Essay on Tata: India's Largest Company, Corporate Social Responsibility, Maintaining Competitive Advantage

Introduction

Tata is India's largest company operating in seven business sectors, which include chemicals, cars, consumer products, information technology, among others (Cavusgil, Rammal, & Freeman, 2011). It produces cars, trucks, and buses. Corporate social responsibility is crucial for any firm seeking to expand or venture into new markets and to retain its competitive advantage by maintaining a positive public image. Also with a growing pressure for companies to minimize negative impacts on the environment, it is vital for Tata Motors to ensure its operations are environmentally friendly

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Improving Corporate Social Responsibility at Tata Motors

Tata Motors can improve its corporate social responsibility in two different ways. First and foremost, is through fostering economic development through profitable modernization projects (Cavusgil et al., 2011). Many companies fear to venture into new markets, especially in developing economies for fear of making losses or the venture not picking up. However, this all depends on how the company packages and markets the product. The first step the company should take is to conduct market research to establish the market needs of the new economy, the purchasing power, and how the market responds to new entrants. After getting this information, it should enter the market in readiness and package its products to suit the market needs and at a fair price. This is a strategy that has been applied by other companies such as Unilever and has borne positive results. On top of that, offering employment to locals in its new establishment would be a sign of goodwill.

Development of infrastructures such as road and communications leads to the growth of an economy as it opens up networks of a region facilitating other economic activities. Tata motors should put this as a development plan in its new economic markets. Investments in the economy, in turn, will lead to the generation of local income tax, which is then geared towards developments meant to uplift the living standards of the poor.

The second way of improving its corporate social responsibility would be through facilitating entrepreneurship through small scale loans (Cavusgil et al., 2011). This provides micro credit to potential entrepreneurs, and it enables them to kick start their business ventures. With time, these individuals become economically stable and are hence in a position to contribute to the welfare of the economy.

Other activities Tata Motors can indulge in to promote its corporate social responsibility include the promotion of health education and agricultural geared developments. Health education is particularly important in improving life expectancy, especially in developing economies (Cavusgil et al., 2011). Agricultural development improves food production and also creates a sustainable source of income for farmers hence economic development. It can also support education through the building of schools and other learning institutions, just like its sister firm Tata Steel is doing.

Reduction of Impact on Natural Environment

In the course of its operations, Tata motors have impacted the natural environment in Asia and elsewhere it operates. This bound to be replicated in other parts of the world where it might pitch its operations. This impact can be minimized through the use of environmentally friendly sources of energy, such as solar and wind energy (Cavusgil et al., 2011). The company can also undertake environmentally-friendly activities like increased planting of trees and increased campaigns to conserve the natural environment. Besides, the company can set up purification and recycling plants that will help recycle most of its waste instead of disposing it to the environment. A purification plant would ensure that the emissions released have been relived off toxic substances and hence not dangerous to the environment.

References

Cavusgil, S. T., Rammal, H., & Freeman, S. (2011). International business: The new realities. Pearson Education Limited.