TATA M OTORS LIMITED
CORPORATE SUSTAINABILITY REPORT
Tata Motors Ltd. Corporate Sustainability Report 2007-08
GRI CONTENT INDEX
Section Statement f rom MD Description of key issues, risks and opportunities Aspect Indicator Page #
2. Organisational Profile
Name of the Organisation Primary brands, products and serv ices Operational Structure Location of HQ Countries with major operations Nature of ownership and legal f orm Markets served Scale of the Organisation Signif icant changes in size, structure or ownership Awards Receiv ed
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
13 13 13 13 14 14 14 14 15 15-18
3. Report Parametres
Reporting Period Recent previous Report Reporting cycle Contact persons Report content Boundary of the report Limitations of the Report Basis f or reporting on subsidiaries and associate companies Data Measurement Techniques Restatements Signif icant changes from previous reporting periods GRI Content Index Policy and current practices for seeking external assurance
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
20 20 20 20 2-6 23 23 23
3.9 3.10 3.11 3.12 3.13
23 23 23 2-6 23
Tata Motors Ltd. Corporate Sustainability Report 2007-08
4. Governance, Commitments a nd Engagement
Governance structure and Board composition Non-executive status of the chair Independent and/or non-executiv e members Mechanism for shareholders and employ ees to provide recommendations to the highest body Linkage between compensation and perf ormance of the Board Process to av oid conf licts of interest Process to determine expertise of Board members Statements and application of mission, v alues a code nd of conduct Ov erseeing of risks and opportunities by gov ernance bodies Ev aluating the perf ormance of highest gov erning body Approach to risk management in operational planning Charters, initiativ es and principles that the organization subscribes to Membership in associations and national/international organizations Stakeholder engagement Identif ication and selection of stakeholders Approach to stakeholder engagement
4.1 4.2 4.3 4.4
25-26 25-26 25-26 27-28
4.6 4.7 4.8
29 29 10-11 & 29-30
4.10 4.11 4.12
30 30-31 32
4.14 4.15 4.16
32 21 32
5, Economic Performance Indicators
Economic perf ormance Signif icant financial assistance received f rom the government Range of ratios of standard entry lev el wage co mpared to local minimum wage at signif icant locations of operation Policy , practices and proportion of spending on locallybased suppliers Procedure f or local hiring Indirect economic impacts
leased or managed in biodiv ersity rich habitats Impacts of activ ities.Tata Motors Ltd. products and serv ices on biodiv ersity Habitats protected or restored Strategies. SO and other signif icant air emissions Total water discharge Total waste by ty pe and disposal method Total number and v olume of signif icant spills Weight of waste deemed hazardous Initiativ es to mitigate env ironmental impacts of products and serv ices Packaging materials that are reclaimed Fines and sanctions f or non-compliance with environmental laws
EN1 EN2 EN3 EN4 EN5 EN6
45 45-46 46 46 46-47 47-48
EN7 EN8 EN9 EN10 EN11
47-48 48 48 48 48
EN16 EN17 EN18 EN19 EN20 EN21 EN22 EN23 EN24 EN26
50 50 50 51 51 52 52-53 53 53 54-55
. current actions and plans for managing impacts on bio-div ersity Number of IUCN red list species and national conserv ation list species with habitats in areas affected by operations Total direct Greenhouse Gas emissions Total indirect Greenhouse Gas emissions Initiativ es to reduce Greenhouse Gas emissions Emissions of ozone-depleting substances NO. Corporate Sustainability Report 2007-08
6. Environmental Performance Indicators
Materials used Recy cled input materials Direct energy consumption Indirect Energy Consumption Energy sav ed Initiativ es to prov ide energy -ef f icient products and services Initiativ es to reduce indirect energy consumptions Total water use Water sources significantly af f ected Total recy cling and reuse of water Location and size of land owned.
including whether it is specified in collective agreements Workf orce represented in joint management-worker health and saf ety committees Rates of injury and work-related f atalities Education. training and risk control programmes to assist workforce. Corporate Sustainability Report 2007-08
Environmental impacts of transporting organisation’s products Environmental protection expenditure and inv estments Total workf orce Total rate of employ ee turnover Percentage of employ ees covered by collective bargaining Percentage of employ ees covered by collective bargaining agreement Minimum notice period(s) regarding operational changes. Social Performance Indicators
LA1 LA2 LA3
59 59 59-60
LA11 Programmes f or skill management and managing career endings Employ ees receiv ing regular perf ormance and career development rev iews Breakdown of employees by category and gender Ratio of basic salary of men to women by employ ee category Human rights screening f or suppliers and contractors Employ ee training on policies and procedures regarding aspects of human rights Total number of incidents of discrimination Managing risk to f reedom of association Ef f orts to eliminate child labour Ef f orts to eliminate forced and compulsory labour LA12
HR4 HR5 HR6 HR7
67 67-68 68 68-69
. their f amilies and community members regarding serious diseases Health and saf ety topics covered in f ormal agre ements with trade unions Av erage hours of training per y ear per employ ee by employ ee category
6.Tata Motors Ltd.
15 included in the Report S E L F D E C L A R E D
G3 Management Approach Disclosures
Beginning of each section
G3 Performance Indicators
Reported on 67 performance indicators
. anti-trust and monopoly practices Customer health and saf ety Total number of incidents of non-compliance with regulations concerning health and saf ety impacts of products and serv ices Product and serv ice labeling Adherence to Regulations regarding Marketing Communications Complaints regarding breaches of consumer priv acy
PR3& 4 PR6
GRI Application Level
G3 Profile Disclosures 1. Corporate Sustainability Report 2007-08
Incidents of v iolations concerning rights of indigenous people Programmes and practices to assess and manage impacts on communities Business units analysed f or risks related to corruption Employ ees trained in organisation’s anti-corruption policies and procedures Contributions to political parties Legal actions f or anti-competitiv e.Tata Motors Ltd.1 to 4.
Tata Motors Ltd. Corporate Sustainability Report 2007-08
Strategy and Analysis
has also been designed to meet BS3 emission standards despite the stiff cost targets of the project.Tata Motors Ltd. All the manufacturing facilities of T ata Motors are certified to meet ISO: 14001 Environment Management System (EMS) standards. the Company is also actively pursuing electric vehicles programmes. Further. T he Company’s margins were under pres due sure to rising interest rates. T he year 2007-08 was a historic year for T ata Motors. for the purchase of Jaguar and Land Rover. the Company continued to strengthen its social development. the Company achieved its highest ever sales of 585. which is expected to be launched in the near future.the world’s least expensive car.649 vehicles to remain India’s largest automobile company by turnover. the Company is committed to meet all emission norms in its products that are enforced from time to time in India and the international markets where it operates. social and environmental performance. While the Company achieved new heights in the worldwide automobile industry. constraints in availability of vehicle financing. While a number of models are already available with the LPG and CNG technologies. Besides this. This is evident from the fact that the small car Nano. Maharashtra has consumed around 50 million unitsof wind energy annually since 2001 as part of the Clean Development Mechanism of the United Nations. I am delighted to make public T ata Motor’s Sustainability Report which provides a balanced and reasonable presentation of the Company’s economic. T he Company’s heritage of returning to the society what it earns evokes trust among the consumers and other stakeholders. T he manufacturing unit at Pune. and the signing of the definitive agreement with Ford Motor Co. Corporate Sustainability Report 2007-08
Ladies and Gentlemen. marked with two significant events.
. in line with the Tata Group’s commitment of improving the quality of life of the community it serves. 2008. T he moderation in economic growth in the Indian economy impacted demand to some extent. Notwithstanding all these challenges. T he manufacturing plants have reduced power and water consumption per unit of vehicle by pursuing various energy and water conservation initiatives. Rain water harvesting continues to be a focussed activity at the manufacturing plants and the C ompany continues to successfully run its Rain Water Harvesting project in Jamshedpur manufacturing unit.the unveiling of T ata Nano . which has since been completed on June 2. Tata Motors has been continuously launching environment friendly products in the markets by using the latest technologies available. and an unprecedented increase in raw material prices. the overall economic environment threw many challenges during the year. environmental management and bio-diversity conservation programmes.
T ata Motors is confident that the wealth generated as a result of development would not only power the business but would also be ploughed back in the conservation and enrichment of environment and for greater prosperity of the community. The Jamshedpur plant was awarded the National Energy Management Award by CII and declared the “Energy Efficient Unit 2007”. environmental conservation and societal value creation has been acknowledged at various forums. manufacturing food products and beautician courses. 350 of these youth were trained at the Singur site in West Bengal. It also received a trophy and award for Outstanding Performance by CII. Over a thousand youth from rural areas adopted by the Company were trained in various technical and vocational trades.Tata Motors Ltd. including the Human RightsCharter. where the small car project wassupposed to come up.ER Energy Conservation ( ENCON) Award 2007. T he Company’s contribution in the national development.
Your’s truly. Corporate Sustainability Report 2007-08
T he Company has well-defined thrust areas for its community development initiatives which are linked to national and international goals and standards. As part of the women empowerment programme. Bharat Nirman Programme and the Millennium Development Goals.
. T ata Motors is also the only Indian automobile company that hasearned the distinction of “Notable COP” for the third consecutive year in 2006-07.08 Contest. over a thousand women were trained in sewing.
Passenger Car and Commercial Vehicle are given below:
. Corporate Sustainability Report 2007-08
T he vision. mission and core values for the two business units of Tata Motors.Tata Motors Ltd.
Corporate Sustainability Report 2007-08
.Tata Motors Ltd.
Corporate Sustainability Report 2007-08
.Tata Motors Ltd.
From rigid trucks to tractor trailers. and joint v entures T ata Motors is a fully integrated automobile company. we have it all. T ata Authorised Service Centres and spare parts distributors. the leading automotive vehicle manufacturing company in India in termsof revenues and one of the largest private sector companies in India in terms of revenues and assets. T ata Authorised Service Stations. 207DI. Corporate Sustainability Report 2007-08
Name of the Organisation T ata Motors Limited. which is one of the leading business groups in India. including main div isions. T oday. T he Company is the largest company in terms of revenues in the Tata Group. Both the business units of Tata Motors reach customer via large network of dealers. EX series. products and serv ices
T he wide array of commercial vehicles from T ata Motors is designed to take care of almost every business needs. it is the only automobile manufacturer to offer the entire range of commercial vehicles for transportation of goods and passengersand also
. operating companies. from light commercial vehiclesto specialised defence carriers. Commercial Vehicle Business Unit (CVBU) manufactures and markets commercial vehiclesranging from 1. Operational structure of the organization. 2516. etc.5 tonnes Gross Vehicle Weight (GVW) pick-ups to buses to 49 tonnes GVW heavy tr ucks. The specifications of our trucks have become brand names in the market place such as 407. 709. 4021. T ata Motors through its Engineering Research Centre provides design and development capabilities. subsidiaries.Tata Motors Ltd.
Passenger Cars Business Unit (PCBU) manufactures and markets cars (Indica and Indigo brand) along with marketing of utility Vehicles like Sumo and Safari. big and small. from luxury buses to compact city carriers. Primary brands.
T ata AutoComp Systems Ltd. facilitate and support its diverse range of business activities: T elco Construction Equipment Co. India Phone – 91 22 56658282
Countries where the organization operates. Fiat India Automobiles Private Limited (FIAPL). (HVT L). 24 Homi Modi Street. T ata Motors (SA) Proprietary Limited (T MSA). Ltd. Bangladesh T ata Precision Industries Pte. Mumbai 400 001. T ata Marcopolo Motor Limited s (T MML). Sheba Properties Ltd.. (Telcon). Hispano Carrocera S. and Names of countries w ith maj or operations We have • • • • • • • • subsidiary/associate companies outside of India as under: T ata Daewoo Commercial Vehicle Co. USA/UK T ata Motors European T echnical Centre. UK T ata Motors (SA) Proprietary Limited. T ata Motors (T hailand) Limited (TMTL). South Africa T ata Motors (T hailand) Limited. T ata Motors has made substantial investments in building subsidiary and associate companies that add value. T AL Manufacturing Solutions Ltd. and Nita Company Ltd.
Markets serv ed T ata Motors has major operations in India with sales and marketing operations in more than 70 countries. Automobile Corporation of Goa Limited (ACGL). T ata Motors Finance Limited (T MFL). Commercial Vehicle Business Unit (CVBU) and Passenger Car Business Unit (PCBU). Spain
In addition to the above. Ltd.
. includes only Indian operations.. Company’s Depositary Receipt Programme is listed on the New York Stock Exchange.
Nature of ownership and legal form T ata Motors Limited is a public limited company listed on 2 stock exchanges (Bombay Stock Exchange and National Stock Exchange of India Limited) in India. T he scope of this report though... (HVAL). (T T L). HV Axles Ltd.. T ata T echnologies Ltd. we also have a liaison office in Dubai which caters to promoting our international business for the Middle East and Africa region.. Korea Nita Company Limited. Singapore T ata T echnologies Limited.A. Corporate Sustainability Report 2007-08
passenger cars in India through its two business unit viz. Tata C ummins Ltd. Tata Motors European T echnical Centre (T MET C). Bombay House.Tata Motors Ltd. (T AL). HV T ransmissions Ltd. T ata Precision Industries Pte Ltd. T ata Daewoo Commercial Vehicle Company Ltd (T DCV). Thailand Hispano Carrocera S. Ltd. (T ACO). Location of organization’s headquarters
Tata Motors Limited. Over the years. T ata Motors Insurance Broking and Advisory Services Limited (TMIBASL). (T CL). T ML Distribution Company (T DCL).A.
62. Tata Motors is raising Rs.51 14.Tata Motors Ltd.3billion on cash free. 2 008 Net sales f or FY 2007-08 Volumes of products sold Total net assets as on March 31 ‘08 Gross debt Share Capital Largest Shareholder
23. Jaguar and Land Rov er achieved rev enues of US$ 19. with 21. debt free basis.09 billion for the financial year 2007-08.090 shareholders. part of Premier Automotiv e Group of Ford Motor Company for US$ 2.42 20. Corporate Sustainability Report 2007-08
More details are available at T ata Motors website http://www.
. Foreign Companies & ADRs Gov ernment Companies.96 billion Rs. 2008 for the Company is given below:
Category Promoters NRIs.649 Rs. or ow nership Tata Motors acquired Land Rov er and Jaguar. of shares 128819405 79068379 57079243 10160944 65388543 44987440 385503954 % of holding 33.tatamotors. 3. The tw o enterprises w ere formally transferred on June 2.63 16. 330.86 billion Tata Sons Ltd. B anks and Insurance Companies Mutual Funds & Unit Trust of India Foreign Institutional Inv estors Others Total No. T he shareholding pattern as on March 31.230 Rs. with approximately 292.com Scale of the reporting organization: Key elements depicting the scale of the organisation in 2007-08 is given in the table below:
Number of permanent employees as on March 31.96 11.81 2.67 100
Significant changes during the reporting period regarding size.94 billion 585. listed company (including on the New York Stock Exchange). 150. 2008 at a signing ceremony at the Jaguar and Land Rov er headquarters in West Midlands.92% to paid-up capital
Shareholding T he Company is a widely held. 72000 millions on a rights basis and US $500/600 million through an international offering of equity and/or cost effective quasi equity instruments.81 billion Rs. T he Company’s international offerings of Foreign Currency Convertible Bonds are listed on the Luxembourg/Singapore Stock Exchanges. Financial Institutions. structure. To fund this acquisition.
