TATA GROUP

BUSINESS ETHICS

TATA GROUP
In a free enterprise, the community is not just another stakeholder in business but is in fact the very purpose of its existence. - Jamsetji N. Tata, Founder, Tata Group.

TATA GROUP
Founded by Jamsetji Nusserwanji Tata (JN Tata) in 1868, the Tata group has developed into one of India's largest business conglomerates The group has 80 companies in diverse sectors, and has been moving from product-driven businesses to branddriven businesses.

TATA GROUP
Tata is credited with pioneering India's steel industry, civil aviation and starting the country's first power plant The group's mission statement states, At the Tata group, our purpose is to improve the quality of life of the communities we serve.

Setting Standards & Benchmarks for CSR

Setting Standards & Benchmarks for CSR

In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO), announced that in future TISCO would not deal with companies, which do not confirm to the company's Corporate Social Responsibility (CSR) standards.

Community Development Initiative

Played active role in nation building and socio-economic development since the early 1900s. Tatas spent Rs. 1.5 billion on community development and social services during the fiscal 2001-02 . A unique feature of the group is that 63 percent of the equity capital of the parent firm - Tata Sons Limited - is held by Tata trusts, which are philanthropic in nature

Commitment Towards Environment

Waste Not, Want Not Emphasis on environmental and ecological issues focus areas the climate change crisis Tata companies work on projects that include repairing green cover, reducing effluents and emissions. Reduce, Reuse & Recycle

CSR as Strategic Initiative

CSR makes business sense

Triple Bottom Line

Institutionalizing CSR
All the group companies were signatories to this code. suitable amendments were made to the Articles of Association of the major Tata group companies in the 1970s In another bid to institutionalize the CSR charter, a clause on this was put into the group's 'Code of Conduct

TBEM-Striving For Business Excellence

TBEM-Striving For Business Excellence

To achieve excellence in their business performance. TBEM is based on the Malcolm Balridge National Quality Award Model of the U.S. The Criteria have some important roles in strengthening competitiveness

TBEM-Striving For Business Excellence

The TBEM framework has the following characteristics

 Focus on Business results  Non-prescriptive and Adaptable  Maintains System Perspective  Supports Goal based diagnosis

RECOGNITION

RECOGNITION
The dedicated CSR efforts by various Tata group companies have been globally recognized TISCO was awarded 'The Energy Research Institute (TERI) award for Corporate Social Responsibility (CSR)

RECOGNITION
TISCO was also conferred the Global Business Coalition Award in 2003 for its efforts in spreading awareness about HIV/AIDS Mother Teresa Commendation award for Corporate Citizenship

Values & Purpose

Values & Purpose

Purpose
Attain leadership through business excellence in the sectors we operate in, while upholding our values and integrity, to improve the quality of life of the communities we serve.

Values & Purpose

Core values
The five core Tata values underpinning the way they do business are:
     Integrity Understanding Excellence Unity Responsibility

Tata Housing Development Company

Tata Housing Development Company

 Shubh Griha scheme (i.e. Nano housing scheme)  Oversubscribed seven times  Certified for leadership in Energy and Environment Design  Nano flats sell at Rs3.9 lakh, a figure lower than even the cost of construction of most real estate projects  Shubh Griha schemes uniqueness: 35-40 per cent of the buyers are in the unorganised sector, people who hitherto had no access to formal housing funds

SINGUR CASE

SINGUR CASE
 In China, SEZ were built on wastelands but in India, especially in West Bengal, rich farmland like those in Singur and Nandigram were targeted  635 acres owned by 9020 farmers.  Allegation about use of state machinery to evict farmers and attack on peaceful protesters

Tata Jagriti Yatra

Tata Jagriti Yatra

Tata Jagriti Yatra

Vision: Turn from being job seekers to job creators Utilize the Indian Talent To build leaders

Tata Trusts

Tata Trusts
There are two principal trusts operating under the Tata umbrella: The Sir Dorabji Tata and Allied Trusts and the Sir Ratan Tata Trust. Tata trusts have come to control 65.8 per cent of the shares of Tata Sons, the holding company of the group. Funding (75%-From Dividends), (Personal wealth)

Tata Trusts
Support for higher studies (JN Tata Endowment Scheme for higher education in 1892) September 1898,Donated Rs30 lakh (then 200,000), to make his dream of a "university or institute of research" a reality.

