Tata Case Study

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Maratha Mandir’s Babasaheb Gawde Institute Of Management Studies

CORPORATE SOCIAL RESPONSIBILITY & BUSINESS STRATEGY - A CASE STUDY ON THE TATA GROUP UNDER MR RATAN TATA Pednekar. Mahesh C. Research Student, JJTUniversity, Rajasthan maheshpednekar@rediffmail.com Dr. Jha Nishikant Associate Professor, Thakur College of Science & Commerce, & Research Supervisor, JJT University, Rajasthan, nishisir2001@gmail.com Introduction: As Chairman of Tata Group, India's largest and most diversified industrial house, Ratan N. Tata presides over a sweeping business and philanthropic landscape. The Tata Group operates more than 80 companies ranging from software and automobiles to steel, consumer goods and telecommunications. With 200,000 employees across India, it is the nation's largest private employer. The Tata Group is also unique in that nearly two thirds of the equity of the parent firm, Tata Sons Ltd., is held by philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata, who founded the family business in the 1860s. These multipurpose trusts, chaired by Ratan N. Tata, include two of the earliest and largest private grant making organizations in India. Through these trusts, Tata Sons gives away on average between 8 to 14 percent of its net profit every year. Trained as an architect at New York's Cornell University, Ratan N. Tata opted instead to enter the family business, putting in time on the shop floors in key Tata industries. After assuming the Chairmanship of the Group in 1991, he proceeded to streamline the sprawling Tata Group around seven core business sectors. A pioneer in several areas, the Tata group has consistently followed the path of innovation, growth and development. Tata is credited with pioneering India's steel industry, civil aviation and starting the country's first power plant. Tata was the market leader in several diverse fields - it had the world's largest integrated tea operation, was Asia's largest software exporter, and is the world's sixth largest manufacturer of watches (Titan). Objectives: We have undertaken this study to understand the importance of CSR in not just nation building but as a strategy to successfully build up a business. We shall try to understand how the Tata group under the leadership of Ratan Tata has successfully carried forward the vision of his forbearers and used it to further develop the business of the Tata Group CSR and the Tata Group 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. "Corporate Social Responsibility should be in the DNA of every organization. Our processes should be aligned so as to benefit the society. If society prospers, so shall the organization..." - Manoj Chakravarti, General Manager - Corporate Affairs and Corporate Head - Social Responsibility, Titan Industries Limited in 2004.

Maratha Mandir’s Babasaheb Gawde Institute Of Management Studies

The guiding mission of the Tata group was stated by JRD Tata in the following words: "No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people." Today's buzzword, Corporate Social Responsibility or CSR has been part of the Tata Group ever since the days of Jamshetji Tata. Even while he was busy setting up textile ventures, he always thought of his workers' welfare and requirements of the country. From granting scholarships for further studies abroad in 1892 to supporting Gandhiji's campaign for racial equality in South Africa to giving the country its first science centre, hospital and atomic research centre to providing relief and rehabilitation to natural disaster affected places - they have done it all. From its inception, the Tata group has taken up a number of initiatives for the development of society. A unique feature of the group is that 63 percent of the equity capital of the...
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