THE TATA WAY

Evolving and Executing Sustainable

Business Strategies
Submitted by: Group 10

Amanpreet Singh 12P123
Anand Kansal 12P126
Anisha Bansal 12P128
Mayur Srivastav 12P151
Pratik Nagori 12P155
Rohan Khandelwal 12P164
Growing Importance of CSR in Businesses
Worldwide
Sustainability 360
Moving beyond reducing environmental footprint
Engaging associates, suppliers, communities,
consumers
Walmart
Greening its supply chains
Promoting fair-trade coffee and sustainable fisheries
McDonalds
Developed trans fat-free soyabean
Works with farmers to mitigate agricultures impact on
environment
Monsanto
Todays companies ought to invest in corporate social
responsibility as part of their business strategy to become more
competitive Porter & Kramer
ISO 14000 Environmental Management Standard
Global Reporting Initiatives Sustainability Reporting Guidelines
Social Accountability Internationals SA8000 code of conduct

Guidelines to disseminate best CSR practices
Offers an affordable transportation solution with a low carbon
footprint
For Tata Motors, the Nano is much more than a new
transportation choice of Indian people
Embodiment of Tatas century of trust and cooperation with
local communities
One of the fruits of Tata companies commitment to surfacing
the best of business in the service of people, in India and
globally
Tata Nano
Tata Consultancy Services(TCS)
Winning global accolades from Business in the Communitys
(BitC) Corporate Responsibility Index (CRI), the leading UK
benchmark of responsible business practices
Achieved gold band for its performance in the Community
Index with a score of 94.7 percent
Computer based Functional Literacy Project which helped
illiterate adults learn how to read in their own spoken language
in a span of 30 to 45 hours spread over 10 to 12 weeks
Commonalities between Tata Motors and
TCS
Both companies strive to share the human touch everyday and
everywhere they go
The social and environmental created helps strengthen and
promote the Tata brand
Leverage core operational impact to make a lasting impression
on the communities in which they operate
This deep awareness of how business can benefit multiple
stakeholders by mission and design constantly renews the Tata
corporate identity
Principles behind TATA
2 main ideals or principles guiding the Tata way:

Every employee, from CEO to the most recent intern share in the deep
values of their leaders. Everyone supports and follows the values inherent
to Tata
Tata companies have evolved a collective commitment to evolving stronger
connection between their values and first-in-class business practices. The
social values and business endeavours are closely aligned (example: Tata
Nano)

In a free enterprise, the community is not just
another stakeholder in business, but is in fact the
very purpose of its existence. Jamsetji N. Tata
(Founder, TATA Group)
The TATA Index

Since early 1990s, TATA group had endeavored to align its social and
environmental values with business excellence
Tata index for sustainable human development was initiated by Tata
Council for Community Initiatives (TCCI) in collaboration with United
Nations Development Program in India in 2001
It was an effort aimed at directing, measuring and enhancing TATAs
community work as part of their social responsibility efforts
Purpose behind the Index was to seed new benchmarks and motivate
continuous innovation in sustainability across each companys
operations
Deployed to assure continuous improvement in the delivery of social
responsibility initiatives at the company level


How does the Index work
The Index breaks down sustainability responses into 3 nested levels
Systems (275/1000) - involves leadership commitment, structure and
deployment, strategy, review, etc
People (175/1000) - measures parameters such as selection of
personnel, training and volunteering
Program (550/1000) - factors ranging from social concerns and scope for
self-reliance and sustenance to knowledge transfer and good
governance
This makes areas for improvement very easy to identify and measure
Within each team, a Corporate Head Social Resonsibility (Always a senior
executive) manages a CSR team with specific responsibilities for community
development, environmental management and volunteering

How TATA Index leads to improvement in
CSR efforts
For each assessment, the Corporate Sustainability Facilitator representing a Tata
company and the Community Head for the project would also identify specific
opportunities for improvement
For example, The Company trains its facilitators/project leaders for leadership.
However, it is not clear how the training imparted is actually benefitting them

This leads to continuous evaluation of CSR efforts and thus newer and newer ways
of improving upon them emerge

Each project leader is responsible for understanding the specific concerns of each
community, defining the key beneficiaries, and placing a clear focus on how a
companys core capabilities would contribute to a specific need

The project leader will also determine the human excellence indicators and clearly
identify which aspects have clear sustainability payoffs for the community engaged
Initial Results of the TATA Index
Reporting companies averaged almost
half of its intended goal (452.95
points on a 1000 point scale)
TATA Steel was one of the highest
scorers with 712 points
In 2005
TCS scored 490
TATA Motors with 663 points
became one of the best performers
in corporate sustainability within the
group
In
2006/07
Why do Tata companies care so much?
Employees are trusted to approach their tasks and their
volunteering with society in mind
They do not do something because it pays
They do because it matters- to their business model, to their own
development as leaders, and to the legacy their company wants to
leave behind
Part of forging a strong connection between sustainability and
competitiveness
Such orientation can trigger disruptive innovations
Leveraging its learning
Sharing the idea of
indexation and the
more practical how-
tos of the Index with
Tata suppliers,
collaborators and
competitors within
India through CII,
Global Reporting
Initiative and Social
Accountability
Initiative
The systematic
approach of
indexation can
be adapted to
work for
different
corporate
identities
Index provides a
guiding
approach to
getting your
systems, people
and programs
better every step
of the way
Tatas Two-fold approach to develop
Leaders for Corporate Sustainability
FIRST APPROACH
Index encourages a proactive application of Tata Business
Excellence Model in ways that promote positive social and
environmental contributions
Annual scoring ensures constant process improvement
Assessment triggers company wide workouts that help strategic
leaders work with their internal teams to jointly identify major
risks, opportunities and innovations
Leaders use this to formulate a 3-5 year corporate sustainability
strategy for organization
This gives company a more sustainable edge
It widens their leadership bandwidth to make a larger difference in
their community and competitive context by setting new
standards of what business can achieve

Two-fold approach (Cont.)
SECOND APPROACH
Corporate Sustainability Leadership profile guides their
personality footprints to trigger a virtuous cycle of enhanced
goodwill and reputation
Leaders assume responsibility for themselves and their
leadership team, and work personally to tighten convergence
between the trained corporate sustainability facilitators and
their units business excellence goals
They lead for sustainability by example
Their performance on corporate sustainability is reviewed
periodically
There is a flowchart showing how any organizations can
systematically implement leadership for sustainability
Process of Leadership Development
Leadership Protocol
Leadership Protocol translates the group mission
statement into executable leadership for sustainability
The Index assesses and guides sustainability-enhancing
processes
The leadership profile articulates the steps for
strengthening leadership capabilities
By embedding a society-minded logic to value creation,
Tata have given back many-fold to society
This learning has strengthened their corporate identity,
and encouraged bold steps in rethinking transportation,
information technology or steel manufacturing
Adopting the Tata way
Tatas approach is simple, but not easy
Taking a comprehensive approach helps identify and
configure the various capabilities needed to create
value sustainability- in systems, people and programs
Lead others by example
Take a holistic view of value creation
Demonstrate unusual creativity in solving tough problems for
society.
Practice strong ethical leadership with a deep sense of
human purpose.
Recalibrate the connection between your inner self and your
footprints