CONTENTS

SR.
NO.

TOPIC

PAGE
NO.

1
2
3
4
5

Objectives of Study and Research Methodology

Introduction
Overviews of BATA Company
Mission & Goal Of Bata
Problem Formulation Before Corporate Social
Responsibility Of Bata
Corporate Social Responsibility Implementation
CORPORATE GOVERNANCE
BATAS CORPORATE SOCIAL RESPONSIBILITY
BATAS CORPORATE GOVERNANCE
CONCLUSION
BIBLIOGRAPHY

2
3
5
9
10

6
7
8
9
10
11

14
25
28
32
33
34

OBJECTIVES OF STUDY
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The objective is to study the Corporate Social Responsibility Mechanism and analyze the
Corporate Governance Structure of BATA Company.

RESEARCH METHODOLOGY

The data contain in this project is secondary information. and due recognition has been given
to the references and sources.

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INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILTY &

CORPORATE GOVERNANCE

Corporate Social Responsibility is a form of corporate self-regulation integrated into

a business model. With the help of Corporate Social Responsibility policy, a business
organization monitors and ensures its active compliance with the spirit of the law, ethical
standards, and international norms. In some models, a firms implementation of CSR goes
beyond compliance and engages in actions that appear to enhance some social good, beyond
the interests of the firm and that which is required by law.
CSR is a process with the aim to embrace responsibility for the companys actions
and encourage a positive impact through its activities on the environment, consumers,
employees, communities, shareholders and all other members of the society.
Lord Holme and Richard Watts define CSR as the continuing commitment by
business to behave ethically and contribute to economic development while improving the
quality of life of the work force and their families as well as the local community and society
at large.
Corporate Governance may be defined as a set of rules, regulations, procedures and
practices to be adopted by a firms management to manage its affairs in the best interest of its
stakeholders, especially the shareholders.
SEBI defines corporate governances as the acceptance by management of the
inalienable rights of the shareholders as the true owners of the corporation and of their own

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role as trustees on behalf of the shareholders.it is about commitment to values, about ethical
business conduct and about making a distinction between personal & corporate funds in the
management of a company.
Corporate governance has also been defined as a system of law and sound
approaches by which corporation are directed and controlled focusing on the internal and
external corporate structures with the intention of monitoring the actions of management and
directors and thereby mitigating agency risks which may stem from the misdeeds of
corporate officers.

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INTRODUCTION TO BATA
The T. & A. Baa Shoe Company was founded in 1894 in Zln, Moravia by TOMAS
BATA his brother Antonn and his sister Anna, whose family had been cobblers for
generations. The company employed 10 full-time employees with a fixed work schedule and
a regular weekly wage, a rare find in its time.
In the summer of 1895, Tom found himself facing financial difficulties, and debts
abounded. To overcome these serious setbacks, Tom decided to sew shoes from canvas
instead of leather. This type of shoe became very popular and helped the company grow to
50 employees. Four years later, Bata installed its first steam-driven machines, beginning a
period of rapid modernization.
In 1904 Tom Baa introduced mechanized production techniques that allowed the
Bata Shoe Company to become one of the first mass producers of shoes in Europe. Its first
mass product, the Batovky, was a leather and textile shoe for working people that was
notable for its simplicity, style, light weight and affordable price. Its success helped fuel the
companys growth and, by 1912, Bata was employing 600 full-time workers, plus another
several hundred who worked out of their homes in neighboring villages.
Bata also began to build towns and factories outside of Czechoslovakia (Poland,
Latvia, Romania, Switzerland, France) and to diversify into such industries as tanning
(1915), the energy industry (1917), agriculture (1917), forest farming (1918), newspaper
publishing (1918), brick manufacturing (1918), wood processing (1919), the rubber industry
(1923), the construction industry (1924), railway and air transport (1924), book publishing

