CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF

TATA MOTORS
Prof. (Dr.) Smita Kumbar
Associate Professor, Siddhant Institute of Business Management

Abstract attracts from the media. The growing pressure of

Beginning from the times of trade system to media sees any mistakes by companies and is
today’s contemporary age of plastic money, brought immediately to the attention of the
the mankind has compressed a curiously long public. Furthermore, Internet communication
path. “Profitability” has always been the among like-minded consumers and groups
driving force and an undercurrent behind all empowering them to spread their message, and
this development; but as every coin have two giving them means to coordinate collective
sides; growing competition and business action i.e. refuse a product offering. The growing
struggles in the competitive world started concern for CSR, coupled with the growing
taking heavy toll on the excellence, importance of brand and brand value to corporate
transparency, environment and the society in success produce’s a shift in the relationship
general threatening the diplomatic existence between corporation and consumer, in particular,
of business and society. The industry firms and between corporation and all other
started realizing that they would have to rise stakeholder groups in general. The stakeholders
over and above the cost-effectiveness and take associated with the organization get influenced
care of all those interrelated with their with both the positive and negative news relating
endurance in the culture directly or indirectly to the company and its operations. Therefore, it
for the success of the organization. This is integral for the companies not only to develop
responsiveness affected into the tacit of and improve their core production processes but
Corporate Social Responsibility (CSR). This also focus on social issues that reflects
research paper allocates the accepting of the company’s attitude towards its stake holders.
corporate social responsibility (CSR), From a company’s point of view, market
exploring into its concept and discovering out parameters within which companies are to
its scope taking the case study of the TATA operate have been broadened and extended. The
Motors Tata group has shown the intellect of relationship between consumer and company has
accountability in the direction of the changed dramatically (Carroll, 1998). CSR is
upliftment of mutual commonalities and particularly important within a globalizing world
shield of the environment and progress of the because of the way brands are built, largely on
country. perceptions, ideals and concepts that usually
Key words: Corporate social responsibility, appeal to higher values. CSR is a means of
social performance, profitability, society, matching corporate business with stakeholder
employees. values and demands at a time when such values
and demands are on the move.
1.1 Literature Review
The concept of CSR originated in the 1950‘s in According to Bowen, ―CSR refers to the
the USA but it became prevalent in early 1970s. obligations of businessmen to pursue those
In today’s global society there is growing and policies to make those decisions or to follow
heightened concern for Corporate Social those lines of relations which are desirable in
Responsibility (CSR) primarily because of the terms of the objectives and values of our society.
growing influence of multinationals over the Frederick (1960) stated Social responsibility
world economy and the heightened publicity it means that businessmen should oversee the
operation of an economic system that fulfills the

