Tata Group Sustainability Strategy

Slides:



Advertisements
Similar presentations
Alter – Information Systems 4th e d. © 2002 Prentice Hall 1 Moving Towards E-Business As Usual.
Advertisements

National Prevention Strategy
Strategic Planning and the Marketing Process
international strategic management
Integrating SHE Management Systems in Organizations: A case for Business Sustainability Presentation by A. Chimutanda SHAW 7-9 October 2009.
[Imagine School at North Port] Oral Exit Report Quality Assurance Review Team School Accreditation.
Strengthening innovation in chemical clusters
Smart Grid: an Ontario Perspective Brian Hewson, Senior Manager Regulatory Policy Hamilton May 8, 2013.
A © 2001 Arthur Andersen. All rights reserved. The Accountants Role in the New Economy Robert A. Johnson February 5, 2001.
CDCs 21 Goals. CDC Strategic Imperatives 1. Health impact focus: Align CDCs people, strategies, goals, investments & performance to maximize our impact.
Knowledge Management Looking Back, Looking Ahead-- and Its Future for the Three Sectors Brook Manville, United Way of America Mitre Corporation TEM Dec.
1. 2 Why are Result & Impact Indicators Needed? To better understand the positive/negative results of EC aid. The main questions are: 1.What change is.
Illinois Department of Children and Family Services, Pathways to Strengthening and Supporting Families Program April 15, 2010 Division of Service Support,
National Academy of Engineering of the National Academies 1 Phase II: Educating the 2020 Engineer Phase II: Adapting Engineering Education to the New Century...
Recognizing Opportunity
European Commission Directorate-General Employment, Social Affairs and Equal Opportunities New Skills for New Jobs Annual Northern Ireland Skills Conference.
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.
Responsible Care and its relation to Global Product Strategy.
Gaining Senior Leadership Support for Continuity of Operations
Presenter: Beresford Riley, Government of
IBM Corporate Environmental Affairs and Product Safety
UWSEM Investment Guidelines and Strategy Frameworks for
The Road to Community Impact: New Answers to Old Questions.
1. 2 August Recommendation 9.1 of the Strategic Information Technology Advisory Committee (SITAC) report initiated the effort to create an Administrative.
Crystal's Journey to Sustainability
1 Capacity Training New Mexico Strategic Prevention Framework.
© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Better business outcomes equal better.
1 The Road to Merit Pay Merit Pay Workshop August 2013 Office of Human Resources 1.
Chapter Two Company and Marketing Strategy
Target Costing If you cannot find the time to do it right, how will you find the time to do it over?
Orientation and Training Susan A. Abravanel Sydney Taylor June 25 th, 2014.
Strategic Financial Management 9 February 2012
Interdepartmental Working Group on Social Finance: An Introduction to Social Enterprise January 19, 2012 DRAFT.
Introduction to Management Accounting
MANAGEMENT RICHARD L. DAFT.
Controlling as a Management Function
EESE O&E Committee Update & Next Steps May 14, 2010.
Eaton Business System Overview
Chapter 12 Strategic Planning.
Marketing Strategy and the Marketing Plan
PARTNERSHIPS OF GOVERNMENTAL AND NON-GOVERNMENTAL ORGANIZATIONS (ASSOCIATIONS) IN THE SPHERE OF TOURISM: RUSSIAN AND FOREIGN EXPERIENCE Moscow, Russian.
Internal Analysis.
Implementing Strategy in Companies That Compete in a Single Industry
Introduction to Entrepreneurship and New Venture Creation Rui Baptista
NORMAPME ISO User Guide for European SMEs The essence of.
Becoming a Strategic Partner: Key Leadership Competencies
Advancing Alternative Energy Technologies Glenn MacDonell Director, Energy Industry Canada Workshop on Alternatives to Conventional Generation Technologies.
Our Vision, Mission and Core Values
Winning Strategy 2 CSR plan
Planning for the Future Board approved Board approved o 10+ Year Envisioned Future o 3-5 Year Strategy Map o FY14 Operational Objectives o Input was obtained.
Privileged and Confidential Strategic Approach to Asset Management Presented to October Urban Water Council Regional Seminar.
Organizational Structure and Controls
ISO Richard Welford CSR Asia © CSR Asia 2011.
Corporate Social Responsibility- do we need a Statutory Instrument? Presented to the Zambia Alternative Mining Indaba conference- July 17, 2013 Sombo Chunda,
State Policy & Green Jobs 1.0: Economic and Workforce Development EARN Annual Conference December 9, 2008 Jeannine La Prad, President & CEO.
Global Risk Management Solutions Risk Management and the Board of Director: Moving Beyond Concepts to Execution Anton VAN WYK Partner, Global Risk Management.
Sustainability A Competitive Advantage In Your Career “Every single pressing social and global issue of our time is a business opportunity” (Peter Drucker)
The concept of Managing Sustainability on Toyota
EMU Strategic Planning Strategic Planning Material Mission/Vision/Values Goals and Objectives January 10, 2014.
Corporate Social Responsibility LECTURE 19: Corporate Social Responsibility MGT
'Change Management in European Enterprises' International Meeting Athens, September 14, 2007 Michael Spanos Managing Partner
PREPARED BY: NICHOLAS ANASINIS MARIA ISMAIL PATRICIA JURCA LEI YANG CORPORATE SUSTAINABILITY WORKOUT TEN YEAR SUSTAINABILITY PLAN APRIL 30, 2010.
Chapter 4 Corporate Social Entrepreneurship. Objectives To understand concept of Corporate Social Responsibility To understand concept of Corporate Social.
Responsible Care® Awareness for Managers 1. DISCUSSION POINTS 2 WHAT IS RESPONSIBLE CARE®? FEATURES OF RESPONSIBLE CARE® HOW DOES RESPONSIBLE CARE® ADD.
Interaction Private Sector Working Group Discussion with USAID Global Partnerships January 30, 2014.
MTT Agrifood Research Finland - strategy Target for 2015 and operating model set for achieving it.
Today’s managers & leaders are challenged unlike any of the past generations in their roles.
Sustainability Internal Drivers and Self-Assessment Dennis J. Stamm
REFLECTED IN JAMAICA’S ENERGY POLICY
Sustainability Internal Drivers and Self-Assessment Dennis J. Stamm
Presentation transcript:

