Name: - Nandan Darshan Bhuva

Roll No: - AU1811288

Programme: - Bachelor Of Business Administration

Subject: - Business Ethics (MGT161)

Section: - 4

Submitted to: - Professor Shikha Bhagat

Submitted on: - 18/04/2020

Company selected for Report: - TATA CHEMICALS

LIMITED

Report Writing
Acknowledgement
I would like to express my sincere gratitude to my Professor Shikha Bhagat for
her enthusiasm, patience, insightful comments, helpful information, practical
advice and unceasing ideas that have helped me tremendously at all times in my
research and writing of this thesis.  Her immense knowledge, profound experience
has enabled me to complete this research successfully. Without her support and
guidance, this project would not have been possible.

I extend my warm gratitude towards the teaching associate Ms. Anika Mansuri to
be in the backend of every project and activity and ensured that no glitches or
difficulty is faced by any student.

I also wish to express my sincere thanks to Ahmedabad University for giving me

an opportunity to learn about Ethical code of conduct in organization. This subject
has given me a diversified view about what is ethical and unethical in organization.
Introduction of Company
 Tata Chemical Limited is an Indian company whose interest lies in chemicals,
crop nutrition, and consumer product. CEO of TCL is Ramakrishnan Mukundan
Its headquarters are in Mumbai, India. It is a subsidiary company of the Tata
group. It is one of the largest chemical company in India that also has a
significant operation in India, Africa, USA, and UK. The company’s Basic
Chemistry product varies and provides key ingredients to several of the world's
leading brands for glass, detergents, pharma, biscuit producing, bakeries
and different industries. It has the largest saltworks in Asia, is the 3rd largest
soda ash manufacturer and 6th largest manufacturer of Sodium bicarbonate. It
has a Revenue of US$ 2 trillion in 2019 and Net income of US$ 340 million.
It has its product distributed in two different categories: -

A) Basic Chemistry product: - It offers 3 different product in Basic chemistry.

1. Alkali Product
2. Halogen Product
3. Salt product

B) Special chemistry Product: - It offers 4 different product which are related to

Science.
1. Agro Science
2. Nutritional Science
3. Material science
4. Energy Science
 Basic Chemistry product are the products which are various types of chemical
used in manufacturing different product.
 Special chemistry product are the products which are manufactured for
sustainability and are used as an additional cover for the product.

(Tata Chemicals, 2020)

(Company profile - About Us - Tata Chemicals Limited, 2020)

CSR Initiative
  Tata Chemicals is creating a shot for Sustainability. Sustainability for the
cluster means that honesty and transparency towards stakeholders,
environmental protection, generating measure, promoting human rights and
making social capital. Ms. Alka Talwar is the chief CSR and sustainability
officer at TCL. Tata Chemicals supports the United Nations world Compact and
is committed to reportage its property performance in accordance with GRI
(Global reportage Initiatives) pointers. Its main operations for atmosphere
protection embrace optimum use of resource, finding and/or generating
alternative sources of fuel and raw materials, and increasing reuse and recycle.
 All they need the policy of avoid, recycle and reuse ‘. the corporate runs a rural
development program at Okhamandal and Babrala. Tata Chemicals restricted
was one in all the primary organizations to carry an impression camp, that was
control at Mithapur within the year 1982, providing eye care to many patients at
the Mithapur Hospital. Tata Chemicals Limited was conjointly initially the
primary organization to run world's first hospital on wheels - the Life Line
categorical, through Jamnagar district for the primary time between November
21, 2004 and December 21, 2004.
 Here is the list of activities that companies perform under CSR: -
i. Eradicating Hunger, poverty and Malnutrition.
ii. Promoting healthcare including preventive healthcare.
iii. Providing sanitation facilities and pure drinking water.
iv. Promoting education. They aim to focus more on education of children, women,
elderly people and differently abled.
v. Providing skills to the people which can help them while they are seeking
employment.
vi. Providing projects which can enhance livelihood.
vii. Promoting gender equality, building homes and hostel for women and also
empowering them.
viii. Taking necessary step which are required to reduce inequalities faced by
socially and economically backward classes of the society.
ix. Prevention of eradication of natural heritage, art and culture and also protecting
them by some means.
x. Development and preferment of traditional art and handicraft.
xi. Undertaking Rural development project.
xii. Contribution to PM relief fund and any other funds scheme set up by
Central/state government for socio economic development and relief and
welfare of Scheduled caste, Scheduled tribe and other backwards castes,
minorities and women.
xiii. Safeguarding environmental sustainability, biological balance, guarding flora
and fauna, animal welfare, agroforestry, conversation of natural resources and
sustaining quality of soil, air and water.
 As it is TCL produces its products using its chemical, this is how they treat their
waste: -
I. The Company's Cement Plant at Mithapur could be a distinctive 'waste to
wealth' initiative. In FY 2018-19, the corporate has replaced 89.74% of virgin
rock with recycled material like rock fines, fly ash, effluent solids, etc. The
washing soda filtration system is that the initial of its kind within the world and
solids are filtered out of the waste material victimization Larox filters.
II. Most of our perilous waste (spent catalysts & used/waste oil) is useful and is
being sent to Ministry of Environment and Forests approved recyclers. Unitedly
with the Company's chemical suppliers (Urefix-Urea toughening agent, cooling
system chemicals), associate degree initiative to utilize empty plastic drums has
been taken.
III. At consumer business product, the corporate has been reusing 80% of its
packaging luggage accustomed transport Tata Salt from Mithapur Plant to
totally different packaging centers as secondary packaging. As an accountable
organization, the corporate is addressing post-consumer plastic waste
management through extended producer’s responsibility framework (EPR).
 To reduce the level of carbon dioxide and waste of fuel, TCL uses Green supply
chain to deliver the product. Green supply chain means maximizing use of
Railways for transportation and also sending bulk order in one go.
 TCL in collaboration with Uday foundation, an NGO operating in the Northern
region of the country, ensures safe drinking water for the rural households
through generating awareness and supporting them with water purifiers. Nearly,
2 lakhs people were made aware and sensitized for using clean and safe
drinking water.
 TCL is using solar energy to produce solar salt and in turn soda ash at Mithapur
plant, Gujarat. Also, solar energy in the new plant at Mambattu, Africa.
 Recently to fight the ongoing pandemic of COVID-19, TATA group, parent
company of many TATA companies including TCL has agreed to donate 1500
crores. It is the highest donation received in this pandemic from all Indian
Company.
  TCL made and inflated shark to create awareness among children. The aim
was to tell aware them about the mass killing of sharks every year.