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(1926), the film industry (1927), food processing (1927), chemical production (1928), tyre
manufacturing (1930), insurance (1930), textile production (1931), motor transport (1930),
sea transport (1932), and coal mining (1932). Airplane manufacturing (1934), synthetic fibre
production (1935), and river transport (1938). In 1923 the company boasted 112 branches.
In 1924 Tom Baa displayed his business acumen by figuring out how much
turnover he needed to make with his annual plan, weekly plans and daily plans. Baa utilized
four types of wages fixed rate, individual order based rate, collective task rate and profit
contribution rate. He also set what became known as Baa prices numbers ending with a
nine rather than with a whole number. His business skyrocketed. Soon Baa found himself
the fourth richest person in Czechoslovakia.
From 1926 to 1928 the business blossomed as productivity rose 75 percent and the
number of employees increased by 35 percent. In 1927 production lines were installed, and
the company had its own hospital. By the end of 1928, the companys head factory was
composed of 30 buildings. Then the entrepreneur created educational organizations such as
the Baa School of Work and introduced the five-day work week.
In 1930 he established a stunning shoe museum that maps shoe production from the
earliest times to the contemporary age throughout the world. By 1931 there were factories in
Germany, England, the Netherlands, Poland and in other countries.
In 1932, at the age of 56, Tom Baa died in a plane crash during takeoff under bad
weather conditions at Zln Airport. Control of the company was passed to his half-brother,
Jan, and his son, Thomas John Bata, who would go on to lead the company for much of the

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twentieth century guided by their fathers moral testament: the Bata Shoe company was to be
treated not as a source of private wealth, but as a public trust, a means of improving living
standards within the community and providing customers with good value for their money.
Promise was made to pursue the entrepreneurial, social and humanitarian ideals of their
father.
The Baa company was apparently the first big enterprise to systematically utilise
aircraft for company purposes, including rapid transport of lesser personnel on business like
delivery of maintenance men and spares to a location where needed, originating the practice
of business flying.
After the global economic changes of the 1990s, the company closed a number of its
manufacturing factories in developed countries and focused on expanding retail business.
Bata moved out of Canada in several steps. In 2000, it closed its Batawa factory. In 2001, it
closed its Bata retail stores, retaining its "Athletes World" retail chain. In 2004, the Bata
headquarters were moved to Lausanne, Switzerland and leadership was transferred to
Thomas G. Bata, grandson of Tom Baa.
The Bata headquarters building in Toronto was vacated and eventually demolished
too much controversy. In 2007, the Athletes World chain was sold, ending Bata retail
operations in Canada. As of 2013, Bata maintains the headquarters for its "Power" brand of
footwear in Toronto. The Bata Shoe Museum, founded by Sonja Bata, and operated by a
charitable foundation, is also located in Toronto.

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Although no longer chairman of the company, the elder Mr. Bata remained active in
its operations and carried business cards listing his title as chief shoe salesman. In 2008,
Thomas John Bata died at Sunnybrook Health Sciences Centre in Toronto at the age of 93.
Bata estimates that it serves more than 1 million customers per day, employing over
30,000 people, operates more than 5,000 retail stores, and manages 27 production facilities
and a retail presence in over 90 countries mostly in Asia, Europe and Australia. Bata has a
strong presence in countries like India where it has been in existence since 1931. Bata India
has five factories and two tanneries. The Mokameh Ghat tannery in Bihar (1952) is the
second largest in Asia.

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MISSION & GOAL OF BATA

MISSION
Establishing and maintaining a competent, objective and independent accreditation
system so that the users of services of accredited bodies and the consumers in Bosnia and
Herzegovina may have trust in the services provided by laboratories, certification and
inspection bodies. Further, by mutual international recognition of the results of the accredited
activities BATA will facilitate the international trade of BiH and help it achieve global
competitiveness.

VISION
To establish an internationally recognized accreditation body in Bosnia and
Herzegovina that will efficiently implement all the accreditation procedures in all scopes,
and hereby contribute to the ensurance of quality and safety of products and services to the
users (consumers) in our country, and that will also ensure the recognition of the
accreditation of BiH in Europe and the world.

