BUSINESS ETHICS AND

CORPORATE GOVERNANCE

TATA
BY :-
Kajal
 BUSINESS ETHICS

Business ethics (also corporate

ethics) is a form of applied ethics or
professional ethics that examines
ethical principles and moral or
ethical problems that arise in a
business environment. It applies to
all aspects of business conduct and
is relevant to the conduct of
individuals and entire organizations
 CORPORATE GOVERNANCE

Corporate governance is the system of

rules, practices and processes by which
a company is directed and controlled.
Corporate governance essentially
involves balancing the interests of a
company's many stakeholders, such as
shareholders, management, customers,
suppliers, financiers, government and
the community.
 TATA
 Founded 1868; 149 years ago
 Founder Jamshedji Tata
 Headquarters Bombay House,
Mumbai, Maharashtra, India
 Area served Worldwide
 Key people Natarajan
Chandrasekaran(Chairman)
 Revenue US$ 103.5 billion (2016)
 Total assets US$ 200 billion (2017)
 Owner Tata Sons
 Number of employees 660,800 (2016)
TATA PRODUCTS

 Airlines
 Automotive
 Consumer goods
 Chemicals
 Defence & aerospace
 Electrical distribution
 Engineering services
 Financial services
 Healthcare
 Information technology
 Locomotives
 Steel
 Telecommunication
 Real estate
TATA’S BUSINESS ETHICS PRINCIPLES
 National interest
 Committed to benefit the economic development of the countries in which it operates.
 Financial reporting and records
 Prepare and maintain its accounts fairly and accurately and in accordance with the accounting
and financial of the country
 Competition
 Fully support the development and operation of competitive open markets
 Gifts and donations
 Its employees shall neither receive nor offer or make, directly or indirectly, any illegal
payments, remuneration, gifts, donations or comparable benefits
 Government agencies
 A Tata company and its employees shall not, unless mandated under applicable laws, offer or
give any company funds or property as donation to any government agency or its
representative
 Political non-alignment
 Be committed to and support the constitution and governance systems of the country in which
it operates.
 TATA’S BUSINESS ETHICS PRINCIPLES
( cont…)
 Cooperation of Tata companies
 Cooperate with other Tata companies including applicable joint ventures, by sharing knowledge
and physical, human and management resources
 Public representation of the company and the group
 Honour the information requirements of the public and its stakeholders
 Third party representation
 Parties which have business dealings with the Tata group but are not members of the group,
such as consultants, agents, sales representatives, distributors, channel partners, contractors
and suppliers, shall not be authorised to represent a Tata company without the written
permission
 Use of the Tata brand
 The use of the Tata name and trademark shall be governed by manuals, codes and agreements
to be issued by Tata Sons
 Group policies
 A Tata company shall be committed to enhancing shareholder value and complying with all
regulations and laws that govern shareholder rights.
 TATA’S BUSINESS ETHICS PRINCIPLES
 Ethical conduct
( cont…)
 Every employee of a Tata company shall preserve the human rights of every individual and the
community, and shall strive to honour commitments.
 Conflict of interest
 Employees act in the interest of the company, and ensure that any business or personal
association which he / she may have does not involve a conflict of interest with the operations of
the company
 Securities transactions and confidential information
 An employee of a Tata company and his / her immediate family shall not derive any benefit or
counsel, or assist others to derive any benefit, from access to and possession of information
about the company
 Protecting company assets
 The assets of a Tata company shall not be misused
 Integrity of data furnished
 Every employee of a Tata company shall ensure, at all times, the integrity of data or information
furnished by him/her to the company.
 Citizenship
 The involvement of a Tata employee in civic or public affairs shall be with express approval from
the chief executive of his / her company
 TATA’S BUSINESS ETHICS PRINCIPLES
 Health, safety and environment
( cont…)
 A Tata company shall strive to provide a safe, healthy, clean and ergonomic working environment
for its people
 Regulatory compliance
 Employees of a Tata company, in their business conduct, shall comply with all applicable laws and
regulations, in letter and spirit
 Concurrent employment
 Consistent with applicable laws, an employee of a Tata company shall not, without the requisite,
officially written approval of the company, accept employment or a position of responsibility with
any other company
 Quality of products and services
 Be committed to supply goods and services of world class quality standards, backed by after-sales
services consistent with the requirements of its customers
 Corporate citizenship
 Committed to good corporate citizenship, not only in the compliance of all relevant laws and
regulations but also by actively assisting in the improvement of quality of life of the people in the
communities in which it operates
 Equal opportunities employer
 Provide equal opportunities to all its employees and all qualified applicants for employment
 A Vision Translates Into Tradition

“Let industry established in the countryside ‘adopt’ the

villages in its neighbourhood; ...it is also clearly in the
interests of industry that surrounding areas should be
healthy, prosperous and peaceful.”
J R D Tata, Chairman, Tata Group 1938- 1993

“I do believe that we, in the Tata Group, have held a view and
sense of purpose that our companies are not in existence
just to run our business and to make profit but that we are
responsible and good corporate citizens over and above our
normal operations”
Ratan N Tata, Chairman, Tata Group

