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A Journey Towards An Ideal– Making Development Impact Through Business Processing

Controlled & Internal Document(For Tata employees and select partners)

www.quadrumltd.com Quadrum Solutions (P) Ltd., Krishnamai, 33B,

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Team Quadrum Ms. Ashlesha Shirodkar, Mr. Mrityunjoy Burman,

Mr. Suryakant Thikrul

Support team for A Journey Towards an Ideal:Mr. Vasant Ayyappan, The Taj Group of Hotels

Mr. K. Shankar Marar, Tata SteelMr. Shubhenjit Chaudhuri, Tata Steel

Mr. B. Sudhakar, Tata ChemicalsMr. Sumant Sood, Titan Industries

Mr. G. S. Uppal, Tata MotorsMr. Vinod Kulkarni, Tata Motors

Mr. Ajit Maleyvar, Tata Power Delhi DistributionMr. Sudhir Hasamnis, Tata Motors

Ms. Priyadarshini Sharma, Tata SteelMr. Ajit Pattnaik, Tata Housing Ms. Margaret D’souza, Voltas

Mr. Anand G. Rao, Titan IndustriesMs. Foram Nagori, The Taj Group of Hotels

Content Coordination:Mr. Lucas Saldhana

© Copyright 2012 Tata Services LimitedFor restricted circulation only. All rights reserved (This Document is mainly for the purpose of

Training and Internal use in the Tata Companies and for our Partners) For permission for the use of this material, please contact Vice President, Group CS, TCCI, Tata Services on [email protected]

explaining the contemplated use and its purpose. Our acknowledgement will act as consent.

TCCI – Mitigating Risks, Enhancing Opportunities & Innovations, to serve

1

We are not doing this for propaganda. We are not doing this for visibility. I think we should do it for the satisfaction of knowing that we have really

achieved and given something to the community in which we are working. What I am trying to convey is that: we are doing it because we really wish to do it.

- R. N. Tata, Chairman, Tata Sons

Prologue: ‘A Journey Towards an Ideal’ is a

story on the more recent social commitment

of Tata companies, their management and

especially the work of CS Facilitators for over

a decade. It resonates the vision of our group

chairman, Mr. Ratan N. Tata, that came to us

through his annual address at the AGMMs:

a. It started with the need to be and to be

seen as a group that is on the forefront

of whatever it does. Towards this TCCI

marshalled the group’s synergy to develop

common CS guidelines for the first time in

India and perhaps globally on ‘who’ we are

as a group;

b. To question the unquestioned and to

address new contexts of a reforming

India. We reflected on our present work

and brought in perspectives on human

development bridging diverse activities to

see how wellbeing is ultimately enhanced;

c. Forge strategic alliances with global

agencies to aim at strengthening our

capacities. TCCI partnered with GRI, SAI,

AA1000, United Nations and internalised

their capacities while some of us served on

their Boards!

d. TCCI was first to develop the Tata Index /

Protocol and build a functional – extension

around the TBEM on CS. We also

addressed the group’s focus on innovation

partnering with the UNDP to fuse a

business-model with human-development;

e. Inspired by the Founder’s vision, TCCI

undertook stakeholder-engagement to

address risks and account for abatement

costs of negative impact towards

sustainability;

f. CS Workouts have further helped to build

a CS Leadership approach and the process

for co-creating sustainable value that offers

opportunities to understand more about

what comes from the people, what goes to

them in abundance!

g. Inspired by the Chairman’s call to lead

and never follow, TCCI has nationally and

globally learnt and influenced the subject of

CS on the frontiers of development, invited

to make over eighty presentations in nearly

25 countries addressing thousands of

students, teachers, business leaders, media,

a number of authors and CS thought-

leaders.

Mak

ing Development ImpactTrhough Business Processi

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Toolkit 1


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h. To the group’s strategic focus on base of

the pyramid, TCCI campaigned on CSR to

CS to focus on enterprise solutions and

extension of core-competencies to reach

the underserved.

This series of CS toolkits is developed

specifically for CS user groups addressing their

demands.

Making Development Impact through

Business Processing: The Tata group is

committed to an overall purpose of “improving

the quality of life” of people who engage

with us. In the past few decades there is

considerable awareness on ‘continuous

improvement’ in business processing as

well as its outcomes. There is also a better

understanding about ‘total quality’ more than

ever before. But this has largely remained

in the sphere of business strategies and

products. There is very little knowledge on how

continuous improvement and quality have a

bearing on Life! The TCCI forged an innovative

partnership with the UNDP to combine the

power of business processing, a democratic

and systematic way to build consensus and

aggregation with the main objective of going

beyond ‘results’ or ‘outcomes’ to measure

‘Impact’. By impact, it is understood that we

deal with a resultant positive change in human

life and that it is sustained and long term. From

the initial Tata Index, tested over a decade,

TBEM and TCCI developed the CS Protocol –

the first kind of extension to TBEM to focus

on the ‘materiality of a subject’. Then looking

at the pace at which CS is taking on a new

route through various disciplines of business

reporting, TCCI forged another partnership

with XBRL Inc to develop the Tata Index

Taxonomy – the Index itself and the Taxonomy

being pioneering efforts in the world! Since

then, the Tata Index features in a compendium

created by the United Nations to catalogue

the UN India Partnership 1945 – 2012! It may

be noted that Issues concerned with Air and

Water pollutions (effluences, contaminations,

fumes, litters, toxic waste and greenhouse

gases) as also Affirmative Action, are dealt

with separately in the Tata group. However,

in any case, Companies doing the GRI and

SA8000 have to consider these requirements

under Environment and Human Rights,

respectively.

Anant G. Nadkarni Vice President, Group CS, TCCI


3

The Tata Council for Community Initiatives

(TCCI) is the nodal agency comprising of

CEO’s of over 50 major Tata companies and

facilitates corporate sustainability and social

responsibility. Mr. K. A. Chaukar, a senior

director in the Tatas, is Chairman of TCCI.

In the early years, the focus was on bringing

about a more common approach to the

humongous diversity in community work and

create a ‘Tata Way’ for assisting smaller and

newer companies to adopt such initiatives.

At the outset there were concerns about

the growing and changing expectations

of stakeholder communities. There were

The Tata companies began some work in 1997

on the question of: How does all our detailed

social work actually build Community? An

enquiry document led to building Case Studies.

This was later refined into a set of Community

Guidelines in 2000 and major companies

Background:

Evolving a Common Guideline:

concerns in the early nineties about how

people take charge of power decentralised

with the objective of improving lives, bringing

positive social change and enhance human

development as a response to the Indian

reforms.

again went back to bring more case studies

after a year. During this period 1997-2002,

what we call ‘action-research’; many insights

came up. A Tata-way also began to develop.

This was the first phase of this evolution.

In the following years, major Tata group

companies signed the Global Reporting

Initiatives (GRI) and the UN Global Compact

(UNGC). The triple context of Profit, Planet

and People came in more structurally. At that

time it was clear to GRI and UNGC and to all

of us that their Social Indicators were weaker

and Materiality was borrowed and at nascent

stages of development. Building capacity in the

emerging area of Sustainability was broadly the

next phase.

