csr case study on tata

Tata Steel: A Century of Corporate Social Responsibility

For a century, Tata Steel has provided a level of “compassion” that is unmatched in its sector or its country. But the onslaught of global competition and, crucially, global capital markets have sparked serious debate on the role, level and the sustainability of social spending at Tata Steel. In particular, a new emphasis on EVA risks upsetting the century-old commitment to CSR.

The aim of this case study is to help provide a framework that supports an intelligent discussion of the benefits versus the costs of compassion ? and to facilitate articulation of the components of CSR. How can the company maintain its reputation for caring and, at the same time, remain a leading player in an increasingly competitive industry?

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Tata Power CSR: The Paradigm Shift for Sustainability

• By: Bikramjit Ray Chaudhuri , Preeta George , Nirja Mattoo & Jeenal Shah
• Publisher: SAGE Publications: SAGE Business Cases Originals
• Publication year: 2022
• Online pub date: January 03, 2022
• Discipline: Corporate Social Responsibility , Sustainability
• DOI: https:// doi. org/10.4135/9781529795257
• Keywords: corporate social responsibility , customers , distribution , economic growth , paradigms , renewable energy , social capital , stakeholders , sustainability , sustainable development Show all Show less
• Contains: Teaching Notes Length: 8,657 words Region: Southern Asia Country: India Industry: Electricity, gas, steam and air conditioning supply Type: Direct case info Organization: Tata Power Limited Organization Size: Large info Online ISBN: 9781529795257 Copyright: © Bikramjit Ray Chaudhuri, Preeta George, Nirja Mattoo, and Jeenal Shah 2022 More information Less information

Teaching Notes

In recent years, Tata Power has consistently spent a significant amount of money in five thrust areas under which philanthropic and corporate social responsibility (CSR) activities were undertaken. In 2019, the United Nations Sustainable Development Goals (UNSDGs) framework was adopted by that body, and all existing projects were mapped under ten UNSDGs. The case describes the establishing of a strategic framework in CSR-related activities of Tata Power that can help management at that company to identify specific projects, implement those projects, evaluate the effectiveness of those projects, and in this way achieve the objectives of sustainability. It also highlights the changes the company underwent in its CSR practices under pandemic conditions in 2020 that truly tested the resilience and holistic nature of the implementation. The case presents a decision point in which Tata Power must consider ways in which CSR initiatives can be integrated with its business strategy with a view to strengthening its sustainability agenda with respect to objectives, processes, outcomes, and impacting society.

Learning Outcomes

The case is designed for students to understand strategic CSR and to create a perspective shift about CSR within an organization and outside. By the end of this case study, students should be able to:

• discuss the United Nations Sustainable Development Goals (UNSDGs);
• develop an approach to effectively align CSR projects with UNSDG framework;
• evaluate how companies can work toward creating shared value for business and impacting society, in an integrated manner; and
• assess changing external environmental conditions in the CSR or business context, and evaluate it from the perspective of existing frameworks and company objectives.

Introduction

In a free enterprise, the community is not just another stakeholder in the business but is, in fact, the very purpose of its existence. – Mr. Jamsetji Tata, founder of Tata Group (Tata Group Official Website, 2021)

Latika Agarwal, Head of Corporate Social Responsibility (CSR), Tata Power Company, met the Board of Directors in June 2020. Tata Power is the largest integrated power company in India aimed at providing uninterrupted power supply from its various plants located across India. Integrated companies are those that generate, transmit, and distribute electricity to a pre-assigned area. The meeting was the annual review of CSR initiatives at Tata Power, which Latika had been looking forward to for many months. Latika had completed almost a decade’s stint at Tata Power. She had witnessed many transitions in the sector and how the company was playing an important role in powering the nation, leading the shift toward sustainable energy solutions, and particularly enhancing the growth of Mumbai, arguably India’s financial capital. Her tenure as the Head of CSR had been productive, yet she felt as though there was much more to deliver. Latika was known to be a person of integrity, and her sensitivity toward social issues was both recognized and appreciated by her colleagues. Her personal values resonated with those of the Tata group and she took pride in living by the vision and mission of Tata Power. At Tata Power, social stewardship had an important position similar to financial success, which gave Latika the confidence and support required to run her interventions successfully.

The Tata Power leadership team invested substantial amounts of tangible and intangible resources into making the CSR initiatives successful. They had also constituted a cross-functional team to help sharpen the CSR strategy they had presented to the Board. In the meeting, existing projects were discussed, debated, and reviewed, outcome analysis undertaken, and many ideas for changes in project strategy and its deployment were deliberated. Latika fielded difficult questions and witnessed high levels of engagement from all the members in the Board. The discussions brought out Tata Power’s focus on social stewardship and its strength in identifying and working on programs and initiatives that appeal to its stakeholders. For decades, the company had been pursuing CSR interventions for the overall socioeconomic development of the neighboring communities located within five to ten kilometers of Tata Power plants. A pioneer in the sector, Tata Power had been an early adopter of technology for its businesses as well as for CSR. It had stayed ahead of times using periodic reviews to measure impact accurately, identify need areas, and evolve relevant and sustainable solutions for overall development of the neighboring communities based on performance and feedback.

After intense discussions, while walking through the corridor toward her office, Latika started to think about her plan of action. The meeting was insightful and she was looking forward to aligning her projects with the Board’s expectations. She had always known that in order to make a difference, there had to be a common underlying ideology and structure for all CSR projects. This would not only ensure achieving the end goals but would also provide for regular quantification and assessment of the overall impact aimed at achieving long-term sustainability of the effectiveness of the projects. She was certain that if she was able to bring this alignment, the synergy created would multiply the benefits. Sure, there were miles to go, but she was now set to pave the right path.

The Tata Group was founded in 1868 by Jamsetji Tata. Owned by Tata Sons, the group has its headquarters in Mumbai, India. As a business entity, the Tata Group is a conglomerate with an international presence. There are several companies under its umbrella such as Tata Power, Tata Chemicals, Tata Steel, Tata Communications, Tata Consultancy Services, Tata Elxsi, Tata Motors, Voltas, Tata Consumer Products, Trent, Tata Cliq, Jaguar Land Rover, and Titan. Each company has its own set of shareholders and Board of Directors.

The Tata Group has a set of core values. The group has a global reputation of being values-driven. These values form the foundation of business at all Tata companies. The introduction of the Tata Code of Conduct in the 1990s was an endeavor to strengthen the legacy of being a responsible corporate citizen and to preserve the Tata ethos. This comprehensive document serves as the ethical road map for Tata employees and companies and provides the guidelines by which the group conducts its business. Latika found the values very close to her heart and she lived by these values.

