BUSINESS ETHICS AND

CORPORATE GOVERNANCE

TATA
BY :-
22 POOJA MANNA
 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)
TATA PRODUCTS

 Airlines
 Automotive
 Consumer goods
 Chemicals
 Defence & aerospace
 Electrical distribution
 Engineering services
 Financial services
 Healthcare
 Information
technology
 Locomotives
 Steel
 Telecommunication
 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
( cont…)
 Ethical conduct
 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
( cont…)
 Health, safety and environment
 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
 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

CS Implementing these principlesCode

over 100
years are part of organizational
development

R
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
11

5
 Genetic Code: A Unique

CS
Identity
It has shaped its heart, mindset and business
processes

R
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

6
 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
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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
11 Industrial
 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
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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