TATA MOTORS (code of conduct , corporate governance, csr)


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TATA MOTORS (code of conduct , corporate governance, csr)

  1. 1. Introduction to TATA MOTORS.Code of Conduct. Human Rights practices.Whistle-Blowers policy. Stakeholders engagement policy. Corporate Governance.CSR. Singur- Controversy.
  2. 2. Tata Motors is a part of the Tata Group manages itsshare-holding through Tata Sons. The company wasestablished in 1935 as a locomotive manufacturingunit and later expanded its operations tocommercial vehicle sector in 1954 after forming ajoint venture with Daimler-Benz AG of Germany.Despite the success of its commercial vehicles, Tatarealized his company had to diversify and he beganto look at other products.
  3. 3. • FOUNDER - JRD TATA• HEADQUARTERS - MUMBAI,INDIA• KEY PEOPLE - RATAN TATA,CHAIRMAN• PARENT COMPANY - TATA GROUP• SUBSIDIARIES - JAGUAR AND LANDROVER• PRODUCTS - AUTOMOBILES AND ENGINES• Consolidated Net Revenue grows by 22% in 2010-11• Consolidated Profit Rs.2,424 crores (Rs.650 crores in 2009-10) 5
  4. 4.  “Leadership with trust .”• Employee Focus: Make the organization a Great Place to work .• Community Focus: Be a responsible corporate citizen .• Supplier Focus: Treat Suppliers as partners .• Shareholders Focus: Demonstrate superior results .• Customer Focus: Improve Customer Satisfaction. 6
  5. 5. Tata Code of Conduct•The values and principles which have governed themanner in which the Tata Group of companies and theiremployees have conducted themselves were firstformally articulated as the Tata Code of Conduct•This Code was intended to serve as a guide to eachemployee on the values, ethics and business principlesexpected of him or her in personal and professionalconduct.
  6. 6. • National interest• Financial reporting and records• Competition• Equal opportunities employer• Gifts and donations• Government agencies• Political non-alignment
  7. 7. • Health, safety and environment• Quality of products and services• Corporate citizenship• Cooperation of Tata companies• Public representation of the company and the Group
  8. 8. Cont…• Third party representation• Use of the Tata brand• Group policies• Shareholders• Ethical conduct• Regulatory compliance
  9. 9. • Concurrent employment• Conflict of interest• Securities transactions and confidential information• Protecting company assets• Citizenship• Integrity of data furnished• Reporting concerns
  10. 10.  Human rights practices in TML!!• As seen in the last 5-10 years TATA group of companies adheres to the TATA code of conduct in its business.• TATA code of conduct has covered all the human rights principles proclaimed in universal declaration of human rights.• However to strengthen and support internationally proclaimed human rights within the business of company, they decided to come up with following policies.
  11. 11. Whistle blower’s policy at TML!!• Extension of Tata code of conduct.• Reporting party with reliable info.• Clearly defines the composition and role of investigators and helps to take remedial action.• Policy mentions pre-requisites to ensure that the identity of this policy is kept confidential.
  12. 12. Mechanisms to measure effectiveness of senior leadership:TYPE OF REVIEW FREQUENCY CHANGES DRIVENBalanced scorecard Month, quaterly, Yearly Personal team/ResourcesEmployee survey Annually Personal & policiesPerformance review Annual with semi-annual Personal & team updatesFocus group and skip- Monthly Personal & policieslevel meetingsTBEM[internal and Half-yearly and annually Processes & linkagesexternal]improvementinitiativeSelf-evaluation Weekly and monthly Personal actions
  13. 13.  Stake-holders engagement model at Tata motors!!! Engage with Learning Identify stakeholder and issues feedbacks &concerns Report Priority to back to the issues stakeholder & concern Take Address necessary Set goals & the issues decions targets & concerns
  14. 14. Corporate governace• “the system by which companies are directed and controlled".• Corporate governance refers to the set of systems, principles and processes by which a company is governed.• They provide the guidelines controlled such that it can fulfil its goals and objectives.
  15. 15. Principles of corporate governace• Rights and equitable treatment of shareholders• Interests of other stakeholders:• Role and responsibilities of the board:• Integrity and ethical behavior• Disclosure and transparency.
  16. 16. Type Nos.Complaints regarding non-receipt of dividend/interest, shares lodged for transfer 221Complaints received from the shareholders through SEBI and other statutory bodies 66and resolvedComplaints redressed out of the above 286Pending complaints as on 31.3.2011 1Other Queries received from shareholders and depositors and replied 15377
  17. 17. CSR in TATA MOTORS• Health1. Healthcare provided to nearly 3,00,000 people annually2. Sanitation drives conducted with participation of over 40,000 villagers in over 50 villages3. Amrutdhara Project implemented to provide safe drinking water to 100 villages in the next three years4. Smoke efficient chullahs installed in over 200 villages to curb respiratory problems• Education1. Infrastructure ans facility upgradation benefiting 50,000 students annually2. Teacher’s training for more than 2000 primary school teachers3. Nearly 500 students supported through scholarships annually
  18. 18. • Employability1. Adopted 21 it is under public-private partnership schemes2. Over 1600 women benefited through SHG’s.• Environment1. Close to 10000 trees planted annually2. Over 2000 families benefited from improved irrigational facilities3. Over 4000 community members sensitized on environmental issues
  19. 19. Cont..• At Lucknow Plant, there has been a drastic increase in electrical energy due to commencement of a new production facility• Invested Heavily to provide Bus transportation Facilities to employees.• They also conduct in-house blood testing, health awareness lectures and seminars• Focus on tree plantation, wasteland development, encouraging usage of biogas plants, and rainwater harvesting initiatives.
  20. 20. Training programme Coverage of populationModern agriculture Training 310Mushroom production 50Vermin Composting 160Horticulture and timber plantation 210Sewing Stitching and Embroidery 150Personality Development 75Computer Training 125Fish Farming 370Shg and Enterpreneurship Training 30
  21. 21. TATA Nano Singur Controversy•Tata Nano Singur Controversy refers to the controversy generated by land acquisition of the proposed Nano factory of Tata Motors at [Singur] in Hooghly district, West Bengal, India.•Singur gained international media attention since Tata Motors started constructing a factory to manufacturetheir $2,500 car, the Tata Nano at Singur. The small car was scheduled to roll out of the factory by 2008.
  22. 22. Conti…• Chief protesters include the opposition parties spearheaded by the Trinamool Congress under Mamata Banerjee and Socialist Unity Centre of India.• Chief protesters include the opposition parties spearheaded by the Trinamool Congress under Mamata Banerjee and Socialist Unity Centre of India.• The Tata Group announced on October 3, 2008 that they are pulling out of Singur due to the political unrest and agitation.
  23. 23. • Gujarat Chief Minister Narendra Modi has given the Tata Motors a deal it will never forget. A deal that convinced the auto giant to choose Gujarat over other states as the site for the Tata Nano plant.• The biggest incentive was a Rs 9,570 crore soft loan over 20 years — close to 25 per cent of Gujarats annual budget.• Tata Motors will repay the loan in 20 years, at 0.1 per cent interest rate and will repay the land price in eight equal annual installments.
  24. 24. • The government will also provide a four-lane road connectivity and also exempt Tatas from electricity duty, registration and transfer charges of land.• It will also put up a waste disposal plant, supply natural gas through a pipeline and provide 100 acres near Ahmedabad for a township.
  25. 25. Questions to be asked??• Do you think that this deal was fair enough from the government point of view?• Is providing such a huge amount of loan at just a minimal interest rate fair?• Well what about the welfare of the people at Singur who faced complications due to controversy?