The five core values that guide all the business activities of the Tata group are (Tata Group Official Website, 2021):

• Integrity – To be fair, honest, transparent, and ethical in conduct; everything we do must stand the test of public scrutiny;
• Responsibility – To integrate environmental and social principles in businesses, ensuring that what comes from the people goes back to the people many times over;
• Excellence – To be passionate about achieving the highest standards of quality, always promoting meritocracy;
• Pioneering – To be bold and agile, courageously taking on challenges, using deep customer insight to develop innovative solutions;
• Unity – To invest in our people and partners, enable continuous learning, and build caring and collaborative relationships based on trust and mutual respect.

Introduction to Tata Power

Tata Power produces conventional, renewable, and next generation power solutions. It is India’s largest integrated power company with a generation capacity of 12,808 MW (megawatts) (Tata Power Corporate Profile, 2021). Besides its supply to its own distribution arm, Tata Power (Distribution), it supplies to Bombay Electric Supply & Transport Undertaking (BEST) as well as to the railways and other industrial consumers, and supplies direct retail consumers in Mumbai. Outside of Mumbai, it operates generation capacity at Mundra, Maithon, Jojobera, and Haldia. Tata Power also owns transmission capacity within Mumbai and across the border through Power Links, its public private partnership with Power Grid Pvt Ltd. Besides renewable and non-renewable power generation, transmission, and distribution, Tata Power also has other businesses such as power trading, rooftop solar, smart metering, micro grids in rural areas, and electric vehicle charging units.

The capacity of renewable energy of Tata Power, as of March 2020, is 30% of its generation portfolio (Tata Power Corporate Overview, 2021) and consists of hydrothermal, solar, and wind sources of 3,948 MW (Tata Power Corporate Profile, 2021). Tata Power has increased its install capacity of renewable energy to substantial proportions compared to overall India figures (see Figure 1 for a pictorial representation). The renewable energy generation is operated through Tata Power Renewable Energy Limited (TPRL) and Walwhan Renewables Energy Limited. These projects are situated in fifteen Indian states.

The four pie charts are as follows:

• Thermal (64%)
• Hydro (25%)
• Renewables (8%)
• Nuclear (3%)
• Thermal (89%)
• Hydro (10%)
• Renewables (1%)
• Thermal (63%)
• Hydro (13%)
• Renewables (22%)
• Nuclear (2%)
• Thermal (71%)
• Renewables (23%)

Figure 1. Comparative Proportional Increase of Renewable Energy Installation Capacity of India and Tata Power (2007-08 to 2018-19)

Source : Central Electricity Authority (2021).

The company also has a significant international presence. It has a stake in mining companies in Indonesia through offshore Special Purpose Vehicles, and hydroelectric power projects in Zambia and Bhutan. A new hydroelectric power project has also recently been commissioned in Georgia (Tata Power Corporate Profile, 2021).

Value Creation Model

The Tata Power vision statement includes “Empower a billion lives through sustainable, affordable and innovative energy solutions” (see Table 1 for corporate vision and mission). The company predicts achieving the target of generating approximately 60% of its energy via clean energy methods by 2025, and 80% by 2030 (Tata Power Edelweiss ESG CXO e-Series, 2021). Tata Power also looks to increase the customer base from approximately 3 million in 2020 to 20 million in 2025 (Tata Power Investor Presentation, 2021), reflecting the shift in business models (see Figure 2 for company strategic business objectives). The Tata Power value statement that involves safety, care, agility, learning, and ethics (SCALE) goals is the compass through which it delivers its vision (see Table 2 for details of the SCALE value model).

Source : Tata Power Official Website (2021)

The illustration shows three concentric octagons. The vertices of the outermost octagon and the vertices of the central octagon are aligned. The sides of the central and inner octagon are aligned. The illustration shows the following:

• Optimize coal blending to minimize impact of rise in coal benchmark price
• Advocacy for quick implementation of High Power Committee recommendations
• Optimization of coal transportation and handling cost
• Reduce debt through divestment of non-core assets and strengthen balance sheet
• Adopt debt-light models through innovative financial engineering and re-structuring
• Increase share of clean energy/renewables to 50–60% of the generation portfolio by 2025
• 1 crore + customer base by 2025
• More than 1 lakh EV chargers across India by 2025
• Attain carbon neutrality by 2050
• Reduce specific fuel consumption by improving operational efficiency
• Benchmark in waste management (gainful fly ash utilization)
• Roll out of value-added services for customer delight
• Improve customer satisfaction
• Building organizational capabilities to drive customer-centricity
• Improve asset performance
• Enhance customer experience through use of data analytics
• Productize current IT assets and services
• Explore new business opportunities leveraging digital technology
• Culture and engagement
• Workforce planning
• Leadership and succession planning
• Capability building
• Operate thermal and hydro plants at optimum efficiency
• Operate RE portfolio above design parameters to increase yield
• AT&C loss reduction for TPDDL, TPADL, and CESU
• Maximize incentives on regulated business

Figure 2. Strategic Business Objectives

Source : Tata Power Integrated Annual Report (2019–20)

Tata Power uses an integrated approach to create value for all its stakeholders. The overall focus of the value creation model is on power generation, transmission, and distribution, along with other value-added businesses. At the same time, one aspect, specifically important for Tata Power, is the strong foundation of values and ethics ‘in sync with’ the parent group’s philosophy on which its value creation model rests. Tata Power undertook and worked on the continuity of projects ensuring that its social impact was measured, multiplied, and sustained. In this endeavor, it is trying to align its financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital, and natural capital. It strives to create value through retaining and nurturing the most competent talent by way of mutual trust, creating a diverse asset and product portfolio, harnessing disruptions through innovation, and enhancing sensitivity toward its symbiotic relationship with environment and community. In this way, through value creation, its focus is to ensure a positive outcome for all its stakeholders (see Figure 3 for the value creation model).

