Managing upstream and downstream impacts (3.16 & 3.17)
Performance of Supplier and Procedure for Monitoring

The Procedure for monitoring contractor/supplier compliance with various statutes & management systems is given in Table 3.15

Table 3.15: Suppliers Performance Evaluation

Stage of monitoring

Compliance to various statutes Frequency
At vendor registration Sales Tax Registration, Number (State and Central), Provident Fund Code (for all service providers), Excise Registration Number, PAN Number, Employees State Insurance. SA-8000, ISO-14001, OHSAS-18001 compliance At registration stage for vendors (both for suppliers and contractors)
While dealing with Tata Steel
Vehicle registration papers, road tax papers, driving license for drivers and pollution under check certificate.
Non-submission of Excise Duty Gate Passes.
Specific cases of violation as pointed out by Provident Fund Commissioner, Income Tax Authorities, Sales Tax Authorities and Excise Authorities, Police, etc.
Checking all the cases, all the time and for all vendors.
Deducting from pending bills/ running bills for non-submission of ED gate pass.
Random checks by Security Departments for vehicles plying to and from the Steel Works.
Deduction by accounts for specific cases.
Details furnished on case-to-case basis on demand.
Handled only as exceptions
At invoice verification stage.

Product & Services Stewardship Initiatives
All units of Tata Steel are certified to ISO-9000, ISO-14001 and the main steel works at Jamshedpur and Sukinda Mines are certified to SA-8000. Life Cycle Assessment is carried out from cradle to gate (from mining to Hot Rolled coils) to systematically analyze the inputs and outputs, which can have adverse impact on environment and society. Targets are set as a part of annual business planning to continually improve the environmental and social impacts of our products, services and activities through better operating practices and technological intervention. In the downstream operations (supply of steel to stock yard and customers), Tata Steel recycles the wooden and structural supports used during shipment.

Customer Satisfaction
Key processes for determining satisfaction of customers and building relationships for retention are done through “Manage Customer Accounts” and “Measure Customer Satisfaction” processes. Specific customer acquisition plans are drawn up on an annual basis during Annual Business Plan formulation, which is reviewed periodically. The determination of customer satisfaction is done segment-wise using products/ service attributes as parameters. This is achieved by conducting annual surveys through an independent surveyor. Customer complaints, if any, are handled and resolved expeditiously through a well-defined process.

The initiative on Customer Value Management focuses on adding value through long term collaborative partnerships with identified customers. The criteria for identifying key customers for Customer Value Management include Position on Product Portfolio Matrix, Impact potential, Nature of relationship (maturity, longevity of business, etc) cultural fit and strategic alignment.

There are no regulations on product information and labeling other than the standards on physical dimensions and chemical composition on various products manufactured by Tata Steel. Test certificates are issued at the time of delivery to the customer. No instance of non-compliance with regulations concerning product information and labeling, including any penalties or fines assessed for these breaches occurred in the reporting period.

Major changes during the reporting period (3.18)
The details of mergers/acquisition/closures are furnished in Section-II under Section-2.14.

Programmes & Initiatives towards sustainability at a glance (3.19)
Prioritization, target setting & senior management review

The management leadership prioritizes the concerns of stakeholders based on current business needs, market situation and the need to improve the quality of life of the “communities Tata Steel serves.” The targets are set based on the historical data, technological and financial constraints and the industry benchmark as shown in Figure-3.3.