Approach towards Social Development

• Leadership & Policy Support: The management has adopted the Article of Association on social responsibility. The Company has a Social Accountability Policy and a Corporate Social Responsibility Policy, which were released in 2003.

• Strategy on Corporate Social Responsibility: The Company has annual programs as per the Tata Council for Community Initiatives (TCCI) Guidelines. The Company has a matrix of its competencies stating the exact opportunities for action.

• Allocating resources & system of accounting: The Company recognizes that social expenditure is a developmental cost and records it under a separate account head. Social expenses are distinct from employee welfare.

• Assigning key responsibilities: The management has key persons deployed for this work and its management representative has annual goals by means of KRAs.

• Communication strategy: To keep employees and the public at large informed about the Company’s work on social responsibility, the Company publishes its reports through newsletters, in-house magazines it’s website and the Directors’ Annual Report.

• Volunteering: The Company encourages employees to volunteer for social work.

• Documentation: The Company documents its work methodically.

Tata Steel subscribes to Tata Council for Community Initiatives guidelines. The declaration of the Council on social responsibility made on 14.12.99 is presented below:

• The community is central to the core values we adhere to in the Tata Group.

• Tata Community programs aim at building trust and improving the quality of life.

• Tata programs facilitate sustainable change.

• We believe that the community gives us valuable opportunities to learn.

• Commitment to social responsibility is explicit in every Tata Company.

• We network through our core competence to empower communities.

• Tata volunteers are committed to the spirit of service.

Internal & External Audit Systems
Internal and external audits are carried out at predefined intervals regularly. While most of the audits are carried out half-yearly or yearly, the Social Audit is conducted once in ten years. The management structure and the agencies that carry out such audits are described in Section 3.6.

Management systems certification status (3.20)
Most of the units of Tata Steel are certified to ISO-14001 and OHSAS-18001. Units, which cater to the requirements of external customers like Finishing Mills are certified to ISO-9001-2000 and other departments/sections, (upstream production & service units) which have internal customer focus, are certified to Tata Steel Standard TS-13001, which is equivalent to ISO-9001. The units, which cater to the Auto industry requirements e.g. Flat Products and Bearings, are certified to TS-16949. In addition, the Steel Works and Sukinda Mines are certified to SA-8000.