Tata Group Sustainability Strategy Mathew Ashley Bill O’Brien Rachel Reiter Kevin Richards

Executive Summary Goal Recommendations Develop a ten year strategy to continue Tata’s profitable growth and sustainability leadership while addressing: Tata’s growing global presence Evolving definitions of sustainability Increasing demand for measurement and transparency Recommendations Simplify Tata’s internal definition of sustainability and articulate it through a credo Create a separate subsidiary to coordinate, communicate, and expand sustainability efforts across every business unit Establish a “multi-local” strategy tailored to the unique challenges and opportunities of each country and business Executive Summary

Current Situation Many independent initiatives and organizations TCCI Innometer Annual Management Workouts Tata Trusts Tata Power Indian Hotels As Tata grows globally, how can the company preserve its unique tension between profit and purpose to meet evolving definitions of sustainability? Tata Motors Tata Chemicals TQMS Tata Relief Committee Tata International Tata Index for Sustainable Human Development Innoverse Tata Tea Tata Consulting Services Tata Protocol for Internal Assessment Tata Steel CSR silos are usually the norm Steel TeleCom Tea International Consulting Hotels Motors Power Chemicals Ongoing community service Community literacy Tetley Tea Rainforest Certification Employee generation Community literacy EARTH Project Tata Nano Combat Climate Change (3C’s) Innovation Center CII Energy Mgmt Award Animal husbandry IIP Certification Carbon mapping Health & wellness Green Globe collaboration Recycling program Ethical Tea Partnership (ETP) Sustainability council Community development Tata Swach (H20 purifier) EMS standards Tata Swach (H20 purifier) Imported Coal The status quo has risks Future funding is loosely defined Employee standards inequity Measurement and transparency Inadequate stakeholder communication Role clarity Overlapping efforts

Sustainability Definition & Credo Goals of Tata’s corporate communication on sustainability Simple and easy for employees to understand Flexible for changing and differing definitions of sustainability Creates a “roadmap” for employees and stakeholders Inspires new thinking for existing businesses and processes Articulates Tata’s aspirations for sustainability Sustainability Definition & Credo Sustainability Definition “Corporate Sustainability is a local, national, and global endeavor for creating long-term economic, social, and financial growth for the enterprise and its stakeholders.” “Corporate Sustainability (CS) is integral to value-creation in our business through the enhancement of human, natural, and social capital complementing their economic and financial growth in order to give the enterprise an enduring future and also help create and serve a larger purpose, at all times. It facilitates accountability to all stakeholders as a systemic practice.” The Tata Credo Everything we do within Tata can be re-examined through a sustainability lens. Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. Everything we do within Tata can be re-examined through a sustainability lens. Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5) Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Sustainable thinking and implementation is a key skill that every future Tata manager should possess. Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible. All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Sustainable thinking and implementation is a key skill that every future Tata manager should possess. Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.

