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Review of Creation of Wealth
CSR Perspective
Introduction to the book• An account of industrialization lead by
TATA• Insights TATA Philanthropy: Vision and
Compassion• Divided into 2 Sections:
• Era of 1874 to 1991• The Spirit of Adventure• Ripple Effects• Facts
• Liberalization Era 1992-2003
TATA Group Snapshot
TATA Group Purpose
The Man and His Vision
When you have to give the lead in action, in ideas – a lead which does not fit in with the very climate of opinion, that is true courage, physical or mental or spiritual, call it what you like, and it is this type of courage and vision that Jamsetji Tata showed.
- Jawaharlal Nehru
TATA - Highlights
Book Review
Empress Mill & Care for Workers• First humidifiers and fire-sprinklers• Institution of Pension Fund• Award of Accident Compensation• Water Filtration Plant & Sanitary Hutments• Apprenticeship for graduates
Dream about Steel CityBe sure to lay wide streets planted with shady trees, every other of a quick growing variety. Be sure that there is plenty of space for lawns and gardens. Reserve large areas for football, hockey and parks. Earmark areas for Hindu temples, Mohammedan mosques and Christian churches.
We are constantly accused by people of wasting money in the town of Jamshedpur housing, sanitation, roads, hospitals and on welfare………
Impulse of Learning
What advances a nation or community is not so much to prop up its weakest and most helpless members as to lift up the best and the most gifted so as to make them of greatest service to the nation.
- Jamsetji Tata
Impulse of Learning• One out of every 5 Indian ICS was a Tata
Scholar• Sets aside half of his wealth for
establishing university• Amounts to Rs 10 crore of 2002
• Indian Institute of Science established in 1911
• Venture of Tatas, Govt of India & Govt of Mysore
• ISC’s contribution to India• Central Food & Tech Research Inst• National Aeronautical Lab• Dr C V Raman• Dr Homi Bhabha
Wings for a Nation• TATA Airlines in 1932• Carried Mail on Route Karachi-Bombay-
Madras• 1937 Bombay-Delhi Air Service• 1946 – Tata Airlines goes public and
becomes AirIndia Ltd• Air India International – Venture b/w Tata &
Govt.• 1953 – Nationalization of Airlines; JRD
Chairman• Some criticized - JRD gives more time to
Air India
The Cult of Excellence• TATA Engineering and Locomotive
Company• 100 locomotives; 98% indigenous parts• TELCO produces Commercial Vehicles• 99.8% indigenous parts• Trained around 1500 ancillary suppliers
“Profits should come from productivity and not by raising prices in a favorable market. Our greatest asset is customer satisfaction.” – Director, Telco
The Cult of Excellence
“We did not have to create a lake to produce a tree. But we did.” – JRD Tata
• Telco plants trees before building workshops• Created artificial lake for the trees• Not building factories but building nation
Cup of Awakening• Tata Tea only private company to preserve
National Park• Tata’s unique welfare system
• 14000 houses electrified• Free Medical Care for Employee Family• Free Veterinary Aid for cattle• Small Hospitals in estates – Liquor a
scourge• Smokeless Chullas• Health exhibitions and Baby Shows
Treasures from the Sea• Tata Chemicals came into existence in
1939• Tata Chemicals learn production of soda
ash – indigenous learning• Adopts surrounding areas to provide
adequate supply of water in scanty rains
Ripple Effects: On Industry• Highly Concentrated Technical &
Management Prg• Forefront of apprentice training• Management Training Center – 100
courses a year• Tata Management Training Center, Pune• Government Training Center in Singapore• TCS, Tata Electric trains employees of
competitors
“If you want to plan for a year, plant corn; if you want to plan for 30 years, plant a tree; but if you want to plan for 100 years, plant men.” – Chinese Proverb
Ripple Effects: On Employee Welfare
Joint Consultative
Council
Joint Works Council
Joint Dept Council
COUNCIL SYSTEM
1. Each council had equal management and employee representation.
2. Joint decision on labor and industrial problems
When nationalization was proposed, the Tata Worker’s Union passed a resolution against nationalization.
Ripple Effects: On Social Services• Employs welfare consultant to plan social
services• Social, Medical & Co-operative services• Tackling Money Lenders• Essential Commodities at cheaper rate• Primary Schools, Sports Clubs, Canteens• Welfare of Employee’s family
Tata Steel is the first Indian company to have a social audit of its activities.
Ripple Effects: On Social Services• Urban Community Development Program
1958• 12 community centers• Mothers learn sewing, stitching, handicrafts• Women Adult Literacy Classes• Jamshedpur’s School of Hope
In 1970 major Tata Companies incorporated into their MoA and AoA a clause on their social obligations to consumers, employees, shareholders, society and the local community
Ripple Effects: On Social Services• Tata Steel’s Rural Development Society
• Assists a total of 276 neighborhood villages• Training in craft and agriculture• Cane Weaving – 250 employed ;
Investment Rs 18000
E.F Schumacher, author of Small is Beautiful, would have rejoiced to see so many people
so gainfully with such little investment
Beyond Business – Tata Scholar
“Though I can afford to give, I prefer to lend.”- Jamsetji
• 1924, one out of 5 ICS Officials was a Tata Scholar• J C Coyaji – Chief Justice of High Court• B N Rao – Judge International High Court,
Hague• Dr Jivraj N Mehta – CM of Gujarat• K R Narayanan
Beyond Business – Universal Trusts• Sir Ratan Tata Dept LSE, (Dept of Social
Sciences)• Tata Institute of Social Sciences• Tata Institute of Fundamental Research• Tata Memorial Center for Cancer Research • Tata Energy Research Institute
At a time, when most charities were communal in nature, Sir Ratan Tata Trust and Sir Dorabji Trust set precedent of universal trusts.
Beyond Business – End of Menace• Small Pox Epidemic hits Chotanagpur div
in Bihar• Small Pox Eradication Campaign by WHO
• Phase I• 400 outbreaks discovered in a fortnight• Convincing Adivasis
• Phase II• 6 months long operations• 82 towns & 20,500 villages• 10 lakhs saved of 53 lakhs allocated
• Phase III
Beyond Business – Creating new Industrial Culture• 1911 Eight hour work culture
• Western Countries followed 11-12 hours culture
• 1930 Profit Sharing Scheme• 1940 Personnel Department Planned• 1950 Three Tier System• AoA and MoA incorporate social
obligations• Managing Agents Commission on profit not
on loss
Firsts by TATA• First Cement Manufacturing – India
Cements• TATA Industrial Bank > Central Bank of
India• New India Insurance started in 1919• Tomco – Pioneers in employing women• Tomco – First Ever Soap Making company
Corporation with Conscience
“Did you ever expect a corporation to have a conscience when it had no soul to be damned and no body to be kicked?”
TATA answered – “YES”
Questions & Answers
Presented By:Pradeep Mathew