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Case Study Analysis on

TATA POWER: CORPORATE SOCIAL

RESPONSIBILITY AND SUSTAINIBILITY

Submitted to:

Submitted By:

Prof. Supriti Mishra

Aditya A. Dash

Ajeet S. Chauhan

Jubin Joseph

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Tata Power

History

Tata Power is the largest & oldest integrated private power utility for India. The company

originated in 1919 and was originally formed as the Tata Hydroelectric Power Supply

Company. The core product focus consists of electrical power, natural gas, electricity generation

and distribution, natural gas exploration, and transportation. The company is highly driven by

innovation and leading edge technology. This drive for innovation has led Tata Power to

establish various public & private partnerships to aid in their focus of generation, transmission

and distribution. Tata Power holds strong leadership qualities which increases the value of both

their company, and the communities which they do business in.

Vision: To be the most admired integrated Power & Energy Company delivering

sustainable value to all stakeholders.

Mission: We will become the most admired company delivering sustainable value by:

Providing world class power and energy solutions that exceed customer expectations Innovating and deploying cutting edge eco-friendly technologies Capitalizing on global opportunities and exploring synergy in entire value chain

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Empowering our employees and creating an environment for them to perform at theirhighest potential

Caring for the safety, environment and well-being of employees and their communities Ensuring profitable growth and enhancing value to stakeholders

Values: Integrity, Agility, Respect for People, Collaboration, Empowerment, Trust, Care,

Excellence,

Tata Power is also a company that believes strongly in corporate social responsibility.

Their main areas of focus includes: Environmental, healthcare, education, and sustainable

livelihood. In the environment, Tata Power has started environment awareness campaigns,

helped to conserve water and other natural resources, to help better the environment. Their

healthcare focus is mainly centered on AIDS awareness programs, and Immunization/Health

checkup camps. Tata Power has built a strong culture throughout the company, as it pertains to

social responsibility. (Thompson)

Q2. PART A-

The net worth of the company as of 2007-08 was Rs. 80,520 million out of which reported net

profit was about Rs. 8700 million. At that time it was an unwritten rule in the corporate world

was the CSR budget should be 2% of the net profit which was afterward mandated in the

Companies Act. Therefore the CSR budget would have been 2% of Rs. 8700 million that equals

to Rs. 174 million. But the proposed CSR budget was only about Rs. 50-70 million. That amount

when compared was too less and under proportionate.

Activities Percentage

Infrastructure 15.02

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Health Care 7.22

Environment 8.23

Vocational Training 7.22

Income Generation 2.02

Drinking Water Scheme, Rural Electrification, Awareness

programs, sports tournaments

6.21

The above table give a brief idea in percentages about the CSR expenditures out of the budget.

Some of the benefits which are tangible and intangible are as follows:

Tangibles:

Development of structured, well planned, equipped town-ship Availability of facilities (health, education, recreational, commercial, entertainment,

agricultural/vocational )

Employable population

Intangibles:

Eradication of illiteracy, poverty, mal-nourishment Better connectivity [hence, development of socially aware, market driven, better adaptive

community]

Good-will

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Better relationship with stake-holders [communities, NGOs, environmentalists,government, and internal policies]

Cost Benefit Analysis:

Right now the costs are on the higher side because the company is at the asset building stage

which will take time to reap the benefits from the assets. There are negative sentiments in the

market about the company with ways of production of power with a huge skill-demand gap.

The factors which are beyond control of the company are growing carbon foot-print which stems

from over dependence on coal power, bargaining power of the NGOs and lastly losing

reliability on impact assessment technique.

PART B-

Different parameters on Impact Assesment:

It should be different across borders, because:

1. Different Ecology, Human Development Index and Factors, Culture2. Different Input factor-based production strategy3.

Even within border, different strategies for hydro, thermal & wind based energyproduction has been observed.

4. Tying-up with field-expert from NGOsare also good conduit to ground realities,communities

5. Need for regular ratification of sustainability measures

Benchmarking can be done on the following parameters:

1. Indices like Dow Jones Sustainability Index2. Varied Nature, scale of activities and target stake-holder3. Region-based institutionalization may be a possibility, but not a global one