RETHINKING CORPORATE-COMMUNITY RELATIONS: MILLENNIAL CHALLENGES FOR TATA STEEL This case was written by Prof. Sanjoy Mukherjee of Management Centre for Human Values, Indian Institute of Management Calcutta, as part of the case writing project organized by the Ramon ¥. del Rosario Sr. AIM Center for Corporate Responsibility and the | Association of Deans of Southeast Asian Graduate Schools of Management (ADSGM). The project was funded by the Aspen Institute (USA), the Japan Center Foundation, and the Canadian International Development Agency (CIDA). All case materials are prepared solely for the purposes of class discussion. The cases are neither designed nor intended as illustrations of correct or incorrect management of the problems ‘or issues contained in the case. Copyright © 2002, Asian Insticute of Management | and ADSGM. { iha was scheduled to present to Tata Steel’s top management the next morning. Sinha was a young professor appointed by a management institute to exam- ine critically the changes taking place at Tata Steel, espe- cially in the area of corporate-community relations. ‘The Tata Group was India’s largest private sector employer ~ with some 200,000 employees — its biggest foreign exchange eamer, and no. | taxpayer. Under it were 95 operating companies, 31 of which were publicly traded. Unlike many large corporations in India, the Tata Group embarked on business a century ago not just withprofit in mind but with a broader vision and nobler purpose. The syinbiotic relationship with society and community based on reciprocal obligations and understanding was built into the Tata philosophy and culture. It wanted “to improve the quality of life of the communities we serve.” For Tata Steel — one of the two biggest companies of the Tata Group — this culture was evident in its “depart- ments’ or offices that provided social service programmes. A more glaring proof of Tata Steel’s social commitment was the Steel City or Jamshedpur, site of its steel plant, where practically all local public services were provided by the company. However, in the backdrop of globalization, the play of market forces, and competition, Tata Steel in 1994 em- barked on a major restructuring, It also “refocused” its Corporate Social Responsibility (CSR) policies and programmes within the constraints of cost, manpower, and productivity. ‘Thus, while other companies embarked on CSR, Tata Steel reexamined its old approach and began operationalizing the new approach in terms of policy and action. Sinha’s assignment was to assess whether the CSR changes launched by Tata Steel were consistent with the intentions of the founders. Ifnot, was this vision still appropriate given globalization? Given the expectati ms of the ‘community about how Tata Steel practiced its CSR, how can a ‘smooth and humane’ transition be effected? Can Tata Steel’s own approach to CSR add value to the changes? Despite the many questions in his mind it struck hisn that what started as an exercise in change management of Tata Steel’s CSR policies and processes in the globalized scena leading to issues of Corporate Governance. io was TATA STEEL Business Founded in 1907, Tata Steel was India’s largest private steel manufacturer. It bo ed of the first, modem integrated steel plant in India, which was said to be comparable with the best integrated steel plants in the world, Ithac an asset base of over Rs. 9000 crores. The House of Tata had 25% equity in the company.During the four phases of Tata Steel’s modernization, crude steel capacity increased from 2 MT per annum in the eighties to 3.4 MT per annum in the nineties. Tata Steel invested over Rs. 1600 crores in establishing a 1.2 million tonne capacity Cold Rolling Mill that was capable of leveraging the company’s strength into the future. Tata Steel’s core business of mining raw materials for steel, to marketing it, contributed 75% of the turnover, with the balance being contributed by the company’s other profit centres. Employees Tata Steel had a committed workforce of some 50,000 personnel. The employees were classified into three categories ~ the officers, supervisors, and workers. The supervisors and workers were organized into a single trade union with democratically elected representatives at each location. The company had a vibrant mechanism for two- way communication between management and labor. Products and Services Tata Steel’s products were broadly classified into: (a) flat products such as hot rolled coils, cold rolled coils, and sheets (60% of sales) and, (b) long products mainly in the form of wire rods, forging quality, bars, structural and tested semis (40% of sales) catering to the consuming sectors such as auto/auto ancillaries, consumer durable con- struction/infrastructure, capital goods, general engineering, and railways. Some 85% of the production was sold in the domestic market. However, to