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The Tatas therefore approached the UNDP

in India through the TCCI and held an

annual event during 28-29 June 2002. Forty

champions from twenty major Tata Companies

and the UNDP India officers Dr. Seeta Prabhu

then Head – Human Development Research

Center and two others tested out feasibility for

creating the Tata Index. The single aim was to

see whether and how “typical corporate social

interventions” could bring about a positive

Going beyond results / outcomes towards

Impact: There was a growing understanding

that disparity, inequality or generally poverty

is not just a resource mobilisation issue.

Admittedly, there have to be good processes

and effective results. And, there is more...it

must evolve into something like a procedure

to deal with a more subjective and nebulous

form of Impact! Impact is a bit more long

Can a business model help address Human Development goals?

Improving the Quality of Life

change in the quality of life. This third phase

really looked at a way business processes

could aim at delivering more social justice.

Our contention was that business has a

strong focus on Process. We talk of efficiency,

resource management or continuous

improvement. Immediate to that is the second

strength of business – namely, delivery of

effective outcomes or results.

term in nature; ‘consequence’ in totality by

character and it is the ‘opinion’ of the perceiver

in terms of human life in this case. The UNDP

brought in the important perspective of human

development / goals! Have we improved

Access? Is there more Participation? Why

is Discrimination, of sorts, happening? Was

Decentralisation required? And so on.

Tata CS Workout – “Towards Creating a Sustainable World”

28-29 June 2002, TMTC, Pune


5

The Tata group as a whole was developing

the Tata Business Excellence Model (TBEM)

through a group level model agency known

as the Tata Quality Management Services

(TQMS). The TBEM works on a set of criteria

like Leadership, Strategy and so on. Each of

these modules has a set of key questions. The

whole set of them when answered become the

Application for the JRD Quality Value Award

for Business Excellence. Thereafter, a set of

Internal Assessors evaluate this Application

and an external team of Assessors reevaluate it

and scores against 1000 points, help to select

the winner.

The more interesting side to this work is that

each question or item has a web of linkages

with a hierarchy of objectives, goals, overall

goals and the organisational purpose. Each

segment is evaluated through a democratic

process by single Assessors in small teams.

There is a critical process called ‘convergence’

wherein teams are practicing a habit of

making their independent opinions and then

co-creating a ‘single’ opinion. This way there

is a convergence of many teams. The essence

of this is a) that the ‘collective wisdom’ of

individual Assessors is leveraged; b) a process

of bottom-up democratic opinion-building is

encouraged; c) openness about what is wrong

or not so appropriate at the grass-roots is

acknowledged and comes up with constructive

solutions called Opportunity to Improve (OFI);

d) the apex team with the management

and the CEO then Aggregate the entire

Organisational performance. In all, over one

thousand five hundred Assessors, many of who

are CEOs and functional heads annually co-

create this performance. There is much more,

but taking this relevant aspect, the TCCI looked

at building Processes and Outcomes with the

Consensus, Convergence and Aggregation

protocols as applied it to understand social

development work.

But there were some differences a) this

experiment was only an Internal Assessment

process – because Commitment was more

important than Compliance – no Awards were

applied for; b) there was no application – it

was empirical assessment on site. An internal

TBEM Assessor and community leaders

converged their scores and OFIs – this was

shown to the Management; c) no one really

controlled the process centrally; d) the Tata

Index while leveraging all the strengths of

TBEM, went a step ahead to list out 19 human

development goals with the help of UNDP.

These were subjective and they came into the

fold of consensus and ‘collective wisdom’. So,

one could tread into the domain of subjective

goals and with a more collective process. The

critical issue is that it fitted into the emerging

ideas of people-centered development

emerging at that time.

We began to develop the sensitivities for what

is Impact in terms of Human Development

goals which laid the foundations for a practice

of ‘co-creating’ sustainable value – unlike other

corporate social initiatives outside the group.

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After a year of practice on some cyclostyled

templates we discussed and refined the

process with the HDRO in New Delhi UNDP.

Dr. Ms. Seeta Prabhu and Dr. Suraj Kumar

guided this process. Our companies tested

this out extensively. 19 of our champions

were trained in the Internal Assessment

process. Mr. Jehangir Ardeshir, then CEO

of TQMS, generously shared the TBEM

process at the annual event through a

session on “Convergence of CS with TBEM”.

Mr. Satish Pradhan, then Executive Vice

President – Group HR, conducted a Session on

“Perspective Building for Responsible Action

by Companies and Individuals”. The Tata Index

for Sustainable Human Development was

released the next year on April 3, 2003. For the

TCCI, Mr. Anant G Nadkarni, Vice President –

Group Corporate Sustainability conceptualised

and created it with the most valuable support

of Mr. M. K. Nagabhushan, Senior Consultant

at TQMS; Brig. R. S. Rajan of Tata Tea;

From Mission to Performance:

Mr. M. B. Paralkar of Tata Motors; Ms. Shakti

Sharma of Tata Steel; Ms. Alka Talwar of Tata

Chemicals; Ms. Samantha Saldhana of Indian

Hotels; and, Mr. Vidyanand Joshi & Mr. Lucas

Saldhana of TCCI. In all, 16

major companies took it

up in 2004 and 2005. 12

major companies took it

up for 2 more years. In

2007 a simpler checklist

was created by the

name Tata Corporate

Sustainability Protocol

and was released by

Dr. J. J. Irani, Chairman,

TQMS and Mr. K. A. Chaukar, Chairman,

TCCI with the joint endorsements of

Mr. Sunil Sinha, Chief Group Quality Services

and Mr. Anant Nadkarni, Vice President –

Group CS. 13 major companies have taken this

up since its release in February 2007. This was

accomplished in the third phase.

The Tata Index was deployed by major Tata companies for at least five years and thereafter the Tata CS Protocol serves as a self–assessment process. The scores have steadily risen on an average. Some insights have come in through Assessment exercise. More importantly, improvements suggested or the Opportunities for Improvement (OFLs) have also enabled strategic degrees of maturation.

AverAGe SCoreS ouT oF 1,000 PoINTS

440

462

526

551 553

614

2004Year 2005 2006 20082007 2009

Incr

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The following is the distribution of points across the Index with a balance between Process and outcomes at the

three Levels with 17 sub-levels and 46 parameters under these levels.