2008. USA. Tata Motors. General Manager (Information Technology). accepted the award from Mr Harsh Mariwala. T he awards recognise great innovations in India that have a great idea coupled with a unique insight. T ata Motors received the Readers Digest T rusted Brands Gold Award based on feedback from over 7000 respondents. the foundation received 206 entries. Mr Ravi Kant. of India. T ata Motors secured fourteen rankings in seven trades Passenger Car Business Unit bags Handa Golden Key Aw ard T he Passenger Car Business Unit of T ata Motors bagged the Handa Golden Key Aw 2007 ard for the 'Best Value Engineering Organisation'. Marico and Dr Mashelkar. T his special award salutesthe company's passion and zeal behind the creation of the Nano. Dy. Managing Director. Tata Motors receiv es the Global Game Changer Aw ard A special award at the Innovation for India Aw ards 2008 T ata Motors has received the Global Game Changer Award at the 'Innovation for India Awards 2008'. Corporate Sustainability Report 2007-08
Aw ards receiv ed in the reporting period Business Related: • Auto Monitor Commercial Vehicle Manufacturer of the Year T ata Motors has received the Auto Monitor Commercial Vehicle Manufacturer of the Year award for the year 2007. accepted the award on behalf of the company. Govt. in a Readers Digest/AC Neilsen consumer survey. on March 19. and have positively impacted lives. Tata Motors among India’s Most Trusted Brand in cars T ata Motors has been chosen as one of India’s Most T rusted Brand in cars for the second consecutive year. T he Auto Monitor awards are given to honor the best in the Indian automotive industry for their contribution to the sector in the calendar year 2007. Mr C P Lohiya. TRAKIT bags silv er aw ard for 'Excellence in Design' T RAKIT won the silver award for 'Excellence in Design' in the 'Electronics' category at the 20th International Appliance Design Excellence in Design Awards 2007. Tata Motors receives Uptime Champion Aw ard 2007 T ata Motors has received the Uptime Champion Award 2007 in the 'General Industry' category. T he award is conferred by the Indian National Value Engineering Society (INVEST ). Ministry of Labour. T R AKIT isa
. Pune was declared as the “Best Company” at 20 National Work Skills& 2 CII World Skills Competitions conducted jointly by CII and the Directorate General of Employment and T raining (DGET ).Tata Motors Ltd. organised by the Marico Innovation Foundation. T he award by Emerson Network Power and Express Computer is given to an organisation that is working to improve overall reliability of its IT (Information T echnology) infrastructure and has implemented a solution that guarantees optimal infrastructur uptime e 24x7. T his year. The sevenmember jury that comprised of senior people from the industry and Auto Monitor editorial team adjudicated the nominations across 10 categories and decided on the winners. Chairman and Managing Director. Tata Motors bags the “Best Company Aw ard” th nd T ata Motors. Chairman of the Marico Innovation Foundation.
Head. Mr. T he award was received by Mr. Ghose. received the award on behalf of the company. conferred by the Institute of Cost and Works Accountants of India (ICWAI). CVBU .CVBU bags 'Highest Delta Aw ard' for Business Excellence T ata Motors CVBU has crossed the score band of 551-650 in the Tata Business Excellence Model 2007 assessment and has moved into the ''Industry Leader'' (651-750 score) band. T his award has been presented to Tata Motors in recognition for supporting ECEL's business growth plans through the supply of high tech aggregates including engines. DGM (B E S .CVBU bagged the Golden Peacock Award for Occupational Health & Safety. K. Tata Motors bagged the first prize in the ''Manufacturing'' category in the private sector.Pune) Tata Motors w ins Best Paper Aw ard at the Asian Netw ork for Quality Congress 2007 T ata Motors has won the 'Best Paper Award' among 120 papers presented at the Asian Network for Quality (ANQ) Congress 2007.Tata Motors Ltd. A. CVBU has won the ''Highest Delta Award'' in the 600+ point category. Rajiv Dube.Pune) received the award for his paper on the 'Application of 3P (Production Preparation Process) concept at Tata Motors'. Prasad. Process Related: • Tata Motors bags National Aw ard for Excellence in Cost Management T ata Motors has won the National Award for Excellence in Cost Management for the year 2006. A. S. V. President -Passenger Car Business Unit. Aggregates Business of CVBU bags Best Supplier Aw ard from ECEL T he Aggregates Business of T ata Motors' Commercial Vehicle Business Unit has won the 'Best Supplier Award' from Escorts Construction Equipment Ltd (ECEL). gear boxesand axles Mr PVS . T he award was conferred on T ata Motors for the exceptional results in business transformation using the SAP-SRM (Supplier Relationship Management) and SAP Warehouse Management solutions. Gandhi. Tata Motors Commercial Vehicle Business Unit bagged the First prize in “Excellence in Suggestion Scheme Contest 2007” T ata Motors CVBU Pune has bagged the First prize in “Excellence in SuggestionScheme Contest 2007” (in group V) from the Indian National Suggestion Schemes' Association (INSSAN). 'NDTV Profit' Business Leadership Aw ard for Tata Motors T ata Motors has received the coveted ''NDT V Profit'' Business Leadership Award in the category of four-wheelers for the year 2007. T his award isgiven to an organisation that displays the highest jump in its scores from the previous year. Tata Motors aw arded SAP Customer Excellence Aw ard T ata Motors has been awarded the SAP ACE Customer Excellence Award for the year 2007 in the "Best Project in the Automotive Vertical (Large Enterprise)" category.
. DGM (Auto. Corporate Sustainability Report 2007-08
vehicle tracking telematic device developed by T ata Motors for Indian truck driversand fleet owners. DGM (HR. The award is given to organisations who have achieved the highest levels of employee involvement and excellence through Suggestion Scheme. Mr. T ata Motors accepted the award on behalf of the Company Golden Peacock Award for Occupational Health & Safety T ata Motors Pune . CVBU . Tata Motors .Aggregates Business.Pune) and Mr. Parasharami.
President . T he annual ''Most T rusted Brands'' survey is conducted among consumers across the country by ''Brand Equity''. Indica among 'Most Trusted Brands' of India T he Sumo and the Indica have once again been adjudged among the ''Most Trusted Brands'' of India. among the 50 best. are T CS. Recognitions: • Sumo. and generated a sense of achievement among citizens through exemplary leadership and business innovation. CVBU Pune has won the prestigious Rajiv Gandhi National Quality Award for 2007. Tata Motors among Asia's 50 best performing companies Business Week has listed Tata Motors among Asia's 50 best performing companies. who has contributed to the development of the national economy. Corporate Sustainability Report 2007-08
Commercial Vehicle Business Unit w ins Raj iv Gandhi National Quality Aw ard for 2007 T ata Motors. Business Week says that these companies have been powered by robust revenue growth. Hero Honda Motors. Tata Steel. HDFC.3 (up from No. profitability and shareholder returns. was conferred with the ''CEO .
Indiv idual Aw ards • Mr Kw ang-Ok Chae. the European Quality Award and the Deming Prize. T he Rajiv Gandhi National Quality Award is instituted by the Bureau of Indian Standards (BIS).7 position . T he award is given to an outstanding South Korean CEO. President . Tata Motors is the only automobile company in the top 10. CVBU Pune received this award in the large scale manufacturing organisation category.the face of the business for all stakeholders . by the Economic Review magazine of South Korea. New Delhi and has criteria similar to prestigious international quality awards like the Malcolm Baldrige National Quality Award USA. Ranked at # 8. T he study indicated that T ata Motors is also among the 14 companiesin India in terms of its ability to sustain earnings into the future with the least risk. Tata Motors among most reputed Indian firms T ata Motors has emerged as one of the most reputed corporates in India according to the Corporate Reputation Index by global consultancy firm.Korea Award 2007''. T he study was conducted by T he Economic T imes and Brand Finance. T NS.both above all other car brands Tata Motors India's 5th most v aluable brand T ata Motors has been ranked as the 5th most valuable ''company brand'' . T he Sumo is ranked No.
Mr. the marketing and advertising supplement of ''The Economic T imes''. Viv ek Joshi bags patent for energy sav ing dev ice
.in India.5 last year). T he findings are of the BusinessWorld 'Most Respected Companies Survey . Sterlite Industries and Cipla.Tata Daewoo. honoured w ith the 'CEO of Korea' award Mr Kwang-Ok Chae.Tata Motors Ltd. T he other Indian companies. Japan.T ata Daewoo.2007'. Siemens India. while the Indica retains itsNo. T ata Motors sharesthe second spot with T ata Steel and Hindustan Lever Tata Motors among 10 Most Respected Companies in India T ata Motors is among the top 10 Most Respected Companies in India.
Tata Motors Ltd. T his device can save 22% electrical energy consumption and can be used in any gas discharge lamp at home. Corporate Sustainability Report 2007-08
Mr. in shops. malls. Vivek Joshi from the Uttarakhand team has been awarded a patent (Patent No. hotels offices etc. T he patent isfor a period of twenty years. 203430) for an energy saving device for high pressure gas discharge lamps.
M B Paralkar Consultant Advisor – CSR & IR T ata Motors Limited.Tata Motors Ltd.com Website – www. Bombay House Phone – 91 22 66657227 E Mail – sangram. Pune Phone – 91 20 66132381 E Mail – email@example.com.
Contact point for questions regarding the report or its contents Dr. Corporate Sustainability Report 2007-08
Reporting period for information prov ided T he information provided in this report is for fiscal year 2007-08 (April to March). The reporting cycle for the GRI report is annual.
Most recent previous report T ata Motors GRI Report 2006-2007
Reporting cycle T his is the fourth GRI report from Tata Motors Limited.firstname.lastname@example.org
.com Website – www.tatamotors.com Mr. Sangram T ambe Vice President – Corporate Human Resources T ata Motors Limited.
7 T on load carrier to large haulage tractors (49T ) for goods movement.Tata Motors Ltd. 2008. and would in turn create demand for safer. T he Company is poised to benefit from the same as it has a wide range of goods and passenger transportation vehicles ranging from 0. buses and coaches for public transportation and passenger cars and utility vehiclesfor personal transportation. including vendor development. T hese are enumerated below: Opportunities Road dev elopment: Continued improvement in road infrastructure in coming years is expected to have a positive effect on automobile sales. Rural connectivity is expected to correspondingly improve which would expand significantly the population/markets/supply sources participating in the overall economic growth. safety and human resources. Improvement in road infrastructure would facilitate faster transportation of goods and passengers. T he Golden Quadrilateral road project w 97% complete as as on March 31. environment. Corporate Sustainability Report 2007-08
Report Scope and Boundary Process for defining report content T ata Motors Limited has prepared this report in line with Sustainability Reporting Guidelines (G3 Guidelines) released in 2006. T he North South East West (NSEW) road corridors are expected to be completed by December 2009. reliable and faster vehicles. including the Enterprise Risk Management (ERM) process and interviews with department heads. T he report is to be used by the stakeholders of the Company identified as including the following:
Opportunities and Threats have been identified through a combination of variousinstituted processes.
particularly with the new and contemporary product offerings in commercial vehicles and passenger cars. moderation in income tax rates and the recently announced increase in compensation for government employees. the outlook for growth in passenger car sales remains positive. WTO. both in terms of personal transportation requirements as well as freight movement. it would be a challenge for the Company to fully offset the decrease in credit availability from outside sources.8% of the total sales value and have opportunities to increase significantly. Large tw o wheeler parc/market: India has a 60 million two wheeler parc and an annual sale of over 7. increase in price of input materials could have a negative impact on the demand in the domestic market and/or could severely impact the Company’s profitability to the extent that the same are not absorbed by the market through price realisation. T hough inhouse vehicle financing has been strengthened by the Company.2 million two wheelers. Government Regulations: Stringent emission norms and safety regulations could bring new complexities and cost increases for automotive industry. impacting the Company’s business. South Korea 219. T he Company is also setting up / exploring manufacturing footprint overseas that would combine these advantageswith local operations and sourcing in these markets. India and China (with a car penetration of 6 per 1. cellular phones and cable and satellite televis The ion. T he Company’s exports currently constitute 9. both for vehicles and components. Malaysia 253. Further hardening of fuel prices would adversely impact the automotive sales. safe and comfortable small car with appealing design and features. Brazil 96 and T hailand 51 cars per 1000 people. Due to growth in urbanization and expansion of cities. with its wide portfolio is expected to benefit from improvement in lifestyle and higher aspiration levels in passenger cars and potential growth in freight movement. Company. Fuel Prices: T he international crude prices witnessed steep increase from price levels of $62 per barrel at the beginning to $100-110 per barrel towards the end of the fiscal. Threats Credit unavailability: Further tightening of liquidity position and reduction in exposure to vehicle financing by banks/NBFCs would have an adverse impact on the automotive industry. which was partially offset by the Company’s cost reduction initiatives.Tata Motors Ltd. Interest rates hardening and other inflationary trends: Further hardening of consumer interest rates could have an adverse impact on the automotive industry. Input Costs: Prices of commodity items like steel.000 people) are perceived as highly attractive marketsfor the global automotive industry. all augur well for the automotive industry. Corporate Sustainability Report 2007-08
Car penetration in India: T he reduction in excise duty on ‘Small cars’ announced in the Budget is expected to increase the penetration of cars in the country from 7 per 1. Increase in income lev els: A growing middle income level population. non-ferrous and precious metals and rubber witnessed an upward movement. Whilst the Company continuesto pursue cost reduction initiatives. The price of steel.
. France 495. rise in their average income levels. in particular. India’s manufacturing base will benefit from these scale economies and technology/quality improvements. Growing consumer culture: T he demand for a better lifestyle has enhanced consumption levelsand rapid growth in several areas like retail chains.000 people ascompared to a higher penetration level in developed and developing markets for example. It is hoped that the T ata Nano would address this huge potential in demand. T he Company believes that the gap between two wheeler pricesand the current entry level car prices offer a huge opportunity for an affordable. Germany 550. International business: India continues to be a cost effective source for the automotive industry globally. has increased by 30% – 35% in the last 24 monthsand is expected to further increase significantly in the coming year. Increase in inflation could also have a negative impact on automobile sales in the domestic market.
Basis for reporting on Subsidiaries and Associate Companies We have added to this year’s GRI report. Boundary of the Report T his report includes only Indian manufacturing Operations of T ata Motors. ISO 14001 as also ISO 9000 -2000 and IS/T S16949. T he sales and revenue figures include international business. Growing consumer aw areness: Growing awareness amongst consumers is driving up expectations from automobile companies in terms of providing world class features and technology for which adequate price realization is not always possible. Explanation of the effect of any restatement T here are no re-statements from T ata Motors Significant changes Disclosure on Management processes for the performance indicators is being included in the report. T he products and services of Commercial Vehicle and Passenger Car Business Units (CVBU and PCBU) including T rucks. T o counter the threat of growing global competition. Material Management (MM). T ata Motors also uses Indian GAAP for reporting its financial performance (from which most of the Economic performance indicators have been addressed). T he SAP Modules implemented include Finance (FI). Most financial details have been sourced from the Annual Report.
. In addition. Economic indicators are provided for CVBU. International Business exports are included in the CVBU and PCBU business. Internal and External Financial Audit. Corporate Sustainability Report 2007-08
Free T rade Agreements and other similar policies could make the market more competitive for local manufacturers. Sales and Distribution (SD) Quality Management (QM). Production Planning (PP). Growth in Mass Transit Systems: T he domestic passenger vehicle demand could be impacted by the growth of road and rail based mass transit systems. Buses. However. Global Competition: India continues to be an attractive destination for the global automotive players.Tata Motors Ltd. Information reported for the subsidiaries and associate companies is sourced from our Annual Report 2007-08. Attempt would be to report on such indicators in subsequent reports. Multi-Utility Vehicles. PCBU and International Business.6c system for its data operations reliability and hasintegrated its operations under it. operations of Engineering Research Centre are also included. Sports Utility Vehicles and cars is included in the scope of the report. the Company would benefit from the road based mass transit system due to its wide range of commercial passenger carriers. These include Corporate Assurance Process every year with the help of Tata Quality Management Services. the Company has planned to bridge the quality gap between its products and foreign offerings while maintaining its low cost product development/sourcing advantage. Data measurement techniques T ata Motors has implemented SAP 4. T he global automotive manufacturers present in India have been expanding their product portfolio and enhancing their production capacities. which are in turn verified by external auditors. a summary of the financial performance of T ata Motor’s primary subsidiary and associate companies. Internal and external audit practices are designed to provide assurance on systems and data. Specific limitations on the scope or boundaries T ata Motors would not be reporting on all indicators as the data compilation for some of the indicators is still underway.
Tata Motors Ltd. subjected to procedural external audit as per national standards. Corporate Sustainability Report 2007-08
Seeking External Assurance T his report is not subjected to external assurance. Commitments and Engagement
Governance. however. The data reported under financial and environment aspects are.
