Tata Vs Holden Case Study

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- Quality of Social Accounting Approach

Theoretically, CSR disclosures by companies include the issues of governance, economic factors, environmental issues, products and services, labor, and societal community, among others. Promoting the disclosure and transparency of non-economic information is very important in every company’s annual reports. In terms of relevance, the reports contain sustainability strategies, key stakeholders, targets, improvement actions, and CSR integration with business processes. Further, the tools that determine the credibility of the provided information include readability, basic reporting principles, quality of data, and independent verification. Tata Motors presents reports that are on point, and follow all reporting principles. They include the most basic items as required in CSR reports include issues of sustainability strategies (employability, education, and health), targets, trends over time, workplace, environment, and the community. Likewise, GM Holden presents credible reporting by covering in depth its areas of involvement with the community. According to Zadek et.al (1997), assessing and determining the quality level of sustainability reports for companies relies greatly on the relevance of information, and its credibility. For Tata and GM Holden, these reports are of high quality, as well as reliable since they show real-time projects and data.

- CSR versus Company Values

Too often, directors and executives view CSR as any other source of pressure. However, for customers, suppliers, and employees, they look at it as the most creative opportunity to strengthen their business and contributing to the community at the same time. This means that for any company to succeed, they must attach their CSR reports to the values of the company. As for Tata Motors, its CSR report reflects or shows the company’s value to take part in contributing to its society’s growth (Crane, Matten, & Spence, 2013). The company’s CSR addresses issues of health, education, employability, and environment. From a reader’s point of view, a person can match the CSR report to the company’s values of accountability, innovation, customer, concern for the environment, passion for excellence, and agility. Due to the clarity, relevance, and credibility of the report, any stakeholder or investor interested in the company would understand the company’s values by evaluating the CSR report. For GM Holden Motors, it is also true that the company’s values could be derived from scrutinizing the CSR report.

- Reflection

Using my own knowledge, I could define a CSR report as reports that attempt to show the relationship between any corporation and the society. These reports are meant to improve the communication between the corporate world and society that the company lies (Lydenberg & Wood, 2010). From the group discussions, it was very clear to me that the two companies addressed the most important issues that a CSR report should contain. In relation to the information from )the Holden Motors, I understood that employees could determine the companies that have the safest environments. For instance, GM Holden addresses issues such as employee training and apprenticeship on safety issues. This could make an employee, current, or prospective feel safe working in the corporation. Same case goes for Tata Motors, which pushes customers to understand that the company has positive social and environmental issues. According to my knowledge and discussion, I was able to relate to the fact that CSR reports provide details of both policies, as well as actual practices.

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References

Careers.gm.com. (2015). Social Responsibility. Retrieved 29 December 2015, from http://careers.gm.com/working-with-us/social-responsibility.html

Crane, A., Matten, D., & Spence, L. J. (2013). Corporate social responsibility in a global context. Chapter in: Crane, A., Matten, D., and Spence, LJ,'Corporate Social Responsibility: Readings and Cases in a Global Context, 2, 3-26.

Dagiliene, L. (2015). The research of corporate social responsibility disclosures in annual reports. Engineering Economics, 21(2).

Lydenberg, S., & Wood, D. (2010). How to read a corporate social responsibility report: A user’s guide. Institute for Responsible Investment, Boston College.

Rahman, N., & Post, C. (2012). Measurement issues in environmental corporate social responsibility (ECSR): Toward a transparent, reliable, and construct valid instrument. Journal of Business Ethics, 105(3), 307-319.

Srivastava, A. K., Negi, G., Mishra, V., & Pandey, S. (2012). Corporate social responsibility: A case study of TATA Group. IOSR Journal of Business and Management, 3(5), 17-27.