Assessment levels Point Values

Break-up P+O

Systems response: Level I 275 (150+125)

1) Leadership commitment and involvement 55 (30+25)

2) Management structure and deployment 55 (30+25)

3) Strategy development and action plan 55 (30+25)

4) Review mechanism and reporting 55 (30+25)

5) Communications and awareness 55 (30+25)

People response: Level II 175 (100+75)

1) Selection, career development of key employees and performance management 45 (25+20)

2) Training for professional, organisational, managerial competence and enhancement of role in the CS 45 (25+20)

3) Training for leadership development, enrolment of other employees, personal learning and development and enhancing role in the CS

45 (25+20)

4) Volunteer scheme and evolving degrees of volunteering 40 (25+15)

Program response: Level III 550 (300+250)

1) Managing change and assessment of social impact 65 (35+30)

2) Felt needs of the key community related to core competencies 65 (35+30)

3) Volunteering process in the community 65 (35+30)

4) Social concerns addressed through programs 65 (35+30)

5) Improving attitudes/government processes 65 (35+30)

6) Self-reliance and sustenance 65 (35+30)

7) Learning and innovation transfer 65 (35+30)

8) Effective management and good governance 65 (35+30)

1000 (550+450)

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Since 2002, a year long effort went into

developing various correlations between HR

and Business Model initiatives. An Assurance

process on CS was developed for the Tata

Quality Management Services to deploy it as

part of the Business process. More specifically,

At this stage people are in the early stages

and beginning of an intervention. The activity

is rudimentary and is about providing basic

survival needs to the people. The intervention

could be one time, temporary, or be an entry

point. The drivers for such an intervention

could emerge more out of the sympathetic and

pitiable conditions in which people are living.

The intervention is there because people are

marginalised and would otherwise never get

anything or be able to create it on their own

due to inherent deficiencies or a prolonged

Embarking on a Journey towards Human Excellence:

A. Human Consideration [0-250]

the Tata Index for Sustainable Human

Development is being deployed to ensure that

the goal of all initiatives is assessed in terms

of their Human Achievement and Excellence.

The broad concept of the measurement is

mentioned below:

situation or a long history of dependence,

helplessness or vulnerability. There are major

gaps to be filled, no systematic approaches

exist or direction is set to improve living

conditions. People may stay in groups but

are not necessarily organised, collective or

experience a sense of Community. [This is

clearly different from situations under Relief

and Rehabilitation caused by an accident,

disaster or calamity like floods or an

earthquake.]


9

An intervention matures to identify certain

values and universal claims of life to drive its

goals. For instance, right to live with dignity

and equality. Through concerns it is easier

to relate effort and systematic approaches

to their outcomes in terms of how and why

people want to improve the quality of their

lives. This stage of development may still

be rudimentary with some major gaps to be

addressed in terms of capacities of sorts. But

there is a clear willingness among people

to become part of an intervention and an

eagerness to contribute their might. There

may be adherence to traditional modes of

At this stage, the Company and the people

combined demonstrate a high degree of

realisation, accomplishment and capability

for collective action. There is enhancement

of skill, integration of approaches and there

are conventions, arrangements, systems and

processes to progressively improve living

conditions. Although the average level of

being may still be in the process of evolution,

there are sporadic and isolated achievements

and some of them are exemplary. Human

Achievement is a stage of existence

characterised by models of action, ‘can do’

confidence, success stories and a sense of

progress achieved in some pockets. There are

signs of building local capabilities and trust in

the group.

People work through established processes

and discipline. There are standards and

measures and a commonly agreed set of

B. Human Concern [251-450]

C. Human Achievement [451-650]

work but people are also open to new ideas.

And there is also evidence of trends indicating

some improvement in living conditions. The

quality of intervention is also enriched by

values. For instance, a Company is devoted to

the cause of Women or Child or the Disabled.

The intervention derives the sense of deep

purpose out of such values beyond the basic

consideration for people. People respect and

respond to such approaches better when

based on shared values and it creates the

desired affiliation bringing them closer to

becoming Community.

rules ushering in a sense of order in activities.

There is evidence of continuity, a progressively

increasing level of maturity and rationale

in systems. The focus is on learning from

exceptional and exemplary achievements to

share with others for greater improvement

in overall quality of life. There is evidence of

progress in creating products out of skills,

a market for these products and services.

This may result in incomes generated

and redistributed with mutually agreed

conventions. There is greater faith in group

work and collective effort based on trust and

mutual respect. There are conflicts that are

openly dealt and people have the confidence

and ways to resolve them. There are structures

and roles for people, a routine and conventions

are established giving people a greater

experience of Community to create and do

things for themselves better than ever before.

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Human Development is a state of realisation

that building Community is central to human

survival and growth; that peace and security

are preconditions to development; that

participation, volunteering and affiliation are

foundational to growth; that development must

be measured and based on factual information

and analysis; that people have rights and

responsibility; that development is a process

to restore dignity, create equality among men

and women, show concern for the Child, the

aged, the disabled and other marginalised

people. Human Development comes out of a

realisation that people are central to progress

Human Excellence is a manifestation and

self-expression of people where there is the

quality of life that is a benchmark for others.

All approaches and endeavour are aimed

at meeting all the purpose requirements for

building high degree of trust and based on

the universal claims of life for their own sake.

This is a state where all other approaches

and levels of achievement are congruent to

meet the needs of people first and there is an

overall integrity towards the creation of human

excellence above everything.

There are systems of good governance,

procedures for maintaining order,

D. Human Development [651-875]

E. Human Excellence [876-1000]

and are more significant as ends rather than

means to growth. There is evidence of faith

and conviction in these values and is supported

by systems, practices and key strategies

derived from values and uniformly deployed.

Achievement in terms of income generation,

leadership, growth of assets and access

to technology is remarkable. The extent of

education and health contributing to longevity

is high. The sense of belonging and high-

trust are the basis of Community and people

share similar values and vision to continuously

improve quality of their lives.

arrangements for revisiting and evolving the

development agenda, a high degree of maturity

in the analysis of information, integration

of learning, high degree of capability for

reconciliation and reflection, in resolution

of conflict, and towards creating best and

world-class practices for leadership in building

Community.

The Assessors are required to use the following

scoring scale of percentages separately

designed for Processes and Outcomes to

determine the ‘band’ to show the current

level of maturity progressively moving on the

journey towards human excellence.


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Score Process (P)

0% • No systematic approach is evident; information is anecdotal

10% to 20%

• The beginning of a systematic approach to the basic purpose of the Parameter is evident

• Major gaps exist in deployment that would inhibit progress in achieving the basic purpose of the Parameter

• Early stages of transition from reacting to problems to a general improvement orientation are evident

30% to 40%

• An effective, systematic approach, responsive to the basic purposes of the to Parameter is evident

• The approach is deployed, although some areas or work units are in early stages of deployment

• The beginning of a systematic approach to evaluation and improvement of basic processes is evident

50% to 60%

• An effective, systematic approach, responsive to the overall purposes of the Parameter and your key community requirements, is evident

• The approach is well deployed, although deployment may vary in some areas or work units

• A fact-based, systematic evaluation and improvement process is in place for improving the efficiency and effectiveness of key processes

• The approach is aligned with your basic organisational and community needs identified in other Parameter categories

70% to 80%

• An effective, systematic approach, responsive to the multiple requirements of the Parameter and your current and changing community needs, is evident

• The approach is well deployed, with no significant gaps

• A fact-based, systematic evaluation and improvement process and organisational and community learning / sharing are key management tools, there is clear evidence of refinement and improved integration as a result of organisational and community-level analysis and sharing

• The approach is well integrated with your organisational and community needs identified in other Parameter categories

90% to 100%

• An effective, systematic approach, fully responsive to all the requirements of the Parameter and all your current and changing community needs, is evident

• The approach is fully deployed without significant weakness or gaps in any areas or work units

• A very strong, fact-based, systematic evaluation and improvement process and extensive organisational and community learning / sharing are key management tools; strong refinement and integration, backed by excellent organisational and community-level analysis and sharing, are evident

• The approach is fully integrated with your organisational and community needs identified in other Parameter categories

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The Assessors should evaluate the Outcomes

on the scale mentioned below and also

make an assessment of how the process has

contributed towards producing the outcomes.

