labels: tata group, economy - general
Tata trusts to take corporate social news
07 June 2007

Mumbai: The Tata group, which is acquiring businesses around the world, is also introducing the world to the Tata way of doing business. The group is taking the Tata trusts and all its community programmes overseas as part of its international corporate social responsibility.

"The best thing the group has is the Tata name and ethics," Tata Sons executive director Alan Rosling said.

He said the Tata brand will be taken global by opening group offices in select geographies like South Africa, the US, UK and China.

The group will extend both its brand and philosophy through communication with businesses, government leaders, use of media, sponsorships and tie-ups with universities and institutions.

Tata trusts control 65.8 per cent of Tata Sons, the group holding company.

The funds that accrue to the trusts support an assortment of causes, institutions and individuals in a variety of ways.

Tatas, with their way of running business under the trusteeship principle, have created a niche in a capitalist world.

The activities of the Tata group are controlled by two principal trusts — the Sir Dorabji Tata Trust & Allied Trusts, and the Sir Ratan Tata Trust.

The Sir Dorabju Tata Trust comprises the Tata Social Welfare Trust, the RD Tata Trust, the Tata Education Trust, the JRD Tata Trust, the JRD Tata & Thelma Tata Trust, the Jamsetji Tata Trust, the JN Tata Endowment, the Lady Meherbai Tata Memorial Trust and the Lady Meherbai Tata Education Trust.

With the acquisition of Corus Steel, the Tata group will earn more than half of its revenue from overseas from this year, while non-Indian employees of the Tata Group have gone up to almost a third, Rosling said.

Talking to members of the British business group in Pune on ''The Creation of Indian MNCs'', Rosling said internalisation at the Tata group was driven by operating companies and was geographically neutral.

The Tata way of doing it was being local, internationally — Britons running Tata Tetley or Koreans running Tata Daewoo.

"There are more world-class companies in India than in China, Brazil or Russia and the fundamental reasons for this is compelling," Rosling said, adding, in the next 20 years there would be Fortune 50 companies based in India.

The top 30 companies in India have had a return on investment of about 25 per cent, while in China it was about 15 per cent.

There were 177 cross-border deals worth about $20 billion and India had more deals that Brazil, China and Russia combined, he pointed out.


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Tata trusts to take corporate social