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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"In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence." 1

- 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 organizatio..." 2

- Manoj Chakravarti, General Manager - Corporate Affairs and Corporate Head - Social Responsibility, Titan Industries Limited in 2004.


In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO),3 announced that in future TISCO would not deal with companies, which do not confirm to the company's Corporate Social Responsibility (CSR) standards.

Speaking at the annual general meeting of the Madras Chamber of Commerce and Industry, Muthuraman stated, "We will not either buy from or sell to companies that do not measure up to Tata Steel's social responsibility standards."4

As a global benchmark for CSR and a pioneer of the concept in India, the Tata group has adopted social responsibility as one of its integral values and the group has made concerted efforts to link it with the group's overall strategy for achieving business excellence. Besides undertaking CSR initiatives through its various companies, the Tata group has been actively involved in facilitating the development of this concept in India by setting standards and benchmarks.

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

Background Note

Founded by Jamsetji Nusserwanji Tata (JN Tata) in 1868, the Tata group has developed into one of India's largest business conglomerates. Tata Sons, which was established as a trading company by JN Tata in 1868, is the promoter of the Tata group.

Tata Industries, initially established in 1945 as a managing agency for the businesses promoted by Tata Sons, propelled the group's entry into new and high-tech industries during the early 1980s. The Tata group generated total revenues of Rs. 614.34 billion during the year 2003-04 (Refer Exhibit I for Tata group's financials) through its various companies in seven key industry sectors.5 The group has 80 companies in diverse sectors, and has been moving from product-driven businesses to brand-driven businesses. The group listed its materials, chemicals, energy and engineering products as product-driven while engineering services, automotive, communications and IT, services and consumer goods have been identified as brand-driven businesses.

The Tata Group: Integrating Social Responsibility with Corporate Strategy - Next Page>>

1] 'Visionaries,' CSR Initiatives of Tata Group,, December 2004.

2] 'Tata Champions,' Tata Group,, December 2004.

3] Established in 1907, Tata Steel is Asia's first and India's largest integrated private sector steel company. During 2002-03, it produced around 3.98 million tones of steel, and had a turnover of Rs. 98 billion.

4] 'Social Responsibility Vital for Tata Steel Dealings,' The Hindu Business line, July 03, 2004.

5] The seven sectors are chemicals, communications & IT, consumer products, energy, engineering, materials and services.


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