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PROBLEM FORMULATION BEFORE CORPORATE SOCIAL

RESPONSIBILITY OF BATA
When it was seized to Bata family during the first wave of nationalization. In this
time period the company invented the Bata system management which was applied till 1945.
CSR in Bata Company was focused on customer care and employees professional growth.
The company built up medical, scholar, social and cultural background and centers for Zlins
employees and habitants and so Zlin has become modern city able to compete the worlds
modern cities.
Main task of this research is to find out the way how Bata Company was developing
its CSR during the time period 1894 1945 and how these findings are applicable in the
current business environment. First of all, it is essential to understand the philosophy of
Tomas Bata management system. The philosophy is based on following slogans Business is
service for public. Business as a service.
The word service is the essential of Tomas Batas business idea and the basis for all
other thoughts of this genius who established business empire which has survived both world
wars, the oppression of communists regime and modern financial crisis too. Tomas Bata
brought absolutely different meaning to the word service. His philosophys purpose was to
tutor directors, coworkers, citizens and general public in order to spread the idea of serve as
the highest value.

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Service was understood as the highest and the most valuable ability for a human. To
serve was the highest goal. Beware understanding service as something inferior. Tomas
Bata perceived serviceas the highest achievable goal of a human action. Each co-worker,
as the personality and human, can become beneficial to other human, to society, to company
just by his or her doing.
So the human becomes useful and desirable too. These lines might be the summary
Tomas Batas philosophy who perceived the business as the service. He used to see the
service in everything he used to do and by this spirit he learned to act his coworkers and
colleagues (authors comment: Bata company had not used the term employee but
coworker until 1945). This philosophical spirit of perceiving the service as the highest
achievable goal became the core of Tomas Bata management system which had evolved into
perfect and detailed CSR of these times.
Nobody was talking about CSR or socially responsible business at these times but
business as service was the on topic. What is CSR and what is its benefit? Is the motto
business as servicefar away from modern CSR systems or Tomas Bata the founder was
ahead of his ages? There are several new questions to be answered which are related to
perfectly and effectively working CSR. These questions have one common connecting link
the morale: the business morale, the society morale and the personal morale.
In the recent times many companies has started to perceive the need of CSR. In
foreign countries the trend started earlier then in the Czech Republic (considering the current
business environment). Why the trend has developed and what is the impulse for leading

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companies to learn about CSR? Is it the added value of CSR or any intentions related to
customers interests? Is our behavior influenced by the fact that company we buy from does
something more or is it the price tag only?
These questions are answered by ongoing historical research which is the part of
many others research methods applied within global research of CSR in Bata Company
before 1945. The historical research is specific in the way of setting the research questions at
very beginning but is transformed during the analysis of identified data. During the research
which is focused on description of CSR in Bata company before 1945 many questions have
been asked which are the primary target of deep research and are going to be analyzed in
more detail. CSR in Bata Company had system of career growth elaborated into detail.
Workers could experience the growth from operative to director. Batas motto is From a day
laborer I am going to bring up a manager.
The first research question is: How to use the knowledge about career growth
program in Bata Company before 1945 in the current business environment? The career
growth is closely linked to the question of motivation. Motivation system of Bata company
before 1945 had been thoroughly set and had worked in both levels of motivation:
motivation as a tool for performance growth and motivation as a tool to create loyal
relationship of workers to the company.

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How can we apply Batas motivation system in the current business environment?
The current research has discovered high level of ethics and morale in every way of
companys life before 1945. Base on this knowledge another question needs to be answered.
Which aspects of morale and ethics behavior of Bata Company before 1945 can be
transformed into recent business environment? What were the contemporary requirements on
ethics and morale profile of Bata companys managers? How can todays managers be
inspired and what added value can be brought to the current business environment?

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CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION

Within the research it is carried out the analysis of historical documents which has
been preserved from the time period to 1945 of Bata Company. At the beginning of the
presentation of existing research it must be noted that there are no historical or recent
publications and researches which would describe whole and integrated knowledge about
Bata Company CSR before 1945, the manners how the system was working, stakeholders, its
influence on co-workers of the company and society of the Zlins society too. Main objective
of the research is to analyze historical documents of Bata Company before 1945 and to
determine the possibilities of application in the current business environment. Basis for the
analysis of historical documents is the corporate archive where there are stored all documents
related to operation of the company. The archive is owned by the State Archive of the Czech
Republic.
It has been mentioned there is no integrated and whole historical or recent research
and document which describes CSR in Bata Company before 1945. That is why our research
is based on detailed analysis of the historical documents, regulations, rules, standards, and
minutes of meetings, newspapers articles, and pictures, statements of witnesses, personal
notes and literature from the time period before 1945.
Results of the research gradually uncovers complex description of CSR in Bata
Company before 1945 and its influence on contemporary coworkers, habitants of Zlin, town
development, development of managerial skills, development of system management etc.