(Tata Chemicals takes the top spot for Sustainability and CSR in Responsible Business Ranking 2019 -
Tata Chemicals Limited, 2020)

(Business responsibility report, 2019)

Ethical Practices Followed by TCL
 Ethical practices refer to the standards of skilled conduct that any business
skilled is anticipated to uphold. These standards govern the skilled conduct of a
worker in any profession, notably those that area unit chargeable for interacting
with the general public.

At TCL, following thing are strictly followed. Every employees are abided by
this set of rules and regulation, which governs the ethical behavior of
employees.

1. Bribery: - No workers have the approval to take bribe from the anyone
outside likewise as within the organization. Any demand received by Tata
Chemicals for bribe should be rejected and may be reportable to compliance
officer. Someone found to be concerned during this activity, are going to be
fined/will be facing the matter of Imprisonment.
2. Gifts: - Only business gifts of small monetary value which are clearly related
to the daily routine is allowed to be gifted. Examples: - Diary, calendars etc
are permissible for gift. Offer of other items, whatever the monetary value is
of that product, should be given in any circumstances without the prior
consent of compliance officer.
3. Dignity and respect: - At TCL, leader is in command of establishing
semiconducting work atmosphere designed on tolerance, understanding,
mutual corporation. There's no tolerance of any kind of harassment. staff
privacy is revered and there's no opposition with their conduct outside the
work surroundings till and unless, such conduct impacts their work recital or
creates conflict.
4. Human Right: - Not a solo a kid working at TCL. No compulsory labour in
any circumstances. No judgement on basis of background, gender or sex.
Equal opportunities for all.
5. Freedom of association: - Company does not have any issue if their
employees are involved in joining associations or linking themselves in civic
or public affairs in their private capacities unless and until it creates real or
latent conflict with company.
6. Operating outside employment with Company: - Taking pay or acceptive
position outside the organization, running business with/without
remuneration with employment might interfere together with your ability to
figure effectively at TCL or produce conflicts of interest. previous approval
is needed for any of activity keeping in mind the code of conduct and
company policies and law.
7. Integrity of information and asset: - All the workers ought to watch out
whereas presenting the businesses data, together with monetary reports to
media. It ought to be in accordance with the company’s media and
communication. All the data concerning ought to be unbroken confidential
and may not be disclose. All the assets of firms, whether or not it's tangible
or intangible, ought to be used with utmost care and privacy. Respecting
company’s privacy ought to be the one among the catchword of each staff.
8. Insider trading: - Not a single employee should indulge in any form of
insider trading nor support other, they include immediate friends, family,
relatives or business associates.
9. Prohibited drugs and substances: - Zero tolerance policy if any employee
uses prohibited drugs and substance at workplace as it will lead to safety of
other and reputation of company.
 10.Conflict of interest: - Our workers and government administrators shall
continually act within the interest of our company and make sure that any
business or personal association together with shut personal relationships
that they'll have, does not create a conflict of interest with their roles and
duties in our company or the operations of our company. Further, our
workers and executive administrators shall not interact in any business,
relationship or activity, which could conflict with the interest of our
company or our cluster firms.
 TCL featured in top 10 safe workplace for women as per the report news
published in “The Asian Age” newspaper. The company has employee-friendly
individuals’ policies and edges, that are reviewed oftentimes to confirm that
they continue to be up to date to fulfill the aspirations of the dynamical
manpower in addition as aligned to the core values of the organization.

