SUBMITTED BY:

NEETHU THRESA JACOB (F11096)

SWARUPARANI SAHU (F11116)

SECTION: B

THE COMPANY I ADMIRE THE MOST FOR

ITS CORPORATE SOCIAL

RESPONSIBILITY

THE COMPANY I ADMIRE THE MOST FOR ITS CORPORATE SOCIAL

RESPONSIBILITY

TITAN INDUSTRIES

INTRODUCTION:

Titan Industries is the world's fifth largest wrist watch manufacturer and India's

leading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia,

Octane & Xylys brand names. It is a joint venture between the Tata Group, and the Tamil

Nadu Industrial Development Corporation (TIDCO). Its product portfolio includes watches,

accessories and jewellery, in both contemporary and traditional designs. It exports watches to

about 32 countries around the world with manufacturing facilities

in Hosur, Dehradun, Goa and manufactures precious jewellery under the Tanishq brand

name, making it India's only national jewellery brand. It is a subsidiary of the Tata Group.

The company has a well-defined policy on social responsibility. Its corporate social

responsibility strategy is a process of balancing the relationships with a variety of

stakeholders in the community. They assist the community at three levels: (i) as a member of

the Tata Group, (ii) as a corporate entity and (iii) fostering the spirit of volunteering at the

individual level. The company also contribute to the initiatives taken by the Tata Group.

Titan’s CSR strategy includes elements related to good governance, human rights,

environmental protection and sustainable development, as well as community, social,

economic and cultural development. The company’s business plan refers to providing micro

business opportunities and support to poor village women and individual jewellery artisans

(karigars); employing disabled persons; taking environmental protection initiatives;

sponsoring educational institutions and programs and offering scholarships; supporting health

care projects; and abiding by the Tata Code of Conduct which is the base fabric on which

they operate.

Among the CSR initiatives, two key programs have helped Titan to learn about the

process of embedding human rights concepts in business practice. The first program

promotes differently-abled employees and the second promotes empowerment to

disadvantaged women employees.

Corporate Social Responsibility (CSR) is a Titan Value and is embedded in their

Governing Objective. It is a step further than legal or regulatory compliance, a conscious and

free pledge to improve the world around us. It has human, social and environmental

dimensions.

As a building material producer, the company’s products contribute to the multiple

social values provided by concrete structures, such as safety, durability, economy, resource

efficiency and connecting people. At the same time, they realize that their operations impact

the environment and neighbouring communities. They commit to mitigate and reduce these

impacts by “Doing Less Harm”.

In their endeavour to Do less Harm, they recognize that there are win –win

opportunities which they aim to pursue. Titan industries continue to pursue business goals in

a socially responsible manner, contributing to the well-being of the employees, their families,

neighbouring communities and society at large, in short “Doing More Good”. Their CSR

commitment is not only an ethical, values – driven endeavour, but also a value-creating good

business practice, enhancing their reputation, strengthening the license to operate and

improving their competitiveness. Just as important, it is a source of pride and motivation for

their people, adding to their ability to attract and retain good people.

Titan considers their CSR engagement as a proactive and on-going self-improvement

and continuous learning process, adapting to an ever changing complex business and social

environment. Essential to this endeavour is listening, engaging, communicating and building

mutual trust with our stakeholders.

CSR Vision of the company is:

“To pursue at all times our business goals and create value, in an ethical and socially

responsible manner, doing less harm, and endeavouring to do more good”.

They state that to achieve their Vision they implement the following practices:

Our business practices are guided and based on our Titan Values and our code of

conduct.

Safety is our top business priority aiming to achieve an accident and incident free

work environment.

We are committed to sustainable growth, integrating human, environmental and

social elements into our business decisions.

We aim to continuously improve our environmental and social performance,

measuring our impacts and contributions, and assessing our environmental and

social footprint.

We aim to build trust with all our stakeholders by communicating openly and

transparently, and seeking engagement to understand the impact of our operations

and their concerns.

We share our know-how, experience and best practices in areas relevant to our

business to add value and contribute to the well-being of our neighboring

communities.

We value our employees and follow human resources practices that promote

equal opportunity in recruitment, employment and development, regardless of

gender, ethnic origin, religion etc., respect individuality and are consistent with

national laws and international voluntary guidelines, such as the UN Universal

Declaration of Human Rights

We deal with our supply chain in accordance with our Group and Regional

Procurement Code of Conducts.

We voluntarily engage in and support partnerships and business networks that

promote our business goals and CSR vision, such as the U.N. Global Compact,

WBCSD/CSI, the E.U. Alliance for CSR, the U.S. Concrete Joint Sustainability

Initiative etc.