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 CSR: Part Of Genetic Code

CSR Implementing these principles over 100 years are part

of organizational development

1912 - 8 hour workday

1916 - Social Welfare Scheme launched for employees
1920 - Leave with pay
1934 - Profit Sharing bonus
1934 - Tata Steel responded to earthquake in its Bihar province with relief supplies
1951 - Planned family norms promoted at community level
1970 – Included Corporate Social Responsibility in its Articles of Association
1958 - 225 acre Jubilee park created for the citizens of Jamshedpur
1979 - Launched concerted rural development
initiatives

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 Genetic Code: A Unique Identity

CSR It has shaped its heart, mindset and business processes

1995- Tata Business Excellence Model - makes sustainable growth a priority and
has included this in its Key Enterprises Process

1999- Tata Code of Conduct - mandates good governance ethical behaviour by

organizations as well as each and every employee

1995- Tata Council for Community Initiatives – provides the superstructure for CSR
efforts across the Group

2003- Tata Index for Sustainable Development - a CSR measure adopted across
the Tata Group

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 Upholding Global Commitments

 Committed to national and global CSR principles

 First signatory to UN – Global Compact
 Founder member of the Global Business Coalition
on HIV/AIDS
 Member of the Global Reporting Initiative Board
 First Indian company to publish Corporate
Sustainability Report as per G R I guidelines
 Member of International Iron & Steel Institute
 Project Group on Sustainability Indicator for
 Steel

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 CORPORATE SOCIAL RESPONSIBILITY
POLICY

“Tata Steel believes that the primary purpose of a business is to improve the
quality of life of people.

Tata Steel will volunteer its resources, to the extent that it can reasonably
afford, to sustain and improve a healthy and prosperous environment and to
improve the quality of life of the people of the areas in which it operates.”

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 CSR ACTIVITY
ENVIRONMENT

Conserving Nature for Future Generations

All production units certified to ISO 14001

Town Services certified to ISO 14001

Planted -”thousand trees for thousand days” - as a millennium gift for future
generations. The eventual count was 1.6 million

20% reduction in consumption of raw materials in the past five years

100% treatment of waste water, discharged upstream from point of collection

Greening of Supply Chain

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 CSR ACTIVITY EMPLOYEE RELATIONS

Many landmarks in Labour Welfare

1915 Free Medical Aid to all employees and

dependent family members
1917 Welfare Department set up
1956 Joint Consultation instituted with Union
Management Agreement
1990 Incentive for Higher Technical Education
2001 Family Benefit Scheme
2003 R D Tata Technical Education Centre
2003 Initiated process for SA 8000
certification
2004 Completed 75 years of Industrial
Harmony
2004 Inserted clause against Sexual
Harassment in the Works Standing
Order

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 CSR ACTIVITY STIMULATING ECONOMIC
GROWTH

Continuously augmenting Town infrastructure to promote business growth

Tata Steel and its subsidiaries provide business opportunities to ancillary units

Institutions such as National Institute of Technology, R.D.Tata Technical Education

Center, and Savak Nanavati Technical Institute provides technical and job oriented
training

Promoting rural economy through natural resource management, micro financing

and credit, and training for gainful employment

Tate Steel caters to over 600 villages and several company towns, in the provinces
of Orissa and Jharkhand

Creating a ripple effect across towns and villages

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 CSR ACTIVITY POPULATION
MANAGEMENT

Jamshedpur leads in demographic indices and maternal and child health in

the country

Shares planned family norms with employees and non-employees through

Family Initiatives Foundation

Extension programs have empowered the community to sustain initiatives

Provides free Reproductive Health Services to over 2,000,00 women from

urban & rural areas each year

Ensures 98% immunisation coverage in the city of Jamshedpur

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 CSR ACTIVITY SPORTS & ADVENTURE

Promotes Sports as a way of Life

Sports Department
Tata Steel Adventure Foundation
Tata Football Academy
Tata Archery Academy

30-acre J R D Tata Sports Complex

Organizes sporting events for employees and
community year round
Promotes sports in schools
Employees include 20 Olympians, over 100
international sports persons
India’s first woman to scale Mount
Everest

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 CSR ACTIVITY HEALTH FOR ALL

Health care facilities open to employees and non-employees

850-bed hospital, two super dispensaries and nine

dispensaries in Jamshedpur

Mobile medical units reach out to rural and semi urban areas

Health Centers based in villages and communities. Supports

alternative remedies such as ayurveda, naturopathy,
homeopathy, etc

Supports Blood Bank, specialty hospitals for tuberculosis,

eye care services, cancer, etc

Taken “Lifeline Express” seven times to remote parts of

rural India

Partner for Child Survival, Smile Train, Polio and Water and
Sanitation projects
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 CSR ACTIVITY EDUCATION

Jamshedpur is a centre for excellence in

education

Three primary schools, six high schools and one

college run by the company

312 private schools and 171 “balwadi” schools

assisted by Tata Steel

Jamshedpur has among the highest literacy

rates in the country

Instituted Dr J J Irani Education Excellence

Award

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THANK YOU