The Tata Group: Integrating Social Responsibility with Corporate Strategy

            
 
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Case Details:

Case Code : BECG050
Case Length : 15 Pages
Period : 1995-2005
Pub. Date : 2005
Teaching Note :Not Available
Organization : Tata
Industry : Diversified
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note Contd...

The shift in the focus is also reflected in the contribution of different sectors to group revenues. While the materials sector comprised of the flagship company - TISCO and contributed 19% of the group's total revenues in 2003-04, as much as 24% came from the automotive & engineering sector i.e. Tata Engineering and Locomotive Company Limited (TELCO).

Companies like TCS and Tata Tele Services, operating in the IT and telecommunication industry contributed the largest share of 27% in the group's earnings in 2003-04. 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 the world's sixth largest manufacturer of watches (Titan). 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."6

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The group has always been recognized as a value-driven organization. The company's values were imbibed from the founder of the group and his successors who took on the leadership of the group.

All the individuals who headed Tata institutions emphasized the importance of philanthropy and the utilization of wealth to enhance the quality of public life. The core values espoused by the group included integrity, understanding, excellence, unity and responsibility (Refer Exhibit II for the Core Values of the Tata group). The values of the founders are reflected in the mission statement of the group, which lays great emphasis on CSR.

The group's mission statement states, "At the Tata group, our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the group brings a unique set of capabilities...

Excerpts >>

6] 'Visionaries,' CSR Initiatives of Tata Group, www.indianngos.com, December 2004.

 

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