Board Members involved in managing risks and opportunities (3.4)
The agenda papers along with status report on economic, environment and social compliance are sent in advance to all the Board Members before the meeting for review, comments and suggestions during the meeting. The feedback from the board members is analyzed by the top management and considered for business decision-making.

Linking executive compensation with overall achievement (3.5)
Executive compensation is based on the achievement of individuals on parameters included in Key Performance Measures, which include both financial and non-financial parameters. At the beginning of the year a performance contract is signed by each executive, which forms the basis for assessing the performance of individuals when establishing the compensation packages.

Responsibility for Embedding Sustainability (3.6)
The Board exercises control, reviews implementations of various policies and provides direction through various Board Committees. The detailed composition and role of these committees have been described earlier in this chapter in Section-3.1. Although there is no separate committee of the Board for sustainability issues, the MD, DMD (Steel) and DMD (Corporate Services) are responsible to the Board for the sustainability performance of the Company.

Tata Steel’s leadership systems have two dimensions – the “Visionary” dimension and the “Architectural” dimension. The visionary dimension enables people to envision the future, to empower them and to energize them to achieve superior performance. The architectural dimension is an enabler and includes designing and creating structure, processes, policies, systems, strategies, and measures that support and enhance superior performance. These two characteristics are sometimes at conflict with each other, but the leadership constantly strives to strike a balance. At the heart of the leadership system are stakeholder expectations. These stakeholders’ requirements drive all leadership actions.

A key element of Tata Steel’s review mechanism of the implementation systems is an extensive framework of audits, which encompass all three elements of sustainability. These include internal and external financial audits, which are reported to the Audit Committee of the Board, internal and external EMS audits, TBEM assurance, social audits and OHSAS audits. While the Audit Committee of the Board reviews the internal and external audit reports, the EMS, OHSAS or Social Audit reports are reviewed by the Management Representative and senior management.

The key individuals responsible for audit of different aspects of the sustainability management system are:

• Internal Financial Audits by Chief Corporate Audit.

• Internal TBEM Audit by trained TBEM Auditors under the guidance of Chief, Business Excellence.

• Internal Audit for ISO-14001 EMS by Audit In-charge EMS & Chief, Environment & OH.

• Internal Audit for OHSAS-18001 by Audit In-charge EHS & Chief, Environment & OH.

• Internal Audit for SA 8000 by Audit In-Charge & Chief, Business Excellence.

• External Financial Audits by M/s. A F Ferguson and Billimoria and Company.

• External EMS Audit ISO-14001 by M/s. IRQS.

• External OHSAS-18001 Audit by M/s. IRQS.

• External TBEM Audit by TQMS, Tata Services.

• External Social Audit by a group of experts comprising a retired Judge of the High Court or Supreme Court, a social worker of repute & technocrat or representative of large business house.

• External SA-8000 audit by DNV.

Internally developed code of conduct and guiding policies (3.7)
The leadership team establishes, communicates and deploys Mission, Vision, Values and Code of Conduct. The strategic goals of the organization are derived from these and are cascaded down across the organization. The communication and deployment is done through channels such as dialogues, Union Management meetings, Joint Departmental Councils (JDC) and other Forums. The leadership system at Tata Steel is organized in Apex Teams of Quality Councils, Committees on HRD, IT, R&D and others. It is led by the Apex Quality Council. The strategic directions set by the council are translated into actionable drivers and cascaded down to the operational levels through the Quality Councils / Quality Sub Councils / Departments. The leadership system is deployed through constant review of organizational performance and by initiating corrective action and/or setting stretch targets with a focus on achieving business objectives.

The Vision statement of Tata Steel is presented on the inside of the front cover page. Guiding Policies, Code of Conduct, etc. are included as Annexures in Section-VII.