Tata Power : Corporate Social Responsibility and Sustainability

Submitted By:
ANSHUL SEHGAL 14PGP001

ARGHYA DAS 14PGP005

ANSHUL SHARMA 14PGP002

ARIJIT CHAKRAVORTY 14PGP006

ANSUMAN CHATTOPADHYAY 14PGP003

ARIJIT HAWLADER 14PGP007

APOORV AGARWAL 14PGP004

AVINASH BAXLA 14PGP009

One of the top 5

commercial vehicle
manufacturer in the
world
Revenue=
3.2%of GDP
Value= US$
11.4 billion
One of the top
60 brands

Worlds
largest
Indian Institute of Management Raipur
wholesale voice carriers

6th Largest steel

Maker

2nd largest
manufacturer of soda

Company Highlights
TPC belongs to Tata group company engaged in generation,
transmission and distribution of electricity.
Got Civic award for social development.
Triple bottom line approach for CSR activity:
1.Economic value
2.Environmental causes
3.Education and health
Guiding principle: Volunteering participation of employees in CSR
projects
Should the company create a separate CSR department or continue with
the existing pattern?.
Indian Institute of Management Raipur

Indian Institute of Management Raipur

What is CSR?

Process of integration of company with stakeholders for common

good.

Economic, environmental, social objectives along with companys

operational growth.

Not mere charity or donation.

Key CSR issues: environmental management, eco-efficiency,

responsible sourcing, stakeholder engagement, labour standards
and working conditions, employee and community relations, social
equity, gender balance, human rights, good governance, and anticorruption measures.
Indian Institute of Management Raipur

WHY CSR?
Green washing or soothe ills of capitalism
Innovation Example: Unilevers hair conditioner.
Cost Savings - Example: General Mills energy monitoring
meters.
Long-term thinking sustainability of the company.
Customer engagement Message is good.
Brand differentiation - Example: Cola Wars.
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CSR IN TATA GROUP

Established and financed

many research,
educational and cultural
institutes

Provide aid and

assistance to NGOs

TATA sons ltd. 66% is

owned by philanthropic
trusts
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11500 employees
20 companies
150000 man hours

TATA
grou
p

Social

More opportunities to engage with communities

Identifying key communities and their needs
Difficulty in convincing locals
Technological

STEER Analysis

Need for low carbon emission power generation technology

Expansion plans

Economic
Growing demand for power

Ecological

Responsibility towards environment

Growing concerns of locals towards establishment of power companies and its
implications

Regulatory

Government regulations- Electricity Act 2003

Rule for CSR activities- 2% of average profits of previous 3 years have to be spent
on CSR activities

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Indian Institute of Management Raipur

10

VISION
To be the most admired
integrated power and energy
company delivering
sustainable value to all
stakeholders
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11

KEY THRUST AREAS

Need
Identification

Health

Income
Generation

Education

Budget
Allocation

Infrastructur
e

Environment

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Energy

Implementatio
n

Impact
assessment

12

Existing structure of CSR

Volunteering initiatives of the employees in various projects.

Volunteered over and above regular working hours

259 employee currently working as volunteer, numbers increased from

118 to 259 due to Tiwaris initiative.

Developed software to track employee voluntary contribution in terms

of man hour spent.

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13

Challenges for implementing CSR

Large variety of income levels and income development in the villages

identified for CSR.

Single Uniform programme could not be catered to all the villages

Construction of single community satisfaction index for impact

assessment.

cultivating a sense of ownership among local communities.

Gap between skill set and level of aspiration.

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TEWARIS DILEMMA

External
hiring

Internal
employees

Separate
Department

Balance
of power

Balance of
goals

g
n
i
ist O
x
e NG
o
C it h
w
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COS
T

Int
er
p
Op art nal
er of
ati
on
s

15

Tewaris Dilemma
Separate
Department
creation

Dedicated staff for CSR

Should staff be hired externally or evolve
from existing structure
Cost structure

Coexistence
with NGO

Strike balance between the business and

the social cause
Social intrapreneur as link between
business and the social enterprise

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16

Tewaris Other Challenge

To incorporate the interest of various stakeholders while undertaking

CSR activities.

Perfect strategy to manage growth and business for corporate entity and
developmental aspects for NGOs.

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Decision

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Separate CSR
department

Strategy

19

Align CSR with companies Vision, Mission and Values.

Clear change of theory.

Specific goals for short term and long term.

Impactful development.

Focus on developing strengths.

Net Positive Model.

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Structure

Defined roles and responsibilities

Budget

Decision maker

Establish accountability

Environmentally sensetive corporate culture

Close monitoring by top management.

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Process

Promote CSR activities

Tangible results

Proper identification and collaboration with NGOs to address sustainability

issues

General issuance of targets and achieved results

Regular evaluation and modification of CSR policies

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Reward Systems

22

Incentive for employees

Identification of exceptional performers

Rewards both extrinsic and intrinsic

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Human Resource Management

Effective enlistment process

Proper training programme

Motivation to undertake CSR activities

CSR experts for mentoring and on field guidance

Sense of ownership and accountability

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Allocation of Resources

24

Allotment of higher budget

Larger space allocation in existing plant

Better allocation and utilisation of human resource

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25

Why set up separate CSR dept.?

Practically no additional cost to be incurred.

Consistent with the current operations.

Will enhance the image of TPC.

Will have a higher social as well as external environmental impact.

Will help to focus better on the CSR activities.

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Implementation

Short term: Align the CSR activities in line with the mission and vision of TPC.

Triple bottom line approach economic value, environmental causes & social
activities

Long term: Focus on developing the strengths.

Implementing a reward system based on individual contribution.

Hiring and training more employees.

Internal recruitment of the interested employees.

Publicising the CSR activities.

Implement a system whereby all processes communicate with the CSR team
- streamlining of processes.

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Composition

Have regional CSR heads- Mumbai & Jojobera.

Under each of these, have heads for each of the six thrust areas
Health, education, infrastructure, energy, environment & income
generation.

The regional heads will report to the manager of CSR activities at TPC.

The heads of thrust areas will further have a number of employees

working under them.

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Deliverables
For Individuals:

Individual contribution and teams contribution to the social welfare.

Adherence to TPCs vision and mission.

Improving the existing processes/innovating new processes.

For managers:

Contribution of their team towards social welfare.

Development and training of new associates.

Making decisions on the basis of interest of shareholders and stakeholders.

Working towards achieving long term sustainability of company as well as society.

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Risks and Mitigation

Financial Angle

Cost Involved with setting up a new CSR vertical (external /internal

hiring)

How to measure the cost /benefit of having a separate CSR division

Mitigation

The financial difficulties with this alternative is more than offset by the
benefits arising out of a dedicated CSR wing on the affected
communities and the overall brand image

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Contd.

Strategic Problems

Giving a free hand to any NGO associated with the activity

Lack of participation by other business operations, once a separate CSR

wing is set up

Mitigation

Dedicated department helps to keep close contact and greater control

of the NGOs associated with projects

To improve participation in CSR activities arrange for frequent meets by

the CSR wing engaging employees from other departments

Indian Institute of Management Raipur

Thank You