Forerunners in corporate social responsibility
The Indian Express — March 16, 2005

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.

Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is that 'give back to the people what you have earned from them'. So from the very inception, Jamshetji Tata and his family have been following this principle." Moreover 'he says that for any business to sustain in the long run they have to look beyond business. Ages ago when Corporate Social Responsibility was either the government, or charitable organisations headache, the Tatas aggressively worked for the upliftment of the community.

Tata initiated various labour welfare laws, like the establishment of Welfare Department was introduced in 1917 and enforced by law in 1948 or Maternity Benefit was introduced in 1928 and enforced by law in 1946.

While today eyebrows are being raised about corporates doing social work, the Tata Group feels it is the need of the hour. Thus, where in the West companies are doubtful of spending the shareholders money and corporates are considering discontinuing Corporate Social Responsibility. Says Irani, "Which is fine for them, but not for a country like India. The governments of the western world have a strong social security net so corporates can concentrate on making profits and paying taxes regularly but in this regard India still lags behind. We are far away from reaching that phase of economic development where government is solely responsible for the basic needs of the public. We don't have a social security, adequate health and education services. So till then corporate houses should fill the gaps."

Further he explains that for any establishment to be successful public support is vital. One cannot be a spike of prosperity on the sea of poverty. In any society there is one section that makes huge profits and richer than the rest which leads to disparity. Over a period of time it has been witnessed that corporations die out if they do not support the masses.

Over the years, the Tata philosophy to 'Give back what you get' has been followed by all their enterprises across India. Be it relief measures, rural development, health care, education and art and culture, they have been very forthcoming. As result every year, the Tata Group's contribution to society has been phenomenal. In the fiscal year 2004 Tata Steel alone spent Rs 45 crore on social services.

Different Tata companies have been actively involved in various social work. Like Tata Consultancy Services runs an adult literacy programme, Titan has employed 169 disabled people in blue collar workforce at Hosur, Telco is fighting against Leprosy at Jamshedpur, Tata Chemicals runs a rural development programme at Okhamandal and Babrala, Tata Tea's education programme and Tata Relief Committee (TRC) which works to provide relief at disaster affected areas.

The group's policy is to provide livelihood instead of giving money. "How long can you give rice and dal? What is required is the means to live. And that is what we do. During natural calamities there are two phases of assistance — relief measures and rehabilitation programme. After the Gujarat earthquake we built 200 schools in two years and we rendered help during the Orissa floods when people lost cattle. Even after the Tsunami disaster members of our TRC immediately reached the places and figured out what is required.

Moreover, Irani proudly claims that none of the Tata Board of Directors will ever be in the list of rich people. They have a trust that accumulates the profits of the company, which are then disbursed for various social causes. "We generate wealth but personally don't get any of it. These trusts accumulate the funds and disburse accordingly," concludes Irani.