3.9 Identifying key stakeholders

The key stakeholders of the organization are those who are affected by its products, services and activities or those whose concerns can affect the performance of business.

The Vision statement clearly states that Tata Steel would continue to improve the quality of life of employees and the communities its serves. Further, the Vision has identified upholding the spirit and values of Tata’s towards nation building as the basis for attainment of strategic goals and vision.

Secondly, Group Purpose underscores the Tata Values on Nation building as “our heritage of returning to the society what we earn evolves trust among consumers, employees, shareholder and communities”.

The Vision and the Group Purpose statement clearly delineate the basis for identification of stakeholders i.e. consumers, employees, shareholders and community (including local, national, international, regulators etc.).

Finally, Tata Steel has identified “balancing stakeholders needs” as a key strategic issue.

The identification of stakeholders is derived from the vision of the company, which sets forth the strategic directions & strategic goals and emphasises upon upholding the spirit and values of Tatas towards Nation building. Thus the total stakeholder base of the company encompasses Shareholders, Financial Community, Customers, Media, Community, Employees, Regulators, Suppliers & Partners as presented in Figure#3.1. At Tata Steel the stakeholders are identified for most of the Key Enterprise Processes explained in Section-1.1 and then their concerns are integrated into the strategy map (Figure-1.5) that forms a basis for finalization of objectives and targets for implementation. The prioritisation of the stakeholders and their concerns flows from Tata Steel’s strategy map refer (Section-1.1) and MD’s Balance Score Card as explained in Figure#3.7.

Realizing the Vision of “sustainable growth” and “long term stakeholder value creation” also requires strategic and value creating partnership with suppliers which has been identified as a strategic objective. This sets out the basis for identification of stakeholder groups of relevance. Within each group of stakeholders, key stakeholders are identified based on strategic imperatives derived from the strategic objectives (Figure 3.1)

Figure#3.1 Stakeholder Engagement Process

3.10 Our approach to stakeholder consultation and communication

Approach to prioritised stakeholder consultation and the frequency of the consultation is furnished in Figure-3.2 & Figure-3.3.

Fig. 3.2-Fora and formal two-way management stakeholder communications

Figure-3.3 - Fora for two-way communications with employees

The investor survey, customer satisfaction survey, employee satisfaction survey and community need analysis are undertaken periodically and the inputs from these are used to prepare balance score card which is finalized by March month of every year for implementation with effect from 1st of April.