In the illustration there are three sections. The section “Our inputs” points to the section “Our business model,” which points to the section “Our outcomes.” The contents of each section are listed as follows:

• Net worth (consolidated) – Rs 21,898 crore
• Net debt (consolidated) – Rs 43,559 crore
• An icon showing a ladder next to a factory chimney. Manufactured capital: Our plants and equipment pave the way for sustainable operations of our core business activities. This can be seen through better operational efficiency, up-scaling of renewable assets, our ventures in new and service-led energy-efficient business initiatives such as smartgrids, microgrids, rooftop solar, solar pump, home automation etc., investments in DSM programs, leading to energy saving as well as achieving operational efficiency.
• Collaborative efforts – TPDDL
• Central Control Room for Renewable Assets (CCRA)
• Dedicated R&D expenditure towards innovative technologies that ensures cost efficiency and reduces financial loss
• 8,613 employees for The Tata Power Company Limited
• Tata Power dedicated 9,950 manhours to external training programs collectively.
• Rs 39.97 crore spent on CSR initiatives
• Alignment of CSR activities and action on UNSDG (1, 2, 3, 4, 6, 8)
• 223,769,562 cubic meters of water consumed for thermal operations
• 19,747,659 MT of coal consumed for thermal operations
• Employee unions
• It is followed by a pentagon labeled “Values (scale)” at the center. It is surrounded by safety, care, agility, learning, and ethics at each side.
• At the top left is a lightning bolt gear icon labeled “Generation.”
• At the top right is an electric tower icon labeled “Transmission & distribution.”
• At the bottom left is a pickup truck icon labeled “Fuel & logistics.”
• At the bottom right is a worker icon labeled “News & service-led business.”
• SBO 1: resolution of CGPL coal cost under-recovery
• SBO 2: delivering balance sheet
• SBO 3: scale-up renewables, distribution, services and energy solutions businesses
• SBO 4: focus on sustainability with an intent to attain carbon neutrality
• SBO 5: building a customer-centric organization
• SBO 6: leveraging digital to establish new business model and enhance existing business delivery
• SBO 7: create and engaged, agile, and future ready workforce
• SBO 8: set new benchmarks in operational excellence and financial returns for existing businesses
• Consolidated operating revenue = Rs 28,948 crore
• Consolidated operating profit = Rs 7,870 crore
• Consolidated net profit = Rs 1,316 crore
• Free cash flow of consolidated basis = Rs 2,271 crore
• 12,742 MW of domestic and international capacity with 30% from ‘Clean and Green’ sources
• TPSSL’s order book for solar EPC projects stands at 1,580 MW amounting to Rs 7,000 crore
• Rooftop solar projects rolled out in 94 cities across India
• Availability of affordable and reliable electricity to remote areas across India through microgrids. 18 microgrids test charged and around 55 projects are in pipeline
• 170 EV charging points installed in 20 cities as part of EV charging infrastructure partnerships
• Acquisition of Central Electricity Supply Utility (CESU) of Odisha (51% equity stake) through Public Private Partnership (PPP)
• DSM initiative – ‘Be Green’ led to cumulative savings of over 6,000 MWh in Mumbai Distribution
• TP Renewable Microgrid Limited is aspiring to end energy poverty through off-grid solution for last mile electrification
• Installation of Battery Energy Storage Systems (BESS)
• 1.95 lakh SMART meters installed by TPDDL
• 100% of our contractual employees are trained on various aspects of occupational safety
• 22.2% (Workmen Cadre employees) of our employees are covered by collective bargaining agreements
• 96.6% retention was achieved for employees at higher cadres
• Presence of 2.6 million distribution consumers
• 100% of our new suppliers were screened using our social criterion (PO value greater than Rs 5 crore)
• 120% CSR spent achieved over obligation on a consolidated basis
• 118% beneficiary covered over target on a consolidated level
• Average CSAT score (of Mumbai Distribution, Mumbai Transmission, TPDDL and TPREL) in FY20 was 92.5% up from 87.5% in FY19
• 100% fly ash utilization at all thermal power plants as per regulatory requirements
• 10.3 lakh trees planted
• Achieved overall carbon intensity of 0.681 tCO 2 e/MWh

Figure 3. Value Creation Model

Source : Tata Power Integrated Annual Report (2019-20)

Being a large player in its sector backed by a reputed group, Tata Power prides itself on being not only a leading Indian company in the energy sector, but also a global player who through its business sustainability model also addresses global issues such as climate change and depleting resources. Through its newer and niche initiatives, such as electric vehicle infrastructure, solar rooftops solutions, and micro grids, Tata Power is seen as an advocate of decarbonization with a stated intent to be carbon-neutral by 2050 (see Figure 2 for more details).

Tata Power Sustainability

The business philosophy of sustainability held by Tata Power is aligned with that of its parent company, the Tata Group. The business sustainability model employed by Tata Power is linked to one of its mission statements “Leadership with care.” This statement represents care for environment and society at large, shareholders and customers, the community, and employees, suppliers, and partners. Toward this direction, Tata Power has tried to align its sustainability goals with United Nations Sustainable Development Goals (UNSDGs). UNSDGs are seventeen goals “adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity” (UNDP website, 2021; see Figure 4 for 17 goals). Ms. Shalini Singh, Chief – Corporate communications and Sustainability at Tata Power in 2019, emphasized company sustainability goals, while discussing her views with the authors:

Energy is at the core of a nation’s prosperity. It powers aspirations, propels society and fast forwards development in its true sense. Tata Power, India’s largest integrated power company, in its century of existence, has worked relentlessly for sustainable growth and with constant stakeholder trust. As we strive to lead the reform process for sustainable power, we are also committed to safeguarding the environment for future generations and developing our business in a way that adds value to the local communities. Tata Power is one of the first companies to adopt the Global Goals or Sustainable Development Goals by the United Nations (UNSDGs) for incorporating sustainability into the very fabric of business. In this process, Tata Power conceptualized an inhouse methodology on the UNSDG journey where we carried out an UNSDG mapping process to gather insights on the status and scale of the major sustainability initiatives and then prioritized ten UNSDGs which have maximum impact on business based on a need assessment. For each of the prioritized UNSDGs, a detailed roadmap with targets and KPIs (Key Performance Indicators) have been adopted in alignment with the businesses. As we grow our renewables portfolio and make a foray into smart energy services and solutions, the UNSDG alignment has helped in prioritizing our actions and effectively measuring the impact of our initiatives.

