3.15 Our partnership with NGO’s, Industry Associations/Organizations

The table below illustrates some of our ongoing partnership projects in collaboration with other NGO’s, Industry Association/Organizations..

Organizations / NGOs Area of Partnership
The Global Business Council HIV/AIDS London (i) Preventive & Promotive activities (ii) Curative & rehabilitative activities
(iii) Adopt East/West Singhbhum for conducting AIDS awareness.
The Global Compact of the United Nations To promote good corporate practices in the areas of
(i) Human Rights (ii) Labour (iii) Environment
IISI Brussels, Ministry of Environment Forests New Delhi Life Cycle Assessment for Steel Sector and issues related to steel business like Quality, Technology, Markets, etc.
UNIDO, Confederation of Indian Industry, UNDP Water pricing for resource conservation. Market based instrument for pollution prevention in steel sectors.
EPIA, USA Adolescent Reproductive Health Project called SAHAS.
CARE International, USA To promote safe motherhood and infancy to reduce IMR and child mortality rate of less than 5 years of age (CMR <5) in 162 villages.
UNICEF WATSAN (Water and Sanitation Project) that will cover 100 villages.
Sir Ratan Tata Trust Rehabilitation and reconstruction work for the Orissa Cyclone victims.
The Calcutta Samaritans Running of a De-Addiction Centre at Baridih
CII/CIDA Implementation of Corporate Sustainability Management System
CII, FICCI, ASSOCHAM, ICC Market and business related issues.

3.16 Managing our upstream and downstream impacts

Performance of supplier and procedure for monitoring

Procurement Division of Tata Steel has deployed “bench marking” processes before introduction of any new vendor in the panel of suppliers. This follows a matured SERT (Search/Evaluate/Register/Trial) Methodology for introduction. However, Procurement Division does not monitor the economic performance of vendors, but confidential information is taken from the vendor’s various customer and bankers. Report is also being taken from Head, Vigilance about the credentials of the vendors before formally registering. Only after receipt of all these confidential reports, and if found satisfactory, the vendors are registered. As a step towards understanding the economic performance of the vendors, plans are on the anvil for analysis of the audited “balance sheet” for last three years for new vendor registration cases. However, this is yet to be formalized. As an interim step, a process has been worked out for “Vendor Analysis”.

In order to sustain the relationship with vendors under Tata Business Excellence Model framework mechanism, the following actions have been taken:

  • Training of vendors on safety and environment (more than 600 contractors on the above module).
  • Vendor Meet, chaired by MD/Dy.MD to create awareness on safety and environment.
  • Involvement of suppliers under “People Development Programme” in the Steering Committee/ Programme Committee & Organizing Committee for the “Labour Training Centre”.
  • Specific action plans and report back sessions of conceptualisation/development & implementation to facilitate contractors’ labours for training on safety and environment.
  • Training of basic attitude and safety/environment orientation to labours/supervisors/contractors.
  • “On line” data generation and analysis for the contractor performance on price, quality, delivery, safety/ environment on ERP (SAP).
  • Development and incorporation of safety/environment criterion in service entry by Works agencies on ERP (SAP).
  • Using safety/environment data integrated to Safety Rating to control future business with Tata Steel.
  • Involvement & recognition of vendors “safety slogans”, “safety poster competition”, “house keeping” etc.
  • Tripartite initiative with vendor, CITIBANK & Tata Steel for “Vendor Bank Financing with CITI BANK” on a WIN-WIN-WIN process. This improves the working capital for a vendor.
  • A new initiative called STP (Supplier Transformation Process) has been initiated at the Procurement Division and a few vendors have already been taken up under this programme as a PILOT Project.

Procurement Division has also created “single window” Call Centres to address concerns/grievances related to payment/changes like E Initiatives etc. for all suppliers. These three “Call Centres” are fully IT enabled set ups founded on SRP (Supplier Relationship Management) concept designed to address all concerns related to vendors and are highly sought after by them. Close monitoring on the compliance with labour laws as regards contractor’s social performance is carried out and defaulters are strictly penalized as per the norms laid out.

Ethics Counsellor & Procurement Division closely monitor adherence to Tata Steel Code of Conduct guidelines by suppliers. Defaulters are penalized as per the norms laid out. In Vendor Meet, top management also recognize suppliers who “show exemplary” ethical behaviour with Tata Steel. For the FIRST time, an IT based system has been implemented for “On Line Acknowledgement of CoC” by suppliers on the Internet at the e Procurement site.

M/s. METRIC CONSULTANT, an external consultant, was engaged to survey, study and measure “Vendor Satisfaction” and their concern. Plans are on the anvil to work out detail action plan on issues/concerns expressed by suppliers. M/s. IRS has been engaged to study and report at the supplier premises for “Vendor Capability Assessment”.

Steps taken by Tata Steel towards social organizations and SSI units for sustainability

In case of Social Organization and Small Scale Industry units, raw materials are issued to the vendors on a “conversion” basis for the supply of finished goods, spares, and consumables, again as a step towards reducing the “working capital” management of these small units. As a social responsibility, Social Organizations and Small Scale Industries are patronized by giving them order preference, which otherwise can be manufactured by others.
  

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