TATA Group and Ethics

Presented ByAnvita Jain (PG – 11 - 081)Rutu Shah (PG – 11 – 107)

TATA Code of Conduct• Tata Group has more than a code of ethics, they have a Code of

Conduct in which a Code of Ethics is embedded.

• A comprehensive template of ethical behavior that guides the actions

and decisions of Tata employees.

• Values and beliefs are more vital in its context than structures and

systems.

• Since 1999, the group has circulated the Tata Code of Conduct to al its

employees, which is simple, easy to understand and easy to follow.

• Tata Code of Conduct (TCoC) has 25 clauses.

TATA Code of Conduct• National Interest - A Tata company shall be committed in all its

actions to benefit the economic development of the countries in which it operates.

• Financial Reporting and Records - A Tata company shall prepare and maintain its accounts fairly and accurately. Internal accounting and audit procedures shall fairly and accurately reflect all of the company’s business transactions and disposition of assets.

• Equal Opportunity to Employer – It shall provide equal opportunities to all its employees, based on merit, without regard to their race, caste, religion, color, ancestry, marital status, sex, age, nationality etc.

TATA Code of Conduct• Competition – It shall fully strive for the establishment and support of

a competitive open market economy in India and abroad and shall not engage in activities, which generate or support the formation of monopolies, dominant market, positions & similar unfair trade practices. Any collection of competitive information shall be made

only in the normal course of business and shall be obtained only through legally permitted sources and means.

• Gifts and Donations - A Tata company and its employees shall neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits that are intended to, or perceived to obtain business or uncompetitive favors for the conduct of its business.

TATA Code of Conduct• Government Agencies – A Tata company and its employees shall not

offer or give any company funds or property as donation to any government agencies or their representatives, directly or through intermediaries, in order to obtain any favorable performance of official duties.

• Political Non-alignment - A Tata company shall be committed to and support a functioning democratic constitution and system with a transparent and fair electoral system in India. A Tata company shall not support directly or indirectly any specific political party or candidate for political office.

TATA Code of Conduct• Health, Safety and Environment - It strive to provide a safe and

healthy working environment and comply to regulations regarding the preservation of the environment of the territory it operates in. It shall be committed to prevent the wasteful use of natural resources and minimize any hazardous impact of the development, production, use and disposal of any of its products and services on the ecological environment.

• Quality of Products and Services - It shall be committed to supply goods and services of the highest quality standards backed by efficient after-sales service. The quality standards of the company’s goods and services should at least meet the required national standards and the company should endeavor to achieve international standards.

TATA Code of Conduct• Corporate Citizenship - It shall be committed to be a good corporate

citizen. Social responsibility would comprise: to initiate and support

community initiatives in the field of community health and family welfare, water management, vocational training, education & literacy, etc. Would also not treat these activities as optional ones, but would strive to incorporate them as an integral part of the business plan.

• Cooperation of TATA Companies - A Tata company shall cooperate with other Tata companies by sharing physical, human and management resources as long as this does not adversely affect its business interests and shareholder value.

TATA Code of Conduct• Use of the TATA Brand - The use of the Tata name and trademark

owned by Tata Sons, shall be governed by manuals, codes and agreements issued by Tata Sons. The use of the Tata brand is defined in and regulated by the Tata Brand Equity & Business Promotion Agreement.

• Group Policies - A Tata company shall recommend to its board of directors the adoption of policies and guidelines periodically formulated by Tata Sons.

• Integrity of Data Furnished - Every employee of a Tata company shall ensure, at all times, the integrity of data or information furnished by him to the company.

TATA Code of Conduct• Citizenship - An employee of a Tata company shall, in his private life,

be free to pursue an active role in civic or political affairs as long as it does not adversely affect the business or interests of the company or the group.

• Reporting Concerns - Every employee of a Tata company shall promptly report to the management any actual or possible violation of the code or an event he becomes aware of that could affect the business or reputation of his or any other Tata company.

• Protecting Company Assets - The assets of a Tata company should not be misused but employed for the purpose of conducting the business for which they are duly authorized.

TATA Code of Conduct• Concurrent Employment - An employee of a Tata company shall not,

without the prior approval accept employment or a position of responsibility (such as a consultant or a director) with any other company, nor provide “freelance” services to anyone.

• Regulatory Compliance - Every employee of a Tata company shall comply with all applicable laws and regulations. If the ethical and professional standards set out in the applicable laws and regulations are below that of the code, then the standards of the code shall prevail.

• Ethical Conduct - Every employee shall deal on behalf of the company with professionalism, honesty, integrity as well as high moral and ethical standards. Failure to adhere to the code could attract the most severe consequences including termination of employment.

Good Deeds by TATA• When ULFA militants contacted TATA TEA, unwilling to give cash

TATA TEA offered to invest in the upliftment of the assamese people. The company setup 65 hospitals, 280 adult literacy centers, 173 childcare centers, a technical training institute and 110 schools etc.

• Ratan Tata’s help to TAJ hotel attack victims:-• Relief and assistance to all those injured and killed, those who were

employee with the company as well as those who died at the railway station and nearby areas.

• During the time the hotel was closed, the salaries were sent by money order.

• Psychiatric cell , assigning of mentors, outreach centers, trusts were setup

• Ratan Tata himself visited the people and extend whatever help was possible.

TATA Teleservices• Ratan Tata’s reputation of maintaining an ethical figure had hit a wall,

when Tata Teleservices had shut shop in J&K, Assam and North East Circle.

• Tata Teleservices is the countries sixth largest mobile operator.

• During a TV interview on July 9th, 2012 TATA Group Chairman Ratan Tata had regretted for his failure in creating a truly open, flat, transparent organization. It was evident that he was deeply pained because of the TATA Group getting dragged into the 2G spectrum allocation controversy (after the tapes of corporate lobbyist Nira Radia were leaked to the media)

• Three CDMA licenses of TATA teleservices where cancelled by the supreme court in February 2012.

TATA Teleservices• Since TATA teleservices did not have any more spectrum to operate in

these areas, the only way TATA could have lived to their words of ethics and value was to buy, or atleast bid of buying for spectrum in these areas. But TATA chose not to.

• When the opportunity came to show the ethics and prove the world, TATA simple decided to ignore their 3,20,000 customers from these three circles. TATA withdrew from the bid stating the price was too high.

How IT Affected The Employees

• The company didn’t tell about the extent of headcount reduction in the Assam and Northeast circles

• Tata Teleservices had internally communicated its decision to stop CDMA operations in these circles. Staff relocation to other circles would "strictly hinge on availability of suitable jobs".

How IT Affected The Customers

• About 3,20,000 plus customers affected.• Company sent a notification to its customers that

the services will be closed down from 18/01/2013.• The customers who have bought CDMA devices

(Photon Whiz, Photon+ etc) will not be able to use these devices anymore.

• Customers are not yet compensated neither alternate arrangements have been made for them.