The ten goals included in the UNSDGs, referenced by Ms. Singh, are prioritized under “Business UNSDGs” and “CSR UNSDGs” (see Figure 5 ). An UNSDG mapping exercise was conducted in 2018–19 to help this prioritization, filter high impact initiatives, and develop a roadmap to drive change. This occurred through an in-depth stakeholder engagement, with sector-specific priorities with a deep understanding of the company’s strategic intent and national priorities. The key outcome of this exercise led to strategic bifurcation of business activities and CSR initiatives along with the mapping of the respective UNSDGs through a priority analysis. In developing the roadmap, Tata Power adopted three-year targets for each business to align with the relevant business UNSDG. For example, the “Club Enerji” initiative to engage schoolchildren in sensitizing people on energy and resource conservation has successfully facilitated energy conservation by the simple yet powerful action of spreading the message through its 0.4 million Energy Ambassadors (Tata Power website: Club Enerji, 2021). The club is now present in 14+ cities and has sensitized over 26.4 million people while saving more than 31.8 million units of energy. Additionally, the impact of the initiatives under each thrust area is mapped to the prioritized UNSDGs.

The stamps are numbered and collated under the title “Sustainable Development Goals.” The title is preceded by a UN emblem. The letter O in the word “Goals” is a multicolored ring. The subtitle reads “17 goals to transform our world.” The stamps are as follows:

• No poverty. The stamp shows stick figures of a family of six. A female child is holding the hand of an elderly couple. A male child is between a young couple.
• Zero hunger. The stamp shows an icon of a steaming bowl.
• Good health and well-being. The stamp shows an icon of a heart emitting a steady heartbeat.
• Quality education. The stamp shows an icon of an open book and a pencil.
• Gender equality. The stamp shows an equals sign inside a male and female sign.
• Clean water and sanitation. The stamp shows an icon of a container filled with liquid. A water drop icon is at the center of the container. An arrow from the base of the container is projected downward.
• Affordable and clean energy. The stamp shows a power icon surrounded by small lines that look like rays.
• Decent work and economic growth. The stamp shows an icon of a bar graph with an arrow at the top of the bars outlining the increasing trend.
• Industry, innovation, and infrastructure. The stamp shows icons of three blocks. Two of them are aligned in an L shape and the third is on the top of the other two.
• Reduced inequalities. The stamp shows an equals sign inside a circle.
• Sustainable cities and communities. The stamp shows an icon of modern buildings.
• Responsible consumption and production. The stamp shows an arrow shaped like an infinity sign.
• Climate action. The stamp shows an icon of an eye whose pupil is a globe.
• Life below water. The stamp shows an icon of a fish swimming in water.
• Life on land. The stamp shows an icon of a tree behind a fence and birds in the sky.
• Peace, justice, and strong institutions. The stamp shows an icon of a bird sitting on a gavel. The bird is holding a branch of leaves.
• Partnerships for the goals. The stamp shows five rings that intersect with one another.
• The eighteenth stamp is not numbered. It shows the UN emblem at the top, which is followed by the text “Sustainable Development Goals.” The letter O in the word Goals is a multicolored ring.

Figure 4. UN Sustainable Development Goals

Source : United Nations website, 2021

The illustration shows 10 of 17 UN stamps shown in the previous image. The stamps are collated in two groups as follows:

• 7. Affordable and clean energy. The stamp shows a power icon surrounded by small lines that look like rays.
• 9. Industry, innovation, and infrastructure. The stamp shows icons of three blocks. Two of them are aligned in an L shape and the third is on the top of the other two.
• 12. Sustainable consumption and production. The stamp shows an arrow shaped like an infinity sign.
• 13. Climate action. The stamp shows an icon of an eye whose pupil is a globe.
• 8. Decent work and economic growth. The stamp shows an icon of a bar graph with an arrow at the top of the bars outlining the increasing the trend.

Figure 5. Tata Power’s Prioritized UNSDGs

Source : Tata Power SDG Compendium (2020)

CSR in Tata Power

The philosophy of the CSR vision and mission, “To be a neighbor of choice” (see Table 3 for CSR vision, mission, and principles), aims to work with communities in the vicinity of its operations. The Head of Program Management at Tata Power in 2019, Ms. Anjali Wazir, states, “TPC’s strategic intent in CSR has been to promote impactful, sustainable interventions across its geography pan India.”

Source : Tata Power website: CSR overview (2021)

Tata Power formulated a separate formal CSR implementing arm called Tata Power Community Development Trust (TPCDT), a not-for-profit organization established under the Bombay Public Trusts Act in the year 2009 (Tata Power Skill Development Institute website, 2021). The role of the TPCDT is mainly to incubate and implement diverse projects. Deliberation on the thrust areas is one of the significant integrations by the leadership at Tata Power based on the need assessment (conducted every five years), community engagement study results, and leadership directions. Currently (as of summer 2021) Tata Power is working in the areas of education, health and sanitation, livelihood and employability, water, and financial inclusion, as summarized in Table 4 .

Source : Prepared by the authors from Tata Power Integrated Annual Report (2019–20)

CSR Initiatives

Tata Power CSR initiatives have positively impacted more than 2.71 million lives in the year 2019–20 covering 348 villages and 220 urban clusters across 15 states in the country (Tata Power website: CSR Overview, 2021) (see Figure 6 for an overall view of Tata Power CSR initiatives mapped against ten UNSDGs). Some illustrative details of the initiatives have been indicated below. Several success stories stand as testimony to the value that such initiatives can bring forth in society (see Table 5 for some examples in the CSR stories).

In the illustration, there are three concentric dodecagons that together look like a wheel of fortune. The innermost dodecagon is labeled “Scale.” The central dodecagon lists the 10 of 17 UNSDGs on its sides. The outermost dodecagon points at the corresponding CSR. Data shown by the illustration listed as follows:

• C: Financial inclusivity
• T: Adhikaar
• C: Livelihood & skill building
• T: Dhaaga, Abha, Roshni, Daksh
• C: Health & sanitation
• T: Mamta, Sammaan
• C: Education
• T: Amrutdhara
• C: Livelihood & Skill-Building
• B: Renewable energy
• T: Tata Power Renewable Energy Limited
• B: Microgrids
• T: TP Renewable Microgrid Limited
• B: Circular economy
• T: Fly ash utilization, reduce dependency on mined resources
• Emission reduction
• T: Increasing operational efficiency, innovation

Figure 6. Mapping of Initiatives to Prioritized UNSDGs

Source : Prepared by the authors from Tata Power CSR-related internal documents shared by the company.

Under the “Education” theme, Tata Power has implemented Vidya project for both the teaching and student communities. The overall project is focusing on running workshops by Tata Power employees and NGOs, centered on training student and teaching communities in digital learning and also providing teacher-training programs.

In the “Health and sanitation” area, Tata Power have impacted more than 0.5 million people in the year 2019–20 through its health and sanitation solutions. In partnership with government organizations, the company helped in improving awareness on mother and child health care, open defecation-free villages, behavior change communication, and adolescent health.