We aim to be active in civic efforts and the process to advance the use and

benefits of our products and preserve the long term viability and economic

prosperity of our industry.

We encourage and recognize individual initiative and voluntarism in community

and civic activities at all employee levels, both related and unrelated to our

business.

We are committed to periodically having our CSR practices and reports

externally assured.

The company thus believe that Corporate Social Responsibility is not an externalised

activity nor is it only philanthropy. It is an internal process reflecting the soul of the

Company.

 

Titan's Community Development Policy - Experiencing the joy of sharing

Titan's initiatives improve the quality of life of the communities in which it operates.

Titan builds partnerships for the social development of the communities in which it operates.

Titan also focuses on initiatives, which can be sustained by the communities in which it

operates.

 

Titan has holistically integrated the CSR process and has programs covering the following:

Employing the physically challenged.

Women's empowerment: Partnering with self-help groups amongst rural women for

outsourcing components, bracelets - the Meadow Project with Myrada.

The Titan school and the Titan Foundation for Education -:a primary school currently

enrolling 300 students.

The Titan Scholarship meant for students in Dharmapuri and Krishnagiri based on

the criteria of academic performance and socio-economic background.

The Titan Township -building a sustainable community in Hosur providing a home to

1300 residents.

Community Development Forums - Eye care camps, Eye donation initiatives - Aids

Awareness- Programs for the differently abled - No tobacco drive, Children's

programs.

Volunteering in Hosur, Corporate Office as wells as Regions.

Partnering with NGOs like CRY, Concern India and Ashraya.

Improving the quality of life for children - the TATA -TCCI -TITAN Bal Bhavan

Children's park project at Cubbon Park , Bangalore .

Awards and recognitions

 The community appreciated and recognized Titan industries by awarding them:

The Government of Tamil Nadu's award for being the "Largest Employer of the

handicapped". This award was conferred on us in the years 1993 and 1996.

The Mother Teresa award for the best Corporate Citizen in 1998.

The Helen Keller Award in 1999.

FICCI-SEDF award in 2001-02 for Social Responsibility.

The Rotary Club of Bangalore Award for the Corporate Citizenship. The PHDCII

Award for Good Corporate Citizenship.

 

TITAN AND THE ENVIRONMENT - ISO 14001 but going beyond Compliance

Titan's products and services have very little or marginal impact on the environment.

Titan adheres to all related legal and statutory requirements. The Company is also extremely

conscious of environmental issues and has been recognized in this regard by the Hosur

Industries Association. The Company's environment control results are continuously

monitored with respect to both TNPCB and International Finance Corporation (World Bank)

norms. The Company has been certified under ISO 14001 EMS standards. The Company is

proactive in its approach towards the Environment and is compliant with statutory and

regulatory requirements.  The Watch, Jewellery as well as the Precision Engineering

Divisions are certified under ISO 14000:2004 Environment Management System Standards

and under ISO 9001:2000, Quality Management Systems Standards.

 

Initiatives taken:

Minimizing the use of cyanides in plating by adopting non-toxic PVD technology.

Eliminating the use of ozone-depleting substances ahead of the Montreal Protocol

deadline.

Minimizing the use of plastic packaging with eco-friendly materials.

Adopting Vermi-composting for the conversion of garden / vegetable waste in to

useful manure.

Piloting the study of conversion of industrial waste into useful civil materials.

Promotion of rainwater harvesting at manufacturing locations.

Waste water treatment with efficient effluent treatment and use for industrial cleaning

and gardening.

Recycling brass scraps.

Rainwater harvesting in 3 manufacturing locations.

 

Results:

Energy consumption per watch reduced by 41%.

Cumulative Energy savings - 26 Lac kwh.

Water consumption per watch down by 47%.

Daily plant water consumption reduced by 28%.

Brass scrap recycling back to process - saving during 2002 - 03 Rs.62 Lacs

Titan Industries is a signatory to the Global Compact and is committed to the

implementation of the 10 principles of the Global Compact. Titan Industries is also guided by

the principles of the Global Reporting Initiative.

  There is a process of continuous dialogue and feedback with employees, respective

departments and business partners, to ensure adherence. E.g. Labour standards are complied

with as per the laws of the land and there is no evidence of any employment of child labour.

 

 CORPORATE SUSTAINABILITY

Titan Industries has a clearly defined policy on Corporate Sustainability. The

approach of its policy continues to be at three levels, the first one being at the Group level

where it works closely with the Tata Council for Community Initiatives, the nodal apex body

for facilitating Tata Group initiatives.

