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
ago
Founder
Headquarters
Maharashtra, India
Area served
Key people
Chandrasekaran(Chairman)
Revenue
103.5billion (2016)
Total assets
(2017)

1868; 149years
Jamshedji Tata
Bombay House,
Mumbai,
Worldwide
Natarajan

US$

US$ 200billion

TATA PRODUCTS

Airlines
Automotive
Consumer goods
Chemicals
Defence & aerospace
Electrical distribution
Engineering services
Financial services
Healthcare
Information
technology
Locomotives
Steel
Telecommunication

TATAS 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.

TATAS 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.

TATAS 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

TATAS 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
Tradition

Translates

Into

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

CS
R

CSR: Part Of Genetic

Implementing these principlesCode
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
11

CS
R

Genetic
Identity

Code:

Unique

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
6

Upholding
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

Global

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.

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
10

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
12

Creating a ripple effect across towns and villages

CSR ACTIVITY POPULATION

MANAGEMENT

Jamshedpur leads in demographic indices and maternal

and child health in the country
Shares planned family norms with employees and nonemployees through Family Initiatives Foundation
Extension programs have empowered the community to
sustain initiatives
Provides free Reproductive Health Services to
2,000,00 women from urban & rural areas each year
Ensures 98%
Jamshedpur
14

immunisation

coverage

in

the

over

city

of

CSR ACTIVITY SPORTS &

ADVENTURE
Promotes Sports as a way of Life
Sports Department
Tata Steel Adventure Foundation
Tata Football Academy
Tata Archery Academy

15

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
Indias first woman to scale Mount
Everest

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
16

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

18

THANK YOU