10-Year Sustainability
Strategy
Aspen Business and Society Case Competition, 2010
Stefan Baumeister
Cécile Fontaine
Jarno Laitinen
Benjamin Toscher
Contents of the presentation
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Tata’s Rich History in Sustainability
The Challenges Tata is Facing
Recommendations
10-year Sustainability Strategy
Value Creation Through Sustainability
Strategic Conclusions
4/8/2015
2
Transition in TATA CSR:
From Ideology to Corporate Governance
Sustainability
TCS
to
DJSI
Schools
For
Children
Welfare
Dept.
Eight
Hour
Day
TATA
Human
Index
Carnegie
medal
Code
Of
Conduct
GRI
Steel
#90th
WEF
TQMS
Leave
With
Pay
Voluntary
TCCI
Profit
Sharing
Foundation building
Consolidation period
Expansion
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
4/8/2015
Leadership
2020
3
Sphere of Sustainability
SUSTAINABILITY LEADERS
Corporate
social
entrepreneurship
SR, ISO 26000
Transparency
SUSTAINABLE
DEVELOPMENT
Accountability
Environmental
Economic
Charity
Business morals
Respect of
int’l norms of
behavior
Design for
excellence
(DfX)
Social
Respect of
stakeholder
interest
Respect of
the rule of
law
4/8/2015
Respect for
human rights
Ethical
behavior
Setting new
standards
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Challenges
• CS Traditions vs. CS Expectations
• Managing Environmental Impacts
• Becoming a Global Company – Transparency &
Accountability
• Philanthropy vs. Profit
• Deriving Value from Sustainability
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Recommendations for change
1) Building TQMS to QEEC - the Quality and
Environmental Excellence Centre
2) TCCI is made mandatory
3) Mandatory group-wide EMS and OHS
4) Tata Sons goes public
5) Philanthropic activities continue through Tata Trusts
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QEEC – Structure and value
• QEEC uses existing management systems to improve Tata
groups environmental performance
• Promotes a closed loop corporate ecosystem, by identifying
connections in:
– Energy
– Material
– Knowledge
• Creates opportunities for high-growth ventures
– External consultancy
– Spin-off’s
– Radical Innovations
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10-Year Sustainability Strategy
Design &
Review
Implementation
Operation
Years 1-3
Years 4-6
Years 7-10
Pillar of Sustainability
4/8/2015
Global Coordinator
Social
TCCI
Environmental
QEEC
Economic
Tata Financial Services
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Capturing Value Model
Financial
Value
Knowledge
Value
Tata Sons interests
in group companies
QEEC projects,
high-growth
ventures
Operational
Value
Brand Value
Access to emerging
markets
4/8/2015
Image in India
and abroad
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Design and Review Phase
Value Captured
Strategic Need –
Example Action Task
Reinforcing Tata values – TCCI made mandatory
Building culture of organizational learning – QEEC
begins learning organization project (LOP):“Best Practices in
EMS”
Sense feedback from key stakeholders – LOP:
“Financial adv. of attracting SRI” and start negotiations with
Tata Sons shareholders
4/8/2015
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Implementation Phase
Value Captured
Strategic Need –
Example Action Task
Enhancing Tata Sons financial capabilities and
competitiveness – Tata Sons issues equity, marketed to
SRI funds
Harvest value from knowledge generation – QEEC
achieves group wide saving through excellence programs on
life-cycle thinking, reverse logistics and product innovation
Unifying the image of TATA as the global leader in
corporate sustainability – Global PR-campaign “Being the
Change”
4/8/2015
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Operation phase
Value Captured
Strategic Need –
Example Action Task
Preserving Tata’s historical values - Recognition on
SRI indices
Translating sustainability problems to global business
opportunities – QEEC launches high growth ventures
building financial value in developed and developing
markets
Continuously developing Tata group companies
sustainability performance – TCCI reveals group-wide
knowledge database in TCCI annual workout
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Value through sustainability
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Operational Value
Financial Value
Brand Value
Knowledge Value
US$ 5 billion
US$ 64 billion
US$ 11 billion
US$ 20 billion
• Tata Sons Total Value, US$ 110 billion
under the 10-year strategy
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Strategic Conclusions
• Tata Sons goes public to
– Advance openness and accountability
– Expand capital base and deleverage
– Compete as a global company
• Philanthropy continues through the trusts,
– All shareholder interests are aligned in long term
– Trusts maintain majority ownership in Tata Sons
• The strategy’s implementation is driven by
– Operational plan incrementally building corporate culture and
governance
– Continuous value creation generating business momentum
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“Being the change”
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