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Current results of the research are published in following chapters.

METHODOLOGY
It has been applied qualitative methods of research so far. The methodology of the
research might be divided into two levels. The first level is related to historical
research of archive documents and historical information about CSR of Bata
Company before 1945. The second level specializes on the research of the current
business environment and the ways of application the knowledge of Bata
Companys CSR.
The first research level contains content analysis of historical data, bibliographic
research, phenomenological research and method of oral history. It is hard to state
which of these methods is beneficial as each uncovers different data forming
The complex and integrated view of Bata company behavior before 1945.
Interrelation among the methods is described by following diagram.

Method of content analysis of the historical data in the research is particularly useful
when working with archival documents that remain available from the period to 1945.

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It is very difficult method and the application requires precise knowledge of

procedures for analyzing historical documents.
Phenomenological method can be applied only where we are sure that the researched
object had represented the phenomena in its ages. Determination of the phenomena is
governed by several specific characters such as sufficient number of books and
publication records, witnesses and their influence on events in contemporary society.
Method of oral history brings the unique chance to learn about specific situation and
phenomena by testimony of witnesses. Within our research we have the unique
opportunity to meet former students of Bata School of work who have actively met
the Alumni Club of Bata School of work. This Club associates former students from
around the world and we have the unique way (and the last chance) to learn about
CSR of Bata Company before 1945 by its participants.
Method of biographic research is tightly linked to the other methods mentioned
below. The method researches personal issues of witnesses which are related to the
subject of the research. In our research it was used personal notes, notebooks, books,
pictures, cuttings from newspapers, contemporary object etc. The research is highly
beneficial for the global analysis of CSR perception of Bata Company before 1945.
Together with the personal statements we have the unique opportunity to learn about
the system itself.
Within the second level of the research it is used observation of the companys life,
interviews with employees and companys management and researching internal
documents of the companies which has decided to built up their CSR on the heritage
of Bata Companys CSR before 1945.
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CSR IN BATA COMPANY FROM 1894 TO 1945

However, if we return to the current issue of CSR and behavior of Bata Company
before 1945 it is necessary to point out the aspects of CSR in Bata Company before
1945 and assess them according to current standards of CSR. At the current
environment socially responsible company is the company which cares of its
employees, behave ecologically, supports social development and generally cares
about the three areas mentioned above. How had it worked in Bata Company before
1945?
CSR of Bata Company was developing continuously from 1849 until its highest
expansion in 1945 when the company was nationalized. The development was
influenced by three main areas which were the main objectives for Bata Company
before 1945. At the first place, it was care for coworkers which influenced social
activities in Zlin and the whole society too. Related to the care there was a care of
environment where co-workers lived in (Zlin and surrounding areas). Development of
CSR strategy in Bata Company before 1954 is described in following diagram.

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As it is evident from the diagram above, CSR in Bata Company before 1945
developed at the same fields as it has developed in current companies. These fields
are: economic, social and environmental.

Specific examples of CSR in Bata Company from 1894-1945

In the economic field it can be found responsible behavior of Bata Company before
1945 particularly in its behavior toward all coworkers. Bata Company before 1945
applied the principles so called self-government of workshops and participation in
profit. Each workshop operated as separate department which was responsible for its
results. Co-workers used to receive their wages on a weekly basis. Wages were based
on quality indicators, there was a career growth system and the co-workers could
enjoy a set of benefits.
The well-known benefits were living in Batas houses, an opportunity to receive
further education and personal growth programs, subsidy for meals, healthcare and
social care, companys laundries, social and cultural facilities etc. The significant part
of economic field is personal approach of Tomas Bata the founder to competition:
Successful business is the business rewarding both sides.
Bata Companys philosophy was not beating their competitors but using innovations
and technologies in order to improve quality of manufacture and quality of business.
The economic field is closely related to the social field as it is difficult to perceive
these fields separately. What might be considered as responsible behavior at the
economic field was closely related into the social field vice versa. Systematical
Development of amenities is, at the first glance, perceived as the social responsibility
but return on financial capital through offered services influenced the economic field.
Bata Company before 1945 had created not only for their co-workers but for town