TSS Value Creation

Organizational Chart Breakouts

Organizational Chart Breakouts Create New Markets Internal Consultants: Facilitation & subject matter expertise Innovation Center: Creates new products or new markets for existing products Financial Planning: Funding, budgeting, agreement with shareholders Internal Audit: EVA in collaboration with TQMS Climate Change Task Force: Internal conservation across all business units

Organizational Chart Breakouts Build Intellectual Capital Management Training: Rotations & development Climate Change Task Force: Grow environmental CSR Innovation Center: Improving business practices

Organizational Chart Breakouts Monetize CSR Knowledge Financial Planning: External fundraising External Audit/Measurement: Outside credibility External Consultants

Organizational Chart Breakouts Strengthen Brand Communications: Publicize CSR efforts in receptive markets Trust/Endowments: Protect & grow company culture of philanthropy External Audit & Measurement: Company-wide CSR report

Organizational Chart Breakouts Attract & Retain Talent Trust/Endowments: Protect & grow company culture of philanthropy Management Training: Rotations & development Communications: Employee engagement Financial Planning: Employee incentives Innovation Center: Improving business practices

If managed properly, TSS can address and overcome traditional barriers to implementation and common CSR challenges. Implementation Make TSS part of BU strategic plan & operating review Incentivize BU managers A silo mentality develops (Robert Sutton) Project prioritization committee Budgeting process TSS is under-resourced & overcommitted Management rotations HR training/retraining Recognize & reward success Hiding place for ineffective managers Continue to support innovation from “ground up”, everyone part of success Corporate culture diluted

Challenge & Opportunity Sri Lanka, Thailand, Vietnam Growth opportunities should fit Tata’s values while staying sensitive to economic, environmental, and social considerations in local communities. Multi-Local Strategy Tata Values Country Challenge & Opportunity Carbon footprint Recycling Water purification Ethical sourcing Unites States Education, Regulations, Green investments China Gov., Pollution, Human Rights, Economy EU Safety nets, Green Movement Brazil Deforestation, Natural resources Human rights Gender rights Education Literacy Health, HIV/AIDs Fair wages Canada Safety nets, Green Movement Gulf CC Oil rich, Cultural views, Gender roles South Africa HIV/AIDS, Developing economy Sri Lanka, Thailand, Vietnam Developing economy, Government stability, wages

Multi-Local Implementation TSS Facilitation of Initiative END OF LIFE VEHICLES (ELV) PROJECT Initiative Example ELV processing is already mandatory in the EU By combining expertise across businesses, Tata can create an ELV initiative in the EU and new markets The estimated value of an ELV-processed vehicle is $267, which could be split between Tata and the customer Multi-Local Implementation Tata Credo Alignment 1) Everything we do within Tata can be re-examined through a sustainability lens. 3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 7) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. TSS Facilitation of Initiative Leverage business knowledge in target markets Measure returns and costs across all businesses Coordinate business unit interactions Communication and marketing to promote initiative Secure NGO support Steel International Motors Power Chemicals Tata ELV Services

Multi-Local Implementation TSS Facilitation of Initiative CSR SOFTWARE CONSULTING Initiative Example Leveraging Tata’s CSR core competency into a sustainability software consulting practice Developing Tata Consulting Services group specializing in Enterprise Carbon Accounting (ECA) software Test and develop new market for “human” sustainability software Future value creation through external CSR consulting beyond software Multi-Local Implementation Tata Credo Alignment 5) Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10) Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible. TSS Facilitation of Initiative Finance and audit function provides measurement and transparency Develop “human” software in Innovation Center and through inter-company collaboration Climate change group leveraged for CO2 tracking software Seek out potential clients across existing business Consulting Steel Power Telecom International Tata CSR Consulting

External Risks ü External Risk Credo TSS Multi-Local Strategy If implemented correctly, our recommendations can create value by anticipating outside change and giving Tata the structure and capability to continue profitable sustainability. External Risk Credo TSS Multi-Local Strategy Continued Global Recession ü Market Indifference Stakeholder Obstructions Evolving Definition of Sustainability

Timeline & Action Plan Costs and Returns Next Steps Initial investment for TSS and initiatives: $52M TSS assumed to have up to 500 headcount Total Tata 2009 investment in social initiatives: $159M (Graham, “Too Good To Fail”, 2010) Additional expenditures of $20M - $60M per year as staged initiatives roll out Minimum 10% return projected if Tata brand value increases by $4M per year Next Steps Discuss TSS idea with key leaders Begin work on standards for employee equality across countries Investigate initiative feasibility Investigate legal/tax/reporting implications of subsidiary If preliminary feedback is positive, hold an offsite leadership meeting to finalize credo, TSS plans, budget, and communication strategy.

