CASE STUDY- I
TATA CODE OF CONDUCT
The fountainhead of the corporate governance of the Tata Power Company is the Tata Code of Conduct. The Company is committed to abide by it, in its letter and spirit. And the Company has earned the Tata Brand name by virtue of this commitment. It draws its strength from the five Tata values:
In Tata parlance they stand for –
We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.
We must be caring, showing respect, compassion and humanity for our colleagues and customers around the world, and always working for the benefit of India.
We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.
We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships, based on tolerance, understanding and mutual cooperation.
We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.
The name of TATA says it all. It encompasses the lowest common Tata denominator – the way others see the Tata Group.
A Tata company shall be committed in all its actions to benefit the economic development of the countries in which it operates.
It shall not engage in any activity that would adversely affect such an objective.
It shall not undertake any project or activity to the detriment of the nation's interests, or those that will have any adverse impact on the social and cultural life patterns of its citizens.
A Tata company shall conduct its business affairs in accordance with the economic, development and foreign policies, objectives and priorities of the nation's government, and shall strive to make a positive contribution to the achievement of such goals at the international, national and regional level, as appropriate.
FINANCIAL REPORTING AND RECORDS
A Tata company shall prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs.
All required information shall be accessible to company auditors and other authorised parties and government agencies. There shall be no wilful omissions of any company transactions from the books and records, no advance income recognition, and no hidden bank account and funds.
Any wilful material misrepresentation of and/or misinformation on the financial accounts and reports shall be regarded as a violation of this code.
A Tata company shall fully strive for the establishment and support of a competitive, open market economy in India and abroad and shall cooperate in the efforts to promote the progressive and judicious liberalisation of trade and investment by a country.
A Tata company shall not engage in activities which generate or support the formation of monopolies, dominant market positions, cartels and similar unfair trade practices.
A Tata company shall market its products and services on its own merits and shall not make unfair and misleading statements about competitors' products and services.
A Tata company shall provide equal opportunities to all its employees and all qualified applicants for employment, without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability and veteran status....
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