Score Outcomes (O)

0% • There are no outcomes or poor outcomes in areas reported

10% to 20%

• There are some improvements and/or early good social performance levels in a few areas

• Outcomes are not reported for many to most areas of importance to the key Parameter requirements

30% to 40%

• Improvements and/or good social performance levels are reported in many areas of importance to key Parameter requirements

• Early stages of developing trends and obtaining comparative information are evident

• Outcomes are reported for many to most areas of importance to key Parameter requirements

• Improvement trends and/or good social performance levels are reported for most areas of importance to key Parameter requirements

• No pattern of adverse trends and no poor social performance levels are evident in areas of importance to key Parameter requirements

• Some trends and/or current social performance levels – evaluated against relevant comparisons and/or benchmarks – show areas of strength and/or good to very good relative social performance levels

• Outcomes address most process requirements

50% to 60%

• Improvement trends and/or good social performance levels are reported for most areas of importance to key Parameter requirements

• No pattern of adverse trends and no poor social performance levels are evident in areas of importance to key Parameter requirements

• Some trends and/or current social performance levels – evaluated against relevant comparisons and/or benchmarks – show areas of strength and/or good to very good relative social performance levels

• Outcomes address most process requirements

70% to 80%

• Current social performance is good to excellent in areas of importance to key Parameter requirements

• Most improvement trends and/or current social performance levels are sustained

• Many to most trends and/or current social performance levels evaluated against relevant comparisons and/or benchmarks show areas of leadership and very good relative social performance levels

• Outcomes address most process and action plan requirements

90% to 100%

• Current social performance is excellent in most areas of importance to key Parameter requirements

• Excellent improvement trends and/or sustained excellent social performance levels are reported in most areas

• Evidence of community and benchmark leadership is demonstrated in many areas

• Outcomes fully address process and action plan requirements


13

Corporate Sustainability (CS) Assurance and Assessment Process

Based on the three annual cycles conducted on

the Tata Index so far by major Tata companies,

the following are some of the suggestions.

These are collated centrally so that your

collective effort would be useful to assist any

Tata company to review its CS performance.

The CEO & CH-SR are Process Owners and

CS goals are built into the balance scorecard

/ KRAs for senior managers and key CS

Facilitators.

Assessment levels Point Values

Break-up P+O

Systems Response: Level I 275 (150+125)

1) Leadership Commitment and Involvement 55 (30+25)

2) Management Structure and Deployment 55 (30+25)

3) Strategy Development & Action Plan 55 (30+25)

4) Review Mechanism, Process Documentation and Reporting, Communication & Awareness 110 (60+50)

People Response: Level II 175 (100+75)

1) Selection, Career Development of key Employees, Performance Management and Succession Planning 45 (25+20)

2) Training for Professional, Organisational, Managerial Competence and Enhancement of Role in Corporate Sustainability

45 (25+20)

3) Training for Leadership Development, Enrolment of other employees, Personal Learning, Development and enhancing Role in CS

45 (25+20)

4) Volunteer Scheme and increasing / maturing degree of Volunteering 40 (25+15)

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Program Response : Level – III* 550 (210+340)

1) Risk management of Social / Environmental impact through the Stakeholder Engagement process; Establish Processes on Sustainability; Strive towards developmental change

250 (100+150)

2) Serving Communities around basic needs in the neighbourhood; Biodiversity Restoration & Wildlife Conservation 100 (40+60)

3) Building Community & Sustainable Livelihoods, extending core competence and with Poor as Partners/strengthen potential capacities

100 (40+60)

4) Encouraging Social & Novel Entrepreneurships to convert existing charity-driven initiatives into sustainable ventures 100 (40+60)

Total Points 1000 (550+450)

1. Leadership Commitment and Involvement: Process = 30 + Outcomes = 25 55

a) In the Tata group, senior leaders demonstrate explicit commitment and deep personal involvement to support CS. Besides setting overall direction in the form of relevant themes and contexts and implementation, they encourage Level II and other managers to actively support and to personally involve in CS activities so that, by example they help create the desired culture of practice at transaction levels. [1.1 a & b]

b) Senior leaders initiate CS voluntarily and go beyond stipulated regulation. A proper assessment (by third party or key stakeholders as necessary) is conducted to ensure that business, environmental and social risks are evaluated and proactively minimised. It involves initiatives taken to build organisational / professional capacities on Sustainability; and extends to how the organisation is being equipped to deal with complex and even tough social problems, when a need arises.

c) An appropriate emphasis is evident in developing non-financial goals for the Company – economic, environmental and social. The process includes evolving human development goals, indices and measures to all CS work as the overall purpose linked to ‘improving the quality of life’. This process is elaborated in the document A Journey Towards an Ideal. [1.2 b & c]

Systems Response: Level-I 150 (Process) + 125 (Outcomes) = 275

* Initiatives agreed upon at Annual CS Workouts are updated here from time to time.

There are five major clusters of concerns

for constantly improving performance under

this Level that will demonstrate explicit

commitment and involvement of senior

leadership in providing direction to company

level CS and also ensure that the intent

on improving the quality of life is actually

deployed and implemented.


15

2. Management Structure and Deployment: Process = 30 + Outcomes = 25 55

a) The CEO or MD of the company is ex-officio Member of the Tata Council (TCCI) and personally attends Council Meetings (without proxy) to share experiences and contributes towards evolving an overall group-level direction.

b) The Article of Association on Social Responsibility (drafted by JRD Tata earlier adopted by all major Tata Companies) is adopted. The CEO could identify a Director on their Board to oversee CS. The objective is to address and to protect shareholder / stakeholder interests through a responsible corporate governance process into which the multiple contexts of economic, social and environment are fully integrated. [1.2 a (1)]

c) A senior level executive, preferably Level II is the Corporate Head-Social Responsibility (CH-SR). The CH-SR is expected to have adequate strategic knowledge of business and considerable acceptability in the company. The heads of community development, environmental management, industrial health / safety and related functions will support the CH-SR and form a CS Cross Functional Team. Depending upon the size and structure of the organisation, all heads of functions and operations will be the members of this CFT.