Since shareholders are residual claimants. many of which were in place even before they were mandated by adopting highest standards of professionalism. ethical and transparent governance practices. community and the Government (of countries in which the Company operates) are of paramount significance to the Company and its shareholders. the Board alongwith its Committees endeavours to strike the right balance with its various stakeholders. being elected by the shareholders.Tata Motors Ltd. T he Board constituted Committees and the status on independence of these Committees is given in table below:
Name of Committee Audit Committee
Status on Independence All 3 Independent Directors
The Audit Committee f unctions according to its Charter that def ines its powers. The Company’s Depositary Programme being listed on the New York Stock Exchange. T argets set by them as agreed with the management are reviewed periodically and mid-course corrections are also carried out. vendors. integrity and ethical behaviour. T he Company is in full compliance with the requirements of Corporate Governance under Clause 49 of the Listing Agreement with the Indian Stock Exchanges. a few years ago. T he Board would therefore have a fiduciary relationship and a corresponding duty to all its stakeholders to ensure that their rights are protected. the Company’s philosophy on Corporate Governance is founded upon a rich legacy of fair. honesty. 1956. T he Company has taken initiativesto comply with the recent amendment of Clause 49 of the Listing Agreement pertaining to composition of directors for induction of independent directors. by the Company of the Tata Business Excellence Model. The Corporate Governance philosophy has been further strengthened with the implementation. is their representative and a bridge between them and the executive management. T he minutes of the meetings of all Committees of the Board are placed before the Board for discussions/noting. T he Committees operate as empowered agents of the Board as per their Charter/terms of reference. the value creation and sustainability of all the other stakeholders viz. the Tata Code of Conduct applicable to the Company. Corporate Sustainability Report 2007-08
Governance Structure and Board Composition As part of the T ata group. out of which 8 are Non-Executive Directors. customers. the Board has constituted a set of Committees with specific terms of reference/scope. creditors. scope and role in accordance with the Companies Act. listing
. onerous responsibilities to improve the Company’s operating efficiencies. the Company also complies with US regulationsas applicable to Foreign Private Issuers (non-US listed companies) which cast upon the Board of Directors and the Audit Committee. T he Company has a Non-Executive Chairman and the 4 Independent Directorscomprise more than one third of the total strength of the Board. T hrough the Governance mechanism in the Company. Risk management and internal control functions have been geared up to meet the progressive governance standards. T he Board. Board Committees: T o focus effectively on the issues and ensure expedient resolution of diverse matters. employees. T he Board of Directors presently comprises of 10 Directors. its subsidiaries and Directors and employees.
1 Executive Director and Managing Director
Executive Committee of Board
Nominations Committee of the Board Donations Committee and Corporate social Responsibility Committee
4 Non-Executiv e Directors
. 1 Non-Executiv e Director and 1 Executiv e director 5 Non-Executiv e Directors. allotment of shares and/or debentures. interest/dividend pa yments. retirement benefits to be paid to them under the Retirement Benef it Guidelines approv ed by the Board and deal with matters pertaining to Employ ees’ Stock Option Scheme The Inv estors’ Griev ance Committee of the Board is empowered to oversee the redressal of inv estors’ complaints pertaining to share/debenture transf ers. Corporate Sustainability Report 2007-08
requirements and US regulations applicable to the Company and is rev iewed f rom time to time. new business f oray s and donations The Nominations Committee of the Board was constituted with the objective of identif y ing independent directors to be inducted on the Board and to take steps to ref resh the constitution of the Board f rom time totime The Donations Committee reviews and approves donations to nongov ernmental organisations/non-prof it institutions on basis of need and merit. 1 Non-Executiv e and Managing Director
Ethics & Compliance Committee
Chairman being Independent Director. The CSR Committee rev iews. the organizational structureof the Company . long-term business strategies and plans. The Committee also discusses the matters pertaining to legal cases. Whilst.Tata Motors Ltd. monitors and guides the CSR work undertaken across all locations
2 Independent and 2 Non-Executiv e Directors
Inv estors’ Griev ance Committee
1 Independent Director as Chairman. the f ull Charter is av ailable on Company ’s website www. real estate and inv estment transactions. transmission (with and without legal representati n) of o shares and debentures and other miscellaneous complaints The Ethics and Compliance Committee was constituted to f ormulate policies relating to the implementation of the Tata Code of Conduct f or Prev ention of Insider Trading (the Code).tatamotors. take on record the monthly re ports on dealings in securities by the “Specif ied Persons” and decide penalaction in respect of v iolations of the applicable regulations/the Code The Executive Committee of Board rev iews capital and rev enue bu dgets. acquisitions and div estment. borrowing and other routine matters. non-receipt of annual reports. issue of duplicate certif icates.com
The Remuneration Committee of the Company is empowered to revie the w remuneration of the Managing Director and the Executiv e Director.
the Committees and the senior management functions is illustrated below:
Mechanism for shareholders and employees to provide Recommendation to the Board Shareholders/Investors A monthly shareholders report is sent to the Board members which describes the shareholding pattern and also the performance of T ata Motors stock with respect to the other automotive
. Corporate Sustainability Report 2007-08
T he relationship between the Board.Tata Motors Ltd.
Tata Motors Ltd. the employee satisfaction. The report also highlights the expectations from various equity analysts and the Company’s performance vis-à-vis the same. complaints and suggestions received from investors are considered appropriately and addressed. sending nominations forms. Critical feedback. The Company pays remuneration by way of salary. Customers: T he Company is also in the midst of implementing a very comprehensive Customer Relationship management program which is reviewed by the Management Committee and the Board subCommittees from time to time. Investors’ Grievance Committee reviews the investor grievance redressal procedure and also proactively gives suggestions/directions to protect the interest of the investor. launching an odd lot scheme.
Linkage betw een executive compensation and Achievement of the organisation's financial and non-financial goals T he annual performance/appraisal of the Whole-time Directors are reviewed by the Remuneration Committee through a structured Balance Scorecard mechanism as agreed to at the beginning of the year and the performance of the individual Whole-time Director is evaluated against the same. the Company has taken various investor friendly initiatives like sending of reminders to investors who have not claimed their dues. annually. perquisites and allowances (fixed component). T he Board is also kept informed of senior level changes in management. T he Ethics & Compliance Committee also reviews on a monthly basis the trading in the Company’s shares by the designated employeesto ensure that they do not unduly benefit on account of access to unpublished price sensitive information. T he C ompany also organizes Supplier’s day/Vendor meets/Channel partner meets where suppliers can touch base with the Board members and share their thoughts and inputs. arranging factory visits. Channel partners/Suppliers: A Supplier Relationship Management programme and Dealer Management System are in place and the Management Committee reviews the programme from time to time. remuneration of senior executives. launching a shareholders’ discount scheme. The key indicatorsof review are the Supplier coverage and the efficiency of the transactions with the Company. incentive remuneration and commission (which are major variable components depending on the performance parameters) to its Whole-time directors after a review of their individual performance. etc. the employee growth plan and the organization culture are discussed in these meetings. Major employee welfare schemes are put up to the Board for approval. On recommendations of the Investors’ Grievance Committee. The Company has not issued any stock options to its senior management/employees. T his program ensures that the Customers are treated in the fair manner by the channel members of the Company and their needs are also captured and responded to through this programme. etc. tenure and remuneration are included in the Explanatory Notes
. statuson signing of Union wage agreements. Annual increments of each Whole-time Director are decided by the Remuneration Committee within the salary scale approved by the Members and are effective from April 1. T he remuneration guidelines. Approval of the shareholdersis obtained for payment of remuneration to the Executive and Non-Executive Directors and adequate disclosures on terms of appointment. Employees: T he Management Committee on a very regular basis reviews the employees’ issues. Corporate Sustainability Report 2007-08
companies and the stock indices.
accurate and complete information to its investors so as to ensure that the Company’s financial condition and results of operations in all material respects have been disclosed on a timely basis under the applicable laws. details of the auditors. share and ADR price. T he Board of the Company has adopted the ‘Code of Corporate Disclosure Practices’ according to which the public spokespersons are identified who are responsible in ensuring timely and adequate disclosur of price e sensitive information. 1956. The Annual Report also contains details of the remuneration paid to the Directors . T he 20F Annual Report prepared as per the US regulations and the New York Stock Exchange Listed Manual provides information which is not normally in the public domain vis-à-vis other listed companies. risksassociated with the Company’s business. subsidiaries and affiliates. Chief Executive Officer and Chief Financial Officer certification to the investors and audited consolidated financial statementsfor the last three years. T his information is also available on the Company’s website. Appropriate disclosures are made in the notice of the General Meetings. organisation structure. a business overview which includes sections on the Indian economy and the automotive market and competition. is also available on the website of the Securities and Exchange Commission and the Company. which are also intimated to Stock Exchanges. intellectual property. the Company recently constituted a Disclosure Committee comprising of the senior management as also headsof the larger subsidiary companies. business strategy and operations. besides press releases for audited quarterly financial statements.Tata Motors Ltd.both Executive and Non-Executive Directors. T he remuneration by way of commission paid to the Non Whole-time Directors is decided very objectively by the Board of Directors and distributed to them based on their attendance and contribution at the Board and certain Committee meetings. rights of shareholders exchange control . operating and financial review and prospects. a complete product profile. T o ensure that the Company has disclosed relevant. Selection Criteria for Board members T he Directors are selected based on the following criteria: • Business experience • Expertise in the field • Ability to bring in the external perspective • Relation to the Company and Board
. Information isavailable to the shareholders through Annual Reports and half-yearly communications which are dispatched to them. T his Code ensures simultaneous release of information through various mediums of disclosure/dissemination in a transparent and fair manner. R&D initiatives. as well as time spent on operational matters other than at the meetings. Board composition and management. The 20-F Annual Report contains information on five-year financial data under US GAAP. governance structure. production facilities and distribution network. capital expenditure incurred and s ourcesof financing. policy of the Government and taxation as relevant to investors. dividend policy. investments in the Company and relating to ADRs. transparency in operations and selection and disclosure policies for governance is maintained. legal proceedings. shareholding pattern. Corporate Sustainability Report 2007-08
to the Notice of the General Meeting. Approval of the shareholders is taken for payment of commission to Non-Executive Directors which is within the limits prescribed under the Companies Act. T he Annual Report contains details of the remuneration drawn by the Whole-time Directors. Process to avoid conflicts of interest T o ensure that no conflict of interests arise among the highest governing body.
T ata Code of Conduct T ata Code of Conduct (T CoC) is applicable to all employees. as well. T he Management implements actions to mitigate residual risks. virtue of technical collaboration and financial agreement
Internally Dev eloped Mission. env ironmental. T his enables the Company to go beyond financial performance to incorporate considerations of environment and society. T he Code is a set of 25 principles. T ata Motors has adopted the T ata BusinessExcellence Model (T BEM) as a means of driving excellence. Debenture holders. In order to track process on long-term strategic goals. T ata Motors has ensured that its corporate governance practices are compatible with the international standards. T he control environment comprising of values. ethics. It reviews management letters / letters of internal control weaknesses issued by Statutory / Internal auditors. Corporate Sustainability Report 2007-08
Nomination by Articles of Association. the reliability of the Company’s reporting and the Company’s responsible behaviour towards all stakeholders. and social risks and opportunities T he Board takes responsibility for the total process of risk management in the organization. the safeguarding of the Company’s assets. T he Management is accountable for the integration of risk management practicesinto the day to day activities. including the Managing Director and the Executive Directors. please refer to 1. the Company’s compliance with laws. regulations and supervisory requirements. financial institutions. External and Internal Auditors. The Audit Committee reviews with the Management. Ev aluating the Board’s Performance T he organisation has adopted the Balanced Scorecard concept and an online dynamic Performance Appraisal System which is a fairly transparent and formal procedure for deciding on the director. senior and middle management remuneration
Approach to Risk Management in Operational Planning T he Company has a comprehensive system of control. the adequacy of internal control systems. For internally developed mission statement and core values of T ata Motors. focused on mitigation of risks to ensure achievement of objectives. Lapses are highlighted as findings after risk assessment or audit reviews. management
. adherence to which ensures ethical conduct both by the employees as well as the Company at large. Code of Conduct and Values Being a global player. a Balanced Score Card methodology is used. (TCoC can be v iewed at our website). the sustainability of the Company’s operations under normal and adverse operating conditions. T he Board assures all stake holders about adequacy of internal control Systems and documents procedures in the Company’s Annual Report.Tata Motors Ltd.1
Board-level process for ov erseeing the organisation's identification and management of economic. T he Risk management and internal control model and framework adopted by the C ompany provides the Board reasonable assurance on the effectiveness and efficiency of the Company’soperations.
T hese imperatives serve as an important input whilst developing the annual plan. T he process maps the Strategic. Pertinent information on risk assessment and control activitiesis communicated effectively to employees.T he Major risks along with the mitigation actions are planned to be reviewed by the Management Committee and presented to the Audit Committee and the Board on a regular basis. T here is a twofold approach to Risk Management: 1. Internal Audit: Internal Audit has an annual risk based audit plan. other risks which may materialize may also be accorded priority if they are critical. Operational. The line management regularly monitor controls. A benchmarking of ERM practices of other local and global companies has been done to ascertain opportunities for improvement. Also. Inherent risk scores are assigned to each process and are reviewed every 5 years. supports risk management. Management reportsto the Board provide a balanced assessment of significant risks. T he risks are assessed on an ongoing basis and controls are designed to respond to risk throughout the Company. T he ERM process is designed to be compliant with SOX and Clause 49 of the Listing Agreement with the Indian Stock Exchanges. T he Audit Committee reviews the mitigation action taken against these risks on a periodic basis. employee competence. Financial & Governance Risks related to the Business strategy as also on account of weaknessesin the internal processes. It aims at sustaining desired operational performance and providing a platform for rational allocation of capital across Small Business Units. Corporate Sustainability Report 2007-08
.Tata Motors Ltd. with Internal Audit playing a facilitators role. T he ownership of these programs vests with operating managers. The annual audit plan is prepared to cover a majority of the high & near high risk areas and a considerable number of processes with moderate and low risk scores. Risk Universe is defined covering all processesof the company. Enterprise Risk Management (ERM) 2. T he Company is promoting risk awareness through a structured risk management process. the primary responsibility remains with the process owners. Certain clusters of risks are treated as priority clusters. a balanced assessment of the effectiveness of the system of internal controls in managing those risks and identify significant failings/weaknesses. For the purpose of review. T he outcomesof ERM process were also reported to the Board on March 31. 2006. T he ERM Process has been initiated in the Company as a tool to strengthen the Strategic Planning process. All risks are classified as per processes in the “Enterprise Process Manual”. Internal Audit
Enterprise Risk Management: T he ERM process identifies entity level risks. T he Board regularly reviews processes and procedures to ensure the effectiveness of the internal systems of control. CIA informally discusses the business imperatives with Senior Executives. T he agreed risks are logged in the Company’s Risk register and the respective Responsibility Centers are required to determine the risk treatment (Accept/Reduce/T ransfer/Eliminate) and work out the mitigation plans accordingly. However. T he outcomes of the Risk Mapping Process were presented to the Management Committee and the Audit Committee for review and direction. At the start of the year. risks are categorized into three categories viz high. Thusthe s risk management/internal control practices contribute to the development of robust business operations and promotes/enhances value creation. moderate and low and are also rated from 1-5 based on impact and frequency. its impact on the Company and actions taken to rectify them.
T he Audit Committee reviews observations and recommendationshighlighted in Section A reports as well as critical issues pertaining to Section B reports. I nt eractions.
. weakness. T he timelines for implementing the recommendations is monitored by way of a robust process. Principles and Initiativ es T ata Motors is a signatory of the United Nations Global Compact. the short terms and long term strategic objectives are identified. T he vision. which yieldsmeaningful and actionable reports
Subscribing to externally dev eloped Charters. SWOT (strengths. Tata Motors is a member of CII (Conference of Indian Industries). Corporate Sustainability Report 2007-08
Audits are conducted by way of Self Assessment Questionnaires or through full fledged audits. which balance the needs of all stak eholders. BCCI (Bombay Chambers of Commerce and Industries) and ASSOCHAM (Association of Chambers of Commerce of India). opportunities and threats) analysis and business planning exercise.Tata Motors Ltd. T he Company hasbeen submitting its “Communication on Progress” (COP) to the Global Compact and is in fact the only Indian automobile company to have been appreciated as “Notable COP” for consecutive years. By adhering to this voluntary initiative.