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expectations of the people. Davis (1960) argued responsible by introducing the 'corporate social
that social responsibility is a nebulous idea but responsibility' (CSR) regime. Section 135 of the
should be seen in a managerial context. He new Companies Act, read with the CSR Rules,
asserted that some socially responsible business mandates companies meeting certain criteria to
decisions can be justified by a long, complicated set aside two per cent of their net profits for
process of reasoning as having a good chance of undertaking and promoting socially beneficial
bringing long-run economic gain to the firm, thus activities and projects in India. The Ministry of
paying it back for its socially responsible outlook Corporate Affairs (MCA) recently issued the
(p. 70).An ideal CSR has both ethical and CSR Rules, 2014, to implement this legislative
philosophical dimensions, particularly in India mandate, which comes into effect on April 1,
where there exists a wide gap between sections 2014.
of people in terms of income and standards as
well as socio-economic status (Bajpai, 2001) Every company with a net worth of at least Rs
Goyder(2003) argues: ―Industry in the 20th 500 crore, or a minimum turnover of Rs 1,000
century can no longer be regarded as a private crore, or a minimum net profit of Rs 5 crore, is
arrangement for enriching shareholders. It has obligated to constitute a CSR committee
become a joint enterprise in which workers, dedicated to undertake a mixed spectrum of
management, consumers, the locality, govt. and initiatives, such as promoting education, gender
trade union officials all play a part. If the system equality, women's empowerment, improving
which we know by the name private enterprise is maternal health, or ensuring environmental
to continue, some way must be found to embrace sustainability. The company's net profit would,
many interests whom we go to make up industry however, exclude any profit from its overseas
in a common purpose.CSR implies some sort of branches or companies, and would also exclude
commitment, through corporate policies and any dividend received from other companies in
action. This operational view of CSR is reflected India. The law does not treat foreign companies
in a firm‘s social performance, which can be differently, and includes foreign companies
assessed by how a firm manages its societal doing business in India, whether by themselves,
relationships, its social impact and the outcomes or through an agent or even electronically.
of its CSR policies and actions (Wood, 1991). (Carroll, A. B.,1991).
Purpose Study Objectives
To understand the concept and scope of To focus the significant CRS inputs and their
corporate social responsibility and getting an influences
insight in CSR practices in the light of the case Research Methodology: - Exploratory approach
study of the TATA Group. India, in the last five based on survey of literature and experience
years, has seen a pour and phenomenal growth in survey and case of Tata Groups .Under this case
various businesses; thus, CSR has a long way to approach, 37 senior technical officers having
travel. The onset of globalization and 15+ years of experience are contacted from Tata
liberalization of the Indian economy over that of Motors to get their perception over duly
the last two decades has resulted in the shift of identified parameters under five point Likert
the corporate goals from socio-economic focus scale based on average weighted value (awv)
towards increasing shareholders value to the
welfare of various stakeholders. A detailed II. Concentric Circle & CSR
analysis of Indian CSR along with its relevance In 1971, the Committee for Economic
within the business arena leaves us with some Development issued a report throwing light on
important points to discuss. Thus, it is the different dimensions of responsibilities to be
requirement of today to judge this heated fulfilled by the corporate. The responsibilities of
relationship in the Indian context with corporations are described consisting of three
association to socially responsible initiatives concentric circles existed in Tata Motors. (a)
undertaken by Tata Group.(Castelo Branco, M., Inner Circle: Clear cut, basic responsibilities for
& Lima Rodriques, L. ,2007). the efficient execution of the economic function,
products, jobs and economic growth. (b)
The new Companies Act, 2013, has made it Intermediate Circle: Encompasses
mandatory for companies to be socially responsibility to exercise this economic function

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with a sensitive awareness of changing social In order test their validity, the exercise is
values and priorities. Eg. With respect to made as under to measure in awv the existence
environmental conservation, hiring and relations of CSR five parameters in the above in the
with employees, expectation of customers for organization from the perception of sampled
information, safety factors, etc. (c) The Outer technical officers (n=37).The awv is based on
Circle: Newly emerging and still amorphous five point Likert scale where “nil” existence
responsibilities that business should assume to bears 1 numerical weightage while “Full
become more broadly involved in actively existence” i.e. 100% bears 5 numerical
improving the social environment. (Ahire, S.L., weightage and any number between 1 and 5
D.Y. Golhar and M.A. Waller, .1996). unveils the level of weightage
III. Social Responsibility as Identified by the
core group managers in Tata Motors It is seen that the sampled officers from Tata
Motors given different levels of perception over
The Table below unveils that here are the existence of CSR parameters. All such
five identified factors of social responsibilities perception levels numerically measured and
which are duly identified by Tata Motors Core tabulated in the following table and are
Managerial Group. The expectation of the represented in graph for convenient
managerial core group is that this should exist understanding of the readers.
100% in their organization and they claim that
they are near to that.
Perceived awv over CSR Parameters by sampled officers in Tata Motors (n=37)

Sr.No Parameters of CSR awv

1 Responsibility towards organization 3.45
2 Responsibility towards Employees 3.67
3 Responsibility towards shareholders 4.44
4 Responsibility towards Govt 3.68
5 Responsibilities towards Society 1.68
 Mean 3.38
 Mean % to bench mark 5 67.60
 SD 1.023782
 Kurtosis 3.024381
 Skewness -1.44469
 Range 2.76
Source: - field study
Graph No-1 Perceived awv over CSR Parameters by sampled officers in Tata Motors (n=37)

Responsibilities towards Society 1.68

Responsibility towards Govt 3.68

Responsibility towards shareholders 4.44

Responsibility towards Employees 3.67

Responsibility towards organization 3.45

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

The table shows that perceived mean value in .The same mean (i.e 3.38) is 67.60% of bench
terms of awv by the sampled technical officers mark “5” It divulges that accomplishment of
stands 3.38 with sd 1.023782 in the range of 2.76 CSR by the core group is 32.40% (100-67.60)

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away from the targeted or claimed . The

following text explains the five parameters of References
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