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citizens too, system of social care, healthcare, business, cultural and leasure services,
The company has established the hospital (Tomas Bata Hospital), companys surgical
and accident departments, there was perfect care for mothers and their children as
well as care of seniors and handicapped too. The company also built up municipal
baths which were used for regeneration and healing purposes. Within the social
services there were established homes for the elderly, childrens homes (operated on
the principle of family care), dining facilities, dormitories etc. Whole system of
employees care was provided by the social departments of Bata Company. Thanks to
Bata Company and enlightened thinking of Tomas Bata the founder there was created
rich cultural background in Zlin. There were new libraries, theaters, cinema (the most
modern and the largest in Europe in its times), numerous cultural events organized
more than once a year etc.
These events were not primarily aimed for companys co-workers (even they paid low
or none entry fees) bur for general public too. At the field of education Bata Company
and Zlin town had become well-known at their times. Bata Company created a perfect
Educational system during just twenty years. The system has become an inspiration
for many foreign countries. The system was consisted of all modern parts from preprimary education in kindergartens to lifelong learning methods (programs for
employees, school for salesmen, programs for women and housewives and language
courses etc.)
Reform civic education which Tomas Bata had enforced in Zlin is very inspirational
for the current environment. In 1925, it was founded Bata School of work for young
men and lately for young women too. This secondary education together with a work

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in the factory and students accommodation at dormitories created the unique system
of education which had not been overcame and had risen whole generation of
exceptional people.
The graduates were not morally influenced by the Second World War and
communism regime either. They are the witnesses who can prove the uniqueness of
CSR in Bata Company before 1945.
Significant part of the educational system is called Tomov the educational
institute which continued to develop successful graduates of Bata School of Work for
young men. It was a selection of elite students who were systematically prepared and
Educated for the high-ranking managerial positions.
In the area of housing policy there are well known so called Bata houses which
were used as an accommodation for Bata co-workers. Construction of these houses is
closely related to environmental behavior of Bata Company which accepted the link
between men and nature. Due to that Zlin belongs among the cities with the
greenest town center. Each Bata house had to be planted by vegetation same as parks
in the town center.
Tomas Batas main object was that people could enjoy comfort environment while
having their lunch breaks. The environmental behavior of the company can be seen in
searching for natural traffic routes and construction of environmentally undemanding
routes. Example of such behavior is a construction of Bata canal. The expansion of
the company was also followed by reclaiming unsuitable places for any activates such
as draining of wetlands around Otrokovice and developing an airport on the areas
reclaimed.

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Simplified summary of CSR activities of Bata Company before 1945 is represented in

following chart

APPLICATION OF THE FINDINGS IN THE CURRENT BUSINESS

ENVIRONMENT
Given that this is a long term research we apply the research findings into practice
gradually. During the research it has been described the relationship of the company
to its employees. We are going to apply the knowledge into pre-selected companies in
Zlin region gradually. These companies do not have clearly set the structure of CSR
yet and they have looked for an inspiration to its creation or they have faced the
troubles with their employees and their relationships in the workplace.
It had been described the state in the companies before application of discovered
knowledge. From the historical research of Bata Company CSR before 1945 was
chosen a few areas which can be applied into the current business environment. These
areas have been applied gradually.
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It was set a group of concrete parameters which are measurable. Whereas that each
company is different it was impossible to set the same areas of measurements. Among
the same parameters for most companies belong: wages, working time, number of
employees, individual performance measurements, turnover of a company, employee
satisfaction and employee identification with the company. The review of applied
changes towards the employees which are common to all companies in which the

research is applied is following:

autonomy of department, sections and units;
employee participation in profit;
introduction of performance measurements for all employees;
transparent wage system which is known to all co-workers;
unified and transparent benefit system;
replacing the title employee by the title co-worker;
improved awareness of all employees;
support of cultural, educational, and medical development of employees;
building a relationship of employee towards the company;
improvement of corporate culture;
building a relationship to the brand and the logo;
improvement of the contact between the management and co-workers

The results of our research help to create a corporate identity and solidarity.
The results of our results are going to bring measurable data at the end of the research period.
But the interim results provide interesting results in terms of improving the working
environment, average earning of co-worker, hours spent at work and individual performance
of employee.

