Q1. Given that the Tata group has a long history of undertaking activities relating to CSR and a broad understanding as to what this responsibility is, can you elaborate as to whether and how the Companies' Act 2013 restricts or encourages/enriches this (both the understanding of CSR and the activities undertaken within it)?

The Tata group abides by the philosophy of its founder, that the Community is the primary reason for its existence. In alignment with that, Tata Steel has, since its inception, embraced CSR in a big way and has been running multiple programs related to health, education, culture, livelihood, sports etc to make the communities around us stronger and self sufficient. The Companies Act 2013 intends to broad-base this responsibility of corporates for the community so that more companies participate in this very important activity. By listing down the permissible activities, the government has tried to bring focus and ensure that the projects taken are chosen carefully and extend greater benefits to the communities. The list of the activities recommended by the companies act are fairly wide and well aligned with the programs undertaken by the Tata group. Hence, we are continuing with our existing programs with full enthusiasm and scaling some select activities for a wider impact on the communities.

Q2. How can CSR be used to address the larger challenges of India's social development status; the growing inequality; the joblessness of youth, the communalization of society, et al?

In terms of Human Development Index parameters, many parts of India, especially the regions around Tata Steel’s areas of operations are lagging behind badly (in some areas, it is even behind Sub-Saharan Africa) and needs to be addressed urgently. Not resolving these issues of education, skill shortage, health etc will only aggravate the social evils like disparity, lawlessness, petty crimes etc. Therefore, the role of corporates working in these areas gains significance and supplements Government’s efforts. The 17 Sustainable Development Goals postulated by UN provides a guidance for Companies to align their CSR activities and contribute towards global development goals.

Q3. Given that the challenges are enormous, should companies collaborate on CSR so that skills and resources are pooled together to make a difference?

The extent of problems faced by the country is simply beyond the resources of any Corporate to address. Till date companies have been working in their areas of relevance as part of their CSR program. There exists enough scope for organizations to collaborate and leverage their individual strength areas to broad base their activities and also increase the reach of their CSR. However this needs close cooperation and coordination and a complete alignment in the objectives and expected outcomes of the programs to ensure maximum effectiveness.

Q4. To what extent can and should CSR be aligned to business?

Traditionally CSR has been aimed at uplifting communities; it creates benefits like a goodwill from community, potential customers, societal acceptance and social licence to operate etc. However with the changing expectations of community and other stakeholders, there is a shift in the CSR activities and more and more organizations are aligning their CSR activity with their business objectives to create a win-win situation. For example, a water intensive manufacturing Unit will mitigate their impact by investing in community water management program. Similarly an organization having a significant carbon footprint will mitigate by promoting renewable energy sources in community.

Q5. How can CSR be better integrated into the overall sustainability function in an organisation? Should it be a part of it, or vice versa, or should they not be connected at all?

The overarching philosophy of Sustainability is a balance between People, Planet and Profit which entails management of the expectations of all stakeholders be it investors, government, community or employee. This forms inputs for the formulation of an organizations’s short term and long term business strategy. CSR as a function has the important role to play in implementation of community related strategy and also has the responsibility to be the eyes and ears of the organisation for understanding the community situation and develop plans which can be deployed by the deployment agencies, which in the case of Tata Steel is the Tata Steel Rural Development Society (TSRDS). Needless to mention that there needs to be a strong coordination between the Sustainability and the CSR team, so that any blindspots are eliminated and the action plans developed are aligned with the other stakeholder expectations.