manage the fluctuations in the domestic market and to remain a net foreign exchange carner, Tata Steel maintained a strategic presence in the international market by exporting the balance. Customers Tata Steel had a customer base of over 5,000, out of which 158 customers were identi ied as key customers accounting for 51% of the business. A one percent increase in sales to key customers contributed Rs. 1.8 crores. Key customers had preferential services in the area of redressals of complaints and in swifter account management. An Enterprise Resource Planning System (SAP) was put in place to improve availability and analysis of customer and market information, stock management, and accounts receivable, aniong others.Vision At the start of the new millennium, Tata Steel envisioned itself to become a learning, knowledge-based, and happy organization. “In the coming decades, we will become the most cost competitive steel plant and so serve the community and the nation.” Mission Its mission statemert said: “Consistent with the vision and values of the Founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial base through the effective utilization’ of men and materials. The means envis- aged to achieve this are high technology and productivity, consistent with modern management practices.” Strategic Goals In 2000, its strategic goals were to: + Create a culture of continuous learning and change + Achieve world class status in services and products . Reach the position of the most cost comparative steel producer 2 Establish industry leadership Values It listed its values as: + Trusteeship 7 Integrity + Respect for Individual + Credibility * ExcellenceTATA’S VIEWS ON CSR AND THE COMMUNITY Tata Steel’s tradition of serving the society pre-dated the first steel ingot that rolled out of the Steel Works in 1912. Its founder, Jamsetji Nuserwanji Tata, realized the necessity of industry being socially responsible. J N Tata, in planning Tata Steel’s main plant in the jungles of Bihar, envisi ned the establishment of the first Steel City, and not merely a factory. He wanted the city to be developed in a manner that the community living in it would thrive in the most idyllic conditions provided by Tata Steel. JN Tata believed that Purna Swaraj (complete independence) could only be sustained by economic freedom, and this, in turn, could only be achieved by adopting a creed of Swadeshi, or economic self-reliance. It was the indigenous business enterprises that could best emancipate the country from colonial impoverishment. They could attain this by directly enhancing the economic growth of the country and by improving the living conditions of the people through “constructive philosophy”. JN Tata believed that wealth and the means of generating wealth “were not ends in themselves but a means to an end for the increased prosperity of India.” JN Tata did not reject profit making, but he was opposed to unbridled profiteering. He believed in establishing his busines on extremely “sound and straightforward business principles.” On the opening of a new extension of the Empress Mills, he said, “We do not claim to be more unselfish, more generous or more philanthropic than other people. But we think we started on sound and straightforward business principles, considering the interest of the shareholders, our own and the health and welfare of our employees, the sure foundation of our prosperity.” He spent surplus money on welfare activities. Wherever he set up his business, | N Tata undertook social service activities, IRD Tata, previously the chairman of the Tata Group and considered India’s leading industrialist, described Tata Steel’s views on its social responsibilities. “To create good working conditions, to pay the best wages to its employees and provide decent housing to its workers are not enough for the industry. The aim of an industry should be to discharge its overall social responsibi ties to the community and the society at large where the industry is located,” he said during a Tata Management Conference in 1995. He once remarked, “The private sector should realize that they have to play their role in the spirit of trusteeship advocated by Mahatma Gandhi.”JAMSHEDPUR AND THE DEPARTMENTS IN Tata led Tata Steel on the path of social services. Pursuing his vision of a Steel City, the city of Jamshed, situated 150 miles west of Calcutta, exemplified the Tata culture. Populated by a million people, Tata Stee! funds Ic public services such as water, education, solid waste removal, and health services. The company spends US ! million annually on Jamshedpur. But it was J R D Tata who infused life into the company’s programmes on social responsibilities. Under aegis, the various offices discharging social responsibilities developed into full-fledged “departments” Referring to the need for community development, J R D Tata