The large number of illiterate females is a primary reason for the low literacy rate in India. Inequality based on gender differences leads to female literacy rates of 65.46% being lower than their male counterparts at 82.14%. The participation of women in literacy campaigns in its “Livelihood and skill building” area has opened several opportunities for neo-literate women to step out of the households and involve themselves in some enterprise or a new vocation. TPSDI has trained more than 50,000 youths; 48% of youth from the underprivileged classes of the society (Scheduled Caste and Scheduled Tribe, as per the Government of India definition) were trained with 80% placements. Additionally, Daksh and Roshni initiatives (explained below) have also encouraged women at the grassroots level to get on a path of financial independence and be able to contribute to their family’s income, which is a leap toward building a sustainable future. Spanning eleven locations, Daksh is primarily focused on training youth. It aims to augment skills of a substantial number of school dropouts and young women by imparting vocational training for courses such as beauticians, nursing, and industrial trading etc. This initiative has enabled 80% of girls to be eligible for job placements with an average salary of INR 8,000–10,000 in the year 2019–20. Tata Power has also established 26 vocational centers (Roshni) for women empowerment in Delhi, Maharashtra, and Jharkhand, and has planned to replicate and scale the centers across more locations in coming years.

Another initiative in this area, Dhaaga, is aimed at women’s empowerment through women-based micro-enterprises that not only improves the livelihood of women but also helps to promote their talent in traditional art forms. This initiative is spread across fifteen locations in seven states, and today more than 1,000 women members are part of this social initiative launched by Tata Power.

Recently in the month of June 2020, Tata Power has developed a dedicated website (www.saheliworld.org) which offers products made by self-help groups (SHGs) and farmers, like women’s apparel, handicrafts, home décor items, herbal and organic farm produce, dairy products, and patchwork and embroidery from various part of India under one platform. Saheliworld reflects Tata Power’s sole aim of empowering these women’s SHGs and farmers to be financially independent, to empower them for life.

Tata Power’s water intervention “Amrutdhara” has been instrumental in meeting the water deficit and addressing the access issue of potable water in the rural villages. On the one hand there is severe scarcity of drinking water, deteriorating water quality, and depleting groundwater resources, and on the other hand there are also floods and surface water logging, aggravating the crisis further. One of the key focus areas was to find alternate, affordable, low-maintenance technologies to enable access to potable drinking water and irrigation through water harvesting initiatives. The company launched participatory groundwater management and an integrated water resource management initiative in the arid and semi-arid regions, with an aim to augment supply and demand side management backed by institutional approach to sustain the intervention. This initiative involves the participation of the community along with technical and knowledge partners, funding partners, and government departments.

Financial inclusion is a high-priority thrust area for the company. While considerable progress has been made over the years, the company believes much more can be added for the economic development and empowerment of its stakeholders, especially the “bottom of the pyramid” sections, under the new CSR mandate by the Indian government mapped in Schedule VII of the Companies Act. For example, Adhikaar is a CSR project to empower people to access their social welfare and developmental entitlements through convergence facilitated by Tata Power with various government schemes related to financial entitlements particularly for women, old people, specially-abled, disadvantaged, and vulnerable sections in the neighborhood.

From the perspective of internal employees, Tata Power also involves them and their families as well as business associates and customers to volunteer for various social causes through its initiative called “Arpan.” This employee volunteering program aims to enhance employee engagement, giving a sense of purpose, while impacting the communities they serve. In this journey, employees get an opportunity to offer their skills, time, and passion to contribute to social and environmental causes. The approach is to engage with key stakeholders on volunteering with a strong, purpose-led, collaborative effort and create a multiplier effect for their community initiatives. The company has decided four long-term thematic areas for employee volunteering including afforestation [“Tree Mittra”], mentorship for students [“Shiksha Saarthi”], being champions for health, and being champions for financial inclusivity.

The structured CSR thrust areas and interventions are also monitored and evaluated through successful scientific tools and research at Tata Power. To bring continuous improvements in their programmatic approach, the company engages with institutes of repute to conduct need assessments once every five years, along with mapping the impacts and effectiveness of the programs. The Community Engagement Index (CEI) tool is being adapted by Tata Power to determine the engagement levels of various stakeholders across the stages of CSR intervention. The CEI survey conducted in 2019-20 showed 84% achievement against the score of 82% in the previous year (see Figure 7 for CEI details).

The illustration looks like a table and is as follows:

Figure 7. Community Engagement Index

Additionally, Tata Power has also conducted an independent Social Return on Investment (SROI) study for three flagship initiatives and has gone a step ahead by conducting year-on-year trend analysis through an evaluative SROI technique, which indicated an increase in return by INR 5.04 on every rupee spent (A. Wazir personal interview, September 2020). The methodology used was based on the global framework of Social Value – The SROI Network, UK (The SROI Network, 2021).

Key Concerns in Current CSR

Latika and her team were aware that in order to provide continuous and sustainable results for the community, the CSR initiatives needed to be modeled and structured into a framework such that community need assessment, project impact study, project evolution, and fund allocation were all in an integrated and automated system. Development and implementation of such a comprehensive framework would help the company to work toward the final goal of community care and development effectively.

Based on the alignment to UNSDGs and the need assessment, changes in thrust areas were critical for Latika’s team. The positive change in the community mindset to demand long-term sustainable interventions has kept the department thinking and working continuously to meet the community requirement. Such stated and unstated demands from the stakeholders help Tata Power to standardize its interventions and scale few flagship projects like Adhikaar, Samriddhi, Dhaaga, Maval Dairy, Abha, Roshni etc.

Moreover, now that the UNSDG framework was adopted, there was a need for a systematic method to align it with every new project idea or community need. Once a community-related need was identified, filters needed to be drawn up so that the CSR efforts could be aligned with the UNSDG framework as well as the company’s “Leadership with care” philosophy.

Effective implementation of the UNSDG framework and aligning it with the value creation model requires a set of guidelines to be followed. One of the most important guidelines is to have fewer and specific goals, since it is very difficult to convert many goals to relate them with business imperatives. A second guideline is to adopt meaningful and short-term targets. This will help in the timely measurement and review of value creation for business and society. However, implementation of these guidelines requires an immediate reallocation of resources and removal of process-related inconsistencies.

The remoteness of locations is another big challenge due to which there are limited expert and strategic partnerships. With the current changes and shifting demands of the community due to fast rural and urban development, it is pertinent for the company to look for continuous improvements and adoption of new technologies and strategies to meet community requirements. The shrinking resources and narrow perception toward the CSR initiatives is one of the critical areas which can only be overcome by similar collaborations and synergies spearheaded at Tata Power.

