Management of Business Ethics

The values and principles, which have governed Tata Steel’s business for a century have been deployed through implementation of the Tata Code of Conduct( TCOC). The process of implementation of TCOC among stakeholders is known as Management of Business Ethics (MBE), which is deployed effectively in the Company through its four pillars concept, which are namely,

• Leadership

• System and Processes

• Training and Awareness

• Measurement

A number of initiatives were taken to reinforce TCOC among employees and other stakeholders. The systems
and processes vulnerable to unethical practices were revisited and modified. A number of policies like Gift Policy, Whistle Blower Policy etc. were reinforced through various communications.

The senior leadership team in the Company was actively engaged in communication on business ethics at various levels and forums. A number of visible punitive actions were taken against the wrong doers and violators of TCOC. A value based leadership programme was also organised for senior members of leadership team.

A major step towards engagement of employees at shop floor into MBE, was taken by signing of TCOC by all Office Bearers of the Tata Worker’s Union. This has strengthened the process of reinforcement of TCOC among employees. In order to make all stakeholders aware various policies, a special campaign was launched during the Ethics month which was celebrated in July 2007. In order to improve sensitivity regarding ethics among management students and senior school students, various presentations were made in Business Schools and other educational institutions.

To cope with the globalisation and align and deploy the Tata Steel values and TCOC with our global companies, our Ethics Counsellor visited Tata Steel Thailand, NatSteel and launched TCOC in the month of July 2007. An integration process of value and TCOC with Corus was also taken up during the year.

The effectiveness of all these initiatives is measured by various internal and external surveys, the results analysed and improvement actions taken. One such external survey was conducted by TQMS for MBE Assurance survey where the Company has scored higher than its previous result. This shows that all key systems and processes are in place.