3. Strategy Development & Action Plan: Process = 30 + Outcomes = 25 55

a) The CEO encourages the CH-SR and Cross Functional Team to evolve a formal CS strategy with a three to five years long-term perspective and projection in mind. The strategy could be formulated with the help of external agencies and experts. This could also be evolved with appropriate involvement of all other stakeholders. CS strategies address not only the present needs of businesses / markets / communities, but take into account future environmental and social impacts. Negative impacts, if any, are proactively identified, abatement action plans are in place and their costs are appropriated into revenue and capital expenditure. [1.1 a (3); 2.1 a (2)]

b) This strategy is the basis for the CS Annual Business Plan and is backed by appropriate budget, resources, and the time of all employees involved. The Company is encouraged to develop a “matrix” enlisting the technological and managerial capacity / strengths and articulate broadly how it could reach the targeted stakeholder [TCS-CAALP; TIL’s – Learning Disability; Artificial Limb are examples]. [2.2 a & b; 6.2 b]

c) At a company level, CS plans are inclusive of community development, employee welfare on issues like HIV/AIDS or disability. CS includes environmental management, occupational health and safety, biodiversity and ecological restoration, conservation of wildlife and endangered species. This process assures that it includes dealing with and addressing any form of actual or potential undesirable impact it has on people and the ecology.

d) The company has a system to determine on an annual basis its key stakeholders. Risks and abetment action are plotted along with an Engagement process comprising Communication, Dialogue and Participation in different combinations so that Stakeholder Engagement is strengthened not only at technical and commercial levels but more so in strengthening and deepening cultural and value related relationships.

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4. Review Mechanism, Process Documentation and Reporting, Communication & Awareness. [4.1 a & b; 4.2 a, b & c; 7.6 a]:

Process = 60 + Outcomes = 50 110

1) CS is periodically reviewed almost like any other function, at operational, divisional and corporate levels. Specific actions are taken on OFIs and issues raised. This process is more an integrated approach to build a multi-contextual sensitivity to business decisions particularly related to conservation of resources like water, energy, purification levels of air, wellbeing of stakeholders and communities.

2) CS is widely reported internally and externally in the spirit of making information available to the public. Annual Reports carry briefs on all major CS aspects. Special reports will be prepared as required by each initiative (Sustainability, Global Compact, Tata Index, SA8000) and certified, as stipulated. The more important aspect is that all databases, MIS and other processes are available in an integrated manner so that business and sustainability reporting are integrated and consistently help generate integrated sustainability information. Training to staff on sustainability reporting is provided for so that sustainability reporting is not a one of activity.

3) All communication channels and forms of awareness building are deployed to disseminate required CS messages / materials to employees and concerned stakeholders.

4) The objective to inform, encourage employee involvement and update on the latest in CS matters is considerably achieved and measured through employee surveys, their increasing participation and involvement.

5) As agreed upon at Workouts, GRI Reports are to be ready by 29th July every year along with the Tata Index assessment and Communication on Progress for Global Compact, and where necessary the Reports are audited by end September each year. This Impact Assessment report is also part of the company’s Sustainability Reporting and scores are integrated into the TBEM application.

People Responses: Level-II – 100 (Process) + 75 (Outcomes) = 175

Positioning the right people is important to

build credibility and continuity, and is part

of the “brand assurance / deliverable”. CS

functions are treated at par with all other

functions, more as integral rather than separate

/ add-on work. While putting the right people

is one part, training, orientation, updating and

development of facilitators on a constant basis

is another important aspect. The HR function is

the process owner:

1. Selection, Career Development of key Employees, Performance Management and Succession Planning [5. 1 b & c] :


a) The Company has a process to identify, select and position CS facilitators. The number of persons will depend upon the size and structure of the Organisation, its decentralised set-ups so as to cover all locations across national and global operations.

b) CS Facilitators have goals, targets and performance appraisals and systematic assessment of CS performance is carried out – similar to that of other business activities.


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2. Training for Professional, Organisational, Managerial Competence and Enhancement of Role in CS. [5. 2 a & b] :


a) Training needs for CS are assessed and building CS capacity is a routine function. Key Facilitators constantly update their working knowledge on Sustainability Reporting, CS related Standards, Guidelines and all forms of development in this area. Comparative studies are conducted with other companies so that capacities are constantly kept in line with requirement.

b) Advanced training in technical, operational aspects could support exceptional performance - the prime aim being to constantly upgrade requisite capacity. Senior Facilitators could be nominated to conferences at national and global levels for exposure and learning.

3. Training for Leadership Development, Enrolment of other employees, Personal Learning, Development and enhancing Role in Corporate Sustainability


a) Leadership development is key to CS. Employee enrolment by motivation is an important role of CS Facilitators. Special training in facilitation, group dynamics and motivational leadership may be necessary.

b) It is recognised that CS Leadership is founded on “Servant as Leader” approach and is offered to those who by choice are willing to undertake their own personal journey towards reflection, develop more empathy and towards their self-development. It is therefore encouraged that Facilitators are exposed to ‘process work’ which encourages reflection, deepens conviction, strengthen the power of initiatives in individuals and builds / strengthens certain human capabilities require for CS – particularly in the task of building requisite culture or Tata-ness.

4. Volunteer Scheme and increasing / maturing degree of Volunteering [T. CoC Clause 10]


a) The Company has a proper policy and process / scheme to encourage volunteering (ideally linked with the Strategy on CS). The volunteering process is highly customised and sensitive to include the existing initiatives. Urban and Rural locations, type of company operations and other peculiarities of the business are also taken into account while designing the process. Recognition of Volunteers is key to this process.

b) It should be possible to accurately substantiate on the number of Volunteers in a Company, the Volunteering hours spent and broad areas of their work content. This should be sent to TCCI Secretariat for aggregation, annually.

c) The Company has a two-way communication system that helps to reach all employees. Preferably, a report on Volunteering is brought out periodically and snippets updated on websites and even Annual Reports, (celebrating exceptional cases of Volunteering just as much as Profits!)

d) As our companies are operating in an increasingly global environment, adequate care is taken to include the sensitivities and practices that are suitable to local communities abroad so as to serve their needs.

e) Our companies have well-structured processes to create a good work / life balance.

f) Volunteers would be encouraged more and more to work through company related programmes and thereby leverage the use of core-competencies, expertise and business skills available with employees to express oneself from a business domain to make an innovative impact on the communities we serve, specially the unreached population at the base of the pyramid.

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Program Response: Level-III : 220 (Process) + 330 (Outcomes) = 550

At the Program Level a Company assesses

its performance on the CS initiatives taken

for local communities, at national and global

levels and / or at a technological or managerial

level that directly impacts the lives of people.

