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,
Maharashtra, India Mumbai,

 Area served Worldwide

 Key people Natarajan
Chandrasekaran(Chairman)

 Revenue US$
103.5 billion (2016)
 Total assets US$ 200 billio
(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
 ATA’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
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

4
 CSR: Part Of Genetic

CS
Code
Implementing these principles 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

7
 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.”

8
 CSR ACTIVITY
ENVIRONMEN

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 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

14
 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
15
 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
Partner for Child Survival, Smile Train, Polio
 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