Business Ethics and Corporate Social Responsibility at Tata Steel

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Business Ethics and Corporate Social Resposibility

Tata Group’s corporate code of conduct

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Table of Content

Introduction ……………………………………………………………… 3

Theory …………………………………………………………………… 4

Methods ………………………………………………………………….. 6

Results ......................................................................................................... 7

Conclusion .................................................................................................. 11

References .................................................................................................. 12

Appendix .................................................................................................... 13

- Individual assignments

- review we have written

- appraisal of the review we have received

1. Introduction

The aim for this paper is to investigate whether Tata Group’s corporate behaviour complies with their corporate philosophy. Tata, India’s largest industrial conglomerate, spends each year millions of dollars on education, green energy, healthcare and charity.

The reason for choosing this topic is because Tata Group has been in the media recently regarding their takeovers. In 2007, Tata took over Corus group for 11.3 billion dollars and in 2008, they acquired Jaguar and Land Rover for another 2.3 billion dollars.

To understand the dynamics of the present, it is necessary to take a look into the past. The Tatas created a large number of employee benefits that would later be adopted through legislation in India and elsewhere in the world. The eight-hour working day, free medical aid, welfare departments, grievance cells, leave with pay, provident fund, accident compensation, training institutes, maternity benefits, bonus and gratuity — all of these and more were introduced by the group before any legal rules were framed on them. These workplace measures were complemented by what Tata companies created to enable their employees to live fuller lives away from their offices and factories. The Tata townships in Jamshedpur, Mithapur, Babarala, Hosur and elsewhere are examples of communal existence. The management training programmes conducted by dedicated group institutions are devised to help employees give expression to their talent. The volunteering and community work that have now become a ritual in Tata companies fulfils another employee objective, while taking care of the poor at the same time.

While Tata owns almost one hundred companies and has a market value of well over 45 billion dollars, the wealth does not flow back to the Tata family. In the annual Forbes-list of the world’s most wealthiest people, one cannot find Ratan Tata, the CEO and descendant of the founder Jamsedji Tata. The family owns barely three per cent of the shares of Tata Group, almost twothird of the shares is owned by Tata Trusts, a charity institute. This corporate behaviour is grounded in the ancient Tata philosophy; what comes from the people goes back to the people many times over.

While obtaining this information about Tata, a few questions came into our minds. Tata excels due to on one hand their large successes in taking over overseas multinationals, and on the other hand their corporate social responsibility and ethical behaviour. If a company can afford such large takeovers, do they withold that money from their stakeholders, which could have been otherwise used to improve their social circumstances? Is Tata doing their utmost to take care of their employees? Is Tata going to implement their corporate philosophy as well in the countries in which they acquired new companies? With this in mind, we came to our main question for this paper:

Because this is such a broad questions, we have decided to split up this main question into a set of sub questions which will be answered in the Results section.

1) What is Tata’s corporate philosophy and code of conduct? 2) What is the HRM policy for Tata’s...
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