Stakeholder Engagement Approach
Engagement of Stakeholders: Identify their c oncerns and Is sues Prioritize c oncerns and is sues Address concer ns and issues in Strategy Planning Process
Set Goa ls . An indication of how various objectives are aligned with stakeholder concerns has been provided in Annexure I (Stakeholder Engagement Chart). etc)
Learning & sharing ac ros s and impr ove
Stakeholder engagement and input is central to the entire strategic planning and deployment exercise. Cha irman & ED le tters/GRI & Corpo rate Gove rna nce reports. T he strategic objectives are deployed using the balanced scorecards. various survey feedback. T he organizational challenges and issues identified are considered in the strategic planning process to determine strategic objectives. After identification of key business drivers. The Audit Committee reviews audit reports every quarter. Audit Reports are classified as Section A and Section B type reports. inputs. mission and values guide the strategic planning process. T his process also involves a comprehensive external environment scan. Labour Standards. targets
Ba lanced S co recard & I nit iat ive s S t ra te gic Di re cti on
Meetings. f eedbacks. etc
S teering Committee Review and c orr ective action Report and communicate to all stakeholders
(Ann ual Report. T here are several mechanisms (as detailed in Annexure) through which the Company engages its stakeholders and identifies the key stakeholder concerns and issues. Environmental Protection and Anti-Corruption. the Company commits itself to the ten principles that range from Human Rightsprotection.
Corporate Sustainability Report 2007-08
Economic Management Approach and Performance Indicators
.Tata Motors Ltd.
Tata Motors Ltd. Corporate Sustainability Report 2007-08
MANAGEMENT APPROACH Risks and concerns identified for the economic performance of the company are enumerated below : Interest rates and credit availability: Consumer interest rates witnessed an upward movement in the second half of FY 07-08. Further tightening of the liquidity position, non-availability of vehicle finance and firming up of interest rates would affect vehicle demand, which could impact the Company’s revenues and profits. Exchange rates: The Company’s exports constitute 9.8% of the turnover and imports constitute 4.6% of material consumption. Further, the Company has large foreign currency borrowings in the form of foreign currency convertible securities. Movements in exchange rates and volatility in the foreign exchange markets could significantly impact profits. Freight Rates: Moderation in industrial activity, slowdown in freight movement and increase in fuel price would adversely impact vehicle operators’ margins to the extent not recovered through increase in freight rates. T his would have an adverse impact on commercial vehicle demand. Railways: Railways’ renewed focus on cement and steel movement and container movement and planned nationwide rail freight corridor connecting major cities could impact the demand of commercial vehicles for goods transportation. However, it is expected that with the growth in road infrastructure and increase in vehicle penetration and with product offerings suitable for different applications, road transport would continue to have a dominant role and offer flexible, speedy and point-to-point service. Domestic market: T he commercial vehicle industry due to its strong linkages with the economy would be impacted by slowdown in economic growth. T he Company has strengthened itsles cyclical s businesses like passenger carriers, small and light trucks and passenger cars as well as its spare parts and other service offerings to counter moderation in demand. T he increasing trend of offering price discounts in the market could also affect the Company’s margins. Ov erseas markets: In the overseas markets, many of which have stricter norms of vehicle regulations related to emission, safety, noise, technology, etc., the Company competes with international players which have global brand image, larger financial capability and multiple product platforms. These factors may impact the demand of the Company’s products in overseas markets. Manufacturing: T he Company manufactures its products at multiple locations and its operations could be affected by disruption in its supply chain due to any natural calamities and workstoppages at its suppliers’ end due to load shedding, labour problems, etc. New Competition: Intensity of competition has increased in almost all the segments of the Indian automotive market due to entry of new players and expansion plans of existing ones. The C ompany is aware of the increasing competition and is taking measures to remain competitive in the market place.
Tata Motors Ltd. Corporate Sustainability Report 2007-08
New proj ects: T he Company is undertaking a variety of new projects ranging from the launch of a small car to the development of a new truck model. T hese projects are in variouss tagesof execution. T hough the Company employs sophisticated techniques and processes to forecast the demand of new products, yet the same is subject to margin of error. T imely introduction of new products, their acceptability in the market place and managing complexity of operations across various manufacturing locations would be the key to sustain competitiveness.
Internal Control Systems and their adequacy to manage these risks are highlighted below : T he Company has in place adequate system of internal control. It has documented procedures covering all financial and operating functions. T hese controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulationsand for ensuring reliability of financial reporting. The Company has continued its efforts to align all its processes and controls with global best practices in these areas as well. T he Management Approach managing economic risks and concern is to have a robust internal control system so as to achieve the maximum economic value creation. Some significant featuresof the internal control systems are: • • • • • Corporate policies on accounting and major processes; Well-defined processes for formulating and reviewing annual and long term businessplans; Preparation and monitoring of annual budgets for all operating and service functions; State-of-the-art ERP, Supplier Relations Management and Customer RelationsManagement, connect its different locations, dealers and vendors for efficient and seamless information exchange; An on-going program for reinforcement of the T ata Code of Conduct. T he Code covers integrity of financial reporting, ethical conduct, regulatory compliance, conflict of interests review and reporting of concerns. All employees of the Company are regularly exposed to communications under this program; Bi-monthly meeting of the management committee at apex level to review operationsand plans in key business areas; A well established multidisciplinary Internal Audit team, which reviews and reports to management and the Audit Committee about the compliance with internal controlsand the efficiency and effectiveness of operations and the key process risks; Audit Committee of the Board of Directors, comprising independent directors, which is functional since August 1988, regularly reviews the audit plans, significant audit findings, adequacy of internal controls, compliance with Accounting Standards as well as reasonsfor changes in accounting policies and practices, if any; A comprehensive information security policy and continuous upgrades to IT system; Documenting major business processes and testing thereof including financial closing, computer controls and entity level controls as part of compliance with Sarbanes-Oxley Act; Anti-fraud programme.
• • •
• • •
T he Board takes responsibility for the total process of risk management in the organisation. The Audit Committee reviews reports covering operational, financial and other business risk areas. Through an Enterprise Risk Management programme, each Business Unit addresses opportunities and the attendant risks through an institutionalized approach that is aligned to the Company’sobjectives. This is also facilitated by internal audit. T he business risks are managed through cross functional involvement and intense communication across businesses. Results of the risk assessment and residual risks are presented to the senior management.
Tata Motors Ltd. Corporate Sustainability Report 2007-08
EC 1: Direct Econom ic Value Generated
Distribution of Revenue (INR in crores – 1 crore=10millions)
Sources of Rev enue (INR in crores – 1 crore=10millions)
Investments 3. Deferred Tax Liability (NET ) 4.2 78395
9757. Income Sale of Products and other Income Less: Excise Duty Dividend and other income 2. T otal Funds Employed Summarized Profit and Loss Account (Rupees crores) 1.5) 60.4 Reserves 74539.2 4831.8 292140.1 287308.4
.Tata Motors Ltd.6 3. Miscellaneous Expenditure 5.7 49102.7 (2728.2 150957.4 62805. Expenditure 330939.5 150957. T otal Assets (NET) What the Company owed 1. Loans 2. Net Current Assets 4.3 43631. Net Fixed Assets 2.0
104522. Corporate Sustainability Report 2007-08
Summarized Balance Sheet (Rupees in Millions) What the Company OWNED 1. Net Worth Represented by: Share Capital 3855.
3 15445. 28650. 974.7 266375.1 millionsasagainst Rs. 12.3 25764. Corporate Sustainability Report 2007-08
Raw materials / components.7 20289. 2008.5 10000. Summary of Economic Performance of Subsidiary and Associate Companies Subsidiary Companies For the financial year ended March 31.2 10138.7 643.3 812. Employability and Environment. In the year 200708.1 2823.8 millions. PAT increased by 78% and stood at Rs.Education. T DCV recorded a turnover of Rs. T he Company views the expenditure in such projects as an investment and not a cost. are given below: T ata Daewoo Commercial Vehicle Company Limited (T DCV). on an aggregate basis. The thrust areas for these projects include .Tata Motors Ltd.5 5784.5 6523. Health.3 30427.5
Donations T otal Donations disbursed during 2007-08 to various non-governmental and non-profit institutions.0 13830.2 millions which is . Korea is a 100% subsidiary of the Company is the second largest manufacturer of Heavy and Medium commercial vehicles in Korea. T his amount is excluding administrative expenditures involved. Community Inv estments T ata Motors invests in various CSR projects that target improvement of quality of life of people. 45% higher to the previous year.6 millions in 2006-07. the Company’s subsidiaries. based upon merit and need Rs.7 30427. 1531. T elco Construction Equipment Company Limited (T elcon) is engaged in the business of manufacturing and sale of construction equipment and allied services in w hich the C ompanyhas60%
. Manufacturing and Other Expenses Employee Cost Product Development Expenditure Depreciation Interest T otal Expenditure Profit Before Tax Profit After Tax Balance Brought Forward From Previous Year Appropriations (i) Proposed Dividends (ii) Tax on Proposed Dividends (iii) General Reserve (iv) Balance carried to Balance Sheet
240939.5 millions. A brief profile of the subsidiary companies and their main financial parameters for FY 2007-08. During the year ended March 31. 2008. have significantly improved on their financial performance and profitability. investments in social and community projects amounted to Rs. 12.
T he year marked an important milestone in the growth history of the Company with consolidated revenues crossing the Rs. Japan. 2008. The Company started its commercial production from November 2007 and has sold 190 low entry CNG buses. major impr ovement
. T ata Marcopolo Motors Limited (T MML) is engaged in the business of manufacture and sale of fully built buses and coaches in which the Company has a 51% holding with the balance 49% being held by Marcopolo S. (TT PL) which became a subsidiary of TTL acquired T ata T echnologies. 10. T AL Manufacturing Solutions Limited (T AL) is a 100% subsidiary of the Company engaged in the business of providing factory machine tools. HV Transmissions Limited (HVT L) and HV Axles Limited (HVAL) 85% subsidiary companies of the Company are engaged in the business of manufacture of gear boxes and axles for Heavy and Medium commercial vehicles. for manufacture. equipments. with Profit Before T ax of Rs. During the year.Tata Motors Ltd.698 machines with a Profit After Tax of Rs. T T L has 13 subsidiary companies as on March 31. 502. Corporate Sustainability Report 2007-08
holding and Hitachi Construction Machinery Company Limited. During the year. 65. in January 2006. With the rise in demand for Medium and Heavy commercial vehicle over the years. T MML recorded a net turnover of Rs. T ata Motors (T hailand) Limited is a 70:30 joint venture between the Company and T honburi Automotive Assembly Plant Co. T ata Motors (SA) Proprietary Limited (T MSA) a joint venture company was incorporated during the year in which the Company holds 60% with the balance 40% being held by the Tata Africa Holdings (SA) (Pte. During the year under review. While T MT L has begun setting up operations in 2007-08. T AL recorded a turnover of Rs. T T US acquired INCAT International Plc (INCAT).6 millions exceeding the 2006-07 figuresby 150%. USA. a globally renowned manufacturer of high end machining centres. 8369. Engineering and Design services to automotive and aerospace industry. the latter being the second largest pick-up market in the world after the USA. 2205. Germany. Ltd. T AL has also signed sales and service agreement with HELLER. T ata Technologies Pte. the manufacturing of vehicles began only during March 08’ w revenuesfrom ith sales and other income at Rs. INCAT acquired CEDIS Mechanical Engineering GmbH.7 millions and lossafter tax is Rs. T T L incorporated a wholly owned subsidiary in T hailand named T ata T echnologies (T hailand) Limited which would be TTL’s second global delivery to take advantage of the growth in the area. 120..A. it has ventured into Aerospace business by signing agreement with Boeing Corporation. the Company divested 20% of its stake to Hitachi. Brazil.000 millionsthreshold. along with its subsidiaries is in the businessof providing information technology services. USA for manufacturing structural components.8 millions and a Profit After T ax of Rs. thus reducing its stake from 80% to the present 60%. T MSA has been formed for manufacturing and assembly operations of the Company’s Light and Heavy commercial vehicles and Passenger Cars in South Africa. is registered with Reserve bank of India as a Non-Banking Finance Company and has been classified an “Asset Finance Company”. total income was 423% higher than last year and stood at Rs. The joint venture enables the Company to address the ASEAN and T hailand markets. T he Company holds 81. a global provider of Product Life Cycle Management (PLM).71% of T TL’s share capital. 38. with production facilities and infrastructure based at Jamshedpur. (TT US) in March 2006. to enhance its presence in its lines of business in Germany.3 millions. T ata T echnologies Limited (T T L).2 millions.5 millions. assembly and marketing pick-up trucks. TMSA hasyet to start its operations. T ata Motors Finance Limited a wholly owned subsidiary of the Company.. With the increase in economic activity especially in the infrastructure sector.) Limited. holds 40%. 3240 millions. Telcon recorded its best performance to date having sold 7. 9 millions. material handling systems and fluid power solutions.
Fiat India Automobiles Private Limited (FIAPL) is a Joint Venture with Fiat auto S.3 millions.7 millions and Profit After T ax was Rs. T ML Distribution Company Limited (T DCL) a 100% subsidiary of the Company incorporated on March 28. (T MET C) is a 100% subsidiary of the C ompany engaged in the business of design engineering and development of products for the automotive industry. jointly with EDC Limited. 1919. Inc. HVAL recorded a turnover of Rs. 634. T DCL is yet to start operations. 2008 and is one more step towards confirming the strong motivation and understanding between the partners towards developing new opportunities in India and abroad. USA holding the balance. whose income was Rs.A. Sheba Properties Limited is a 100% owned Investment Company. T CL is engaged in the manufacture and sale of high horse power engines used in the Company’s range of Medium/Heavy commercial vehicles. Ltd.. no business was carried out during the period of October 2005 to Mar 2008. India. with CumminsEngine Co. PAT being Rs. Associate Companies Automobile Corporation of Goa Limited (ACGL) in which the Company has a 37. T MIBSAL has received a licence from Insurance Regulatory and Development Authority (IRDA) to act as Direct Broker under the IRDA Act on May 13. 2008 would be engaged in the business of dealing and providing logistics support for distribution of the Company’s products throughout the country. Both HVT L and HVAL manufactured prototypesof gear boxes and axles for application in the Company’s new products.. ch T ata Motors European T echnical Centre plc. a 100% subsidiary of the Company engaged in salesand service of T ata and Fiat passenger cars recorded a turnover of Rs.. Working synergistically with the Company.79% shar eholding was incorporated in 1980. in which the Company has a 49.
. Maharashtra. 2032. Corporate Sustainability Report 2007-08
initiatives were undertaken at HVT L and HVAL.4 millions and a PAT of Rs. 70.4 millions. 53. 213. The new facility was inaugurated on April 2.p. Pending the issue of licence. Italy to manufacture Fiat and T ata cars and powertrains at Ranjangaon. is engaged in the manufacture and sale of high precision tooling and equipment forthe computer and electronics industry. T ata Cummins Limited (T CL). a 100% subsidiary of the Company. Concorde Motors (India) Limited (CMIL). 114. T ata AutoComp Systems Limited (TACO) is a holding company for promoting domestic and foreign Joint Ventures in auto components and systems and is also engaged in engineering services.8 millions in 2006-07. HVT L recorded a 9. proposes to undertake the business of direct insurance broking.39% increase in its turnover of Rs. in which the Company has a 50% shareholding. assemblies and bus coachesand is the largest supplier of buses (mainly for exports) to the Company.3 millions as against Rs.5 millions and an operating profit of Rs. 474. Singapore. 2008. company engaged in manufacturing sheet metal components. T MET C provides it with design engineering support and development services.2 millions.99% shareholding.8millions in 2007-08. complementing and strengthening the Company’s skill sets and providing European standards of delivery to the Company’s passenger vehicles. T ata Precision Industries Pte.1 millions.6252 millions with PAT of Rs. supply chain management and after market operations for the auto industry.Tata Motors Ltd. a Government of Goa enterpris ACGL isa listed e. 1279. T he Company’sshareholding in T ACO is 50%. T MET C earned gross revenues of Rs. T ata Motors Insurance Broking and Advisory Services Limited (T MIBSAL) (formerly known as Tata Motors Insurance Services Limited). 162.