As 2020 brought in the COVID-19 pandemic, changes have been implemented on the CSR front, to help communities and other stakeholders in a time of need. For livelihood, Tata Power considered digital training for farmers, women’s self-help groups, and youth skill building. For health, digital awareness campaigns and animated videos for ease of understanding in protecting oneself from the disease. For education, virtual classrooms, apps, and educational material for students were made available. The company also provided an online app for relief package schemes for various beneficiaries. Over 100,000 children were covered in virtual classrooms, around 0.4 million people were covered in health awareness campaigns, mobile dispensaries, and other initiatives in association with local administration. This impacted around 1.4 million people under the COVID-19 response action (A. Wazir personal interview, September, 2020).

The Road Ahead

With the major thrust areas for executing CSR initiatives having been identified, Latika feels the need to have a strong evaluating and reporting framework against which they could evaluate the impact of their initiatives.

The ten UNSDGs have been identified, and existing projects mapped to each of them. Now was the time to utilize the UNSDG framework for the best possible outcomes from the points of view of both the business and the stakeholders. One possible way of shifting the mindset to one of embracing the UNSDGs is using the concept of shared value as an evaluation framework. The shared value perspective was introduced by Prof. Michael Porter and Prof. Mark Kramer of Harvard Business School (Porter and Kramer, 2011) as a “new conception of capitalism,” claiming it is a powerful driver of economic growth and reconciliation between business and society. Such a conception, as per the authors, solves societal challenges through business solutions and helps companies fulfill a purpose beyond profits alone. It is strategic and embedded in the core business of the companies implementing it. Companies recognize that its sustainability is directly linked to the community development. There is a need to change the mindset, a shift from a narrow focus on earning profit to a broader sense of creating shared value. It operates on three levels:

• 1. reconceiving products and markets (meet customer needs and contribute to the society);
• 2. redefining productivity in the value chain (social or environmental innovations); and
• 3. cluster development (supporting the well-being of the industries in the ways it improves societal conditions).

In this process, companies need to consider the value creation potential both for the business and the stakeholders who are related to the specific project. Those projects, which have the potential to create higher value both for the company and society, would be in the higher level in terms of priority. For example, initiatives such as renewable energy power plants and skill development projects can be viewed as adding value to business and society, and can be used as benchmark projects for effective UNSDG and shared value creation. But, at the same time, implementing shared value as an evaluation framework may dissuade some CSR initiatives, which are not creating much value from the business perspective but are needed by the stakeholders. Also, many of the important future CSR projects may not be feasible for implementation under this framework.

Latika has to plan the next steps carefully. The implementation and evaluation of the CSR projects under the UNSDG framework will need big decisions and support from all the business areas in the organization. Implementation will be more effective when senior executives are engaged in using the UNSDGs to prioritize their product development pipelines and strategic priorities. This will further result in new and profitable product offerings that can be scaled up to make measurable progress toward specific goals (Kramer, Agarwal, and Srinivas, 2019). Along with business alteration from the core, existing CSR activities also need screening. Important among these are alignment with existing projects, the ability to alter or discontinue existing projects, availability of funds, and motivation to ideate new projects aligned with the new framework and so on.

Any new community need or project proposal requires a new evaluation process. There are many parameters for this evaluation. The most important parameter, however, would include the effectiveness of the framework in addressing the community need assessment, long-term sustainability, alignment with current business, and the resulting value creation for the company.

This framework of evaluation and reporting, if developed well, will change the face of CSR and the company business operations altogether. It will then imply that business and CSR will be merged into one Business Sustainability Framework working toward the achievement of the UNSDGs.

Discussion Questions

• 1. Identify and discuss the UNSDGs that directly align to the business of Tata Power.
• 2. Discuss CSR SDGs and projects under them in the context of the stakeholders, accountability, and sustainability.
• 3. Discuss the challenges and benefits of adopting the UNSDG framework in business and CSR strategy.
• 4. What are the steps to adopt and initiate a new CSR project or proposal in order to keep the UNSDG framework in alignment with business goals? Can you suggest another model, apart from UNSDG, that Tata Power could have adopted to meet their objectives?
• 5. What kind of process modifications do you think can make the CSR endeavors of Tata Power more effective after a situation like COVID-19?

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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Tata Power: Corporate Social Responsibility and Sustainability

By: Rama Deshmukh, Atanu Adhikari

The case describes the strategic dilemma involved in making a decision on the method of operation of the corporate social responsibility (CSR) department for one of the leading Indian multinational…

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• Publication Date: Apr 27, 2010
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The case describes the strategic dilemma involved in making a decision on the method of operation of the corporate social responsibility (CSR) department for one of the leading Indian multinational corporations, Tata Power Company (TPC) from Tata Group of Companies. TPC had undertaken the CSR activities for decades, reflecting the company's commitment towards sustainable energy generation without undue compromise to human and environmental development. These activities were undertaken as a voluntary initiative by the employees of TPC, and there was no separate CSR department. However, with large scale expansion, the need to have CSR as a separate entity was felt. The dilemma for the decision manager was whether to create a separate CSR department or continue with the existing set up. Other related issues needed to be addressed strategically as well as tactically to maintain a balance between shareholders' interest and other stakeholders.

Learning Objectives

The case was developed for use in business strategy as well as business environment courses. It is appropriate for MBA and executive development programs, as well as advanced undergraduate courses in international business, corporate governance and corporate sustainability. Alternatively, it can be used in specialized modules focusing on organizational design. The case provides an apt simulation of the large-scale Indian companies that are planning for massive expansion. In the executive programs, the discussion may also lead to business strategy and stakeholders' analysis. The case is structured to achieve the following learning objectives: To explore various possibilities that lead to corporate sustainability through CSR activities; To structure the mechanism for the assessment of cost and benefits of CSR activities for the company and for its major stakeholder, namely the shareholders; To identify the business opportunities through CSR activities that can help local communities create income generation; To come up with win-win strategies that will encompass multiple stakeholders of the business.

Apr 27, 2010

Discipline:

Entrepreneurship

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Utilities sector

Ivey Publishing

910M13-PDF-ENG

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Corporate Social Responsibility in India pp 167–180 Cite as

Social Enterprise: A CSR Frontier—Case Study of Tata ClassEdge

• Sukanya Patwardhan 5  
• First Online: 29 September 2016

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Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Among the many challenges that are faced by an emerging economy, the education system in India is one of them with more than 1.4 million schools and over 230 million enrolments. It is home to one of the largest and complex school education systems in the world along with China.