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CORPORATE GOVERNANCE
Corporate governance refers to the set of systems, principles and processes by which a
company is governed. They provide the guidelines as to how the company can be directed or
controlled such that it can fulfill its goals and objectives in a manner that adds to the value of
the company and is also beneficial for all stakeholders in the long term. Stakeholders in this
case would include everyone ranging from the board of directors, management, shareholders
to customers, employees and society. The management of the company hence assumes the
role of a trustee for all the others.
Corporate governance is based on principles such as conducting the business with all
integrity and fairness, being transparent with regard to all transactions, making all the
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necessary disclosures and decisions, complying with all the laws of the land, accountability
and responsibility towards the stakeholders and commitment to conducting business in an
ethical manner. Another point which is highlighted in the SEBI report on corporate
governance is the need for those in control to be able to distinguish between what are
personal and corporate funds while managing a company.
Fundamentally, there is a level of confidence that is associated with a company that is
known to have good corporate governance. The presence of an active group of independent
directors on the board contributes a great deal towards ensuring confidence in the market.
Corporate governance is known to be one of the criteria that foreign institutional investors
are increasingly depending on when deciding on which companies to invest in. It is also
known to have a positive influence on the share price of the company. Having a clean image
on the corporate governance front could also make it easier for companies to source capital at
more reasonable costs. Unfortunately, corporate governance often becomes the centre of
discussion only after the exposure of a large scam.

CORPORATE GOVERNANCE NORMS IN INDIA

1.

Concept of Corporate Governance

Corporations pool capital from a large investor base both in the domestic and
in the international capital markets. In this context, investment is ultimately an act of
faith in the ability of a corporations management. When an investor invests money in
a corporation, he expects the board and the management to act as trustees and ensure
the safety of the capital and also earn a rate of return that is higher than the cost of

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capital. In this regard, investors expect management to act in their best interests at all
times and adopt good corporate governance practices.
Corporate governance is the acceptance by management of the inalienable
rights of shareholders as the true owners of the corporation and of their own role as
trustees on behalf of the shareholders. It is about commitment to values, about ethical
business conduct and about making a distinction between personal and corporate
funds in the management of a company.

2.

Evolution of Corporate Governance framework in India

Companies Act, 1956 provides for basic framework for regulation of all the
companies.
Certain provisions were incorporated in the Act itself to provide for checks and

balances over the powers of Board viz.:

Loan to directors or relatives or associated entities (need CG permission) (Sec 295)
Interested contract needs Board resolution and to be entered in register (Sec 297)
Interested directors not to participate or vote (Sec 300)
Appointment of director or relatives for office or place of profit needs approval by
shareholders. If the remuneration exceeds prescribed limit , CG approval required

(Sec 314)
Audit Committee for Public companies having paid-up capital of Rs. 5 Crores (Sec

292A)
Shareholders holding 10% can appeal to Court in case of oppression or
mismanagement (397/398).

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BATAS CORPORATE SOCIAL RESPONSIBILITY

Batas Sustainability Program includes Four Key Areas:
Manufacturing & Workplace.
Eco-Efficiency & Environment.
Eco-Innovation & Development.
Community Involvement & Social Development.

1. Manufacturing & Workplace

BATA is committed to the development of operational excellence that leads to the
production of footwear in a safe, clean and stimulating workplace for all our
employees. The company has a tradition of responsibility towards its workforce and
offers working conditions that protect each employees health and dignity.

Some Examples of Current BATA Good Practice:

BATA Code of Ethics and Values and Beliefs guide our employees and our companies
around the world in our day to day work and help us to conduct business in

accordance to this philosophy of service and corporate responsibility;

BATA employs more than 30000 people in 36 countries, of which 23 are in the
emerging markets, manufacturing quality shoes for the local peoples taste and needs;

At BATA learning is a priority: Our new E-learning induction program trains all new
employees in BATA culture and skills

2. Eco-Efficiency & Environment

BATA companies have always played a leadership role in the communities in which
they operate, to ensure protection of the environment. BATA aims to reduce the
climate impact of our manufacturing facilities by taking every precaution to prevent
or lessen any adverse effect on the environment that may result from our operations.
Some examples of current BATA good practice:

