Tatas
index their social conscience
Times of India —
March 27, 2004
Corporate
social responsibility has been a much bandied
term ever since liberalisation pushed Indian corporates
to adopt the professed business ethics of the
developed world. The Tata group is now trying
to evolve this as yet nebulous concept in India
on a tangible scale by drawing up a special CSR
index it calls the Tata Index for Sustainable
Human Development. The index has been developed
by the Tata Council for Community Initiatives
(TCCI) to benchmark the contributions of Tata
companies toward social development and protection
of the environment.
Fifteen group firms have already adopted this
benchmark and five others — Tata Chemicals, Tata
Tinplate, Indian Hotels, Titan, and Tata Steel
— have completed an initial benchmarking exercise
of their CSR activities. "We have worked closely
with United Nation Development Programme to develop
this index, which establishes a correlation between
the Tata Business Excellence Model and the UN's
human development index," Anant Nadkarni, a general
manager at TCCI, told Times News Network.
Group companies are required to undertake a points-based
self evaluation based on several criteria such
as leadership commitment, strategy development,
review mechanism, employee involvement, volunteer
schemes, and managing change. They have to rate
their performance on these parameters on a scale
of 0-1,000, called the 'scale of human excellence',
which has five sub-bands, namely, human consideration
(Scale: 0-250), human concern (251-450), human-
achievement (451-650), human development (651-875),
and human excellence (876-1,000).
"If a firm is at the 'human consideration' stage
(scale: 0-250), it means its CSR activities are
rudimentary," Nadkarni explained. A firm in the
'human concern' band is "still evolving its value
system" while at the next stage (human achievement),
its "employees demonstrate a high degree of realisation,
accomplishment and capability for collective action."
"The human development stage is a state of realisation
that building a community is central to human
survival and growth," Nadkarni explained, "while
the 'human excellence' goal is the self expression
of people who have a quality of life that is a
benchmark for others to emulate."
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