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Authors: Heike Bruch; Urs Frei
Published by: University of St Gallen
Published in: 2005
Length: 29 pages
Data source: Field research

Abstract

This case deals with corporate social responsibility (CSR) and related change processes at Tata Steel. This company was a CSR leader in India for decades, virtually running the city of Jamshedpur. After 1991, Tata Steel was coping with the tension between profitable growth and social responsibility by harmonising these seemingly conflicting demands. The company reduced its workforce, but avoided layoffs by offering generous retirement benefits. It improved its town services by outsourcing them to an independent subsidiary. Tata Steel used a highly participative process to develop a vision that balanced economic and social objectives. Thus, the company was able to boost its profitability while preserving its philanthropic heritage. The case can be used in executive programmes and in the MBA curriculum. It may be used to focus on: (1) the relationship between economic and social responsibilities; (2) the pros and cons of CSR; (3) CSR as a strategic business decision; and (4) strategies to create viable CSR initiatives. A video ‘405-023-3’ is available to accompany this case.
Location:
Industry:
Size:
43,000 employees
Other setting(s):
1989-2005

About

Abstract

This case deals with corporate social responsibility (CSR) and related change processes at Tata Steel. This company was a CSR leader in India for decades, virtually running the city of Jamshedpur. After 1991, Tata Steel was coping with the tension between profitable growth and social responsibility by harmonising these seemingly conflicting demands. The company reduced its workforce, but avoided layoffs by offering generous retirement benefits. It improved its town services by outsourcing them to an independent subsidiary. Tata Steel used a highly participative process to develop a vision that balanced economic and social objectives. Thus, the company was able to boost its profitability while preserving its philanthropic heritage. The case can be used in executive programmes and in the MBA curriculum. It may be used to focus on: (1) the relationship between economic and social responsibilities; (2) the pros and cons of CSR; (3) CSR as a strategic business decision; and (4) strategies to create viable CSR initiatives. A video ‘405-023-3’ is available to accompany this case.

Settings

Location:
Industry:
Size:
43,000 employees
Other setting(s):
1989-2005

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