Presentation

by
Corporate Ethics

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 The Tata group comprises over a 100 operating
Driven by Values
companies spread across six continents. 
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 Jamsetji Nusserwanji Tata
3rd March 1839 – 19th May 1904
Credo - Good thoughts (Humata ) Good words (Hukhta ) and Good deeds (Hvarshta)

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 “In a free enterprise, the “The cycle is complete -What came “If it stands the test of public
community is not just another from the people has gone back to the scrutiny do it..if it dosen’t stand
stakeholder, but is in fact the people many times over.” the test of public scrutiny then
very purpose of its existence.” - J R D Tata Chairman, Tata Sons don’t do it”
- Paris 1904 - Geneva 1993 Ratan Tata
- Bharat Ratna Mumbai 1937
Padma Bibhushana
“If the communities are not successful , lenders , suppliers, customers are not successful, its hardly likely that the
corporate that serve the community will survive” 4
 The Tata Brand

Building a brand begins with deciding the DNA, the mission, the vision and the values of the
organisation.

“Ask any Tata group executive what is the secret of building and managing a strong brand and they
will tell you that it lies in consistent execution and following through on promises. ‘Walking the talk’
is a favorite phrase you do not talk about values, you live them.

Tata group is an exemplar of this process.

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 Vision Mission Values

for Tatas the purpose:

is to improve the quality of lives of the community we serve and that has what has led us to embrace a number
of initiatives that our collaboration and various stakeholder groups, that has what has earned the trust of various
stakeholder groups and that has what has ensured sustenance of 150 year old organization.

Tata Steel Vision

We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship through
the excellence of its people , its innovative approach and overall conduct.

Tata Steel Mission

Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial
base through effective utilization of staff and materials. The means envisaged to achieve this are best technology and
high productivity, consistent with modern management practices.

Tata Steel recognizes that while honesty and integrity are essential ingredients of a strong and stable enterprise,
profitability provides the main spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all it does in an atmosphere free from fear, and
thereby reaffirms its faith in democratic values. 6
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Tata brand has been built on one of the The Tata Code of Conduct was first formalized by
main pillars
Mr Ratan Tata. It articulates the Group's values
Tata Code of Conduct
and ideals that guide and govern the conduct of our
companies as well as our colleagues in all matters
relating to business. Today, the Code is a bedrock
on which we base our individual, as well as
leadership commitments to core Tata values.
N Chandrasekaran, Chairman, Tata Sons
February 21, 2017

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About Tata Values- Guardians of the Legacy-

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 The core values that define us - Integrity

We will be fair, honest, transparent and ethical in our conduct; everything we

do must stand the test of public scrutiny.
" We have come to recognize that no wealth or “Knowledge and experience can be
power can be more valuable than our dignity; acquired, but honesty was in the DNA.”
no loss of profit can be more critical than loss of “It may look different in the next 30 years,
credibility; no skills or qualification can 50 years, but it should embody the same
substitute the integrity of our character.“ values and the same ethical standards that
it has had.”
- JRD Tata - Ratan Tata
The Tata Group has achieved success without losing sight of the core beliefs, and without
compromising principles. Has always espoused the highest standards of ethics, integrity,
social consciousness, and fairness.

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 The core values that define us - Excellence

The business of excellence Innovation Future thinking

• Tata Business Excellence Model • Innovation in thoughts, processes,

approaches to consistently deliver The Tata group leverages
(TBEM),
breakthrough products and innovative technologies, new
• The JRD QV Award function held
services. thinking and breakthrough
during the Annual Group Leadership
• Tata Innovista is an annual pan- ideas to stay future-ready
Conference (AGLC)
Tata event that encourages
creative thinking and recognizes
and awards innovation in group
companies

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 The core values that define us - Unity

We will invest in our people and partners, enable continuous learning, and build caring and
collaborative relationships based on trust and mutual respect.

• Society is unity in diversity – George Herbert Mead

• Rich legacy of working closely with diverse stakeholders to create and deliver value.

• ‘Leadership with trust’ emphasizes its approach to doing business in an ethical, transparent
and sustainable manner.

• Diversity and inclusion (D&I) strategy for the workplace plays a key role in shaping business
perspectives.

• Synergy between various divisions of TSL , group companies, business associates to bring in
new learnings and adoption of best practices

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 The core values that define us - Responsibility
We will integrate environmental and social principles in our businesses, ensuring that
what comes from the people goes back to the people many times over.
.