Tata Motors Ltd. HC is present in both the ‘city bus’ and ‘coach market’ segment in both the geographies. including the compliance with factories Act. HC reported a production of 375 buses during FY 2007-08 on a consolidated basis. This shift occurred as there w as lack of safety of its employees and equipments in the hostile env ironment created by constant attacks on colleagues and property in the region. Jamshedpur is well endowed with sources around the area. before the incentives could be utilized. practices and proportion of spending on locally-based suppliers
T he process for sourcing has many steps and variables and to a certain degree it is often done on a case-by-case nature. there is much case-by-case analysis. the plant w as shifted to a new location – Sanand. is engaged in the ass embly of T ata vehicles for the Bangladesh market. succeeded by visit reports. However. For example. a well-known Spanish bus manufacturing company. in which the Company holds 40% equity.
. (HC). Moreover. while these are the considered processes. then there is loyalty to current suppliers (whether they operate in the relevant area or would be willing to open business there). the sourcing department will not consider a vendor or potential vendor that does not have the required list of certifications. In terms of environmental and labour practices. Design and Management Systems (QCDDM). Following that there are visits.
EC 6: Policy. so very little needs to be bought in. is not an overwhelming priority. Ltd. Cost. although a part of the process. sourcing conditions differ from location to location.. Hispano Carrocera S.A. Corporate Sustainability Report 2007-08
Nita Co. Bangladesh. including aspects of Quality.
EC 4: Significant financial assistance received from the government
The Company receiv ed incentive package by the State Government for setting up the manufacturing unit of the Small Car (Nano) in Singur. Quality is the most central factor. Delivery. opening a whole new range of employment opportunities. audited by the government for confirmation. India. proving they can provide the product at a suitable price. West Bengal in 2007-08. Howev er. then there is local suppliers considered. one in Spain which caters to the European market and the other tone in Casablanca which caters to the Moroccan and other North African markets. The Company has also benefited from the incentiv es offered by the State Industrial Development Corporation of Uttaranchal to attract industrialization in the region. If productsdo need to be bought in. Hispano has two manufacturing units. the average wages that an operative earns improve the quality of life that the individual can enjoy in the society. With experience and the tenure of service. The Company has set up its ACE Factory in the area and has dev eloped an extensiv e v endor park in the region as w ell. Geographical location. At Jamshedpur manufacturing unit there are a very large percentage of local suppliers. so the process can vary according to the type of part and also the type of supplier. A check-list of 37 points is required to be met. Guj arat. T ata Motors offers more than double the minimum prescribed by law.
EC 5: Range of ratios of standard entry level w age com pared to local minimum wage at significant locations of operation
If a comparison is made of entry points of wages with the Minimum wages as prescribed bythe law. was another major step in the Company’splansfor globalization. often they will encourage the company to open a plant in the vicinity. in which the Company acquired a 21% stake in March 2005.
3 people 1 Car .employment for 13.230 5000
18.3 people 1 Three Wheeler . Corporate Sustainability Report 2007-08
EC 7: Procedure for local hiring
In India. Includes: Dir ect and Indirect Employment Tata M otor s r ecor ded its highest ever sales of 585. Tr ansport sector has emer ged as the biggest employer * 1 Commer cial V ehicle . citizens have the freedom of domicile in any state of the country (with exceptionsof very few states) and as such local hiring is not specific. Pune.employment for 5. more than 50% of the jobs have been created for the local populace there. including extent of im pacts
Wor ldwide.058. promotion of co-oper atives and formation of Self-Help Gr oups ** On assumption that one passenger car sold cr eates employment for at least one per son – dr iver /cleaner *** On assumption that one commer cial vehicle sold cr eates employment for at least thr ee people – Dr iver and cleaner /helper & loader
232.employment for 3.Tata Motors Ltd. 232. The appr oximate indir ect economic impact gener ated by the company in 2006-07 is summar ised below
1.649 vehicles (352.9 people 1 Two Wheeler .300
Employment thr ough social initiatives *
Employees in Subsidiar ies
Employment gener ated throu gh channel par tners
Dir ect Employees
Indirect employment fr om passenger car s **
Indir ect employme nt fr om commer cial vehicles ***
* Includes initiatives to enhance employability (vocational and technical tr aining.864
10. Lucknow and now Uttrakhand and at these locations.5 people * Sour ce: Automotive M ission Plan 2006-16.864 passenger ).employment for 0. appr enticeship pr ogr ammes).785 commer cial. Major areas of operation in India lie in Jamshedpur.355 23.
EC 9: Indirect econom ic im pacts.
Corporate Sustainability Report 2007-08
Environment Management Approach and Performance Indicators
.Tata Motors Ltd.
Environment Management system at T ata Motors is given below:
Ke y Ste ps in ‘Env ir o nm e nt Manag e me nt’ Outp uts
• Impr ovements in
• National & Inter national
Legislation & pr otocols Policy
• Assess the significant envir onmental aspects of
pr oducts and activities • Set ‘Contr ol Processes’ and ‘Objectives & Tar gets’ • Deploy the pr ocess and implement ‘Action Plans’ to achieve ‘Objectives & Tar gets’ including Climate Change r elated issues • Review pr ocesses for impr ovements / and conduct inter nal / ex ter nal audits
• Quality & Envir onmental • Rules & Regulations • Plant level waste disposal
guidelines. “Facilities and Environment Management” process is mapped in detail and the measures for “effectiveness and efficiency” of the process are specified. Corporate Sustainability Report 2007-08
MANAGEMENT APPROACH T ata Motors Ltd.g. e. Pr ocess r equir ements ar e assessed in
Pe r fo r mance M easur e Efficie ncy Impr ovement over pr evious year s ‘environmental per for mance’ * TISHD – Tata Ind e x fo r Sustainab le Hum an De v e lo p m e nt Effe ctive ne ss
. plans for the environment in its processes.: EMS M anual at r e spe ctiv e lo catio ns] 1.g. 2.
• ISO:14001 • New developments • Global developments such
as Climate Change
• Review the process
envir onmental per for mance (e.g. “ Facilities and Environment Management” is identified as a Business Process and is formally documented in our Enterprise Process Manual.) • Compliance to envir onmental r equir ements as per statutory nor ms • Reduce CO2 emissions / incr eased car bon offsets
Ho w it o p e r ates (M e tho d s/ Pr actice s) [Cr o ss Re f. Em e r ge ncy A ctio n Plans and se t ‘Ob jectiv e s and Tar ge ts’ • Oper ational Contr ol Pr ocedur es and Emergency Action Plans are established and deployed.: r eduction in natur al r esour ce consumption.: r eduction in pollution. products and services. De fine Op e r atio nal Co ntr o ls. e. This hashelped the Company to evolve a uniform approach across all manufacturing locations in the country. A sse ss the ‘sig nificant’ e nv iro nm e ntal asp ects o f p ro d ucts and activ itie s as pe r e stab lishe d EM S p r oce d ur es• All Pr ocess Ow ner s identify the ‘significant’ envir onmental aspects of pr oducts and activities w ith the help of ERC centrally & Envir onment Gr oup at r espective Wor ks locations.: elimination of hazar dous mater ial etc. (T ML).Tata Motors Ltd.
Jamshedpur. Lucknow and Uttarakhand) have been certified to the ISO:14001 – Environmental Management System (EMS) Standard. Re-use of packaging materials: Aggregates and assemblies moving between Pune and Jamshedpur Plants are packed in wooden crates manufactured from scrap wooden packaging of incoming material. Jamshedpur.64 9509. Pune and Lucknow
EN 2: Percentage of m aterials used that are recycled input m aterials
Re-cycling of material is best illustrated in the use scrap metal generated externally as well as internally.79 936. Primers & T hinners (KL)
Consumption in 2007-08* 205. Corporate Sustainability Report 2007-08
All our manufacturing facilities (Pune.094 26947.
* Data includes three main manuf acturing units in India.Tata Motors Ltd. At Jamshedpur the Engineering. Health Care & Civic Services to T ata Motors T ownship have also achieved certification to ISO:14001.
EN 1: Total m aterials used by type
Material Used by Type Steel ( T housand MT ) Oils (KL) Pre T reatment (PT ) Chemicals (MT ) Paints. v iz. T his was further improved by changing four types of aggregates to returnable metal pallets.
It is also working with Society of Indian Automobile Manufacturers (SIAM) as a member of task force to study recyclability of vehicles in India.
EN 3 & 4: Direct and Indirect energy use
Fuels are used for process heat requirements and energy.25 2556.g. eliminating the use of virgin packaging material each time. flattened and returned to vendors for re-use. Corporate Sustainability Report 2007-08
Collapsible. the energy saved amounts to environment protection by way of
. Apart from reducing operational costs.: dashboards). 2007-08 2339. v iz.
Quantity of Scrap wooden packaging box sold to recyclers: In addition.11
TOTAL Energy Used (Aggregate of all types) Total Direct used (in Million MJ) Total Indirect used (in Million MJ)
* Data includes two main manuf acturing units in India. T he Company is working with the ‘Department of Science & Technology’ on the Expert Panel on “Recyclability of automotive Systems & Components”.Tata Motors Ltd. With a cycle time of more than 150 trips these polypropylene boxes have resulted in significant savings on component packaging. custom-built polypropylene (PP) boxes have been developed for bought out components that are bulky and light (e. These PP boxes can be dismantled. Liquefied Petroleum Gas (LPG) isused as a fuel to generate heat as well as in the process for generation of Endo-gas in continuous Carburising and Hardening Furnaces. Pune and Lucknow
EN 5: Energy saved due to conservation
T ata Motors considers energy conservation critical to the operation of its manufacturing units.
by way of setting Division-wise targets and monitoring performance on everyday basis for optimizing energy consumption. Wind Pow er Dev elopment in Maharashtra: T he estimated wind energy potential of India is20. Fossil fuel based conventional power gener ation isrecognized as a major contributor to environmental pollution and to the Greenhouse Effect. • Installation of Turbo Ventilators in forge and Foundry to extract fumes which do not require energy to operate Representatives of the Company are participating in the following national committees working for improvement of environment throughout the country: 1. • Installing portable compressors for isolated running to save compressed air • Harnessing natural daylight by installing translucent roof sheets in workshops • Use of Liquefied Petroleum Gas in place of Light Diesel Oil and Electricity for heating. Studies have forecast a shortage of fossil fuel worldwide leading to ultimate extinction.
. UK and national referral center for lead poisoning. • Installing variable speed drive for flow control and energy saving • Introduction of fuel additives in Furnace Oil to improve the combustion efficiency of the fuel. Company has started several Energy Accounting and Energy Conservation programmes. Wind Pow er as an alternate source of energy: Wind power is a ‘clean’ and ‘cost effective’ renewable energy source. Wind energy has emerged as an economically lucrative and the cheapest source of electrical energy which offers financial returns within a short period of time. Maharashtra Energy Development Agency (MEDA) to encourage use of non-conventional energy sourcessuch as wind power. Technical committee for “Heavy-duty Diesel retrofit demonstration project” cons tituted byNational environmental engineering research institute. Corporate Sustainability Report 2007-08
avoiding pollution due to power generation processes.Tata Motors Ltd.000 MW and 800-900MW in Maharashtra. T he State Govt. • Soft-start energy savers for hydraulic press motors • Sheds designed for efficient natural lighting. has appointed an agency. MEDA has identified various sites n Maharashtra. Multi stakeholder committee to “Develop Better environmental sustainability targets for lead battery manufacturers” constituted by development alternatives. Energy conservation is driven throughout the organization. • Use of compact fluorescent lamps. Group on “T echnical evaluation of Automotive Research Association of India reports on development of emission factors” constituted by Central pollution control board. Delhi
EN 6 & EN 7: Initiatives to use renewable energy sources and increase energy efficiency
The Env ironment Challenge: T he demand for energy has grown along with rapid industrial growth. wherever applicable. when natural deposits will be completely depleted. emission inventory and source appor tionment studies for Indian cities” constituted by Central pollution control board. Delhi in collaboration occupational knowledge international. Delhi 3. T ata Motors’ opting for wind energy effectively reduces the demand for electricity generated by burning conventional fossil fuels such as coal and fuel oil. It is further estimated that approximately 1000 Units of electricity saved is equivalent to 1 tonne of carbon dioxide – the primary greenhouse gas. India 5. Technical committee for “Air quality monitoring. Delhi 2. Steering committee for “Mobile Air conditioning Assessment project” constituted by The Energy Research Institute (T ERI). sodium vapours lamps to minimize energy consumption. some of which are highlighted below: • Introducing Fiber Reinforced Plastic blades for man-coolers. Mumbai 4. where sufficient wind velocity is available to develop wind power generating units.
water iscollected from roofs and around the manufacturing unit and funneled down bore holes to deep watersupplies rather than simply allowing it to remain at the relative surface of the ground.S. The initiatives include . Rain water harvesting projects
. digging of ponds and deep puncturing water replacement. viz.
EN 8: Total w ater use
T otal water consumed during 2007-08 was 6222080 m T otal water withdrawal by s ource in 2007-08 3 was 605057 m (P.Tata Motors Ltd. Tata Motors. Pune has signed a 35. T he above figures are for three manufacturing units of T ata Motors. All water consumed at Pune manufacturing unit is sourced from State Utility-MIDC (Maharashtra Industrial Development Corporation). Jamshedpur. Ireland It is to be further noted that T ata Motors is working with the steering committee of National H ydrogen Energy Board.
EN 10: Total recycling and reuse of water
Water Conservation Activities: T hey comprise the following broad areasWater Management System Intake Management Maintenance of water distribution network Quality of water (portability checks) Optimization and leakage surveys Water re-circulation systems Water boosting systems Clean production processes. In the latter. there is extensive water recycling procedure.55 MW Power Purchase Agreement (PPA). Pune and Lucknow only)
EN 9: Water sources significantly affected by w ater w ithdraw al
T here is no direct withdrawal of water from the source river Subranarekha at Jamshedpur. Corporate Sustainability Report 2007-08
Use of Wind Pow er at Tata Motors. which in turn draws water from Pavana River. x 1MW wind turbines at Satara and Supa in Maharashtra.. water is withdrawn from under ground water sources. installed & commissioned 114 Nos. x 350 KW wind turbines & 3 Nos. India. At the manufacturing unit in Lucknow. to find ways in which India may harness hydrogen potential energy of future. R water aw is taken from M/s JUSCO (Jamshedpur Utility Services Company) of T ata Steel and treated in works and town water filter plant.R water ain harvesting. Pune: M/s Suzlon Energy Ltd. the Certified Emission Reductions w ere auctioned through the Chicago Carbon Exchange (CCX) and purchased by M/s Eco-Securities Capital Ltd.
In September 2007. At this unit.
000 trees. as the Regional Resource Agency (RRA) for National Environmental Awareness Campaigns (NEAC) 2008 for Jharkhand State for 15th consecutive year.Chinchwad industrial area
EN 14: Strategies. 2. catla. however. these lakes and the surrounding area. at Jamshedpur the Dalma range. m ahseer and silver carp were introduced which are thriving in this natural environment. • Strategic initiatives to develop 150 hectares of land for irrigation through water shed development project in FY 07-08 • T ree plantation drive by Gram Vikas Kendra. many of which have made the lakes their permanent home. T ata Motors. T hese include: 1. has appointed Gram Vikas Kendra. 4. Jamshedpur. In FY 07-08 165000 trees were planted • Rain water harvesting pond constructed in 4 villages of Singhbhum (E) district namely Kanikola. National T heme for the year 2007 was Solid Waste Management and for the year 2008 is Biodiversity Conservation. Jaskandih. GVKJ has been constantly involved in the dissemination of Environmental AwarenessProgrammes and creating water Management network by making ponds. Corporate Sustainability Report 2007-08
EN 11: Location and size of land ow ned.
EN 13: Habitats protected or restored
Major ecological impact on the habitat has been achieved over sustained efforts around the manufacturing unit of Pune. cr eating the only ‘bird sanctuary’ right in the middle of the Pimpri . has taken immense care to develop the residential area adjoining Pimpri Worksinto a "bird sanctuary". including rohu. to maintain the status quo of biodiversity
. none of the manufacturing facilities are located near such protected areas. Jamshedpur. T ransformation of landscape of hard basalt rock.