Questions? Thank you

TSS Facilitation of Initiative Tata Energy Efficiency Initiatives Initiative Example Tata Steel leads group on energy efficiency programs and has several innovative pilot programs Reduce its carbon footprint in existing and new markets Projected to save $3.1 million in fuel costs, savings from other energy programs $17.9 million with initial roll out in India, EU, China and expanding to other markets Tata Credo Alignment 1) Everything we do within Tata can be re-examined through a sustainability lens. 2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 6) All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices TSS Facilitation of Initiative Leverage business knowledge in target markets Measure savings and costs across all businesses Coordinate business unit knowledge sharing Communication and marketing to promote initiatives Ensure alignment with Climate Protocol Secure NGO support Steel International Motors Power Tea Tata Energy Efficiency Initiatives

TSS Facilitation of Initiative COMBATTING CLIMATE CHANGE (3C’s) Initiative Example Diversify energy mix and develop strategies to meet the expanding demand for power over the next ten years Work with government stakeholders to develop alternative energy technology Carbon footprint reduction opportunities through the use of nuclear, wind, solar and hydro Tata Credo Alignment 1) Everything we do within Tata can be re-examined through a sustainability lens. Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 10) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. TSS Facilitation of Initiative Integrate Power Sustainability Council into TSS Measure returns and costs across all businesses Coordinate business unit interactions Communication and marketing to promote initiative Secure governmental support Steel Consulting Motors Power Chemicals Tata Power Initiative

TSS Facilitation of Initiative STRATEGIC REORGANIZATION FOR TEA GROUP Initiative Example Transparent reporting of ethical sourcing through the Rainforest Alliance Certification (RAC) in Western European and North American Renewable packaging through Life-Cycle Analysis Fair Trade certified products and standards Tata Credo Alignment 2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 9) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. TSS Facilitation of Initiative Integrate Tetley sustainability initiatives throughout Tea Group Measure returns and costs across all businesses Coordinate business unit interactions Communication and marketing to promote initiative Share Tata Chemical competency in sourcing , packaging, and distribution to Tata Tea - Rainforest Alliance provides ethical sourcing - ETP is a non-commercial alliance of over 20 international tea packers who share a vision for a thriving tea industry that is socially just and environmentally sustainable Tea International Power Chemicals Tata Tea Group

TSS Facilitation of Initiative Tata Chemical Initiative TATA “GREEN CHEMISTRY” INITIATIVE Initiative Example Flue gas treatment, carbon absorption and nano glass coating for insulation Entered into the bio-fuels market in 2007 Fresh produce sourcing, packaging, and distribution Innovation Center Center for Agriculture and Technology Tata Credo Alignment 1) Everything we do within Tata can be re-examined through a sustainability lens. 3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 7) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. TSS Facilitation of Initiative Integrate Innovation Center into TSS Measure returns and costs across all businesses Coordinate business unit interactions Communication and marketing to promote initiative Share competency in sourcing , packaging, and distribution to Tata Tea Steel International Tea Power Chemicals Tata Chemical Initiative

TSS Facilitation of Initiative Tata Hotel Conservation Initiative Initiative Example Indian hotels is pursuing an internal project known as EARTH There are best practices from other hotel chains and Tata companies that can be leveraged for near-term immediate savings Long term goal should be LEED certification for new hotels Total annual savings/profit for 8 targeted hotels = $1M Tata Credo Alignment Everything we do within Tata can be re-examined through a sustainability lens. Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. TSS Facilitation of Initiative Work with other Tata companies to discover conservation best practices Set up conservation measurement system for hotels Communication strategy for hotel customers to get help with conservation efforts Leverage Climate Change task force Tea Consulting Hotels Power Tata Hotel Conservation Initiative

FINANCIAL VALUATION

FINANCIAL VALUATION

FINANCIAL VALUATION

FINANCIAL VALUATION

DECISION ANALYSIS MATRIX

DECISION ANALYSIS MATRIX

Current Organizational Chart

TQMS Innovation Matrix

TQMS Communication Structure

TQMS Collaborative Research

TQMS Facilities for Learning

Time, Difficulty, Impact, & Risk