pointed out, “Busin enterprises that hi adequate means and resources should consider it a part of their social obligations to contribute, in some form, to progress and welfare of the community in which their enterprise is located.” The social services departments managed programmes designed to improve living conditions of the socia and economically under privileged; particularly those living in and around Tata Steel’s areas of operations, includi ore, mines and collieries. Thus, the Community Development and Social Welfare (CDSW) department served needs of the rural poor who migrated to Jamshedpur in search of livelihood. The Family Welfare department or Cen for Family Initiatives developed strategies to promote the well-being of the families. The Tribal and Harijan Welfi Cell implemented projects that aimed to raise the socio-economic status of the tribals and the backward commun and to integrate them into the mainstream. The Tata Steel Rural Development Society implemented projects in educ tion, agriculture, infrastructure, and medical services. The Tata Council of Community Initiatives (TCI) created encouraging environment for Tata employees who wished to volunteer for community development work. (See A pendix C for a detailed description of the departments.) On January 28, 1970, the company’s Board of Directors incorporated Clause 3A in its Article of Associatic Itstated that the company recognized among its objectives “the promotion and growth of the national economy throu increased productivity....the company shall be mindful of its social and moral responsibilities to consumers, emplo ees, shareholders, society, and the local community.”TATA STEEL IN THE FACE OF GLOBALIZATION Economic liberalization in particular sectors and the fierce competition this brought about impacted negatively on Tata Steel’s profitability. It became imperative to lower production costs and reduce manpower. In 1994, Dr. Jamshed J. Irani became the Chief Executive Officer of Tata Steel. He wanted the company to become slimmer, faster, and more confident. Every aspect of its management — from the production to supply chain, from human resources to marketing — underwent radical change. Tata Steel sought to reinvent itself along three axes: management structure, production processes, and human resource management. Management Restructuring TISCO management was restructured to move away from the hierarchical model to an empowerment and performance-based model. With the assistance of McKinsey & Co., it identified managers for the top 300 positions through its Performance Ethics Programme (PEP). “I want to achieve a truly modern management structure and PEP is a step in that direction,” Irani earlier said. Eicher Consulting Serv es helped Tata Steel on a non-linear, impact- based management structure. Decentralization and empowerment formed the pillars of the restructuring, Overhauling the Production Process The production process was overhauled to turn Tata Steel into a customer-driven, market-oriented company. The restructuring operations involved identifying market segments, matching global economies of scale, and ruthless cost cutting. Critical to the cost-reduction drive was the company nade-to-order philosophy; allowing delivery of best steel at the lowest cost and quickest time, Tata Steel’s marketing function was IT-enabled and new e-business efforts resulted in the highest profitability of Tata Steel among all stee! plants in the country. Its customer satisfaction index (CSI) increased. “Tata Steel’s cost of production is among the lowest in the world,” claimed Executive Director (Operations) Tridibesh Mukherjee afterwards. Re-Aligning Human Resources The re-alignment of human resources aimed to reduce employee strength by at least 35%, from 75,000 in 1994 to 48,000 in July 2001 through a fair separation scheme. This meant a reduction in the number of designations from 4,600 to 2,300.TATA STEEL: FACETS OF CHANGE The company changed its overall strategies; to wit: Focus on its ‘core competence’ i.e., steel-making. Gone were the days when Tata Sicel used to advertise, “We also make Steel.” The current slogan was, “Steel is the essence of Life.” Ruthless cost-reduction in all possible areas especially in activities that were “irrelevant”. Since the customer cannot be taken for granted anymore in the face of severe competition, Tata Steel must strive relentlessly to build relationships and influence consumption. ‘Mutate and improve furiously’ within to cope with sweeping changes in the external environment. In keeping with its tradition and as part of the company’s commitment to the values adopted by the Tata Group, Tata Steel adopted the Tata Code of Conduct. This stated the values and norms of behavior that governed the conduct and the activities of the company and all its employees. Tata Steel undertook steps to ensure company-wide