EN12: Description of the m ajor im pacts on biodiversity
T here are no major impacts on bio-diversity by the Company’s operations. 00. Pisciculture: A large variety of fish. leased or m anaged in biodiversity rich habitats
While the facilities of T ata Motors are not in biodiversity rich areas. At Pune. Patherchakri and Narayanpur • GVKJ has been appointed as Regional Resource Agency for the 15th consecutive year to coordinate the National Environmental Awareness Campaign (NEAC) • A good number of Forest Protection groups formed. . attract a large number of water birds.Tata Motors Ltd. Bird Sanctuary: T oday. which is a ‘Biodiversity rich area’ is located at an aerial distance of 10 km from the plant boundary. 3. Jamshedpur (GVKJ) an NGO supported by T ata Motors. Government of India. current actions and future plans for managing im pacts on biodiversity
T he Ministry of Environment & Forest (MoEF). Creation of two lakes which also serves as perennial source of water for T ree Plantations. m rigal. fit for the growth of only wild shrubsinto a Green belt consisting of 3. check dams and wells in the sur rounding areas of the company.
Electricity Consumption data at each works is considered for the Indirect GHG computationsCO2 coefficients has been arrived by a weighted average emission for generators supplying to the grid in the states of Jharkhand. Howev er. Ref. f or Jamshedpur Plant Township includingHospitals (works & main) outside the works boundary has been considered under indirect GHG emissions.htm belong to World Resources Institute and World Business Council for Sustainable Development is being used for the computation of Direct GHG emission. Site: Calculation Tools for Corporate GHG Accounting . propane gas has negligible sulphur content as against 1.Thousand Tonnes) Jamshedpur 2007-08 233.
.10 280. Corporate Sustainability Report 2007-08
At the manufacturing unit in Lucknow. Source: GHG Footprint Assessment Report f or Tata Motors Ltd. HSD & LPG) data at each location is considered for Direct GHG calculation. LDO. GHG emissions due to electricity import f rom JOJOBERA Power Plant generation has been categorised under the Direct Emission.
EN 16 & EN 17: Greenhouse Gas Em issions
Based on Fuel consumption (FO. Indirect emissions due to outbound logistics and employ ee trav el (domestic and international) hav e not been considered due to unav ailability of suf ficient data. natural aesthetic & meeting statutory environmental compliance • Mass plantation of Jatropha Curcas (Bio fuel plant) satisfying National economic interest and Global environmental concerns
EN 15: Number of IUCN Red List species and national conservation list species w ith habitats in areas affected by operations. 2 bulletsof 100 Metric T onnes capacities each are under installation phase. by level of extinction risk
T here is no impact of activities/ operations on such sensitive areas. base yea 2007-08. initiatives taken include: • Fencing of lake area to protect the sensitive & nurtured plants from being destroyed by wild animals • Plantation of 10.GHG Protocol Initiative. T his makes Propane a more environment friendly fuel compared to LDO due to almost nil SOx emissions.87
2007-08 39. r
EN 18: Initiatives to reduce GHG em issions
• Use of propane gas in place of Light Diesel Oil (LDO): Besides.26 23.Tata Motors Ltd. by M/s ERNST & Y OUNG. Thousand Tonnes) Jamshedpur Pune Lucknow Indirect GHG emissions (CO2.25% in case of existing LDO. Total Direct GHG emissions (CO 2.78
Note: Assumptions used in the computation: Direct Emission: To avoid complexity .000 plants to maintain green belt for healthy work ambience.
12 2007-08 11. categorized under Group I of the ODS (Regulation & Control) Rules. and other significant Em issions by type
Suspended Particulate Matter (SPM) 3 Limit : 500 microgram/m Jamshedpur Manufacturing unit Annual Average Pune Manufacturing unit Annual Average Lucknow Manufacturing unit Annual Average Sulfur Dioxide (SO 2) 3 Limit : 120 microgram/m Jamshedpur Manufacturing unit Annual Av erage Pune Manufacturing unit Annual Av erage Lucknow Manufacturing unit Annual Av erage Nitrogen all Oxides (NO) 3 Limit : 120 microgram/m Jamshedpur Manufacturing unit Annual Av erage 45.85MW Wind Power Project was prepared with the help of MIT CON and submitted to Ministry of Environment (MoEF) for Host Country Approval. we have been s uccessful in containing the consumption of CFC-12 refrigerant for maintenance of existing equipment.e. Corporate Sustainability Report 2007-08
Clean Development Mechanism (CDM): T aking opportunity of the CDM mechanism. New Delhi has issued Host Country Approval for the Project. by first targeting reduction in consumption of CFC-12 for the existing refrigeration equipment. initiated action for 20. In September 2007.66 280. T he Company has an EMP in place to convert refrigeration units using refrigerant CFC-12 to its environmentally friendly alternatives i.04 182.21 2007-08 187. Plantation of different varieties of trees in factory complex is done to sequester significant carbon emission Replacement of conventional energy with cleaner energy alternatives/renewable energy sources in plant activity and process.
EN 20: NOx.03 7. successfully traded the CERs through e-bidding on the Chicago Climate Exchange.00 2007-08
. replaced with units operating on R-22 / R-134a. which is to be phased out by the year 2010. 2000. The C ompany is actively working to achieve this well ahead of this target. T he Project was validated by M/s BVQI and regis tered by U NFCCC. Project Information Note (PIN) and Project Design Document (PDD) for 20.09 11. Due to the above proactive actions.Tata Motors Ltd.85MW Wind Power Projects installed & commiss ioned at Satara and Supa. Tata Motors Ltd. MoEF. SO2.
EN 19: Use and emission of Ozone Depleting Substances (ODS)
Refrigerant CFC-12 is an “Ozone Depleting Substance (ODS)”.
At Pune manufacturing unit.03 35. Kharkai river is the receiving water body at Jamshedpur.1099 0.Tata Motors Ltd.83 2007-08 12.63 176. At Lucknow manufacturing unit.14 52.06 63. Corporate Sustainability Report 2007-08
Pune Manufacturing unit Annual Av erage Lucknow Manufacturing unit Annual Av erage Respirable Particulate Matter (RPM) 3 Limit : 150 microgram/m Jamshedpur Manufacturing unit Annual Av erage Pune Manufacturing unit Annual Av erage Lucknow Manufacturing unit Annual Av erage 66. the treated effluents from the outlet of Effluent Treatment Plants (ET P) constitute the only significant discharges to receiving water bodies. T able: T otal Discharge to Water Body by type Total Suspended Solids (TSS) 2007-08 (Load in Metric Tonnes) 45.81 4. all effluents generated from plant activity and process are properly treated at our sophisticated ET P and finally discharged in the inland water bodies that sustain aquatic fauna and flora.74 Total Oil & Grease (TOG) Jamshedpur Manufacturing Unit Pune Manufacturing Unit Bio-Chemical Oxygen Demand (BOD) Jamshedpur Manufacturing Unit Pune Manufacturing Unit Chemical Oxygen Demand (COD) Jamshedpur Manufacturing Unit Pune Manufacturing Unit 107.81 13.88 129.09 12. all treated effluentsare discharged into Pavana River. Surprise checks are carried out by State Pollution Control Board. which are also found to be within the permissible limits.95265
Jamshedpur Manufacturing Unit Pune Manufacturing Unit
EN 21: Total w ater discharge by quality and destination
At Jamshedpur manufacturing unit. Treated effluents are periodically monitored for compliance with permissible limits of State Pollution Control Board (mass/volume). All values are found to be in compliance.
Tata Motors Ltd. im port. Oil sludge / scum. However.e. hazardous wastes (lead bearing type). the Hazardous wastes generated in various production processes like waste or used oil. non-ferrous metal i. At Lucknow manufacturing unit: All waste is collected properly and finally disposed off through Ministry Of Environment and Forests/Uttar Pradesh Pollution Control Board approved Recyclers/Vendor. T hese are being transported as per the
. Corporate Sustainability Report 2007-08
EN 22: Total am ount of waste by type and destination
At Jamshedpur manufacturing unit: • Paint sludge generated at Centralized Paint Shop is removed from the scrub water with a ‘Hydropac system’ for effective separation. and fuels in term s of total num ber and total volume
T here were no significant spills of chemicals. transport. PLC controlled panel board and Flue gas analyzer At Pune manufacturing unit: All hazardous wastes are disposed through an Authorised Common Hazardous Waste T reatment Storage and Disposal Facility (CHWT SDF) located 125 km away at T aloja. direct landfill and landfill after treatment. Equipped with Auto-loading system (ram loader). aprons etc. oils or fuels in the reporting period. High pressure jet wet venturi scrubber with mist eliminator. A systematic effort is underway to quantify and define what could be termed as a “significant spill” based on the nature of the hazardous chemical.
EN 24: All production. T he wastes are disposed by various pathways depending on their hazard characteristics. rubberlined chimney. Oil soaked waste jute. batteries defined as "hazardous" in Schedule-4 of Hazardous Wastes (Management & Handling) Amendment Rules 2003 are sold to the MoEF/CPCB Registered Re-cyclers/ Re-refiners/ Re-processors only.
EN 23: Significant spills of chemicals. safer and healthier environment.direct incineration. or export of any w aste deem ed “hazardous”
No hazardous wastes are being imported or exported. Paint sludge is collected and sent to Industrial Incinerator. 30-m self-supported. T he Operator of the CHWT SDF picks up the generated waste in customised containers and moves the same by dedicated trucks from our Facility to the final disposal point. waste copper dross/ plates. oils. T he incineration system hasbeen optimized to: o Incinerate varying nature and quantities of wastes at any given time o Remove all the acidic pollutants and particulate matter in the flue gas by effective scrubbing with water/ caustic o Following hazardous wastes are being incinerated: Paint sludge. • Incinerator model LRD-250 of capacity 250 kg /hr has been installed to incinerate hazardous waste without production of smoke or odour and to enable all hazards taken care of properly and to provide a cleaner. The water is re-used in the paint booths along with make up water. hand gloves. • Press Filter is provided for removal of sludge from phosphating bath. & Phosphate sludge. quantity stored. T hese disposal pathways include . T his prevents the raw Paint Shop effluent from reaching the ET P directly. Paint stripping chamber (heat recovery). extent of pipeline network and the age of installation.
g. and these have become progressively more stringent over the years. Reducing CO2 Emissions and Increasing Fuel Efficiency: CO2 emissions are considered to be a primary contributing factor to global warming.Blend Axis: Progressively blending of petrol with ethanol. T ata Motors aims to respond quickly to develop new models that comply with latest national standard for domestic product and international standard relevant to countries where the products are exported. (b) Multi-sector coverage: Tata Motors has been consistently developing and manufacturing products that can contribute to CO2 reduction across all road transport segmentsand in shifts between segments e.Hybridization Axis: Hybridization from mild hybrid to full electric vehicle to hydrogen fuel cell vehicle. Of the total volume of CO2 emissions associated with the life cycle of an automobile. making their management the most important challenge for T ata Motors. Corporate Sustainability Report 2007-08
Hazardous Wastes (Management & Handling) Amendment Rules 2003 to ensure the following statutory requirements: • • • • Endorsement of the Hazardous Waste quantity sold in authorised buyer's Pass Book as per the authorized recycling capacity mentioned Label properly the Hazardous Waste containing consignment Fill up and sign the 6 coloured copies of MANIFEST (Form -9) and send to the concerned as mentioned in the copies Hand over the T REM CARD (T ransport Emergency Card) to the T ransporter
EN 25: Im pacts of activities and operations on protected and sensitive areas
T here is no impact of activities/ operations on such sensitive areas. Controlling these emissions is one of the most significant technology challenges T ML is tackling today. (a) Diesel Emphasis: As diesel is a more thermodynamically efficient fuel. the U.S.Tata Motors Ltd. India introduced its first standards in 1991.
. Europe. from excavation of raw materials to recycling of endof-life vehicles. and many other countries and regions. our product lines focus heavily on clean and modern diesel engines for automotive and stationary applications. . (c) Provide safe affordable transportation of people and goods with least CO2 emissions. Bus Rapid T ransit System (BRT S).
EN 26: Initiatives to m itigate environmental im pacts of products and services
Prevention of Atmospheric Pollution: Exhaust emission standards are becoming stricter in Japan. Biodiesel with diesel and hydrogen with CNG. While we are w orking in developing fuel cells and other technologies of the future. exemplified by Nano and Ace (d) Alternative fuel initiatives in the widest possible spectrum of products along two axes: . the largest portion occurs when the vehicle is on the road. we are also working to reduce CO2 emissions today’s vehicles through highly efficient engines and technology.
Mumbai City Fuel Efficiency Drive Cycle. (e) Coordinated Automotive Research initiative of Department of Science & Technology of Government of India. (b) Standing Committee on Emission (SCOE) and Sub-committee on Fuel Efficiency Norms of Union Ministry of Shipping. Water based paints is being used instead of solvent based paints to avoid VOC emission. Reducing Ozone Depletion: CFC-12 having potential for ozone depletion is no longer used as refrigerant in AC system of our product since 1996. T ata Motors is engaged in this initiative of Government of India.Tata Motors Ltd. emission inventory and source apportionment studies for Indian cities” constituted by Central Pollution Control Board. which w proposed by the as European Commission and approved by the European Parliament. (f) Use of energy efficient air conditioning system like Scroll compressor. Corporate Sustainability Report 2007-08
(e) Minimize CO2 emissions by designing & developing the vehicles for Indian operating conditions rather than directly adapting the vehicles from other marketse. for developing the National Hybrid Propulsion Platform programme. Delhi. Lead free coatings for fuel tanks. (d) Ministry of New & Renewable Energy. Asbestos free brake pads & clutches have been introduced in many of our products. T ML is in compliance with the EU directive on ELV’sfor export vehicles to European Union. HFC134a is used as a refrigerant
Reduced Use of Hazardous Substances: T he European Union directive 2000/53/EC on end-of-life vehicles (ELVs).5 GVW). alternate designs/coatings for hard Cr plating. lead free printing inks.
. smaller heat exchangers and high-efficiency condensers. T ML has successfully implemented Lead free wheel balance weights.g. Road T ransport and Highways of India. Delhi. Work is going on for reducing/elimination of hexavalent chromium for corrosion preventive coatings and development / implementation of lead free bearing shells & bushes. lead free bulbs. (c) “Expert Committee on vehicular pollution control” constituted by Central Pollution Control Board. Lead free carbon brushes for electrical motors etc. cadmium plating. and reducing refrigerant leakage and refrigerant recovery system during servicing . in principle banned the use of four hazardous heavy metals (lead. Government of India (GoI). low GWP refrigerants. mercury. etc. cadmium and hexavalent chromium) in automobiles (Cars/UV’s & Pick ups upto 3. Reducing Noise Lev els: T ML is not only meeting the national regulations but also aligned with European noise regulationsand continuously working with international bodies to further improve noise regulations. Participating in National Committees & Initiativ es Related to Env ironment: Representatives of the Company are participating in the following national committees working for improvement of environment throughout the country: (a) Committee on “Air quality monitoring. is promoting and assisting technology development for GHG reduction by way of increased usage of Biodiesel.
. Providing technical information on dismantleability of the vehicle to the dismantler for use at “End of life vehicles”.
EN 30: Total environm ental expenditure
T otal environmental expenditure in 2007-08 on various environment development initiativesat our manufacturing units was Rs. sub-national.
EN 28: Incidents of and fines for non-com pliance with all applicable international declarations / conventions / treaties. materials and employees.
EN 29: Environm ental Impacts of transporting products and other goods and m aterials used for the organisation’s operations and transporting m em bers of w orkforce
Strict adherence of the norms applied to transport product. and national. sub-national. b. Identified concerned agencies (Vendors/suppliers/contractors/transporters) have specific environmental programmes or control procedures to mitigate the same. 169 millions. regional and local regulations associated with environmental issues. Meeting European directive on “recyclability” and “hazardous substances”.Tata Motors Ltd.
(b) Extended drain period for axle and gearbox oils: Vehicle T rials for further enhancement in the drain period of axle & gearbox oil are in progress. Pollution Under Control (PUC) checks are in place to avoid any significant environmental impacts during transportation. regional and local regulations associated w ith environmental issues
T here is no incidence of any fine or non-compliance with respect to any national. Vehicle condition check. Corporate Sustainability Report 2007-08
EN 27: Products sold that is reclaim able at the end of the products useful
Initiativ es Taken to Reclaim the Products Sold are as under: (a) Recyclability and Recoverability Regulation at “End of Life” of vehicle: a.
