteful use of
natural resources and be committed to improving the environment, particularly
with regard to the emission of greenhouse gases, and shall endeavour to offset the
effect of climate change in all spheres of its activities.
A Tata company, in the process of production and sale of its products and
services, shall strive for economic, social and environmental sustainability.

Shareholders
A Tata company shall be committed to enhancing shareholder value and
complying with all regulations and laws that govern shareholder rights. The board
of directors of a Tata company shall duly and fairly inform its shareholders about all
relevant aspects of the companys business, and disclose such information in
accordance with relevant regulations and agreements.

Corporate Citizenship
A Tata company shall be committed to good corporate citizenship, not only
in the compliance of all relevant laws and regulations but also by actively assisting
in the improvement of quality of life of the people in the communities in which it
operates. The company shall encourage volunteering by its employees and
collaboration with community groups.
Tata companies are also encouraged to develop systematic processes and
conduct management reviews, as stated in the Tata corporate sustainability
protocol, from time to time so as to set strategic direction for social development
activity.

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The company shall not treat these activities as optional, but should strive
to incorporate them as an integral part of its business plan.

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Equal opportunities employer


A Tata company shall provide equal opportunities to all its employees and
all qualified applicants for employment without regard to their race, caste,
religion, colour, ancestry, marital status, gender, sexual orientation, age,
nationality, ethnic origin or disability.

Human resource policies shall promote diversity and equality in the


workplace, as well as compliance with all local labor laws, while encouraging the
adoption of international best practices.
Employees of a Tata company shall be treated with dignity and in
accordance with the Tata policy of maintaining a work environment free of all
forms of harassment, whether physical, verbal or psychological. Employee
policies and practices shall be administered in a manner consistent with applicable
laws and other provisions of this Code, respect for the right to privacy and the
right to be heard, and that in all matters equal opportunity is provided to those
eligible and decisions are based on merit.

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