To combat this pressing issue, the Tata Group has launched Tata ClassEdge in 2011, positioned as a social enterprise, that aims to bring about Information and Communication Technologies (ICT) enabled holistic changes in the areas of Curriculum Support, Teacher Development and Assessment and Analytics in the Indian school education system. This paper, with the case study of Tata ClassEdge puts forward that Social enterprises are a natural progression of CSR for long term, holistic social impact and social change, as opposed to CSR, which are resource dependent.

• Social enterprise
• Tata ClassEdge
• Social impact
• Digital India
• Indian schooling system
• Information and Communication Technologies (ICT)

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Patwardhan, S. (2017). Social Enterprise: A CSR Frontier—Case Study of Tata ClassEdge. In: Mitra, N., Schmidpeter, R. (eds) Corporate Social Responsibility in India. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-41781-3_13

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Corporate Social Responsibility: A Case Study Of TATA Group

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Social Responsibility of Business Enterprieses (ABD Publishers, Jaipur) ISBN: 978-81-8376-203-8

Prof. Himanshu Agarwal

“The Customer who comes to us is very important for us. He is not because of us but we are because of him.” These words of Mahatma Gandhi are simple in first reading but they are not in further readings. These words place deepest impressions of responsibility. Responsibility towards our customers; Responsibility towards the place from where he is coming; Responsibility towards the surroundings he lives in ….. the Society. We all are social animals. If we will not feel any sense of responsibility to our society, our society will also become neutral to us. And, for a business organization, society matters more. Business organizations can not exist in isolation. Business and society co- exist. They are the tow sides of the same coin. Every business has some obligations towards society. Haward Bowever has rightly said that “Social responsibility of business includes high level of employment, high standard of living, swift economic progress, economic stability and national security.” The concept of CSR bears both pros and cons. Where on a ground of theoretical evidences, this concept is really remarkable and puts our economic development in the chair of welfare state. But, if read between the lines, business houses are playing the game with CSR. Moreover, even the political parties in run to achieve high success during elections and to register high performance during their regimes in states and centre are using the wonder word. They have slightly tilted it as “Social Engineering”. Mayawati – the mighty Chief Minister of UP used successfully this technique for registering the both high success and high performance.

think india quarterly

nistha sharma

As Corporate Social Responsibility (CSR) continues to mature, one of the paradigms shifts we"ve seen in recent years is a move towards "values". CSR motivates companies to be ethically right by contributing socially, economically and environmentally. In 2014, government made mandatory for companies to spend 2 per cent of their three-year average annual net profit on CSR activities in each financial year, starting from Financial Year 2015. The norms are applicable to the companies with at least Rs 5 crore net profit or Rs 1,000 crore turnover or Rs 500 crore net worth. As an amendment to The Companies Act, 2013, businesses can invest their profits in areas such as education, poverty, gender equality, and hunger. Tata Group, Ultratech Cement, Mahindra and Mahindra and ITC Group etc are big Indian giants, who have involved in social works like education, welfare, plantation and environment etc. A recent study from Oxford University found that more than 80% of investors now consider "ESG"-environmental, social and governance-information when making investment decisions. A research done by development sector platforms CSRBOX and NGOBOX, total CSR spend may cross Rs 50,000 Crore by March, 2019. This paper gives the insights about the concept of CSR in Udham Singh Nagar District and perspective of the consumers.

Corporate Social Responsibility: A Case Study Of TATA Group

Nov 21, 2014

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Corporate Social Responsibility: A Case Study Of TATA Group. Chapter 2 Instructor Shan A. Garib, Winter 2013. Classification of Social Responsibility. 1 Responsibility towards itself run business and to work towards growth, expansion and stability and thus earn profits

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Corporate Social Responsibility: A Case Study Of TATA Group Chapter 2 Instructor Shan A. Garib, Winter 2013

Classification of Social Responsibility 1 Responsibility towards itself • run business and to work towards growth, expansion and stability and thus earn profits 2 Responsibility towards Employees • Employees are the most important part of an organization. 3 Responsibility towards shareholders • safeguard the shareholders‘ investment

Classification of Social Responsibility 4 Responsibility towards state • entitled to a certain share as per the income tax laws.   5 Responsibility towards consumers • high quality standards at reasonable prices. 6 Responsibility towards environment • contribute to the protection of environment

Social Responsibility Models Carroll’s Model • Archie B. Carroll has defined CSR as the complete range of duties business has towards the society. • four categories of obligations of corporate performance:

Social Responsibility Models Carroll’s Model • Economic: primary responsibility is to satisfy economic needs of the society and generation of surplus for rewarding the investors and further expansion and diversification. • Legal: The laws of the land and international laws of trade and commerce has to be followed and complied with.

Social Responsibility Models Carroll’s Model • Ethical: norms which the society expects the business to observe like not resorting to hoarding and other malpractices. • Discretionary: the voluntary contribution of the business to the social cause like

Social Responsibility Models Ackerman’s model - three phases • First phase - Top management recognizes social problem • Second phase – The company appoints staff specialists to look into the issue and find measures to tackle it • Third phase - Implementation of the strategy derived by the specialists

CSR as a Strategy • Step by step implementation. • Andrew (1980) • four questions determining level of CSR activity a. Determining Organizational Competencies: what can we do? b. Looking at Industry threats and opportunities: what might we do? c. Examining the values of key implementers: what do we want to do? d. Determining the social responsibility: what ought we to be doing?

Corporate Social Responsibility as a Strategy • answers decisions molded towards strategic need. • Burke Lee and Jeanne M. Logsdon (1996) suggest five dimensions of corporate strategy critical to CSR a. Centrality - CSR initiative activities should be close to the firm's mission and objectives. b. Specificity- Strategic CSR initiatives should specifically benefit the firm.

Corporate Social Responsibility as a Strategy c. Proactivity- CSR initiatives capture the changes in socio-environmental, political and technological factors. d. Voluntarism- CSR decisions discretionary and voluntarily. e. Visibility- CSR initiative build image

Tata Group & CSR Recognition of CSR “In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence." - Jamsetji Nusserwanji , Tata Founder, Tata Group.

Tata Group & CSR Recognition of CSR “In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence." • JamsetjiNusserwanji , Tata Founder, Tata Group. • In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that in future TISCO would not deal with companies, which do not conform to the company's Corporate Social Responsibility (CSR) standards.