Tata Motors Ltd. Corporate Sustainability Report 2007-08
Social Management Approach and Performance Indicators
Perfo rman ce Mg mt. Tra in / De velop / Rotate De velop. Competenc ie s. Re ward.
S T R AT E G I C P IL L A RS
Strategic Alignment Pillar
Strategy Execution Pillar
S TR A TE G IC
Leadership / Growth & Development Pillar
Organisation al & Chan ge Capability Building . Fa mily Size. Within a manufacturing unit. Intern atio nal Min dset
S YS TEM S
F EE D B A C K
Core Valu es
Labour issues are managed by Employee relations department at each manufacturing location. 230. there are
. Superio r Commun icate .. Company’s cordial industrial relations were maintained at all times and the Company entered into three wage settlement with its union. Eff icien cy. extensive training and skill enhancement activities were carried out especially at the new locations. T he permanent employees’ strength of the Company as on March 31. Corporate Sustainability Report 2007-08
MANAGEMENT APPROACH Employees are the driving force of our organisation. Ma npo we r Pla nning .
S Y ST E M S
Orgn. Rete ntioRe cogn ise n. Agility F utu re Leadership. Motiva tion . in line with the Company’s expansion and growth plans. There has been consistent improvement in productivity across all locations.Tata Motors Ltd. Productive & cordial relationship
SY S T E M S
Attract. Con seque nce M gmt. Recruitments across all levels. Ef fe ctiven ess. which forms a part of the human Resources Department. Reward. Union -Mg t Re latio nsh ip DE L I VE RA B L E S En gagem ent. Pe rf orma nce. Select a nd Deplo y
Strate gy-Structure Match.Gro w
Bu siness Strategy
E LEM ENT S
Stru cture. Rec ognise. Deployme nt
En gage ment. T he Company was awarded India’s Best Managed Company for 2007-08 in the automotive sector by Business T oday based on a study conducted by Ernst and Young. Capability. M ana ging & Ex pan ding Talen t Base Iden tify. 2008 was 23. En gage . Gro w. Industria l Relations AC T IV I TI E S Commu nicate.
the T M grade which represents Middle Management as well as the various entry points based on different level of education like graduation. Vesting occurs upon completion of five yearsof service.4 %
LA 3: Benefits provided to full-tim e em ployees that are not provided to temporary or part-tim e em ployees
Employee Benefits (i) Gratuity T he Company has an obligation towards gratuity. T he Company
.Tata Motors Ltd. T he Company makes annual contributions to gratuity fund established as trust. T he structure enables the effective implementation of Poka-Yoke (mistake proofing).
A. T raining division at every location is in charge of identifying skill gaps and designing and organising training programmes for both the blue-collared and the white-collared workers. a defined benefit retirement plan covering eligible employees. Manpower planning department looks after recruitment. LABOUR PRACTICES AND DECENT WORK LA 1: Total Workforce by region
Total Workforce by Region Category* Executive Managerial Supervisory Operatives Jamshedpur Lucknow 144 1092 1060 3894 34 398 100 626 Pune 315 3199 1461 8841 Uttaranchal 8 213 65 27 Mumbai 166 1171 165 176 Small Car 4 51 20 0 Total 671 6124 2871 13564
*T he Management team comprises of Executive Grade which represents the senior leader ship. death while in employment or on termination of employment of an amount equivalent to 15 to 30 dayssalary payable for each completed year of service. Operatives refer to workmen who have requisite technical qualification employed for direct production activities
LA 2: Total rate of em ployee turnover
T ata Motors’ Annual Attrition Percentage for various grades is as follows: Executive Managerial 3. T he said structure is at every manufacturing location and the Plant Head is in charge for the unit. training and performance management at all levels. T he plan provides for a lump sum payment to vested employees at retirement.4 %
10. Functional Heads function at the corporate level as well and report to the Managing Directoror to the Executive Director. T hese officers in turn identify and train Safety Stewards from amongst the workers. post graduation etc. Corporate Sustainability Report 2007-08
multiple factories and in each factory there is an officer in charge of safety.
(iv) Post-retirement Medicare Scheme Under this scheme. as an expense in the year incurred. T he monthly pension benefits after retirement range from 0. while in service. T he monthlypayment to dependents of the deceased / disabled employee under the plan equals 50% of the salarydrawn at the time of death or accident or a specified amount. T he Company has no further obligation beyond this contribution. Corporate Sustainability Report 2007-08
accounts for the liability for gratuity benefits payable in future based on an independent actuarial valuation. Leave travel allowance etc • Annual Performance linked Payment • Free Medical facility for family • Company loans & advances
LA 4: Percentage of employees covered by collective bargaining agreem ent
. T he contributions as specified under the law are paid to the provident fund and pension fund set up as irrevocable trust by the Company or to respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension scheme.75% to 2% of the annual basic salary for each year of service. Employees separated from the Company as part of Early Separation Scheme. T he Company contributes up to 15% of the eligible employees’ salary to the trust every year. An eligible employee on April 1. per iodsafter retirement and types of benefits. Some other benefits advanced to the permanent employees are: • Allowances like T ransport allowance. either as a result of an injury or as certified by the Company’s Medical Board. 2003. this plan was amended and benefits earned by covered employees have been protected as at March 31. (ii) Superannuation T he Company has two superannuation plans. on medical groundsor due to permanent disablement are also covered under the scheme. Employees covered by this plan are prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing the pension benefits would not exceed 15% of salary. a defined contribution plan. (vi) Compensated absences T he Company provides for the encashment of leave or leave with pay subject to certain rules. 1996 could elect to be a member of either plan. The employees are entitled to accumulate leave subject to certain limits. The benefitsof the plan accrue to an eligible employee at the time of death or permanent disablement. for future encashment. Education allowance. employees get medical benefits subject to certain limits of amount. Sanitation allowance.Tata Motors Ltd. T he liability for post-retirement medical scheme is based on an independent actuarial valuation. if any. 2003. T he Company accounts for the liability for superannuation benefits payable in future under the plan based on an independent actuarial valuation. With effect from April 1. depending on their grade and location at the time of retirement. (iii) Bhavishya Kalyan Yojana (BKY): BKY is an unfunded defined benefit plan. T he Company maintainsa separate irrevocable trust for employees covered and entitled to benefits. whichever is higher. in which both employees and the Company make monthly contributionsat a specified percentage of the covered employees’ salary (currently 12% of employees’ salary). The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return or pension and recognises such contributions and shortfall. T he liability is provided based on the number of days of unutilised leave at each balance sheet date on the basis of an independent actuarial valuation. The Company accountsfor the liability for BKY benefits payable in future based on an independent actuarial valuation. Employeeswho are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn. a defined benefit plan and a defined contribution plan. (v) Provident Fund T he eligible employees of the Company are entitled to receive benefits under the provident fund. The Company recognizes such contributionsasan expense when incurred.
Tata Motors Ltd. which enjoy majority with upto 98%-99% membership. however.
LA 7: Injury. T his Act was passed by the Central Government of India to make provisions for investigation and settlement of industrial disputes and came into existence in April 1947. and Government and industries are free to make such use of it as they see fit in framing or in reviewing their own safety regulations. some have been highlighted in the
. Jamshedpur and Lucknow. their families as well as the community at large. 17A. recording. accidents. work-related fatalities
Our practices are in line with the International Labour Organisation (ILO) “Model code of Safety Regulations for Industrial establishment for the guidance of Government and Industry”. analysis and action on accidents and unsafe conditions. the model code isnot an instrument involving any binding obligations. incorporated in the Factories Act 1948 and the Company strictly follows the rules and accordingly the accident reporting or notice of accident or dangerous occurrence is recorded and communicated to the concerned authorities (CIF) in FORM No.
LA 6: Formal Joint M anagem ent-Worker Health and Safety Comm ittees
T ata Motors has a Safety Health and Environment (SHE) policy. At Uttarakhand.
LA 8: Risk-control program m es in place to assist w orkforce members.
Table 1: Various Health and Saf ety committees at plant location
T hese committees thus cover 100% of the workforce. their families or com m unity mem bers regarding serious diseases
T ata Motors provides curative and preventive health services to the employees. These unions form representative bodies of the workmen and negotiate with the management and settlements signed with these unionsres pectively cover all permanent workmen present. T he above guidelines are. The decision taken by the Governing body of the ILO conference held in 1948. which is our new manufacturing unit location.
LA 5: M inim um notice period(s) regarding operational changes. compensation of the operatives is decided on the basis of industry and region parity and in consultation with Works Committee formed from time to time. Of these initiatives. which encompasses all regulatory norms along with International Labour Organisation recommendations. including whether it is specified in collective agreem ents
For Notice period regarding operational we follow the procedures mentioned in the Industrial Disputes Act (21 days). Corporate Sustainability Report 2007-08
T ata Motors has internal unions at its manufacturing units at Pune. T he safety issuesare addressed through a bipartite (management and union) arrangement as depicted in the table here below. T ata Motorshasa processfor reporting. It views its initiatives as a part of its social responsibility and asan investment in improving social capital.
Corporate Sustainability Report 2007-08
following paragraphs. right from employment to retirement of employees. Awareness programmes are extensively organised on various health issues for the community members. f ol l o w e d b y d i stribution of informative b o okl e t o n A I D S . T ata Motorsisaware of the social stigma that accompanies the contraction of HIV / AIDS and thus asa consciousdecision. A l l e xp e n se s f o r t h e d e si gn i n g an d i mplementation of the programme w e re b o rn e b y t he C o mp a n y . C o mp a n y do c t o rs d e si g ne d a 30 m i n utes lecture module and d e l iv e re d i t t o a ll e m p l oy e e s on t h e sh o p f lo o r. The curative and preventive health services were provided to over 92390 non-employee patientsin 20072008.
. T he Company has a robust Medical Scheme which covers complete health care of employees and their dependent family members. sy mp t o m s.
Photo: Jamshedpur Hospital
Tata M otor s has also tr eated 8. T ata Motors is committed to take initiatives to combat the spread of HIV/AIDS.000 lepr osy patients in last two decades thr ough the Nav Jagr at M anav Samaj (NJM S) in Jamshedpur.2/1000. Lucknow and Pune. In addition. T hese benefits are at par with any other medical benefits (It is not under exclusion as most of Insurance Companies are having) T otal confidentiality is maintained about HIV +ve status of any employee
T a t a M o t ors st a rte d i t s AI D S aw a re n ess p ro gra m me w i t h t h e p rim a ry ai m t o cover all e m pl o y e e s a n d t o m ake t h em a w are a b ou t t h e c a u ses. Jhar khand. the Company does not make any discrimination. T ata Motors supports a hospital in Jharkhand state and also runs Mobile Health Clinicsin various villages adopted by the Company in Jamshedpur. m y t hs a n d p re ve n t i o n o f H I V/ A I D S. no HIV testing is done Employees having HIV /AIDS are allowed to work in our Factory until they are able to continue normal duty Company’s Medical Benefit Scheme extends its’ benefits (reimbursement of medical expenses) to employees who are suffering from HIV / AIDS.Tata Motors Ltd. The ser vices extended have contributed towar ds the reduction of leprosy pr evalence rate in Jamshedpur down fr om 22/1000 to 2. • • • During pre-employment medical check-up.
Tata Motors Ltd. cart and even growing vegetables and selling them. which are self-settled coloniesof people affected by leprosy. a beneficiar y of the NJMS pr ogr amme and now a full-time volun teer with NJMS. Also promoted are savings in banks by these people and adoption of small business/vocations like rearing of livestock. including the new manufacturing unit at Uttarakhand are certified under Occupational Health and Safety Standards 18801 (OHSAS 18001. OHSAS 18001 is an Occupation Health and Safety Assessment Series for health and safety management systems. Corporate Sustainability Report 2007-08
Photo: Mr . All T ata Motors manufacturing units. 2007 version). poultry. More than 400 children of cured leprosy patients have been helped into the formal stream of education. A Zero Accident Plan was launched in 2007-08.
LA 10: Average hours of training per year per employee by employee category
Average Hours of T raining per year per employee Executive Managerial Supervisory Operatives 49 52 41 23
. wherein area ownership was developed by teams comprising of management and supervisory grade workers called Bay Owners. It is intended to help an organization to control occupational health and safety risks. Jow ahar Ram Paswan. A 30-bedded Old Age Home run by NJMS catersto the old and destitute. A temporary hospitalization facility with 28 beds is available for the treatment of seriously afflicted patients of leprosy. In addition. 3 of the SA 8000 pertains to occupational health and safety. w ith a patient at the ashr am
Rehabilitation work for leprosy-affected people is carried out by the Nav Jagrat Manav Samaj in Jamshedpur. 8 ashrams situated around the city of Jamshedpur. It was developed by the Government of India in response to widespread demand for a recognized standard against which to be certified and assessed.
LA 9: Health and Safety topics covered
Safety has been a concern for T ata Motors and the Company is taking steps to reduce the injuries and accidents. are supported with medical and institutional help for making their lives comfortable and humane. T he Bay Owners met twice a week and conducted cross audits and organised awareness building programmes. T ata Motors manufacturing unit at Pune has been certified Social Accountability 8000 compliant. Clause No. cycle-rickshaw.
Career planning & development and overall system feedback
Se nior Leaders and hip HR (Inputs to HR Pla n)
M year review id & feedback to employee Performance based Ratings and Normalisation
M course id correction in line with business needs Annual review and feedback
ee nior Senior Leaders & HR Employ & Se hip
Creating High Performance
. PMS instills a high performance culture in the organisation. T he Company administers career progression through the PMS system for managerial employees. windows of opportunity and a fair selection process. Formal evaluation ratings are assigned at the end of the year. In the PMS system. Employees have an opportunity to develop their own view of their performance and discuss it with their supervisor.
T he process is reviewed periodically for status of successors and for process improvements.Tata Motors Ltd. All employees have the opportunity to advance their careers. bringing business and customer focus to all levels and teams. targets and training are in alignment with business needs. supervisors and bargainable employees. Corporate Sustainability Report 2007-08
LA 11: Skill M anagem ent and Managing Career Endings LA 12: Employees receiving regular performance and career developm ent reviews
All employees are evaluated based on performance and merit. T his helps in arriving at the best fit. the succession planning process includes colour coding for potential successors. Individual performance plans are cascaded from the Balance Score Card down to the smallest work unit. Com pensation. If the position cannot be filled internally. T he Company has customized the PMS for the requirements of different categories of employees-managerial. T o track the state of readiness and migration paths. Competencies of successful executives are used as input to project the ‘Pen portrait’ of the ideal incumbent. In case a successor is not identified from the Department and T alent Pool. Monthly and mid-course half yearly reviews are held to ensure resources. T his is based on their personal preparation and desire to move. a suitable candidate is selected through External Advertisement. an internal advertisement is released. as under:
Overall PMS Approach (A) &PMS for TM Employees (B)
Target Setting Review Process Compensation process and overall review
Employe & Senior e
Employ & Se ee nior Employ & Senior ee
Target setting at individual level andtraining need identified Rewards. All employees have the opportunity of moving to higher levels.
skill Challenging growth ma tching. on the ground of sex. Master craftsm an. @ Fast track sel ec ti on
Engineer / Internal officer trainee schem e
Master craftsman. Mechatroni cs sc heme
Bargainable to Sup sc heme
SVCVP scheme. opportuniti es. retain and evaluate potential
Apart from regular progression. Mec hatronics scheme
LA 13: Gender Diversity by Employee category
Gender Diversity by Employee categ ory Male Executive Manager ial Super visor y Oper atives 658 5898 2730 13270 Female 13 226 141 294
LA 14: Ratio of basic salary of men to w om en by em ployee category
T he Government of India has passed the Equal Remuneration act in 1976. T his is an Act to provide for the payment of equal remuneration to men and women and for the prevention of discrimination. Even before the Act came into force. Remuneration is not based on gender. against women in the matter of employment and for matters connected therewith or incidental thereto. mentoring
Dese lction annually
Locate in ste ady function. Corporate Sustainability Report 2007-08
Talent Mg mt
Career Progression Methods
@ Fast Tr ack S electio n Scheme is ident ified as best practice and learned by other grou p companies TM / EG
Talent management. T his helps the Company in building a resource for key areas and challenging assignments. career FTSS Grooming planning. T ata Group has followed a nondiscrimination policy in employment and compensation. other methods used for Fast track career progression are depicted below.Tata Motors Ltd.