These initiatives evolve at Company and

group levels. The challenge is to enhance

the extent of change possible so that people

move away from dependence and charity

or welfare and take the first steps on the

economic ladder and to the various domains

of social-markets. At our end, typical project

work moves more towards creating enterprise

solutions – generating more opportunities and

perhaps jobs in related activities. This level

also comprises undertaking community related

programmes where social innovations can help

solve problems in a big way. Internally, the key

challenge continues to be about building a

capacity for minimising risks and establishing

Sustainability considering local, national and

global legal-domains. The CH-SR is the Process

Owner. Finally all activity culminates in building

community-based institutions that enable

empowerment and sustenance. This should

be measurable in terms of human goals and

indices in the form of the Impact it has made

on Individuals, Families and key Communities.

1. Risk management of Social / Environmental impact through the Stakeholder Engagement process; Establish Processes on Sustainability; Strive towards developmental change,: [6.1 a] :


a) If required, companies need to build capacities, systems on Sustainability due to the nature of their operations; the Company should be able to independently bring out its Annual Sustainability Report; GRI, AA1000, establish / certify for SA 8000 and so on. A healthy stakeholder dialogue and engagement process is vital to the business. This process prioritises key stakeholders with risks and a plan to abate concerns. The aim is to forecast and account for ‘costs of these abatement plans’.

2. Serving Communities around basic needs in the Neighbourhood; Biodiversity Restoration & Wildlife Conservation: [1.2. a & b]


a) Health is built as a capacity that improves quality of life. Cause / Concern related Programs address HIV/AIDS, TB Control, Disability, Child malnutrition and so on.

b) Focus on Women is about gender issues and empowerment to participate in socio-economic development, besides nurturing families.

c) The Child is central to overall development and Programs address primary and adult education, are proactive about Learning Difficulty / Disability; Focus on overall development of Youth as the foundation of the future concentrating on building capacities that have potential for remuneration, while also making them good citizens.

d) The Council has agreed that companies, where applicable, will develop a 3-5-year plan on Biodiversity and conservation of Wildlife and the Ecology. It automatically follows that major risks and abetment action is in place on all matters related to Water conservation, Air and Water pollution, conservation of scares resources which includes action that should be integrated as simply naturally and possibly with business operations on reuse, recycle and reduce consumption.


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3. Building Community & Sustainable Livelihoods, extending core competence and with Poor as Partners/strengthen potential capacities:


a) Programs graduate to imparting skills, trades and vocations that practically / professionally equip the youth to earn increasing levels / trends in incomes and build economic, environmental and social capital for their community to increase the asset base. It would include organising existing artisans, craftsmen & promote local arts and handicrafts. It is desirable to measure the type of capabilities built in, the youth covered in the programme annually, and the comprehensive impact of such vocational training programme.

b) Create institutions around the above initiatives to help create better products / marketing and sustain processes and income generation. Increasing the number of Self-Help Groups, micro-finance teams and to build other institutions as explicit form of building community to create sustainable value, are examples. It is desirable to have specific measures of how many SHGs were formed in the year with cumulative; members covered giving a gender ratio; the incomes generated and how assets were formed.

In 3 a & b it is important to see how benefits and impact reached Individuals, Families and the Communities (by Community it means a Gram / Village, cluster of villages or a focus group or any other relevant rationale for defining it)

4. Encouraging Social & Novel Entrepreneurships to convert existing charity-driven initiatives into sustainable ventures:


a) Health, Education or other programs that provide services initially charity based could be redeveloped on a ‘market’ or pricing model so as to generate partial or full revenues, delivered as public goods [Eg. JUSCO]. Various forms of enterprise solutions like adult literacy programme, learning disabilities programme, water filter, solar application, smokeless chullas and vide variety of technological applications could be brought in at affordable cost to demonstrate social enterprise. A good measure for these programmes would be the extent to which communities are willing to pay a fee or in some equivalent form. Several years ago Tata Chemicals measured the communities contribution for every unit of budget spent by the company. Tata Motors began to charge a very minimum amount for medical services. The communities responded with immense pride, self-respect and their economic sustenance was becoming evident.

b) Developing projects to generate self-employment that not only help small groups but scale up to assist large / regional population to create new jobs and earn steady incomes. Replication and policy impact are pressing needs and so are a key measurable. The company could explore ways to include people through training into the various value chain opportunities. They could be inducted into the dealerships or retail, youth could be involved with suppliers and contractors and various opportunities for indirect employment. These could be measured and aggregated at a company / group level. Our Companies are encouraged to go beyond and see how artisans like Karigar Parks by Titan; co-operatives for delivery of Chassis and such other co-operatives by Tata Motors would become examples and evidence of fostering entrepreneurships where it exist. Tata Interactive going into education using e-learning would be a very advanced stage of evidence where business applications can become core business opportunities while meeting the needs of the nation and those of the underprivileged. These should be amenable and communicated, and shared for group aggregation. In fact all unique processes and programme innovations such as these will contribute towards group reputation as much of that of the Company.

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CS Assurance and Assessment Process: WORKSHEET for the year - Sample

Assurance levels PointsValues

Break-up(P+O)

ActualScores

Systems Response: Level – I 275 (150+125) 226

1) Leadership Commitment and Involvement 55 (30+25) 42

2) Management Structure and Deployment 55 (30+25) 46

3) Strategy Development & Action Plan 55 (30+25) 50

4) Review Mechanism, Process Documentation and Reporting, Communication & Awareness 110 (60+50) 88

People Response: Level – II 175 (100+75) 114

1) Selection, Career Development of key Employees, Performance Management and Succession Planning 45 ( 25+20 ) 28

2) Training for Professional, Organisational, Managerial Competence and Enhancement of Role in CS 45 ( 25+20 ) 30

3) Training for Leadership Development, Enrolment of other employees, Personal Learning, Development and enhancing Role in CS

45 ( 25+20 ) 28

4) Volunteer Scheme and increasing / maturing degree of Volunteering 40 ( 25+15 ) 28

Program Response: Level – III 550 (220+330) 327

1) Risk management of Social / Environmental impact through the Stakeholder Engagement process; Establish Processes on Sustainability; Strive towards developmental change

250 ( 100+150 ) 145

2) Serving Communities around basic needs in the neighbourhood; Biodiversity Restoration & Wildlife Conservation

100 ( 40+60 ) 85

3) Building Community & Sustainable Livelihoods, extending core competence and with Poor as Partners/ strengthen potential capacities

100 (40+60) 45

4) Encouraging Social & Novel Entrepreneurships to convert existing charity driven initiatives into sustainable ventures 100 ( 40+60 ) 52

Total Points 1000 ( 470+530 ) 667


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ScoreBand

BandNumber Band Descriptions

0-30% 1

The Company demonstrates early to beginning stages of developing and implementing a systematic approach to CS. However, there is lack of conceptual understanding and more of compliance to instructions rather than emphasis on proactive initiatives. There are major gaps in approach and deployment with random progress and performances observed; although there is compliance to all basic requirements of regulation. Programmes are mostly charity based and the companies are engaged in dedicated social work or supplements government’s function and overlaps with work better suited for the social sector. The deployment mechanism or CS Cross Functional Team (CFT) comprises of one or two persons with part-time responsibilities for CS. The CFT does not regularly review and its work-plans are related to doing more of the same traditional forms of social activities over the years. There are major gaps in addressing business risks arising out of social and environmental factors. While there are policies and intents communicated on CS, there is no evidence of sustained leadership support or direction provided to motivate and guide CS. The overall focus is to develop a systematic approach and put in place systems for CS.