Underpinning the TSL vision is a performance culture

“ We do not claim to be more unselfish, more
committed to
generous or more philanthropic than other people.
• aspiration targets,
• safety But we think we started on sound and straight
• social responsibility,
forward business principles, considering the
• continuous improvement,
• openness and transparency. interests of the shareholders as our own, and the
health and welfare of the employees the sure
CSR strategy, Tata Steel has identified
foundation of our prosperity”
• education,
• health,
• livelihoods and rural infrastructure as priority areas. -- Jamshetji N Tata 1895

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 The core values that define us - Pioneering

Tata was the first to start a

A pioneer of industry daycare and primary classes
Starting as a trading firm in for children of women mill
India, Tata has grown to a 100- workers back in 1886
company 100-country
footprint. A quick look at this
fascinating 150-year journey
and the group's pioneering
efforts in building industry.

Tata Steel was the first Indian
company to introduce 8-hour
working days in 1912, at a time
when a 12-hour workday was the
legal maximum in Britain
India's first industrial town,
Jamshedpur, was built in 1912 as the
base for Tata Steel, India's first steel-
making facility
The establishment of Tata Steel in
1907 marks the birth of pre-
independence India's first steel plant.
India's first tinplate facility was also
set up by Tata in 1920

http://www.tata.com/htm/150-year-journey/index.html# 13
 The core values that define us - Pioneering

Welfare Measure at Tata Steel Adopted by ILO Enforced by Indian Law

Measure Year Year Convention Name Year Legal Measures
Eight hour working day 1912 1919 Hours of Work (Industry) 1948 Factories Act
Free Medical Aid 1915 1927 Sickness Insurance (Industry) 1948 Employee State Insurance
Act
Leave with Pay 1920 1936 Holidays with Pay 1948 Factories Act
Workmen’s Accident 1920 1925 Workmen’s Compensation 1923 Workmen’s Compensation
Compensation Scheme (Accidents) Act
Technical Institute for Apprentices 1921 1968 Apprentices Act
and Engineering graduates

Maternity Benefits 1928 1919 Maternity Protection 1946 Maternity Benefit Act
Suraksha Scheme for Contract 2012
Labour
Five Day Work Week, Work from 2016
Home and Satellite Operation in
Manufacturing Sector

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 About Tata Values-Group’s Mission rearticulated

“To improve the quality of life of the

• Refreshed the code of conduct in
community we serve globally through
long term stakeholder value creation 2015 after a 7 year interval.
based on leadership with trust.”
• Changes in terms of both structure
Need to provide the tools to guide towards and content.
ethical conduct & businesses to conduct in
• More accessible and more inclusive
a values driven manner.
for more increasingly young force.
Tool -The Tata code of Conduct -The
• Tonality which is more
code lays down the ethical standards that
Tata colleagues needs to observe in their approachable and not top down and
professional lives.
hierarchical.
First crafted in 1998 by visionary leader • And included many illustrations and
Mr. Ratan Tata, it reinforces the value
examples of many ethical dilemmas
system that has endured since the group
was founded. and how they may be resolved.

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TATA CODE OF CONDUCT
LAUNCH VIDEO

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Summary of 13 core principles

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 Management of Business Ethics implementation at
Tata Steel

Management of Business Ethics

Compliance structure

Communication and

Measurement
Leadership

Training
Integrity, Excellence, Unity, Responsibility, Pioneering

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 Corporate Governance
Board of Directors
TSL India Ltd.
Integration of
Feedback Group’s Group Ethics Officer
Direction
Comprehensive  
Audit Committee TSL
Strengths
Chairman Independent Director
Direction Audit &Feedback
Board
Apex Ethics Committee
Chairman CEO& MD TSL, Group
Principal Ethics Officer Tata Steel
Direction Approval
OEC
Ethics Committee TIS Grp Governance Committee
Organisational Ethics Council
Chairman VP Finance I &SEA (Chairman VP Finance I &SEA)
Chairman –Chief Ethics Counsellor
IC VGRC
Direction Feedback & Internal Committee Vendor Grievance Redressal
Reports Chairman-19Sr. Lady Executive Committee (Chairman- VPSM)
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 Organisation Structure
Chief Ethics Counsellor, Tata Steel
Tata Steel India Group Companies

Head Ethics, Sr. Manager Ethics

Tata Steel India Group Companies, Tata Steel India Operations, Raw
SEA, Growth Projects &Profit Centres Material, Marketing & Sales

Manager Ethics Departmental Ethics Ethics Champions

Coordinators~ 154 ~ 100

Sr. Manager Ethics Sr. Manager Ethics Sr Manager Asst. Manager

Out locations & TIS ABAC,AML & Case Mgmt. Ethics Ethics
group TSK

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 Tone at the Top

Ethics Pause in CEO & MD Online Town Hall Events

A member from the Senior Leadership team Town Hall Events at different locations/
communicates on one clause of Tata Code of divisions –engagement with Sr.
Conduct and related violations reported along with Management and employees
consequences. It is an effective communication
mode for covering all employees of TSL India and
South East Asia.