Corporate Governance

Corporate Governance

It has three-tier governance structure that provides for checks and balances throughout its operation. 1. Law of Land 2. Tata Code of Conduct (TCoC) 3. Self-Motivated Ethics

TATA POWER
Triple bottom line approach Developing infrastructure Health awareness programmes i.e suraksha rally Knowledge centre

TATA POWER
The Bombay chamber civic award2007-08 The Bombay Natural History Society Green Governance Award 2007-08 Developing a sustainable development environment in the dayto day operation of the organisation Jan jagruti abhiyan Internal audit function

TATA MOTORS
 Founded upon a rich legacy of fair,ethical and transparent governing practices.  Created models for employees  Tata quality management sevices  Inability to meet safety standards(Tata makes inexpensive car which has to pass all the safety standards which is a legal factor)

TATA STEEL
 SAFETY Focus on high hazard facilities Increase occupational safety Focus on overall health

 ENVIRONMENTAL
Technology breakthroughs Employee engagement  SOCIAL SUSTAINABILITY

TATA STEEL
The implementation of TOCC among stakeholders is known as management of business ethics(MBE), which is deployed effectively in the company through its 4 pillars concept, which are namely: Leadership System and processes Training and awareness Measurement Number of policies like Gift policy, Whistle Blower Policy

   

Corporate Governance
 Disclosure of important statements and accounting standards norms  R&D activities and many other activities are undertaken by the group along with the information in accordance with the provisions of the Companies Act,1956  Pursuant to Clause 49 of the Listing Agreements with the Stock Exchanges, a Management Discussion and Analysis, Corporate Governance Report, Managing Directors and Auditors Certificate regarding compliance of conditions of Corporate Governance are made a part of the Annual Report

Corporate Governance

 Declaration regarding compliance and code of conduct has been made by the company  Board being elected by the shareholders  The Corporate Governance philosophy has been further strengthened with the implementation, a few years ago, by the Company of the Tata Business Excellence Model, the Tata Code of Conduct applicable to the Company, its subsidiaries, directors and employees

Corporate Governance

 The Committee shall meet at least 4 times in a year and not more than 4 months shall elapse between two successive meetings.  Necessary quorum was present at the meetings  Information as per section 217(2A) of The Companies Act,1956 and the Companies Rules,1975

Corporate Governance
 TATA POWER - the Board of Directors has 14 members, out of whom 4 are Executive Directors and 10 are Non-Executive Directors (NEDs).  TATA STEEL - The Company has a non-executive Chairman and the number of Independent Directors is more than one-third of the total number of Directors. As on 31st March, 2009, the Company has 14 Directors on its Board, of which 8 Directors are independent.  TATA MOTORS - The Board of Directors comprised of 12 Directors, out of which 10 were Non-Executive Directors. The Company has a Non-Executive Chairman and the 6 Independent Directors comprise of half of the total strength of the Board

AUDIT COMMITTEE

AUDIT COMMITTEE
 The Audit Committee functions according to its Charter that defines its Composition, Authority, Responsibility and Reporting functions in accordance with the Companies Act 1956, listing requirements and US regulations applicable to the Company and is reviewed from time to time.  Oversight of the Companys financial reporting process and disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible.  Disclosures has been made related to accounting policies and accounting standard.

AUDIT COMMITTEE
 Review on a regular basis the adequacy of internal audit function.  Disclosures from the CEO and CFO made in connection with the certifications as regards the Companys quarterly and annual reports filed with the SEC under Section 302 of the Sarbanes-Oxley Act of 2002  Hold timely discussions with external auditors  Established clear hiring policies for employees  Approving of whistle blower policy

COMMITTEE & POLICY

COMMITTEE & POLICY

 TATA GROUPS also has constituted a Remuneration committee.  Remuneration policy  An Investors Grievance committee  Shareholders committee  Executive committee of the board  Nomination committee  Committee of directors and ethics  Compliance committee