awareness and implementation of the Tata Code of Conduct CHANGES IN CSR APPROACH AND METHODS In keeping with the changes in overall strategy, the approaches and perspectives on CSR and the methods/ programmes for community development were revised. Whereas in the past the commitment was “to deliver effec- tive goods and services to the community, today the company is committed to act as a catalytic rather than a doer.” + From Philanthropy/Welfare to Development The old notion of cheque-writing as an act of charity was not only difficult to afford but was now deemed irrelevant. “Anything given free loses its importance,” said $ N Mishra, GM for Social Service and Sports. The notion of ‘service’ to society changed from mere funding to provision of knowledge, skills training, exper se and infrastruc- ture, leadership, and managerial capabilities by Tata Steel. It wanted the community to be more actively involved and share responsibility in the development process. From Paternalism to Participation ‘Tata Steel believed that the community’s dependence on it for its self-sufficiency and improvement had to be reduced. It could no longer afford to spare manpower for all its social responsibilities as it was practiced before but it could impart needed skills to the community so that they could make themselves self-sufficient. Providing operations and maintenance for publicly used infrastructure like school buildings and tubewells also went against the notion of ‘integrated development’. Following the recommendations of the Evaluation of Social Service Programmes of Tata Steel (See Appendix A), Tata Steel organized a gathering where the community identified and prioriti sed their needs, commit- ted their labour and other resources, and claimed ownership to the achievements. Tata Steel guided the process. + From Full Provision by Tata Steel to Networking and Partnerships In areas that were not within the core-competence of Tata Stecl to provide, networking and partnership-build- ing with non-government organizations (NGOs) with expertise in community servi (health, edueation, ete.) were pursued, One advantage of this, they believed, was that NGOs had access to international funds available for these social needs. “In no way should we replicate the effort of NGOs.” said Viraf Mehta of Corporate Communications. In such partnerships, Tata Steel provided the brand name, credibility. grassroots presence, reach, and infrastructure. “We augment services through partnerships and value-based networking,” said AN Singh, Executive Director of Town, Medical and Social Services. The objective of the approach was to improve the quality of services and the delivery system: . From a Curative to a Preventive Approach “The linkage of CSR with business strategy and vision is a significant’ change in the current approach,” said Shakti Sharma, Divisional Manager of Rural and Tribal Services; hence the shift from a curative to preventive ap- proach in rural/community development. Instead of dole-outs on a part-time basis, the continuous active involvement of TISCO through its awareness programmes would have a more meaningful impact on the quality of the target group. Thus “Social Responsibility” was a “Key Business Process”. This made CSR efforts more accountable, responsible, and easier to ai ss, benchmark, and measure.+ From CSR as Outside the Core Business to CSR as Business Strategy The traditional approach to CSR had been one of an extra initiative beyond the domain of business. The vital shift in the present situation was the acknowledgement of the impact of CSR and healthy corporate-community rela- tions on profitability and business through good labour and environment practices. “And there are the intangibles too,” said J. Singh, DGM of the Human Resources Department, “There was never a strike in Tata Steel and the CEO can smoothly walk into any community or tribal area without a commando.” That was also why Tata Steel laid down parameters and the criteria of performance for better social assessment and impact measurement. This, in turn, facili- tated CSR’s linkage with business results. COMMUNITY INITATIVES (1999-2000): AN OVERVIEW Thus, from 1999-2000, Tata Steel’s community initiatives were concentrated on: + Relief in parts of India affected by natural calamities; specifically, the Orissa cyclone Completion of the Three-year Green Millennium project which aimed to plant 1.5 million trees by De- cember 1999 Empowerment of rural women and youth through micro credit lending Urban Community projects on vocational training, formal education, and health check-ups Family Initiatives; specifically, 450 AIDS Awareness programmes covering 37,000 people Sports Promotion in peripheral urban and rural communities The Declarations of the Council on Social Responsibility issued the guidelines governing CSR on December 14, 1999 (See Appendix