At the Company level, key initiatives have been:

Engaged 330 rural women through self-help group and provided them opportunities

for various  outsourced activities in manufacturing/assembling of Watches, Jewellery

and Precision Engineered products.

Over 600 needy students in the disciplines of Vocational, Medicine & Engineering

have benefited from Titan Scholarship program.

The Jewellery Division started the concept of Karigar Park by providing equipment,

material and training to Karigars so that they can work directly under the supervision

of the Division and earn money on job-work without any exploitation. At present

there are more than 400 Karigars working on six Parks.

The Company has established a Basic Training Centre to impart technical skills to

youth from lower economic background to make them employable. Currently 96

students are studying in the centre.

 

At the individual level, Titan volunteers comprising the Community Development Forum

have taken up comprehensive vision care program in and around Hosur with a

leading Super Specialty Eye Hospital in Bangalore. Eye camps are being conducted and an

eye care clinic has been opened in Hosur to cater to the needy and poor. Other programs

include programs for skill development for rural women, infrastructure improvement in

villages and creating awareness on hygiene and clean environment.

Corporate Social Responsibility (CSR) poses an integral part of the TITAN Group’s

philosophy and to a great extent directs and drives the way they operate and exercise business

activity since our beginning.

A short definition to define the company’s approach is given by them as following:

‘We understand the term Corporate Social Responsibility to refer to the whole range of

activities, programs and services to our stakeholders (internal and external) which we have

organized voluntarily and are implementing above and beyond those activities required of us

by legislation’.

TITAN has endorsed many initiatives in the CSR front; it has joined Jacques Delors’

Group ‘against Social Exclusion’, founded the Greek Network for Corporate Responsibility,

signed the UN Global Compact in 2002 and participates in the World Business Council for

Sustainable Development (WBCSD).

USJE’s CSR Policy is implemented in those areas where the TITAN Group has

particular knowledge and experience – the necessary condition for the added value we intend

to generate. Therefore, the three areas on which concentrate our efforts are:

1.Education

2. The environment

3.The health and Safety in the workplace

CSR RELATED PROJECTS

Corporate Social Responsibility and sustainable development play a pivotal role in the

operations of TITAN Group and Cementarnica USJE AD and they have been part of our

culture for decades.

They have embedded them into their corporate strategy and value system not only out of a

sense of responsibility, but primarily because they are convinced that they benefit both the

societies in which they operate as well as their stakeholders. In 2008, Cementarnica USJE

implemented many CSR related projects and activities for its own employees:

   • Donations in kind 

   • Additional severance payments (retirement or disability)

   • Money aid to employees

   • Monetary “reimbursement” to next of kin (natural death)

   • Career counselling for employees children

   • Christmas children’s parties

   • Scholarships for employees and their children

   • Program of vocational guidance for staff children 

   • Additional vacation bonus

   • Christmas gift vouchers

   • Woman Day

   • Doctor for ladies

   • Bonus

   • Jubilee prizes (Continuous service in the Company)

In addition, Usje provided its CSR support to the community and society at large:

1. Annual Scholarship Program 

Two scholarships are provided annually to top university students for MBA studies at

the ALBA University in Athens, Greece. Cementarnica USJE AD covers the full cost of

tuition plus a monthly allowance for living expenses. In 2009/2010 Usje extend its

scholarship program on providing scholarships for graduated prospectus students at the

postgraduate studies on Faculty for Economy at the Unevirsety St. Kirilus and Metodius. 

2. Horticultural arrangement of the yards of the elementary schools in the Municipality

of Kisela Voda

Planting trees and flowers as well as horticultural arrangement of schoolyards in the

elementary schools in the Municipality of Kisela Voda. 

3.Vocational Training Program for Young unemployed from Neighboring Communities

Young unemployed participants have been acquainted with practical and theoretical

knowledge for mechanical maintenance, cement producing, Health & Safety and

environmental issues to enhance and support their professional prospects.

TATA INTERACTIVE SYSTEMS: Creating Value for Children with Learning

Disabilities

Tata Interactive Systems (TIS) has, over the past few years, been using its project

management and teaching skills to help children with learning disabilities in Mumbai and

Kolkata. It started with contributing funds to the Learning Disabilities Clinic at the

Lokmanya Tilak Municipal General (LTMG) Hospital in Mumbai and has now blossomed

into a much broader and deeper engagement.