Sr Leadership Speaking/ thoughts Ethics at the centre stage

• Message about ethics in all important
• Massage from Chairperson Ethics Committee ( used in meetings and dialogues
• Ethics pause in departmental meetings
IL3 programme)
• Sr Leadership thought through Ethics Newsletter
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 Whistle Blowing Channels

Telephone Letter to CEC

Mail to EC
0657-6645544
tripti@tatasteel.com
Mail Box No. G-33
0657-2756595 Tata Steel Jamshedpur

‘Speak Up’ service

Toll Free No.
1800 103 2931
Access Code: 26790
www.intouchfeedback.co.uk/tsindia
Personal appointment with EC
Or Leadership whom you trust
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 Appropriate Consequence Management
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2 Preliminary
3 Investigation of 5 Reporting
1 Reporting Concern assessment 4 Action
Concern

Receive Investigate Conclude Domestic Enquiry

Need Domestic Y Charges
(Internal/ External) & report to VP/EIC (120 Days)
Enquiry? established
(45 Days)

Sources: Anonymous, Employee, N

Y
Non –employee, Contractor ,vendor N
Mode: Verbal, 3rd party Hotline, letter
Action to be proposed by VP/EIC
(as per Consequence Management) No Action

Y
Approve / Modify proposed action by
Ethics Committee

The maximum cycle time is 60 days
Without Domestic enquiry and
180 days with domestic enquiry
Action by VP/EIC or Department Head of accused
Log proposed action or finding of
departmental enquiry
In Ethics system 23
by Ethics Counsellor 23
( to be used for talent review & promotions)
 Encouraging Whistle Blower
Whistle Blower Protection
We do not tolerate any form of retaliation
against anyone reporting legitimate
concerns. Anyone involved in targeting such
a person will be subject to disciplinary
action.
If you suspect that you or someone you
know has been subjected to retaliation for
raising a concern or for reporting a case, we
encourage you to promptly contact the Chief
Ethics Counsellor, the Human Resources
department, the CEO MD or the office of the
group’s Chief Ethics Officer.
Whistle Blower Reward and Recognition
In order to encourage more and more courageous
whistleblowers in the organization, it is decided that
Whistleblowers will be rewarded/recognized for
genuinely blowing the whistle on misconduct.
Depending upon the importance of the information
whistle blowers are rewarded with:
• an appreciation letter signed and handed over by
MD himself
• a cash prize upto one Lakh rupees.
 Conflict of Interest

Conflict of interest includes situations:

• Where an employee’s private affairs or financial interests are in conflict with his/her work duties, responsibilities
and obligations, or results in a perception that a conflict exists.

• That could impair the employee’s ability to act in the Company’s interest.

• Where the actions of an employee would compromise or undermine the trust of stakeholders.
 Salient Points of Conflict of Interest Policy
1. Employees and executive directors shall not 5. Don’t accept hospitality/entertainment from
engage in any business, relationship or vendor/supplier which can or perceived  as such to
activity, which might conflict with the interest influence your decisions.
of our company or our group companies.
6. A conflict of interest arises
2. In case of any contractor/ vendor /  when an employee is in a position to influence
subordinate being your relative, disclose the decisions such as increase in salary or other
relationship to the Ethics Counsellor and remuneration, posting, promotion or recruitment of
Departmental Chief through online a relative or a person in close relationship.
declaration system.  when an employee or executive director engages
in a business, activity or relationship with anyone
3. Never certify the job of the
who is party to a transaction with our company;
contractor/Vendor who is your relative.
 