D). UNEASY QUESTIONS Sinha thought the change in approach and strategy would almost seem too neat and tidy. But he knew that the culture change it required on the part of Tata Steel management and employees and, more critically, on Tata Steel’s stakeholders, would be anything but smooth.He had nagging questions. + The workforce had been reduced by 30,000 in 5 years. Could the Employee Separation Scheme (ESS) have been less painful? Was it also effective? In 1999, when some 35,000 workers were laid off, the community was so offended that Tata Steel relented by agreeing to pay for the worker’s salaries until they were 60, The savings that were expected from the lay off did not materialize as hoped for. Will drastic reduction of staff in the social service departments (¢.g. CDSW) finally lead to a closure of these departments? Considering that some of these like the Town division contributed to a deficit of Rs. 100 crores a year, should Tata Steel withdraw in the name partnership and outsourcin; If the present employee strength (around 50,00) was further reduced, would the founder’s vision for Jamshedpur continue? To what extent should Tata Stee! provide public vices in Jamshedpur? To what extent will the money-minded customer be ready to pay the price of Tata Steel producis, as company costs cover expenses for its social service programmes? FROM DILEMMA TO CHALLENGE: TATA TRADITION, INDIAN INSIGHTS Sinha went to see S N Mukherjee, a metallurgist by background and Tata Steel veteran who took voluntary retirement ten years ago to pursue other interests. With a strong grounding on Indian ethos and culture, Mukherjee understood the synthesis of the east and the west. To his surprise, Mukherjee said, “I believe we can consider Tata Steel as a global benchmark in CSR.” “But how? TISCO itself is trying to match global benchmarks,” Singh replied. Mukherjee said that the changed approach to CSR in Tat Steel was a change in ‘modes of giving.” He believed that with its rich heritage, Tata Steel could become a pathfinder even in the midst of change. “You only have to internalize the vision and mission of J N Tata in your bloodstream,” he said. They discussed at length on the need to preserve and foster India’s ‘ascetic spirit’, as recorded in a letter (see Appendix F), in whichthe father of Indian industrialization had offered the fiery, volcanic monk to provide leadership to what is now the Indian Institute of Science. These reminiscences will give you pointers to the importance of enriching the quality of the mind behind the giving process. “What you give” and “how you give” depend on the existing reality — profitability, competition, shareholder perception, customer response, etc. But the ‘model of CSR’ I am suggesting can be evolved out ofa marriage between the Tata tradition and classical Indian wisdom, with the quality of the mind as the starting point, the global benchmark Which Tata Steel can offer to the world,” Mukherjee explained. “What difference does it make if you don’t have the profits to share? And how do you resolve the dilemma between who takes precedence ~ the shareholder or community?” Singh interjected. Mukherjee replied that it made a world of difference “but at a deeper level.” “If you are unable to give when operating from the first or second reasons for CSR, i . survival and obligation, your mind will rationalize and justify your decision by referring to the existing constraints, But the ‘quality mind” will suffer from pain and anguish when it is unable to give or contribute under constraints. It will look for the first possible opportunity to give and that is what makes the difference. The ‘quality mind’ gives on the basis of a ‘relationship of freedom’ and a ‘feeling of joy and oneness with others’. You cannot capture this powerful third way of giving, the true Indian way, by the notions of ‘philanthropy’ or ‘charity’. It may have all the characteristics of ‘development’ in form but it transcends these bound: aries ‘in spirit’ “You cannot resolve your dilemma between the shareholder or the community. Indian wis om says that you need a third systemic reference point, the fire and wisdom within you, deep in your heart, to find the real answer, Bu ‘one must be able to keep the inner lamp burning. Then, Indian wisdom affirms that the dilemma slowly dissolves anc what evolves is the spirit of challenge to face and transcend reality. The Tata Steel tradition with its grounding it Indian ethos can take up this challenge. But the question remains is it willing to take it up, despite all eventualitie; and circumstances? A CSR benchmark, an enlightened model of Corporate Governance to the world? Why don’t yor throw the challenge to them during tomorrow's presentation? They say, ‘Where Tata Steel ventures, ethers will fol low.’ It’s time they prove it now,” Mukherjee said.APPENDIX A EVALUATION STUDY OF SOCIAL SERVICE PROGRAMMES - TATA STEEL ‘The Evaluation Study of Tata Steel Social Service Programmes to assess their extent and efficiency was started in the middle of November 1998. The research team from Xavier Institute of Social Sciences (XISS) Ranchi visited four departments — Community Development and Social Welfare Department, Centre for Family Initiatives, Tribal and Harijan Welfare Cell, and. Tata Steel Rural Development Society. The purpose to the study was to have a critical look at the programmes and come up with some guidelines on the basis of which the company would be able to review its programmes and decide on specific strategies and programmes for the future. Right from its inception, Tata Steel has been a pioneer in fulfilling its obligations towards society and various social service programmes were started in the last 50 years. In the earlier days the commitment was to deliver effective goods and services to the community. Today the company is committed to act as a catalytic rather than a doer. So there has been a change in perspective and approach to social service. The focus of this study was to assess how far the departments have achieved the goal of becoming enablers rather than doers based on the following parameters. + The relevance of the various programmes today + Degree of benefit to the poorer sections of society + The level of community participation and capacity building among people + The hamessing of local resources + The level of self-reliance among the beneficiaries. + The future needs of the people Main Recommendations ‘The main recommendation of this report on the basis of the findings is that in order to become more effective as enablers the departments should go in for commut ity organization, An enabler is a personvinstitution who helps people to understand th: needs and problems and to discover new resources. He ereates in the people the desire and motivation for their capacity to deal with change. hange and develops Community organization consists in assisting a group of people to recognize their common needs and helping them to mect these needs. It is a process by which a community: + identifies and analyzes its needs + develops confidence and the will to work at those needs + finds the resources to deal with the needs + takes action in respect of them‘The main components in the community organization process are: + awareness creation: people have to be aware of their problems + environment creation: people have to be motivated to come forward for community action + group planning and decision making: people come together on a regular basis for discussion of problems, pla and decision making + — developing a strategy for group action and resource mobilization + group activities and programmes The whole process involves the presence of group organizers who will facilitate the, component organization ‘The other recommendations, which pertain to all departments, are: + The focus of all programmes should be on the poorer sections of the society + There is a great need for starting training in self-employment and entrepreneurship development programmes. the way of dealing with people. APPENDIX B. ‘TATA GROUP PURPOSE STATEMENT Our purpose in Tata is to improve the Quality of Life in India. We do this through Leadership sectors of national Economic Significance to which we bring a unique set of capabilities. This requires us to grow aggressively in focuséd areas of business. Our heritage of returning to society what we eam evokes Trust among consumers, employees, shareholders and the community. This heritage will continuously enriched by formalizing the high standards of behavior expected from employees and companies. } | The Tata name is a unique asset representing Leadership with Trust, Leveraging this aset to enhance group synergy and become globally competitive is the route to sustained growth and long term success.APPENDIX C OVERVIEW OF MAJOR SOCIAL SERVICE PROGRAMMES IN TATA STEEL Community Developmental and Social Welfare Department ‘The Community Development and Social Welfare (CDSW) department was established in 1958 to cater to the needs of the rural poor who migrated to the Steel City in search of livelihood. In 2000, the department catered to the needs of the people living in the bustees through a wide range of activities; including, + Educational Programmes * Awareness Buildi + Health Hygienee + Games and Sports + Vocational Training and Skill Development + Cultural Activities Family Welfare Department Started in 1951, the Family Welfare Department ot Centre for Family Initiatives (CFI) implements its activities through 25 centers; 15 of which are sponsored and managed by it while the other 10 are sponsored by other organizations or are commu- nity-based centers. The Department believes that India’s population pressures adversely affect the quality of