TIS works on multiple levels and helps children with learning disabilities financially,

clinically and with their curriculum. Development of software, creating special books and

other educational literature etc are its key activities. The company’s employees also volunteer

in the schools to teach and use a learning disabilities awareness kit. Additionally, the

company organizes the annual Tata Interactive Learning Disability Forum, a knowledge

sharing platform. The resultant benefits have been the incorporation of learning disability in

medical and B Ed syllabi and changes in government policies. TIS, has also created a

database on children with learning disabilities to improve information management. More

than 1000 children who face learning problems have been certified as learning disabled and

480 schools have registered for a learning disabilities certification and have begun spreading

awareness about the condition.

Sustainability Initiatives: Physically Challenged Employees

One of the earliest CSR activities of Titan Industries Limited has been its policy of

providing employment to the Disabled. It adopted a very people friendly approach in

recruitment, identification and training and subsequent placement of these physically

challenged brethren.

Recruitment

Titan’s unique recruitment strategy meant combing the countryside in search of

intelligent, capable, yet physically challenged candidates in the age group of 18 to 25.

Appropriate selection procedures were adopted, depending on the nature of the disability. The

company arranged counselling sessions with the families, to make the transition into the

factory smooth. These employees are involved in polishing watch cases, strapping and

packing the watches, assembling, sorting, buffing, making ornaments, etc. Titan

subcontractors also hire large numbers of disabled workers.

To make the initiative sustainable and to address the special needs of these

employees, the following ongoing steps are taken: training to enhance technical competence,

computer literacy, non-discrimination policies, creating a conducive work environment by

creating an ergonomic working area, effective grievance handling, and counselling to tackle

problems such as exploitation, marital conflicts and emotional problems. As a result of the

employment opportunity and other initiatives, Titan believes that the quality of life of these

employees has improved to a great extent.

Workplace modifications

Ergonomically designed workspaces were just as important. For example, the

provision of handrails makes walking within the Titan factory effortless for physically

challenged employees.

Training - Skill and Career development

Several steps were taken to address their special needs like training to enhance

technical competence and Training in computer literacy, especially to the hearing impaired.

HR policies

Additionally Titan also was far ahead of its times in terms of designing HR policies

relating to the employment of the Disabled like non-discrimination in all policies including

promotions; creating a conducive work environment by effective grievance handling; and

counseling for problems like, exploitation, marital conflicts,(especially when the partner is

not disabled),emotional and other behavioural problems. Those with disabilities were housed

with regular employees, which contributed to their integration with the rest of the workforce.

Even work areas were made common.

EMPOWERING WOMEN – THE MEADOW Initiative

Management of Enterprise and Development of Women (MEADOW) began as a

program to help combat female infanticide in the Dharmapuri district, and to better the

standard of living of women in these communities. Titan’s involvement started by hiring

women to make chappatis for the factory workers. Later, they were asked to take care of the

laundry. In 1995, Titan joined hands with Myrada, an NGO that works on social causes, and

started a bracelet-making unit. Satisfied with the professionalism displayed by these women,

Titan then decided to convert the bracelet unit into a privately held company, one owned and

run by the women themselves. MEADOW, a subsidiary that is solely dedicated to women’s

empowerment, was thus born. To make the initiative sustainable, Titan began providing the

technical training and expertise of running a business to MEADOW. Today, nearly 200

women of these villages own MEADOW. MEADOW has three women directors who have

seen the organization grow from its early days. Profits of the company are equally shared

among the employees with a significant amount being added every year to the corpus fund,

which takes care of the company’s various needs and also raises the standard of living for the

employees’ families. Titan’s association with the MEADOW program has helped to empower

200 women in the workforce, who take pride in the fact that they have been involved every

step of the way in building and running their company. They have reached levels of

capability where they can directly negotiate with Titan in the annual revision of piece rates,

handle all purchases, control the movement of their vehicles, draw up work schedules,

calculate payments, follow up on receivables, do the base work for meeting all statutory

requirements etc. In many cases, these women have become the most important wage earners

in their families. Titan representatives meet with MEADOW employees on a regular basis for

weekly and monthly production related meetings and for periodic meetings on annual price

negotiations, new opportunities and major process modifications.

In 1995 Titan in collaboration with MYRADA, a reputed NGO organized these

women into self-help groups and contracted laundering of uniforms with them. It then

graduated into other modes of mutually beneficial relationship, culminating in these women

being contracted to assembling of metal watch straps (bracelets). It was envisaged as a win-

win situation; Titan would get its bracelets and MYRADA would succeed in securing

livelihoods for poor women from the rural background. Titan provided them with Capital

Equipment, besides training them in these skills.

Presently about 400 women are engaged in highly skilled operations spread over 14

units. The average annual earning is around Rs. 1.50 lakhs. Most of the women have helped

their families pay off debts; have gone on to create assets like houses, purchase of gold

ornaments for themselves etc. In short, they have become financially self-dependent.