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The

BATAs

Environmental

Mission

Statement

supports

our

pledge

to

uncompromising environmental stewardship and supports the principle of the three

RS: Reduce, Reuse, and Recycle;

BATA has introduced translucent sheeting on roofs, LED lamps, and photocell control
in a number of our manufacturing facilities that help reduce energy consumption. The
translucent sheeting reduced the carbon footprint by approx. 490 tons of CO2. This
saving would be the equivalent to the carbon sequestration from the atmosphere of

about 80,000 mature pine trees over the period of one year;
BATA is committed to minimizing the use of water in our operations through water
harvesting systems, and to conserving fresh water resources in our tanneries wit.

3. Eco-Innovation & Development:

BATA strives to identify and utilize processes, materials and products that cause the
least harm to the environment and to the people. In doing so, BATA supports the

development of materials and manufacturing innovation.

FOR EXAMPLE:
Our outdoor Weinbrenner line FOR NATURE chooses environmentally conscious
materials like recyclable and partly recycled TPE, chromium-free leather, water-based
adhesive and natural materials like cork. These shoes are produced in our European

factory.
BATA has introduced water-based adhesive in our shoe production;
BATA has a long tradition of planting trees in and around our production sites.

4. Community Involvement & Social Development:

BATA supports and empowers local communities wherever we operate. We believe in
being involved with the communities through employees participation, charitable
contributions and by spearheading social ventures.
EXAMPLE

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In 2011 the Bata Children's Program successfully conducted more than 50 initiatives
in 20 developing countries where Bata is present, reaching out to 25000 children

with the help of 500 Bata volunteers;

BATA gives free water and medical care to needy communities around their factories,

its employees donate blood and give their time for community services;
Since 2005 Bata Bangladesh has been involved in the Rural Sales Program in
partnership with CARE International. This Program aims to increase access to
affordable shoes for the poor as well as economically empowering more than 1800
women, by providing them with an income.
By 2015, the BATA Sustainability Program is planning to undertake the
following steps in the shoemaking process:
Introduce a new Bata Code of Conduct and compliance assessment program for our
suppliers and business partners;
Establish Key Performance Indicators (KPIs) to measure progress;
Conduct a pilot life cycle assessment (LCA) of our 4 range of shoes produced in our
factories;
Report publicly on successes and ambitions (Sustainability Progress Report).

BATAS CORPORATE GOVERNANCE

The Company recognizes that good corporate governance is a continuous exercise
and always acts as a good corporate citizen which is inherent in the culture of the
Organization. The Company believes in setting the highest standard in good and ethical
Corporate Governance practices and follows the same by adopting fairness, transparency and
accountability in all its operations on an on-going basis. The Company firmly believes that
these aspects as well as compliances of applicable legislations and timely disclosures
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enhance the image of the Company and the long term value of all Shareholders and
Stakeholders. The Company's Board of Directors has framed a Code of Conduct for its
Senior Managers including the Board Members.

CONCLUSION
It was found that BATA have adopted the CSR mechanism. They have stated their
Vision & Mission in such a way which would help to fulfill the CSR also. Industry
people understand that natural resources are limited so they should utilize these
resources wisely. At the same time they are doing innovation to find out some other
ways for energy or some ways which may use lesser amount of resources to produce
the same quantity of the products.
BATA has also shown that when an industry is performing its social obligation in well
manner, it creates good image in the mind of general people. It becomes trustworthy
organizations. So, without even advertisement and promotions, industry becomes
popular.
Employees are also engaged with this kind of industry which reduces the employee
turnover.

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 In short in modern Business World, No one company can survives without sound
Corporate Governance & good Corporate Social Responsibility mechanism.

BIBLIOGRAPHY

Strategic Management Michael Vaz Jan2014

http://articles.economictimes.indiatimes.com/2009-0118/news/28462497_1_corporate-governance-satyam-books-fraud-by-satyam-

founder
http://www.bata.com/sustainability/
http://en.wikipedia.org/wiki/Corporate_governance
MAGAZINES:
Consultative Paper On Review of Corporate Governance Norms In India
Role of Corporate Social Responsibility in Sustainable Development Asst Prof. Sima Kumari.

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