4. Never take part in any employment related  when an employee conducts business to influence
decision (promotion, bonus, performance a decision with regard to our company’s business
appraisal, transfer) of an employee who is with a supplier or customer
your relative.
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 Salient points of Gift and Hospitality Policy

Accepting Gift-
As a general rule, employees should discourage business associates from giving gifts.
However, gift from a business associate may be accepted in following situations:

Occasion Item
1a) Festivals or other ceremonial occasions Flowers, sweets or any other eatables

1b) New Year Articles of office use like stationeries, desk accessories with logo
of the donor Company.
1c) An event of a ceremonial nature (e.g., a Any item*
customer outing or in honour of a business (* All such gifts exceeding the value limit are to be reported to the
transaction) and is impractical or offensive to recipient’s Departmental Head and Ethics Counsellor by
refuse. disclosing in the Gift Register available on intranet
Gifts should be deposited in the office of Ethics Counsellor.
In any case the value of the gift should not be more than INR 3000. Any gift other than mentioned above needs to
be returned back to the donor with a timely and appropriate note explaining to the gift donor the rationale for
returning the gift.

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 Salient points of Gift and Hospitality Policy

The following gifts are never appropriate and should never be accepted:

1. Monetary benefit of any kind under any circumstances;

2. Gifts of cash or gold or other precious metals, gems or stones;
3. Gifts being given outside the workplace or venue of the business event;
4. Gifts given in the form of service or other non-cash benefit (e.g., a promise of employment).

Employees must never ask for any gift that benefits them personally, regardless of value.
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 Salient Points of Prevention of Sexual Harassment Policy

Provide working environment that enables Report sexual harassment experienced and/or
employees to work without fear of prejudice, witnessed to appropriate authorities and abide by the
gender bias, sexual harassment and all forms of complaint handling procedure of the company
intimidation or exploitation.

Refrain from any unwelcome behaviour that has A complaint in writing can be raised by the affected
sexual connotation (of sexual nature). person or by someone who has witnessed the
behaviour to the Internal Committee(IC) or Ethics
Counsellor within 3 months from the date of incident.

Refrain from creating hostile atmosphere at Suitable action against the Complainant who has made
workplace via sexual harassment. the false/malicious complaint.
 

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 Ethics Compliance Register -Features

a) COI : Not Declared / Awaiting Approval / Declared

b) TCoC : Not Accepted / Accepted
Darpan
c) TCoC: Not Completed/ Completed
d) POSH: Not Completed/ Completed

e) Gift: No Declaration / Total Value (if declared)

Ethics Compliance Register- f) Remuneration: No Declaration / Total Value

• Integrated System for all declaration

• Approval by Superiors a) Individual Level Dashboard that gives an employee his/her
• “compliance” with respect to the various dimensions:
Reminder to defaulters
• Mobile enabled

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 Training- New modules / variations
TBEM 2018 31

Workshop -
Fostering Ethical
behavior in
SMILE (Induction) frontline managers SMILE (Induction) Building ethical “Putting People
 Mandatory Web Conflict of Interest  Mandatory Web Culture- Our First”- Training by
based training Web based training based training Responsibility external faculty
MDP Program

New Joiners Officers at New Joiners Existing Middle

Senior Management
Lateral Operative Lateral Management
management

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 Communicating during Ethics Month

Ethics Zone” Senior Leadership

e-Magazine Communication
(Town Hall)
Leadership
Thought Rangoli
competition
Weekly online
crossword Musical Parody
Competition
Ethical Dilemma
discussion – on Ethics Film
Yammer Festival
Ethics Live Poll
Ethics month
intranet microsite
for event details
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e-newsletter launched: Ethics Zone
Leadership Thought

The Leadership thought

captured
In First time ever
e magazine on ethics - Ethics Zone
Throughout month for digital reach!!
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 Town Hall Events- Ethics competitions
Poster
Depicting the idea
and understanding
of the theme into
creativity
in a collaborative
manner!!!

Solved the Puzzles

Rangoli online
Involvement of both 125 no. participated
employees and 5 Winners!!
contract employees

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 Neeti Katha (Snippet Stories)
“Campaign based”
• Snippet stories in comic form

• Campaign based (dilemma / new policy/ violation)

• Circulated through emails and newsletters

• Joint initiative of Safety department with Ethics

department -“Ethics for Safety”
• Extended the third party helpline for registering ethical
violations on safety

• “Neeti Katha” released for employees and contract

employees explaining violations and reporting methods.

• Feedback on the campaign was taken through e mail and

poll on intranet

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 Measurement Framework
New

MBE Assessment
1.MD Report
2.VP Report
3.Audit Committee Report
4.Apex Ethics Report
Benchmarking Annual
Compliance 5.Daily Management Reports
exercise Report
Policy 6. Annual Business Tracker
Management
7.OEC Report – Tracker
Daily
Management

Ethisphere MBE Perception

Application Survey

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Thank You