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For a century, Tata Steel has provided a level of 'compassion' that is unmatched in its sector or its country. But the onslaught of global competition and, crucially, global capital markets have sparked serious debate on the role, level and the sustainability of social spending at Tata Steel. In particular, a new emphasis on economic value added risks upsetting the century-old commitment to corporate social responsibiltiy (CSR). The aim of this case study is to help provide a framework that supports an intelligent discussion of the benefits versus the costs of compassion - and to facilitate articulation of the components of CSR. How can the company maintain its reputation for caring and at the same time remain a leading player in an increasingly competitive industry?