Tata Group & CSR Rules for Sustaining CSR Clause No. 10 of Tata Group A Tata Company shall be committed to be a good corporate citizen not only in compliance with all relevant laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self reliant. Such social responsibility would comprise, to initiate and support community initiatives in the field of community health and family welfare, water management, vocational training, education and literacy and encourage application of modern scientific and managerial techniques and expertise. This will be reviewed periodically in consonance with national and regional priorities. The company would also not treat these activities as optional ones but would strive to incorporate them as integral part of its business plan. The company would also encourage volunteering amongst its employees and help them to work in the communities. Tata companies are encouraged to develop social accounting systems and to carry out social audit of their operations.‖

CSR Activities of Tata Companies & Societies Tata Steel spends 5-7 per cent of its profit after tax on several CSR initiatives: (a) Self-Help Groups (SHG’s) • Over 500 self-help groups are currently operating under various poverty alleviation programs; out of which over 200 are engaged in activities of income generation thorough micro enterprises. • Women empowerment programs through Self-Help Groups have been extended to 700 villages. • From the year 2003 to 2006, the maternal and infant survival project had a coverage area of 42 villages in Gamharia block in SeraikelaKharsawa and a replication project was taken up in Rajnagar block. • For providing portable water to rural communities 2,600 tube wells have been installed for the benefit of over four Lakh people.

CSR Activities of Tata Companies & Societies Tata Steel (b) Supports Social Welfare Organizations Tata Steel supports various social welfare organizations. They include;  Tata Steel Rural Development Society  Tribal Cultural Society  Tata Steel Foundation for Family Initiatives  National Association for the Blind  Shishu Niketan School of Hope  Centre for Hearing Impaired Children  Indian Red Cross Society, East Singhbhum

CSR Activities of Tata Companies & Societies Tata Steel (c) Healthcare Projects • The healthcare projects of Tata Steel include facilitation of child education, immunization and childcare, plantation activities, creation of awareness of AIDS and other healthcare projects. (d) Economic Empowerment • A program aiming at economic empowerment through improvised agriculture has been taken up in three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh. • An expenditure of Rs 100 crore has been estimated for the purpose and this program is expected to benefit 40,000 tribal living in over 400 villages in these three States.

CSR Activities of Tata Companies & Societies Tata Motors : (a) Pollution Control • Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a major effort to introduce emission control technology in India. (b) Restoring Ecological Balance • Tata Motors has planted 80,000 trees in the works and the township and more than 2.4 million trees have been planted in Jamshedpur region. • Over half a million trees have been planted in the Poona region.

CSR Activities of Tata Companies & Societies Tata Motors : (c) Economic Capital • In Lucknow, two Societies - SamajVikas Kendra & Jan ParivarKalyanSanthan have been formed for rural development & for providing healthcare to the rural areas. • These societies have made great efforts for health, education and women empowerment in rural areas. (e) Human Capital • Tata motors has introduced many scholarship programs for the higher education of the children. • These students get books, copies and other study materials.

CSR Activities of Tata Companies & Societies Dedication to the Nation at a Glance Tata Health Infrastructure  Tata main hospital at Jamshedpur  ICU in Joda and Balangpur  CHC in Bari and Kuhika  Hospitals in Gobarghati,sukinda, joda, belpahar, belipada and bamnipal  ―Lifeline Express‖- the hospital on wheels  Mobile health clinics  Centre for hearing impaired children

CSR Activities of Tata Companies & Societies Dedication to the Nation at a Glance Tata Educational Infrastructure • Institute of mathematics • Sukinda college • Joda college centenary Learning centre at XIMBJ N Tata Technical Education centre • School of hope

CSR Activities of Tata Companies & Societies Dedication to the Nation at a Glance Tata Sports Infrastructure • Tata athletics academy • Tata archery academy • Tata Football academy • Tata steel adventure foundation • Sports feeder centres • Stadium at keonjhar Preservation of culture & Heritage  Contribution to setting up national Center for performing arts Mumbai  Tribal cultural centers showcases legacy of nine tribes Jharkhand and Orissa  Gramshree mela activities

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Creating a Corporate Social Responsibility Program with Real Impact

• Emilio Marti,
• David Risi,
• Eva Schlindwein,
• Andromachi Athanasopoulou

Lessons from multinational companies that adapted their CSR practices based on local feedback and knowledge.

Exploring the critical role of experimentation in Corporate Social Responsibility (CSR), research on four multinational companies reveals a stark difference in CSR effectiveness. Successful companies integrate an experimental approach, constantly adapting their CSR practices based on local feedback and knowledge. This strategy fosters genuine community engagement and responsive initiatives, as seen in a mining company’s impactful HIV/AIDS program. Conversely, companies that rely on standardized, inflexible CSR methods often fail to achieve their goals, demonstrated by a failed partnership due to local corruption in another mining company. The study recommends encouraging broad employee participation in CSR and fostering a culture that values CSR’s long-term business benefits. It also suggests that sustainable investors and ESG rating agencies should focus on assessing companies’ experimental approaches to CSR, going beyond current practices to examine the involvement of diverse employees in both developing and adapting CSR initiatives. Overall, embracing a dynamic, data-driven approach to CSR is essential for meaningful social and environmental impact.

By now, almost all large companies are engaged in corporate social responsibility (CSR): they have CSR policies, employ CSR staff, engage in activities that aim to have a positive impact on the environment and society, and write CSR reports. However, the evolution of CSR has brought forth new challenges. A stark contrast to two decades ago, when the primary concern was the sheer neglect of CSR, the current issue lies in the ineffective execution of these practices. Why do some companies implement CSR in ways that create a positive impact on the environment and society, while others fail to do so? Our research reveals that experimentation is critical for impactful CSR, which has implications for both companies that implement CSR and companies that externally monitor these CSR activities, such as sustainable investors and ESG rating agencies.

• EM Emilio Marti is an assistant professor at the Rotterdam School of Management (RSM) at Erasmus University Rotterdam.
• DR David Risi is a professor at the Bern University of Applied Sciences and a habilitated lecturer at the University of St. Gallen. His research focuses on how companies organize CSR and sustainability.
• ES Eva Schlindwein is a professor at the Bern University of Applied Sciences and a postdoctoral fellow at the University of Oxford. Her research focuses on how organizations navigate tensions between business and society.
• AA Andromachi Athanasopoulou is an associate professor at Queen Mary University of London and an associate fellow at the University of Oxford. Her research focuses on how individuals manage their leadership careers and make ethically charged decisions.

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