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TATA Power
Case analysis
by group AO2

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Problem Statement:
How can CSR department be re-formed to derive its structure and composition with
respect to expansion plans of TPC?

External Analysis
Factors
Implications on the problem
Environmental
Environmental Pollution: as given in A long term strategy was needed
the case that generating power for sustainable development
causes huge amount of pollution
Expansion in power sector requires Now major chunk of the land to be
permissions from government and acquired
belonged
to
local
land acquisitions
communities
and
tribals
and
therefore full cooperation from their
side was needed
Social
NGOs and their influence over local This factor has significant implications
when power projects are setup and
communities

therefore a CSR strategy which will

take of NGOs concern was required

Economic
CSR expenditure

This is generally carried out from

net profits so it reduces the amount
that can be distributed to share
holders
Given the growth pattern of TPC
and TATA group, an increase in CSR
activities is evident

Expansion on business

Legal
Governmental regulation and stringent
policies on environmental issues

Obtaining
government

permissions

The hazardous waste should be

countered by CSR initiatives

from Time delay might occur in set up as

well as cost of power plants could
be high

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SWOT
Strength
Col. Tewari was quite experienced
and
has
successfully
handled
conservation projects
No monetary motivation
When NGOs are involved there is a
well-defined 3 step process
3 Cs process
Ensures the organizational goal that
CSR is everyones responsibility in
TPC
CSR activity is well understood by
each and every TATA companies

Weakness
Direct dependence on NGOs for
baseline data
Individual accountability was low
Impact of CSR activities couldnt
be measured
Identification of key community
Understanding of local public
needs was required
Decision making was slow

Opportunity
Inculcating participation from
volunteering
Collaboration with NGOs
Increase in goodwill of TPC as
well as TATA group

Threat
The whole idea of CSR is secondary
to organizational goals and these
activities could interfere with core
work

Factors and Critical Factors

Factors

Critical factors in order of their

priority for developing options
Stakeholders perception
Cost to company
Governmental regulations

Cost to company
Increased production capacity
Speed of execution
Views of various stakeholders

Participation of NGO/PBO
Implement ability
Employee
motivation
volunteering for CSR
Governmental regulations

Participation of NGO/PBO
Employee
volunteering

motivation

in

and

Analysis of Critical Factors

Stakeholders View and perception
The primary stakeholders should be perceive CSR in alignment of vision and mission
of the company

Cost

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The structural changes proposed will be of a significant impact as the capital
required for these activities will come from net profit, thereby reducing the
shareholders share of profits

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Governmental Regulations
This factor will reflect upon the strategies for CSR initiatives and its alignment to
firms objective of value generation for stakeholders. Any change in governmental
regulations significantly impacts the functioning of company and its CSR strategies

Participation of NGO/PBO
NGOs and PBOs were those specialized groups which worked social activities and
had an ability to build instant rapport with locals. This was due to their nonprofit
motto. The question was finding a unique nonprofit organization which would fit in
implementation and assessment phase of projects. The primary threat from them
was that they could intervene and bargain for more power.

Constraints
None applicable here

Options
Option 1: Separate CSR department
Pros
Speedy decision making
Image improvement as it gives more
visibility
Independent functioning
More accountable personnel for any
activities

Cons
This
could
diverge
goal
of
department to monetary based
This department doesnt generate
income and therefore could prove
costly

Option 2: NGO collaborations but with current system

Pros
Ability of NGOs to build rapport with
locals could be leveraged well here
Expertise of NGOs could be used well

Cons
NGOs could begin dictating power
Lower speed of decision making
Lack of clear accountability

We propose option 1 simply because

Reason 1: This option gives explicit accountability thereby making CSR activities
easy to implement from organizational perspective
Reason 2: As the department is separate, a dedicated team of expert personnel
should be included in the department

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Action Plan:
Include employees from within the organization whoa are familiar with
organizational culture to create a new CSR department. After that we need to define
TPCs CSR goals and allocation of appropriate budget for core activities.
Periodic assessment of CSR activities could be carried out by department to
improvise itself to wards social benefitting and fulfilling its primary objective adding
economic value, environmental causes like afforestation and some social activities
like education and health.

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