. social status or age and is linked to responsibility levels and performance.
HR 2: Hum an Rights Screening for Suppliers and Contractors
T ata Motors Limited has Supplier and Dealer assessment process to take care of issues related to social aspects before inducting them in organisation. Corporate Sustainability Report 2007-08
B. T he company periodically auditsthe job contractors for adherence to labour laws and other statutory requirement like minimum wages. HUMAN RIGHTS
T he Ethics team at T ata Motors is in charge of the human rights aspects in the Company. T he structure of the Ethics Department is given below. PF. All legal and regulatory requirementsneed to be fulfilled before final selection into the Tata Motors fold.
HR 3: Em ployee training on Policy and Procedures concerning Hum an Rights
. thereby ensuring prevention of violation of Human rights and employment malpractices.Tata Motors Ltd. payment of gratuity etc.
T ata Motors respects the definition of Child Labour as mentioned in the guidelines of International Labour Organisation. as well as outsiders. have the liberty to raise concerns if any. However. Furthermore. The T ata Code of Conduct incorporates within its fold. and it is completely voluntary. T ata Motors will not engage any person under the age of 18 years(legal age of employment) for any operations or services (as presented in law) unless it is part of government approved job training or apprenticeship programme. who are present at all locations. caste. the Human Rights principles.
HR 4: Incidents of Discrim ination:
T he Company has a “Policy on Equal Opportunity and Non-Discrimination in Employment”.Tata Motors Ltd. religion. race. it was decided to design exclusive policies on various aspects of Human Rights. T ata Motors does not and will not allow or encourage Compulsory or Forced Labour in any of itsprocesses and practices. T ata Motors respects the right of its eligible employees to organise for the purpose of Collective Bargaining as well as their right to support or oppose the labour union recognised by T ata Motors. ancestry. Career growth oppor tunitieswill be based entirely on individual merit.” Each new joinee receives a copy of the T CoC. Tata Code of Conduct hascovered all the Human Rights principles proclaimed in Universal Declaration of Human Rights. Decision to seek employment rests with the individual only. T ata Motors expects its Channel Partners and Contractors to adhere to business principlesconsistent with its own. nationality and disability. to strengthen and support internationally proclaimed Human Rights within the busines of the C s ompany. marital status. related to the T ata Code of Conduct and the Human RightsPolicies thus. Employees. Corporate Sustainability Report 2007-08
T ata Motors adheres to the T ata Code of Conduct in its business.” T here is robust Ethics Counsellor Process to monitor implementation of T ata Code of Conduct. which states: “As part of its Recruitment Practices. Ethics Counsellors. T he Policy on Human Rights is as under: “T ata Motors believes in and respects Human Rights as enunciated by the International Labour Organisation. T AT A MOT ORS is committed to provide Equal Opportunity to all eligible applicants for employment without any discrimination against their gender. which thus get monitored during the process of monitoring of the former.
. colour. Excerpts from the Code isprominently displayed at all locations and employees are well aware of its components and adhere to it in letter as well as in spirit. address these concerns. T ata Motors honours the right of its employees to choose and decide the extent of their involvement in Political Activities in their Personal T ime. T ata Motors is committed to protect the Human Rights of its employees while dealing with them in all the activities falling under the relationship of ‘Employer’ and ‘Employee’. Opportunity for employment will be solely based on eligibility and merit of the applicant.
are covered by collective bargaining agreements. it is of much avail to talkabout the Whistle Blower Policy at T ata Motors.Tata Motors Ltd. Pr ocedur es involving infor mation. T hese agreements include health and safety provisions along with compensation structures in the form of a Memorandum of Understanding (MoU)between the management and the representing Union as per the provisions of the applicable labour legislations. irrespective of his membership.
HR 5: Support to Freedom of Association and Collective Bargaining:
In keeping with the spirit of the Constitution of India wherein Right of Association is a Fundamental Right. Executive Dir ector (Business Unit Head) Plant Head Senior V P/ Direct Repor ts Divisional Level GM/ Dir ect Repor ts Factory/Department Level Divisional Head/ Factor y Head/ HR Centr e of Excellence owners / HRO
Issues not resolv ed in lower levels are appropriately escalated to higher lev els. T his has led to good industrial relations. who come under the unionised category. While the existing grievance handling process takes care of issues of temporary employees. T ata Motors respects the right for association of its employees and has constructive relationship with trade unions at all locations. as it believes that most individual and collective grievances can be resolved through bipartite forums. Employees are encouraged to join the Trade U nions. enjoy the benefits as agreed in the MoU. all eligible employees. T hese MoUs are signed every three years after negotiations between representing committees of the union and the Management. Approximately 15000 of our permanent employees. While the union membership may vary from each location. All employees of the Company are eligible to make Protected Disclosures under the Policy. T he table below indicates the percentage of permanent bargainable employees who are members of the recognised union at respective locations. T his policy is an extension of the T ata Code of Conduct. For the year 2007-08. consultation and negotiation with employees Interaction Level Business Unit Level M anaging Dir ector . Corporate Sustainability Report 2007-08
In relation to the process of managing the business ethics. T ata Motors has not faced legal action regarding anti-union practices. With its collaborative approach to company union. The Policy also definesclearly the composition and role of investigators or fact-finders and that of arriving at corrective or remedial action in each given case. T he remaining 20 are being reviewed. 95 of the 115 ethical concerns received were resolved the same year.
M onthly Per iodically M onthly M onthly Weekly Need Based one-to-one inter action
HR 6: Contribution to Elimination of Child Labour
. The Policy explicitly mentions pre-requisites to ensure that the identity of the Whistle Blower is kept confidential. the recognised Unions also take up their issues. The Whistle Blower’s role is that of a reporting party with reliable information.
the Company is actively involved in improving both the quality and the accessto education s in various regions. THE S AME TO B E EXAMINE D BY HO / SR.
HR 7: Contribution to Elimination of Forced and Compulsory Labour
T ata Motors strictly adheres to the laws of the land with regard to forced and compulsory labour. Corporate Sustainability Report 2007-08
T ata Motors upholds the T ata tradition of not employing children in any of itsCompanies. Easy access and financial support for education helps in preventing children under taking child labour. T he disciplinary action process at Tata Motors is as per the applicable laws like Model Standing Orders / Certified Standing Orders that allow the process of natural justice as per statute. Infrastructural support for education helps thousands of children to acces primary and secondary education. minimum wages. the T ata Code of Conduct. In addition. possibility of child labour. P & IR
E XAMINA TION & VE RFICA TION OF REP RE SE NTA TION / AP PE ALS
P RE PA RA TION OF DETAILE D REP ORT & A PP ROP RIA TE RE PLY . It isbound by the statutory legislation (Factories Act. T he Certified Standing Orders of the Company expressly state that the age of an employee at the time of recruitment should be 18 years or more. also has clauses on these two principles. 1948) and proper records are maintained in this regard. payment of wages. the Company has implemented Social Accountability standards through SA8000 which audits the company and its supply chain for forced/compulsory labour. 1800 students through 33 schools and institutions of social and cultural development are supported through the Shiksha Prasar Kendra. Moreover. T o serve as an audit from time to time.Tata Motors Ltd. Quality of education is improved through special training programs for teachers and students. etc.
Description of appeal practices
P ROCES S FOR HANDLING REP RES ENTATI ON & AP PEALS MADE BY EMPLOYEES & EX EMPLYEES
RE CE IPT OF REP RE SE NTA TIONS & A PP EA LS THROUGH HE AD OFFICE / S R.V P(JS R & LKO)'S OFFICE
MA ILED TO RE SP ECTIVE E MP LOY EE S & E XEMPLOYE ES A FTER NECES SA RY CO RRE CTIONS / MODIFICATION
Grievance handling Mechanism
.V P (JSR & LKO) 'S FORWARDING THE SA ME TO A PP ROP RIATE AGE NCY HRD & C. Vocational guidance programs are organized so as to help the students in career planning. which are prohibited under various acts and statutes. a T ata Motors society. Eligible poor students especially from tribal families are given financial assistance. referred to earlier.
T hus. monitor and guide the CSR wor k under taken acr oss all locations
SO 1: M anaging Impacts on Com m unities
T he Company has a Corporate Social Responsibility structure. The structure catering to the needs of the society. which the Company treats as the very purpose of its business and not just another stakeholder. Corporate Sustainability Report 2007-08
EM PLOYE ES
TAL K UNION RE PRESE NTATI VE
WRI TE HOTLI NE
LI STENI NG POS T S UP ERVI SOR / CX OW NER / DI V HEAD HR OFFI CE RS / M ANAGER
E THI CS COUNSE LLOR
COORDINATI NG AUTHORITY SR V I CE PRES IDENT
CONCERNED AGENCY / DIV IS ION
HR 9: Rights of Indigenous People:
Government of India considers all Indians to be indigenous. is as under: Institutionalizing CSR
Donations Committee Suppor t institutions thr ough donations on basis of need and mer it Jamshed pur
Two pillars of the CSR Activities w ithin C LOCTIONAL CSR Pune Lucknow Pantnagar
CSR Committee Review. this indicator is not quite applicable while reporting only on the operations of T ata Motors within India. which involves the top management as well the employees and is driven by the objective of “im proving the quality of life of people”.
C.Tata Motors Ltd.
Any violation will be treated as a punishable offence.Tata Motors Ltd.” Further.com/our_world/we_care. In all its CSR initiatives. Any other gifts or business courtesies should be politely declined. T ata Motorswill ensure that neither the Organisation nor its Employees receive or offer any direct or indirect illegal payments. T hrough its various initiatives. It reads “A T ata Company and its employeesshall neither receive nor offer or make. from all ranks and grades. benefits or favours to obtain business or for the conduct of business. T ata Motors also encourages employees to devote time to underprivileged sections through Company projects and non-governmental organisations to share skills and expertise and assist the needy. Business courtesies received or offered should only be meals in the course of a business meeting. T hrough its CSR activities. However. A summary of the impact created by several community development initiativesin the year 2007-08 is detailed in the Annual CSR Report. will not be seen as a bribe or illegal payment. which can be viewed at the Company’s website at http://www. Clause 5 of the T ata Code of Conduct enunciatesthe group’s approach towards “Gifts and Donations”. w hich hasa specific clause pertaining to bribery and corruption. which is reproduced as under: Gifts and business courtesies may be extended at Tata Motors’ expense. received or offered. gifts. the Company aims to upgrade the quality of life of the communities around the Company’s areas of operations. have signed the T ata Code of C onduct. the Company’s CSR Committee guides and reviews the CSR activities. should be firmly rejected and reported to the employee’s superior. which states: “T ata Motors is committed to its core value of Integrity. remuneration.php
SO 2: Analysing Risks related to Corruption
All employees. T hey are not in contravention of applicable law. like calendars and diaries. any illegal payments. sweets. T his is in line with the Company’s broader goal of practising and promoting self –sustaining processes and welfare activitiesfor social and economic development and environmental protection. Gifts. In a structured approach. Any gifts or business courtesies.tatamotors. remuneration. will be restricted to items of nominal value. donations or comparable benefits which are intended to or perceived to obtain business or competitive favours for the conduct of its business. a T ata Company and its employees may accept and offer nominal gifts which are customarily given and are of commemorative nature for special events”. T he Company. and accepted only if they meet all of the following criteria: T hey are not intended to obtain business or competitive favours.”
. Besides. has drafted a Policy on Gifts. bouquets. and When publicly disclosed. the Company recognises and respects diverse community needs by undertaking specific and need-based initiatives across locations. Corporate Sustainability Report 2007-08
T he Company has constantly strived to mitigate the environment as well associal impactsof itsproducts and operations. the Company also has a Policy on Bribery and Corruption. moreover. T owards this commitment. which appear to be given as a bribe. while deploying global standards and policies. directly or indirectly. the Company has been able to preserve and protect the environment and has also contributed to integrated social development.
PR 3 & PR 4: Product and Service Labelling
Product Development is instituted and structured as a New Product Introduction (NPI) business process to integrate various functions of the company.Tata Motors Ltd. advertising and other clauses of the Central Motor Vehicle Ruleshave always been proactive and exemplary. there are no financial or non-monetary grants made to any political party. T hus. the T CoC training covers all employees and it has within it the clauses on anticorruption and bribery. Any information regarding the competitors is collected through legally permitted sources and means and is made only in the normal course of business. cartels and similar unfair trade practices. T he Company does not engage in activities which generate or support the formation of monopolies. T here has been a continuous upgradation of the product safety with new technologies being brought in – Tata Motorsis the first Indian manufacturer to develop and introduce airbags in our vehicles.
. if any. NPI is aimed at creating a product that meets customer expectations in terms of quality and value.
PR 2: Total num ber of incidents of non-com pliance w ith regulations concerning health and safety im pacts of products and services
Our record of compliance with regulatory requirements pertaining to emissions. detailed earlier. product labelling. T he Company isstill the only manufacturer in this country to have a crash test facility. Corporate Sustainability Report 2007-08
All complaints are addressed by the Ethics Counsellor Process.
SO 6: Contributions and Participation in Political Parties
T ata Motors maintains its neutral stance in terms of politics and has no political alignmentsand/or inclinations. Furthermore. dominant market positions.
SO 3: Training of Em ployees on Anti-Corruption Policies and procedures
As stated earlier. safety. the policies. PRODUCT RESPONSIBILITY PR 1: Custom er Health and Safety
T ata Motors has been putting in a lot of effort to improve the safety (active and passive). T ata Motors products and services have their own merit and no misleading statements are made about competitor’s products and services. T he Company has never received any sanctions for violation of regulatory norms. competition. T he Company always meets all the safety regulations of concerned markets and goes beyond the safety regulations to provide better safety products – example being ACE has been designed to meet more stringent crash safety norms that are not applicable to that class of products. Anti-trust and Monopoly Practices
No such legal actions have been filed.
SO 7: Legal Actions for Anti-com petitive. including the Policy on Gifts and Policy on Bribery and Corruption are prominently displayed at all locations and all employees are made aware on the process to redress grievances.
T his directive bans the use of hazardous heavy metals – Lead. before the product is marketed through government authorised agencies. Air Bags. brakes.
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will ensure that the promotion of its products and services is based only on justifiable or proven facts. Mercury and Cadmium.” T he Company has embibed the essence of the policy in all its processes pertaining to marketing communication and no false claims and/or unfair means are used while promoting a product/service. Euro III complaint engines etc. T hese facilities enable development of products meeting safety and environmental regulations. Non-Chloro Fluro Carbons based vehicle air conditioners. Corporate Sustainability Report 2007-08
New Product Introduction
Engineering Research Centre (Our Research and Development Centre) is adequately equipped with state of the art facilities to address specifically the issues of customer health and safety. T he Company issues certificate of compliance to the above directives based on the declarations obtained by SQIG from the suppliers. T ata Motors also obtain Homologation certificates for export markets from authorized test agencies. noise etc. Ergonomically designed seating systems with lumbar support. Examples of special features used in our products for preserving customer health and safety include Anti-skid braking systems.Tata Motors Ltd.
PR 6: Adherence to Regulations regarding Marketing Comm unications
T ata Motors has instituted a Policy on Advertising which states:
“ T ata Motors honours Advertising as a tool for Healthy Competition within the market. Labelling Identification of parts that need to be labelled as per Annex II of EEC directives2000/53/EC amended by 2002/525/EC. It has facilities like Crash T est facility for safety and the Hemi Anechoic chamber for NVH and engine emission testing. T ata Motors shall not make any misleading statements or use any competitive information for unfair trade practices. HexChromium. T ata Motors obtains test certificates for vehicle worthiness and other safety related issues like emission.
Tata Motors Ltd. Integrity and Confidence. T he Policy on Consumer Privacy is given as under: “T ata Motors values long term relationship with its customers based on the foundation of T rust.”
. Such data will not be divulged to or shared with other individuals/institutions without the prior written permission from customers. T ata Motors is committed to protect Consumer Privacy in managing information and data furnished by its customers for official or personal purposes. While delivering excellent quality products and services. T ata Motors is committed to designing processes and practices that ensure continued trust of its customers. Corporate Sustainability Report 2007-08
PR 8: Com plaints regarding violation of Consum er Privacy
No such complaints have been made. T he Company respects consumer privacy and has in fact a written policy stating the same.