Best Corporate Steward: Tata Consultancy Services
The "Shared Value" Category
Excerpts from the nomination:
TCS is an IT services, consulting, and business solutions organization. TCS provides consulting-led, integrated portfolio of IT, business process outsourcing, infrastructure, engineering, and assurance services through more than 226,751 consultants in 42 countries.
Tata is probably the largest social enterprise in the world. Jamsetji Tata initially built the Tata company from a faith-based ethos of addressing the needs of one’s fellow man through “good thoughts,” “good words,” and “good deeds.” This background sets the agenda for the 100 Tata companies including TCS.
The structure of the Tata business places charities as the majority shareholder. Tata Consultancy Services is 75 percent owned by Tata Sons, which in turn is 66 percent owned by Tata Trusts. The dividends paid by TCS and other companies to Tata Sons and then in turn to the Tata charitable trusts result in the order of $100 million going to good causes annually.
The “Impact Through Empowerment” mantra is at the core of our CSR program, and creates a platform for the company and our employees to play an active role in social good. The unique ownership structure of TCS ensures that the interests of shareholders and those of local communities as well as that of the larger society are fully aligned, allowing the organization to perform greater social good by just focusing on running the business well. The most significant, direct economic impact we have is the productivity benefits that our clients gain from the automation of their various business processes using the IT applications we build for them.
The CSR team is a central organizational resource group that creates the program, researches, and develops opportunities based on geography. They set up partnerships that employees can leverage in their respective locations.
TCS strategically aligns its skills and competencies with the largest needs in local geographies through the core areas of the TCS CSR programs—education, health, and environment. The choice of education as a focus flows from TCS being in the knowledge domain. Similarly, attention to the cause of health acknowledges that health is a vital precondition for promoting social good. Concern for the environment is in line with our belief that this global cause demands our attention to ensure a sustainable and productive planet.
We inspire and engage employees through focused CSR initiatives that create an incredible impact on the community. In FY12, our employees volunteered 58,362 hours of their personal time to support education, health, and environment initiatives in the community. TCSers are passionate and dedicated to contribute towards empowering the socio-economic fabric of the regions of our operations, while also helping the company succeed.
Sustainability is integrated into the top-level goals and objectives and is cascaded down to the senior leadership team and staff with functional responsibilities using the Balanced Scorecard framework. Leadership and resultant remuneration for the sustainability of the business is with the CEO and a number of his direct reports. The Head of HR collaborates with other heads of departments to provide a focused lead.
TCS programs have a positive impact on people (inside the company and outside) and on the environment. Sustainability programs range from changes in business process and practice, thus reducing carbon footprint and associated improvement in the wellbeing of employees, through to projects that improve the lives of 70 Million at the bottom of the pyramid.