30-60 % 2

The Company demonstrates significant conceptual clarity on CS initiatives, and these evolve out of corporate expertise, skills, technology, organisational capabilities and various competencies that typical companies extend to the underprivileged. There are basic systems for environmental management and complete compliance to the regulation. There is presence of a proper deployment mechanism (CS CFT) that meets regularly and is in the early stages of evolving a 3-5 years strategy on CS. There are early signs of developing human-development goals and other measures, which link routine CS activities to the overall Organisational purpose of improving the quality of life. However, there is no evidence of a systematic approach of enlisting business risks arising out of social and environmental factors and addressing them. CEO and Senior leaders do provide an annual path on CS although a deeper level of involvement is not evident across the Organisation. The status of deployment is still desirable across the organisation. The overall focus is to integrate CS systems with employee participation, Volunteering and high degree of engagement / heightened levels of passion.

60 % and

above3

The Company demonstrates a systematic approach backed by fact-based and well-evaluated processes aimed at continuous improvement on CS. The Company has a clear 3-5 years perspective and strategy evolved through a bottom up process of consensus amongst stakeholders and members of the CS team. The CS – CFT members are selected through a regular process, trained and appraised through a performance management system. The process of succession ensures a fair degree of continuity. CS is part of Corporate Governance and the Board oversees CS performance. There are systematic processes of enlisting business risks and a progressive approach to address them.

The company has a credible trend of encouraging innovations wherein core competencies are applied in solving difficult problems related to the marginalised and the underprivileged people. The Company has a track record of exemplary initiatives in scaling up activities, influencing policy and building Community. There is excellent integration and alignment in Organisational approach, learning, creation and sharing of best practices. There is a systematic process evident in engaging stakeholders through a healthy dialogue creating exemplary recall and goodwill among members of the community. The focus is on increasing levels of maturation and synthesis between systems and employee engagement in a way that CS is becoming a culture within the Organisation.

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Normally, our processes deliver certain results

or outcomes in terms of tangibles such as how

many children went to school and passed out;

how many of them were girl children; how

many babies were immunised; eye operations

performed and so on. There would be other

outcomes such as the number of check dams,

digging bore wells, deepening of ponds or

planting trees in certain numbers could result

into good measure of water management for

the community. This is typical to Results and

Outcomes.

As for Impact Assessment one will have to

look at measurable degrees of increased

Participation, the Empowerment in the

community and so on to take charge of water

management, and understand the extent to

which the project has provided Access to a

scares resource – water in this case.

This can then be grouped into how Individuals,

Families and Communities benefited in

numbers separately. The beneficiary-profile will

then have some more clarity. While Results

and Outcomes when brought into a matrix

of Individual, Families and Communities, it

has to extend further into developmental

indicators showing how certain universal

claims of life were enhanced, and how people

were empowered to self-manage the process

on their own and take charge of their future.

The following may be considered in different

permutations and combinations to express

the consequent Impact actually happened

beyond the Results and Outcomes. Therefore,

please explain how the Activities, Results and

Outcomes were aimed:

Suggested Human Development Indicators for Impact Assessment:

1. To enhance the scope, levels and depth of

Peoples’ Participation through methodical

participatory processes.

2. To establish processes to enhance

Accountability, create Ownership and

increase the sense of Responsibility.

3. To establish methods / controls to ensure

Recall of documents, Traceability and

Verifiability to encourage management by

Fact.

4. To encourage a process of reconciliation

through frank dialogue, enhance the ability

to deal / overcome conflict and create a

sense of Understanding and Tolerance in all

modes of action.

5. To evolve a Leadership with a long-term

vision, demonstrable ability to develop

futurity for the people balancing the interest

of all partners to the best possible extent.

6. To foster initiative, proaction aimed at

positive change and a habit of volunteering

that is rooted in ‘Change begins with me’

and so has a need for action.

7. To enable and empower, to build ‘can-do’

confidence, to heighten awareness, improve

knowledge and conceptual abilities that

results into people doing something they

never did before.

8. To establish Equity, to restore Dignity,

encourage Inclusion through Tolerance and

to preclude Discrimination of all kind.


23

9. To improve Access to resources, create greater

Opportunity and to better the position of

people to positively influence their quality of

life.

10. To create conventions, routines, ‘rituals’ and

review procedures to sustain a new practice

introduced.

11. To set up platforms, structures / committees

/ networks and mechanisms to deploy

the change agreed upon consistently and

uniformly.

12. To develop processes, systems, procedures to

institutionalise a new way of doing / being.

13. To enhance performance, constantly improve

Quality, productivity, reduce costs and improve

efficiency.

14. To create a high trust condition to encourage

people to dare, to Innovate, try creative

development and attempt application of

technology and new ideas.

15. To identify and impart Skills, build Capacity

and to ensure holistic development of people

to a significant degree to compliment all other

forms of training.

16. To encourage Entrepreneurship, Marketing,

Income generation and Self-employment.

17. To expand different kinds of Choices and

Opportunities that did not exist before.

18. To eliminate dependence, build self-reliance

and enhance Freedoms where people are on

their own to become what they want.

19. To identify and document learning potential

and to ensure personal and organisational

growth in the process of developing others.

The above are few indicators. There are MDGs

and other unique consequences that project

leaders may have planned Activities, Results and

Outcomes. It would be a unique contribution

if new indicators are thrown up that actually

measure Impact in universal claims and values to

recognise, respect and enhance life itself.

The purpose of involving stakeholders from

business partners and from key communities is to

precisely get their opinion on how our Activities,

Results and Outcomes actually Impacted what

they value in terms of enhancement of wellbeing

and quality of their lives. This is a critical link to

involve all stakeholder communities as people

supporting our cause of co-creating sustainable

value in our enterprises. When the conversation

between our officers and stakeholders and other

communities moves into this level, the whole

Impact Assessment exercise is a demonstration of

how we do really care.

