Corporate Social Responsibility and Sustainability (CSR) Essay Example
CSR is described as the obligations of organizations to look beyond their ultimate goal of profit making to their role in the society as a whole (Planken, et al., 2010), It refers to obligations of business people to perform policies and follow guidelines of relations desirable to meet objectives and interests of the all members of the society. Corporate social responsibility concept emerged in USA 1950’s.This resulted from the many problems which were social based such as poverty, lack of employment and pollution. The concept of corporate social responsibility did not become prevent until early 1970’s. Between 1980,s to 2000, organizations recognized the benefits of corporate social responsibility and start accepting these responsibilities to the society (Planken, et al., 2010). The concept of corporate social responsibility focuses on creating optimal benefits of all societal stakeholders who comprises of employees, shareholders, government, custom
...ers and the environment in general. In short, stakeholders are those groups who are affected by the policies and activities of the organization.
According to Planken, et al., (2010), corporate sustainability is the approach of organizations to create value of the employees and consumers in the long term. This aim of sustainability concept is channeled towards considerations of dimensions of operations of businesses in their economic, social and cultural environment. The concept balances requirements of economic growth, social equity and protection of the environment.
Tata Companies approach to corporate social responsibility
Tata companies are seriously taking appropriate measures for addressing claim of the corporations’ responsibilities to the environments in which they operate (Srivastava et al., 2012). According to Srivastava et al.,(2012), A Committee of economic development in 1971 wrote a report showing the dimensions of responsibilities whic
each organization in operation should fulfill. The report described corporate social responsibilities to consist of three concentric circles, which are inner circle, intermediate circle and the outer circle. The inner circle represents the basic responsibilities which enables efficient performance of the economic functions, jobs and growth of the economy.
The intermediate circle covers responsibilities of executing economic goals while considering awareness of social values and giving priorities (Planken, et al., 2010).For instance, Tata companies gives priorities to the conservation of the environment, employees relations and hiring and considers the expectations of the customers in terms of information requirements. Finally the outer circle covers the responsibilities that should be assumed by the firms to actively get involved in conserve the social environment. The approach corporate social responsibility advocated by the report was crucial for Tata companies to survive in their operating environment.
According to Srivastava et al., 2012), Tata Groups comprises of above 80 companies whose products ranges from steel, software and automobiles to telecommunication and consumable products. The company has the pride of been the highest private employer in India with around 200,000 employees. To instill corporate social responsivities’ in their operations, Tata Company is accredited to formulate various welfare labor policies. Some of the welfare laws initiate includes maternity benefits policies which commenced in 1928, the employee welfare department was created in 1917.
Recognition of corporate social responsibility
Tata group founder recognized that community is the purpose for it’s existed. Therefore the roles of the Group should always be aligned with the benefits of the society. According to the opinion of the founder, if the society prospers then Tata Group will as well prosper (Srivastava et al., 2012),
Tata Group performed many activities to the society as its role of corporate social responsibility. This is evidenced by around five to seven percent of its net profit to initiate corporate social responsibility activities. Some of the Tata Group social responsibility activity initiatives include the following; Firstly, the company initiated Self-Help Groups which were working over several programs to alleviate poverty. These programs helps to empower women in the villages and invest in infant survival projects. The self-help group programs also helped in distributing portable water to communities in the rural areas.
Secondly the company stated an organization to support social welfare. These organizations include Tribal Cultural Society, Red Cross society in India and Steel Rural Development Society (Srivastava et al., 2012). Thirdly Tata group initiated Healthcare project which provides activities of child education and care, immunization services as well as creating awareness for HIV epidemics and plantation activities. Fourthly, Tata motors initiated pollution control measures by introducing world-reowned engine consultants to help mitigate pollution of the environment by the Tata Group companies.
Other initiatives for fulfilling corporate social responsibility by Tata Group Companies are as follows; The Tata Group generated a lot of jobs to unemployed Indians who were to be engaged in productive activities such as wood scrap re-cycling into furniture, baling of scrap steel and assembling of battery cables. The group also introduced many scholarship programs to assist students in higher education. Majority of students who benefited from the scholarship programs were from marginalized groups of the society.
Tata Approach ta sustainability
Tata power solar sustainability approach aimed at maintain sustainable value to the members of the society. The concept of sustainability adopted by Tata Group
aims at meeting the objective of careful leadership thus enhancing quality of life in the society (Planken, et al., 2010). To maintain a sustainable environment, Tata Group adopts the idea of leadership with care which involves best practices to protect the environment, considers the interests of the society, take care of their customers and owners as well as other groups in the society. The focus of sustainability by Tata Group is the long term of the society in which it operates (Planken, et al., 2010).
Managing culture and diversity in Employment practices
Culture is the way of live. It refers to the norms, beliefs, values and practices of different groups of people in the society (Sharma & Waknaghat, (2014). Tata Group has maintained equal treatment of all members of the society without discrimination based on language, color, cultural differences or origin. As part of fulfilment of its corporate social responsibility, Tata Group has tried to maintain equal employment practices to all members of the society. This greatly helps to maintain harmony and unity within the communities upon which it carries business with.
Conclusion
Tata Group companies have set pace to the Indian companies to take lead to maintain an orderly society since they are part of the society in which they operate. Although most organizations fail to take part in societal development, they need to recognize that without the society their existed is threatened.
References
- Srivastava, A. K., Negi, G., Mishra, V., & Pandey, S. (2012). Corporate social responsibility: a case study of Tata Group. IOSR Journal of Business and Management, 3(5), 17-27.
- Planken, B., Sahu, S., & Nickerson, C. (2010). Corporate social responsibility communication in the Indian context. Journal of Indian Business
Research, 2(1), 10-22.
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