 Tata Chemicals, which has the interest of its employee’s well-being, promotes ethical
conduct at work, work-life balance, supportive maternity leave, flexible work hours.
(Tata Chemicals features in top 10 safe workplaces for women in India, 2020)
 (CODE OF CONDUCT, 2020)
(Business and anti-corruption policies, 2020)

Corporate Governance policies

 The Company has over the years followed best practices of company
Governance. the corporate is committed to the Tata Code of Conduct (‘TCoC’)
that articulates values and ideals that guide and govern the conduct of the Tata
firms still as its staff altogether matters relating to business. The Company’s
overall governance framework, systems and processes replicate and support our
Mission, Vision and Values. the corporate encompasses a sturdy gift of honest,
clear and moral governance practices and it believes that good company
Governance is crucial for achieving long-term company goals and enhancing
stakeholders’ value.
 Board Composition as on 31st March 2019: - As on 31st March 2019, the
Company's Board involved 4 Non- Executive Independent Director (includes 2
women Directors), 2 Non-Executive Non-Independent Director and 2 Executive
Director. None of the Director on the Board could be a Director in additional
than 8 listed entities. None of the Director command post in more than 20
Indian corporations, with less than 10 public limited corporations.
 Number of board meeting: - In financial year 2018-19, board met 9 times in the
year. All the Directors attended all the Meeting except 2 of them didn’t attended
2 Meeting as they were on LOA. (Leave of Absence)
 Audit Committee: - The Audit Committee functions in keeping with its Charter/
Terms of Reference that defines its composition, authority, responsibilities and
coverage functions. The Board has adopted a Charter of the Audit Committee
for its functioning. All the things listed in Section 177 of the Act and
Regulation 18(3) browse with half C of Schedule II of the Listing rules are
 lined in its terms of reference. throughout the year underneath review, the terms
of reference of the Audit Committee were amended to align the role of the
Committee with amendments to the Listing rules and SEBI (Prohibition of
corporate executive Trading) rules, 2015. Mr. Naseer Munjee is the chairman of
Audit committee at TCL.
 Nomination and Remuneration Committee: - The role of the Nomination and
Remuneration Committee (‘NRC’) is to administrate the choice of
administrators and Senior Management Personnel supported criteria associated
with the specific demand of experience and independence. The Nuclear
Regulatory Commission evaluates the performance of administrators and Senior
personnel supported the expected performance criteria. Nuclear Regulatory
Commission conjointly recommends to the Board the remuneration collectable
to administrators and Senior Management Personnel of the corporate.
 Stakeholder Relationship committee: - The Stakeholders Relationship
Committee ('SRC') appearance into various aspects of interest of shareholders
and debenture holders. throughout the year beneath review, the terms of
reference of the SRC were amended to align the role of the Committee with
amendments to the Listing rules.
 There are 3 more committee which takes actively takes part in company’s day
to day function. They are: - a. CSR, Safety and Sustainability committee.

b. Risk Management Committee

c. Scientific Advisory Board

 At TCL, they follow Anglo-American Model and German Model of Corporate

Governance. They have External shareholder as their investor. Also 1 director
and CEO of the company has the shares of the companies. No other individual
has their investment in company. Also, the company has a very less amount of
 loan with them, so the bank cannot interfere in the working of the company.
Equity share holder has the major stake in the company.
(yearly report 2018, 2018)

Analysis
On 18th January, The National Company Law tribunal (NCLT) Slaps penalty on
TCL for fraudulent case against vendor. TCL has made false allegation their
vendor, Raj process Equipment and system limited. TCL filled a false affidavit to
prove that actual amount given in advance is 9.19 crores instead of 4.40 lakhs. Raj
processor was given an order to make machinery by TCL. And TCL claimed that
the machine was deliver to them on time and due to it, they suffered loss. Raj
equipment told that the machinery was not ready due to changes in machinery by
TCL till last minutes. Also, TCL didn’t inspected machinery despite so many
request made by the Raj equipment. And after that, TCL was not ready to lift the
machinery and instead they were more interested in filling the case against. Raj
equipment won the case, and TCL was ordered to pay 10 lakh to Prime Minister’s
relief fund within 30 days. The members of judicial said that TCL intended to
liquidate Raj Process and equipment.

 There are no cases where ethical code of conduct is broken by the employees.
There are very less instances where the company has faced ethical dilemma.
And Company has tried to resolve all the complaint they received during their
day to day functioning.

(National et al., 2020)

Conclusion
From the findings and by reading all the material to write this report, I would like
to conclude that TCL has excellent ways to support Corporate social responsibility.
They cover all the section and issue of the society and distribute their CSR funds in
all the directions. It also focuses more on prime problem as it is the backbone of
society/living, like providing clean drinking water. They follow strict ethical
practices in the organization. All the ethical code of conduct is designed the ethical
practices in a way that, due to it, no employee has objection. Every employee
always tries their best to follow ethical code of conduct so that reputation of
organization is maintained. The Corporate governance committee meet several
times a year to discuss several problem and find solution for it. Also, the corporate
governance model is according to the standard set by Indian companies Act 2013.
So Overall reputation of the company is Excellent and hence is satisfies all the
norms of CSR, Ethical practices and corporate governance. Also, TATA group,
parent group of TCL is always ready to help in case of emergency and in case of
need. They are always ready to work for the betterment of society.
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