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Sr. No. Key Stakeholders Risk Management with Communication / Dialogue / Engagement opportunities

1

Employees and Employee Relationships (Trade Union)(Points : 125)

• Low Employability – Competency profile (25)

• Wages / Industry Standards (50)

• Average age (25)

• Temporary / Permanent ratio (25)

• Volunteering schemes, Social media platforms and other forms of tacit engagement to build culture

• … add or subtract more ideas but adjust the total points

2

Customer(s) – Sales and After sales Relationships(Points : 125)

• Changing technologies (15)

• Sustainability wave (10)

• Regulatory changes (20)

• Competition (20)

• After Sales Service (20)

• Price policy (20)

• Methods of financing (20)

• Warranty meets / newsletters and other forms of dialogue to foster two-way engagement


3

Suppliers/Vendors Relationships(Points : 125)

• Fairness in price negotiation (15)

• Vendors ability to cope with technology (15)

• Workers employability & training (15)

• Renewal of assets and machinery (15)

• Business model risks (15)

• Working conditions at the workplace (20)

• Your company’s share of business (15)

• Extent of tacit engagement / Culture building between the two parties + platform for engagement such as Vendor meets (15)


4Dealer Relationships(Points : 125)

• Fairness in negotiating commission and product pricing (15)

• Ability to cope with changing market demands (15)

• Calibrate employee training / motivation (15)

• Strategic investment in land and space management (15)

• Business model risks (15)

• Working conditions at the workplace (20)

• Nature of commitment to the company (15)

• Extent of tacit engagement / Culture building / motivating brand loyalty platform for engagement such as Dealer meets (15)



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5Contractor Relationships(Points : 125)

• No steady income (25)

• Constituents of the contract policy (25)

• Fairness of Actual payment to employees (25)

• Cultural bonding (25)

• Minimum working conditions (25)

• Passing on expertise / employability / Culture to Contractors to improve quality of life


6

Banks/Financial Institutions Relationships(Points : 125)

• Social credibility of the institution & leadership (25)

• Employee Union relationships (25)

• Technological upgradation & access to finance for the underprivileged communities (35)

• Record of Ethical behaviour affecting operations seriously(40)

• Methods of deeper engagement with key investors to foster higher standards of ethics and cultural responses


7

Opportunities to address the underserved stakeholders(Points : 125)

• Potential core competencies not explored / deployed (30)

• Opportunities for specific inclusion not considered as part of business (30)

• Poor engagement with community due to high technology nature of the company (30)

• Skill sets among youth limited to low levels of deployment for employability (35)


Examples -

Tata Metaliks:- Driver training for the youth along with the RTO

Titan:- Myrada – Empowering Women, Kanya – Educating the Girl Child

Tata Motors and Telcon:- Leprosy

Tata Steel:- HIV

Tata Motors:- Driver training

8

Further opportunities to serve the underserved and stakeholders typical / peculiar to situations(Points : 125)

• Unemployable youth in significant numbers (20)

• Alienation of Women from development (20)

• High rate of unemployed women (20)

• Lack of basic infrastructure / amenities and access to (Education, Health, sanitation, Child welfare etc.) (20)

• High skilled artisans with very poor organising or negotiating skills / oppressed by lobby (20)

• Generally, level of corruption in the essential services sector / land dealings (25)


* (Points: 1000) – The total out of 1000 should be divided by 4 in order to fit in the summary framework where 250 points are allocated to stakeholder engagement

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These are a few key perspectives that need

to be borne in mind while using this toolkit.

Impact Assessment is about appreciating and

applying the following:

1. Impact is not the same as a Result or an

Outcome. All Processes and Activities

bear Results and Outcomes. Impact is

more distant and human development and

social changes are measured in terms of

enhancing quality of life.

2. That poverty is not about only reducing

a ‘resource gap’ in terms of providing

materials, technology, funding, training and

various forms of capacity building. It goes

beyond all these which are incidentally

means. It is more about long term and

enduring social change. It is about how

individuals, families and well defined

communities or focus groups transform

themselves to handle their futures.

1. The Chief Sustainability Officer (CSO) is the

owner of this process. The CSO gets a buy-

in from the CEO and top management team

and conducts this Assessment annually

with the aggregate scores and OFIs ready

by end May to become part of the TBEM

Assessment / Application. This is shared

with CQH or Head - Business Excellence

and the Secretariat TCCI.

2. The CSO forms a team to conduct the

Assessment. It comprises a CS Coordinator,

Internal TBEM Assessor/s, and at least one

senior officer from each major function and

project leaders charged with responsibilities

3. This toolkit is an extension of the Tata Index

which is again based on the TBEM. Consensus

and Aggregation are taken beyond to know

how participatory governance is encouraged. It

is a fallout of the Tata model of Ownership and

Governance using the TBEM process to the

final details based on democratic principles,

consensus, participation and unanimity.

4. Business and its stakeholders have linkages and

relationships that need to be leveraged wherein

the intersection of challenges and finding the

connections is the key to development rather

than deal with stakeholders superficially in

terms of only business transaction.

5. There are other aspects of stakeholder

engagement – with dealers, employees,

contractors, suppliers, investors, government

and so on – that need to use community

building processes to leverage the collective

wisdom of these communities in co-creating

value to the business.

Concrete Steps for Action:

of environment management, safety,

community / social development. The

structure of the team depends entirely on

the type and size of organisation.

3. The CSO or Coordinator briefs the team

on the broad perspectives and procedure

and fixes timelines for individual and

location assessment, covering all areas and

geographies to ensure uniform deployment.

4. The teams can go to sites / locations and

form sub-groups and teams depending

upon the size of the organisation.

Involvement of more employees is welcome


27

so long as they work on a consistent and

common brief.

5. A unique feature of this Assessment process

is that the organisation could discreetly

involve external stakeholders. representatives

from key Suppliers, Contractors, Employee

Unions, Officers and Staff, Dealers, Regional

Sales Offices, Investment Communities

depending upon their structure and association

and any external Stakeholders such as

members of community organisations, civil

society institutions, the media – and all

forms of participation as decided by the top

management.

6. Members of the external communities

and stakeholders also need to be briefed

carefully about what role they could play in

providing structured opinion on improving the

governance and management of the activities

they are related – so that overall wellbeing and

quality of life could be enhanced positively –

measurable at individual, family and specific

community levels.

7. The Assessment at the grass-root level could

carefully throw up anticipated risks, possible

areas of conflicts or any form of negative social

and environmental consequences in the future.

The contribution of external stakeholders and

functional executives could be to contribute

towards suggesting solutions and abetment

action in form of programmes that could be

executed and costs are included strategically in

the business plan.

8. The OFIs would also specifically focus on

actions required for the areas identified

for improvement. These actions would be

amenable to being part of the Annual Business

Plans and Budgets.

9. The OFIs for Systems, People and Programme

levels should be separately mention for

each sites with the scores for the project. A

consensus exercise may be necessary for

larger companies at plant or divisional levels

and then brought to the level of the Corporate

Apex Team. The CSO, Coordinator and the

TBEM Assessor associated would take care

to see how a corporate level assessment and

consensus result into aggregate scores and

OFIs especially on the Systems and People

Levels. The core team could present this to

the management committee / CEO or any

platform provided by the management so

that inputs could go into business strategy

and project development. It could also ensure

that identified risks and actions could be

highlighted to top management for guidance

and strategically addressing them through a

systematic process.

10. One of the main aims of this Assessment is to

encourage maximum number of employees to

be aligned to CS and cultivate the practice to

ensure that all local and corporate decisions

taken in meetings have a multiple context built

in where social and environmental aspects

are factored in the same way as economic

and financial considerations. This Assessment

would become part of the Company’s

Corporate.

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Notes

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