Mr. Perfect – An Initiative of Jewellery Division, Titan Industries Limited

The Indian Jewellery market is huge, estimated at Rs. 90,000 Crores. Though the

market is huge, the approach has been very traditional with over 3 lakh retailers. It is still

viewed as a cottage industry or in the unorganized sector with more than 10 lakh goldsmiths

working in primitive, unsafe and unhygienic conditions. Jewellery is still completely

dependent on the human skills of the goldsmiths, called Karigars. The visible impact of such

abysmal work conditions is the diminishing Karigar fraternity. Jewellery making is no longer

an attractive career option, characterized as it is by abysmal work conditions and low wages

and in some areas it borders on bonded labour. All these lead to high burnouts. The average

work span of a traditional craftsperson working in these conditions is about 25 to 30 years,

with most of them starting as child labour and their work life coming to a halt by about 40

years of age. Most of them end up with poor eyesight, dystrophy in the back and lower limbs

and lungs. All these lead in turn to lower productivities and thus diminishing their earning

potential.

In such a dismal scenario of Jewellery making, Jewellery Division entered with a

mission of “to continuously create wealth for all our stake holders, by transforming the

Jewellery business and by being the gold standard in design, shopping experience and ethical

practice”. Mr. Perfect aims to improve further their work conditions etc in line with modern

processes as existing in our manufacturing plants. Amongst its guidelines are a commitment

to provide a right layout / environment incorporating right process of Jewellery making, right

equipment aimed at enhancing quality with an emphasis on safety, ergonomics and hygiene

for the Karigars. It aims at a multifold increase in the earnings of the Karigars and

improvement in their work-life span on account of improvements in productivity, thereby

benefitting the Company by way of reduced inventory, thus ensuring a smile on the face of

the Karigar. Through this initiative the division is trying to ensure that the traditional Indian

skill of gold making does not die down. The division is also attempting to collaborate with

the National Skill Development Council.

Titan Scholarship Scheme

The Titan Scholarship scheme was formally announced on 11.3.1992 by

Mr.A.L.Mudaliar, then Chairman of Titan Industries Limited. Starting with 35 students in

1992, over 780 students of ITI, Diploma, Engineering, Medicine and Arts and Science

Graduates have till date benefited from this scheme. The objective of the scheme was to

identify and encourage meritorious but economically underprivileged students of

Dharmapuri, a designated backward district of Tamil Nadu to pursue higher education in

various fields by awarding scholarships for the entire period of their higher education.

A process of continuous improvement has been instituted based on periodic impact

studies of the scholarship scheme. New initiatives like awareness programs on career

enhancement, motivation and career guidance have also been introduced. There is also a plan

to adopt an ITI in the area around our manufacturing plant in Hosur, either at Salem or

Namakkal.

PHILANTROPHY

With a purpose to identify really good organizations and also causes with which Titan

could associate as part of its Corporate Social Responsibility, a totally new exercise was

attempted in the current year. A detailed questionnaire / template were created and

organizations which were seeking support were asked to respond. The response was

tremendous.

A cross – functional team consisting of members from Business Excellence,

Logistics, Commercial, Goldplus, Fastrack but interested in community development was

constituted define the process.The CSR team evaluated over 90 applications and identified

the following three NGOs with whom Titan could partner for the current year.The due-

diligence team, after intense deliberations evolved ‘Education with noticeable impact with

clear focus on employability of differently abled and socially / economically underprivileged’

as the Evaluation Criterion.

Corporate responsibility begins at home

Titan Industries believes that corporate responsibility begins with the employees. The

company ensures that the harmony, peace and inclusive approach at work place are

maintained. Efforts are made to engage the employees in programs designed to fulfil our

ecological and social responsibility. Various work-place initiatives are conducted to achieve

this: War on Waste - an initiative that reduced the impact of manufacturing operations on the

environment. At Titan Industries, Corporate Social Responsibility is more than philanthropy -

it is an internal process that reflects the soul of the company.

CONCLUSION

Titan’s engagement in CSR appears to be grounded in the company’s vision and sense

of its role in Indian society. Human rights-related CSR seems to be fully integrated into its

business model so as to be a way of life for the corporation. As such, there do not appear to

be tensions between the company’s desire to do business and its desire to promote CSR.

Titan’s philosophy was encapsulated by Mr. Chakravarti, speaking in October 2004 at a

conference in Hong Kong: “Simply put, Business is no more than a trustee of society,

environment and the community. What comes from the people must go back to the people. In

short, we try and remember the very reason and basis of our existence as a Company - is for

the society. If society is sustained, so will we be”