life. Thus, strate- gies were developed at the Center for Family Initiatives in collaboration with the Tata Steel Family Initiatives Foundation in Jamshedpur. The Centers are located among urban, rural, and tribal communities in and around the Steel City to ensure timely tiatives for the well-being of the human family, ‘The CFI vision is to: + Enrich the quality of life through happy, healthy, and small families + Ensure the empowerment of women, harmony and prosperity towards well- being + Channel potential resources from within and outside + Maintain ecological balance Tribal and Harijan Welfare Cell The main aim of the cell is to raise the socio-economic status of the tribals and the harijan (backward community) and to integrate them into the mainstream of society. The priority development areas for these communities are in education and training, health and medical facilities, development of youth through sports and games, and the promotion of arts and culture.The Tata Stee! Rural Development Society (TSRDS) Launched in 1979, the society undertook a wide range of programmes like drilling tube wells, assisting farmers to adopt improved methods of cultivation, promoting animal husbandry, constructing school buildings, offering adult literacy programmes, empowering youth and women, providing medical services, and promoting rural handicrafis. TSRDS operated in three states — Bihar, Orissa, and Mahya Pradesh. Its programmes benefited some 670 villages in over 23 Blocks and 11 Districts. The organization spent a budget of Rs. 3 crores per annum. The Tata Council of Community In tives (TCCI) ‘TCI was the nodal agency responsible for creating an enabling condition for every Tata employee who chose to volun- teer in community development work. The Tata Code of Conduct sets 25 key parameters governing employee conduct and behavior in the Tata Group. Every employee of a Tata company signs this Code of Conduct. Corporate citizenship as a core value was enshrined in the Code of Conduct, ‘This underlined Tata employees’ responsi- bility to society at large. Since Tata Steel viewed its social responsibilities as a way to redistribute wealth, in 1999-2000, it shared Rs. 38.11 crores of the wealth it generated for social welfare. APPENDIX D ‘The Declarations of the Council on Social Responsibility made on December 14, 1999 states: The community is central to the core values we adhere to in the Tata Group. Tata Community programmes aim at building trust and improving the quality of life Tata programmes facilitate sustainable changes We believe that the community gives us valuable opportunities to lean. Commitment to social responsibility is explicit in every Tata company. We network through our core competence to empower communities. + Tata Volunteers are committed to the spirit of service.APPENDIX E Comparative Figures Between 1995-96 and 2000-'01 (first 9 months) During the Period of Dr. Irani 1995 — 1996 2001 — 2002 (first 9 mos.) PROJECT, Rs. 520 er. x | REVENUE Rs. 5,800 cr. | STEEL OUTPUT 2.7 m tones 4.5 m tones (by year-end) COST OF PRODUCTION $225 ee 150 3 al IRANI’S WISH LIST IN 2001 Dr. J J Irani had a wish list for Tata Steel upon his departure; to wit + Make 2000-2001 the best in terms of profits + Reduce family size to 48,000 Improve CSI to > 75% + Reduce the overall debt-equity ratio + Drive PEP changes hard + Establish e-business and set up knowledge centers + Hire more women + Make life easier for the ‘next person’APPENDIX F THE SPIRIT OF INDIA A Wisdom Letter Dear Swami Vivekananda, Ltrust you remember me a fellow-traveller on your voyage from Japan to Chicago. I very much recall at this moment your views on the growth of the ascetic spirit in India, and the duty, not of destroying, but of diverting it into useful channels. I recall these ideas in connection with my scheme for a Rescarch Institute of Science for India, of which you have doubtless heard or read. It seems to me that no better use can be made of the ascetic spirit than the establishment of monasteries or residential halls for men dominated by this spirit, where they should live with ordinary decency, and devote their lives to the cultivation of sciences-natural and humanistic. Lam of the opinion that, if such a crusade in favour of an asceticism of this kind were undertaken by a competent leader it would greatly help asceticism, science, and the good name of our common country, and J know not who would make a mor fitting general of such a campaign than Vivekananda. Do you think you would care to apply yourself to the mission of galvaniz. ing into life our ancient traditions in this respect? Perhaps, you had better begin with a fiery pamphlet rousing our people on this matter. I should cheerfully defray all the expenses of publication With kind regards, I am dear Swami November 23, 1888 Yours faithfully, Sd) Jamsetji N. Tata Esplanade House, Bombay